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Warren Buffet’s most famous words of advice are to “be fearful when others are greedy, and greedy when others are fearful.” He made billions from the idea, buying low-priced stocks when other investors had lost faith, and selling them during bull markets when greed and euphoria had set in. 

Modern investors have distilled this message into an even simpler phrase: “Buy the fear, sell the greed.” Bitcoin and the rest of the cryptocurrency market has seen a massive drop in value over the past few months—to some, this is a cause of concern. To many others, this is a golden opportunity to purchase bitcoin at what they see as a discounted rate. 

Mere months ago, traders were happy to pay nearly $70,000 for a single bitcoin. Now, as the price sits at nearly half that, there is a strong sense of fear in the air. But rather than succumbing to that fear and selling for a loss, many investors are choosing to “buy the fear” and pick up more crypto at a discount. 

In both the stock and cryptocurrency markets, we have seen time and time again that the fear can fade and the value of the assets can make massive rebounds. When the crypto market inevitably rebounds—whether that be in two weeks or two years—the investors who chose to “buy the fear” will be able to reap their rewards and “sell the greed” that comes with a bull market.

In recent years, Bitcoin and cryptocurrency have become common investments, especially with younger demographics. Given the rapid rise in adoption (and therefore, value), Bitcoin is now worth thousands of dollars per coin, catching the eyes of first-time investors.

A Safer Bet in the Crypto World

There are thousands of different cryptocurrencies, and more are being created every day (many of which will eventually fail). Bitcoin is the original cryptocurrency and has a secure, long-standing blockchain. Most importantly, Bitcoin has the highest market capitalization (at the time of writing).

Limited Supply

Bitcoin has a limited supply. There will only ever be 21 million Bitcoin in circulation (after mining is complete). No government or entity can create more Bitcoin. This prevents the massive inflation that is common in modern economies.

Decentralized Currency

Decentralization is a key feature of Bitcoin. No one entity has control over any part of the Bitcoin technology. Unlike with traditional banks, your funds cannot be frozen or seized. Transactions are irreversible; once you send the Bitcoin, nobody can stop or refund the payment.

Possibility of High Returns

Since it is a newer technology, there is an inherent risk involved. But with higher risks come higher rewards, and in recent years, Bitcoin has only continued to prove its enduring value. If you believe in the future of blockchain technology, then Bitcoin may be the investment for you.

Bitcoin is the world’s leading cryptocurrency, invented by the mysterious Satoshi Nakamoto and first introduced in 2009. It was the first cryptocurrency and has since inspired hundreds of others, although none have reached the popularity and widespread use that Bitcoin has. 

Bitcoin was founded on the idea of decentralization, meaning that no company or person has control over it. Traditional banks can reverse transactions, freeze accounts, and monitor your spending; when using cryptocurrency, nobody can see or access your Bitcoin funds. And when a transaction is sent, it is anonymous and irreversible. 

The term ‘blockchain’ is commonly used in conjunction with Bitcoin. The blockchain is a digital record, or ledger, of every Bitcoin transaction ever made, making it nearly impossible for hackers to steal or counterfeit Bitcoins. 

Unlike the US Dollar, Bitcoin is a deflationary currency. Today, there are over 18 billion Bitcoins. By the year 2140, the last Bitcoin will be mined, with a total end supply of 21 million. No more can be created or introduced to the supply after this point, which prevents the outrageous inflation that most modern economies are experiencing. 

With a market cap of around 1 trillion dollars (at the time of writing), Bitcoin is valued higher than the stocks of successful companies like Walmart and the Walt Disney Company. Only time can tell if Bitcoin will continue it’s historic rise in value and usage.

Bitcoin wallets are used to store, send, and receive cryptocurrency. A Bitcoin wallet has two parts: a public address to receive funds, and a private key to access and send the funds. If your private key is ever compromised, your Bitcoin and other coins can be stolen. Always choose trustworthy wallets and you shouldn’t experience any issues. Remember: not your keys, not your coins!

Mobile Wallets

Mobile wallets are one of the most popular ways to store and transact cryptocurrency. Mobile wallets allow users to store, send, and receive cryptocurrency anytime, anywhere. Many retail stores now accept Bitcoin as a form of payment, and mobile wallets are the best way to spend your Bitcoins.

Web Wallets

Web wallets utilize the same technology as mobile wallets, but they are only able to be accessed from a computer. Exchange wallets are also a form of web wallet. This refers to storing your cryptocurrency in exchanges (Coinbase, Kraken, Gemini, to name a few), which leaves all of your security and coins in the hands of one of these companies. Be cautious when doing this!

Hardware Wallets

Hardware wallets are the most secure form of cryptocurrency storage. Hardware wallets keep your private keys on a secure, offline device, while still allowing ease of use similar to web wallets. These types of wallet are also referred to as “cold storage,” as your cryptocurrency can’t be touched while the device is disconnected.