Everything to Know About Bitcoin Halving

Everything to Know About Bitcoin Halving

Bitcoin halving is one of the concepts you need to be familiar with if you are interested in trading crypto assets. This is a popular term among the crypto traders around the world. However, understanding what it means and how it affects the markets and more can be difficult for people who are new to the crypto space.

The crypto space is vast and volatile and novice parties can come across several risks. These risks cannot be eliminated completely but if the crypto traders or investors have some helpful information they can manage the risks and have a good overall experience.  

This is why it is important to know about concepts such as halving and details such as the next Bitcoin halving and more. If you are a novice crypto trader, here is what you should know.

What is Bitcoin Halving?

As mentioned earlier, the halving concept is one of the most popular and important ones you should know about as a crypto trader. 

This is a one-time process that occurs after every four years. This process has been set into place for a purpose, which is to prevent the crypto king from inflation while ensuring that its price keeps surging as time goes by.

Therefore, as the name suggests, Bitcoin halving is when the future supply of BTC is reduced to half. This results in the decrease of the total supply of new Bitcoin in the crypto market. 

While the halving feature reduces the number of total Bitcoin in the market by half, new Bitcoin is created by the miners. Therefore, it can also be said that this feature also affects the miners, which is discussed in detail below. 

Mechanics of the Feature

The last halving took place is 2020, according to which the next Bitcoin halving is set to take place in 2024. Therefore, if you haven’t stepped into crypto trading yet but intend to do so, then you need to know other details of the feature as well, such as its mechanics.

There are two countdowns of the halving, one of which moves a little faster or slower than the other. The reason being that a new block is added after every 10 minutes but its time changes on a day-to-day basis.

As the block time for the Bitcoin halving changes, so does the ETA of the countdowns. If the Bitcoin hashrate increases significantly it can cause the next Bitcoin halving to occur sooner than expected or vice versa.

Considering that the halving can speed up or slow down, a more accurate estimation to keep is that it occurs after every 210,000 blocks.

Can you Benefit from the Halving?

Crypto traders who are familiar with the concept make use of several ways to benefit from the halving. However, the best strategy to know about is the buy and hold strategy. 

Using this strategy means you can purchase the flagship crypto asset and hold it until the price surges after the Bitcoin halving is completed.

People in the past have benefited by investing like this, however, nothing guarantees profits and every trader should gather helpful information, knowledge and make trades carefully.

Where to Buy BTC Before Halving?

If you are interested in buying the crypto king before the next Bitcoin halving then you need to know how and where you can purchase it. There are several crypto exchanges in the market that are known to support Bitcoin and offer outstanding features and services that make crypto investing easier and convenient for everyone.

However, choosing a crypto platform may not be as easy as one might think as there are numerous platforms in the market and they all offer different quality of services. If you know what kind of exchange to look for then you can choose the best one and invest in BTC before Bitcoin halving occurs again. 

Here is what you should look for in an exchange to use.

  • Fair and transparent fee structure
  • Impressive customer support
  • High-end security systems
  • Advanced trading tools
  • User-friendly interface

Affects on Miners and General Markets

As mentioned earlier, the crypto miners are affected by the halving feature and will be impacted by the next Bitcoin halving. When this process occurs, the total amount of new BTC that is awarded to the miners are reduced to half.

This means that new Bitcoin that is created from validation of blocks substantially reduces while the demand for the digital asset continues to increase.

On the other hand, Bitcoin halving also affects the general markets as BTC is the flagship crypto asset and has approximately 60% of total market dominance. When the price of BTC moves the prices of the altcoins also move. 

However, a surge in BTC’s price causes the prices of altcoins to drop as people start moving their funds out of the altcoins to invest in the flagship crypto asset. This usually occurs after every halving and is likely to happen after the next Bitcoin halving as well.

Read About: How to recognize legitimate access to homework help services