Preparing for Bitcoin Halving: 5 Tips for Bitcoin Casino Players
These are confusing times for Bitcoin casino players. If you play games like Bitcoin dice, solitaire, bounce, or any other Bitcoin game, your feed must be filled with news of the Bitcoin halving and all the good (or bad) that it can bring to the crypto community, which includes crypto gambling. Whatever might happen, it would be best to be prepared. Continue reading how to do just that, but first, what exactly is the halving?
What is the Bitcoin Halving?
The Bitcoin halving is a popular event that happens when approximately 210,000 new blocks of Bitcoin are added, where the amount of new bitcoins created as a reward per block is halved. It is programmed to control how Bitcoin is issued, ultimately making the token scarcer and keeping inflation in check. Doing so prolongs the time it will take for the Bitcoin maximum supply of 21 million to be reached, prevents the market from being flooded with new coins, and avoids a disruption of the market equilibrium.
It is not the first time Bitcoin is halving. In fact, it is the fourth time since the inaugural halving occurred on November 28, 2012, with the block reward reducing from 50 BTC to 25 BTC. The second was roughly four years later, on July 16, 2016, and it reduced the reward from 25 BTC to 12.5 BTC. The last and most recent occurred on May 11, 2020, and again halved the reward to 6.25 BTC.
But what does the halving matter?
You are probably wondering what the halving even matters to you; all you do is wager with Bitcoin and read gambling news. All this talk of Bitcoin halving sounds like some serious trader stuff, and you’re not sure how it’s your cup of tea. Historically, however, data shows that the halving event, to a great extent, affects Bitcoin price, and whatever affects Bitcoin price can influence your crypto holdings, how much you have to wager, and the value of your earnings.
The price at the time of the first halving was $13; after, it was $1,152. The second time, the price at halving was $664, and then it surged to $17,760. Third halving saw the price jump from $9,734 to $67,549. Now, the next one is upon us, and everybody is very excited and considering this data, for good reason, too. It is important to note that before the dust settled, the market was extremely volatile, characterized by extreme price fluctuations.
Because of this market volatility, you need to hedge your bets and secure your funds. The following are important tips for doing just that.
1. Everything is Speculation
Other than what happened at all the other Bitcoin halving events, everything else is speculation. Call it an informed guess if you must, but it is still a guess at the end of the day. Nobody knows for certain what will happen this halving; it can toe the line like the ones before it, with extreme volatility followed by an eventual price bump. Or it could decide to reverse the trend this time; the truth is nobody knows. It is important to note that speculation is better than going in blind, but don’t read too much into it; stay flexible and keep an open mind. Keep your eyes on what’s certain — your money.
2. Diversify your Portfolio
Bitcoin has for sure stood the test of time; it can be said to be going through another test, and we can only wait to see how it will fare. While you wait to see what happens, you want to diversify your portfolio. There are many ways to diversify your portfolio. They include adding small-cap and large-cap cryptos to your portfolio, investing in tokens with a price history that doesn’t directly mirror Bitcoin’s, and diversifying across different sectors and geographies.
Doing these would ensure you are offered some protection if Bitcoin’s price goes north post-halving.
3. Employ Proper Risk Management
Whatever the outcome of the halving, every Bitcoin casino player needs to observe proper risk management. The first step would be to have most of your holdings in one or more stablecoins, with USDT and USDC being two of the most popular. As evident by their name, these coins offer protection from the volatility of the market. You can quickly convert back and forth to Bitcoin when you are ready to wager. It is important that you only convert the exact amount you need and are willing to lose if Bitcoin starts to lose value.
Just as crucial as knowing how much Bitcoin to have in your gambling wallet at a time is knowing how to get the most out of that amount. Proper bankroll management will ensure you keep your money for longer, make more wagers, and increase your chances of turning a profit.
4. Read the Market Sentiment
Right now, the sentiment is largely positive. People are convinced that because the price has rallied other times before now, it should be much of the same. What they are not considering is that the reward for creating new blocks is also going to be the smallest it has been at 3.25 BTC. The consequence can be that miners no longer consider it enough incentive to keep on mining, especially considering how energy-intensive it is to run these mines and new regulations popping up everywhere to cut down on energy use or increase taxation. Some people might decide it just isn’t worth the hassle anymore, which can then drive bitcoin prices down.
So don’t just go with what is forecasted. Instead, keep your ears to the ground, get firsthand news as it develops, and be ready to react either way.
5. Leave room for external influences
The Bitcoin halving is not a standalone event that by itself determines how Bitcoin acts in the market. There are external forces that hold just as much sway; they include regulations in space, cybersecurity issues faced in space, and even general unrest in some parts of the world. All these and more are part of the data you need to constantly collect to paint the full picture of what volatility there is to expect and how it can affect you as a Bitcoin casino player.
