Things to keep in mind before accumulation of Bitcoin

[Hamza2424]

Source

In this Post you will find about BTC accumulation and tips to keep in mind before shopping Bitcoin. Many of you have known BTC’s history if not then pay a visit here.

What is BTC Accumulation?

We all know the meaning of accumulation but in terms of market cycles, it’s a phase. This phase starts when market comes to its worse stage or bottom line at this point, Public and Private Corporations starts to buy huge amount of BTC for long term. There are three more phases other than accumulation phase but i will share their articles later.
How much BTC has been accumulated by Corporations?
In 2021, According to NASDAQ, total accumulation of BTC was the 8% of the total BTC supply which is equal 1,660,473 BTC. But in 2022, According to Coindesk, total accumulation of BTC is 60% of the total BTC supply which is equal to 12.92 million bitcoin.

When we should accumulate Bitcoin?

The price of BTC is $21,647 while writing this article and we all aware of the ATH (All the High). Many of us are fully sure that BTC will cross its ATH and there is no doubt in it, that’s what BTC was doing from the start.
We should started to accumulate BTC when BTC is in bear market after touching the ATH. Now is the Bear market and according to the amount of accumulation wrote above, Corporations had already filled their bags when BTC goes below $18,000.
We should use tools like Glass node to keep track of demand and supply, because when seller pressure increases, the bear market comes with great buying opportunities.

Source

Tips to keep in mind before accumulation:

1: Use Dollar Cost Averaging (DCA) Technique:

In this technique, we do not accumulate BTC in one trade. We divide the trades in to many parts. For example, if you are buying 10 BTC, Then divide them in 10 transaction. Like set buy order for 1 BTC at required price and place another buy order of 1 BTC at lower price than required price for better profit.
Because we don’t know the nature of market. Sometimes market goes in unexpected ways. So from preventing huge losses, we should work smart.

2: Use indicator to analyze market to take better entry:

The most famous and common tools to take entry is RSI (Relative Strength Index) which has two main components:
Overbought: When the indicator line moves above the channel then it is considered as overbought which means the asset has been overvalued and there is more chances of its price to decrease.
Oversold: When the opposite happens of above action than the assets is considered as oversold which means there are more chances of asset’s price to increase.
There is no doubt that indicator’s result will help you in making great entries either. But it increases the chances only instead of taking entry blindly. You can use a RSI tools for BTC only which will send notification on your twitter handle. Get this Tool from here.

3: Do not freak out:

One of the biggest benefit of long term investment is you don’t have to check market again and again. Thus you will face no tension. But to do that you have to build patience in yourself. Which you can do by not becoming a prey of FOMO (Fear of Missing Out).

4: Prevent from News Cycle:

As mentioned before, we don’t have to observe market again and again to book profits here. Because we are playing the long term game here like for 3 to 6 years some people holds more than that.
The news platforms will try to share every crypto related news which will make you sick. No doubt that, short term investors are greatly affected by news cycles and get into FOMO and lost their money. But here you know the big picture of BTC potential as how it touches around $68,789.63.

Tools for analysis when Whales enters market:

Whales are the market manipulator who trades more than 10 BTC at a time and these are the 1000 people who have the 40% of the total market. We will shed light on some tools to keep track of Whales activity to prevent from losses and to take profits.

1: Whales Alert

Whales Alert is a tool which collects data from all of the blockchains and provides alert notification on Whales transactions. It’s a free tool but with limited features you can buy it to get benefit from all of its features.

Pros:
•   It covers dozen of blockchains and provide free data.
•   We can watch historical data in the forms of graphs.
•   Provides live data

Cons:

•   To get notification we have to purchase their monthly or yearly package.
•   They are not suitable for beginner as they have expensive packages.

2: ClankApp:

ClankApp is a tool which provides notification services on Whales transactions. It provides Telegram and Twitter notification feature too.

Pros:

•   It collects data from 24 blockchain
•   We can get benefit from all of the features with free of cost, even can get notifications.
•   We can get notification via Telegram, Twitter and Email.
•   Provides live data

Cons:

•   The free of cost notification features comes with the drawback of no graph for historic data analysis.

3: WhaleMap:

WhaleMap is a tool in which we can also get whales trades and notification services

Pros:

•   We can get information and free course and tutorial to understand how to analyze Whales trades and how to react with them.
•   It provide 16 useful charts which will help us to understand the market more easily.
•   Provides live data.

Cons:

•   Unlike Whales Alert and ClankApp, we have to sign up before analyzing the Whales trade.
•   Before using its charts, we have to go through from their tutorial for better understanding which would cost time but it worth.

4: Whale Watchers:

Whale Watcher is a tool to analyze Whales trades not only of crypto token but also of NFT trades. NFT interested can get more benefit from it.

Pros:

•   Its focus is not only on crypto assets but also on NFTs.
•   It provides free of cost services too but with limitations.
•   But if you buy their packages we can talk in their communities with other member in real-time.

Cons:

•   Users of this platform are only around 3000.
•   No graph data is available.

5: WhaleBot Alerts:

WhaleBot Alerts are only for telegram push notification to alert you of any Whale trade. Many of us still using it.

Pros:

•   Used for quick notification of Whale trade on your smartphone.

Cons;

•   It’s only for telegram so no graph and history data could be seen.
•   It shows only real-time transactions.

Which wallet is best to accumulate Bitcoin?

I had discussed some of the wallets types before, you can go for hardware base crypto wallets for better security, and I only mentioned 3 hardware wallets there and some other hot wallets. But in here, you will find the best options to store your BTC for long term using hot wallets.

1: Exodus:

Exodus is best for beginner as they have 24 hour lives support and you can use it on phone and pc.

Pros:

•   You can add Exodus with Trezor hardware wallet.
•   Combining with hardware wallet increases security.
•   It supports 240+ assets.
•   You can use its web 3, desktop and mobile version as per requirement.
•   Built in exchange.

Cons:

•   It is not an open source wallet

To see the difference between open source and close source wallet. Pay visit here.

2: Electrum:

Electrum is a free cold wallet which provide next level security with its unique features. It’s in the market since 2011.

Pros:

•   We can use it on all the operating system, such as Android, Window, MacOS, Linux and Python.
•   We can use their Cold Storage option to keep seed phrase to perform actions, and hot storage can be used to watch the balance.
•   It supports hardware wallets like Trezor, Ledger and Keepkey.

Cons:

•   Only useable for storing Bitcoin.
•   24 hours support is not available here.

3: Mycelium

Mycelium is a phone base wallet and we cannot use it on any other device than smartphones.

Pros:

•   Built-in exchange, study material.
•   It supports hardware wallets, like Trezor, Ledger and KeepKey.
•   App is reproducible,

Cons:

•   If you lost your phone than you lost your money. As it is reproducible.
•   Works only on smartphones.

Precautions to take before withdrawing huge amount of BTC:

There are numerous precautions, a holder could take, but depends upon from which danger.
Danger of losing BTC, danger of getting taxed by IRS, danger of too much exposure and publicity that you do not want.
I will try to cover two of the above danger to avoid.

1: Danger of Losing BTC:

Talking about withdrawing BTC, to do that first we have to transfer it to an exchange, if your BTC is already in a wallet which comes with built-in exchanges than its more secure. Because in first scenario, you have to transfer from hot wallet to exchange wallet. Which will expose you twice.
While sending BTC from one wallet to exchange wallet, double check the address and do not send all the BTC in one go.
If you are using hot wallets on smartphone or pc, try to strictly avoid from download any third party and unverified app or unlocked APK MOD, because these APKs contains malicious viruses which could get all the info of your wallets.

2: Danger of getting heavily taxed by IRS:

In my country there is no huge taxes on withdrawing money, I prefer try to withdraw money in parts not in one go because in Pakistan there are many limitation of withdrawing money and in many other developing countries too.
But this danger is for the people of developed countries. Like USA, China, Japan, Russia etc. maybe I left some countries but let’s move on.
I am not a tax expert so I will just share some useful article’s and thread’s links to avoid heavy taxation.

Cryptocurrency taxes: A guide to tax rules for Bitcoin, Ethereum and more

3 Mistakes to Avoid When Making a Large Portfolio Withdrawal

CRYPTO-ASSETS: ANTI-MONEY LAUNDERING GUIDANCE FOR ACCOUNTANTS

Conclusion:

I hope this thread will help you, just to clarify, I collected data from many blogs and BTT threads. I also provided the sources and tried my best to come up with every possible helping material. If you guys find that something needs correction please let me know and do share your love. Regards Hamza.

Eidt= Images links are updated on 17th September 2023

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[un_rank]

One does not need most of all this information to get into and use bitcoin.
Knowledge of why bitcoin is valuable, how to DCA and store your assets on a safe non custodial wallet, with backups, is basics enough. A newbie does not need to monitor whale activities.

Exodus is best for beginner as they have 24 hour lives support and you can use it on phone and pc.

Electrum is a better option and has customer support communities^[1].

[1] https://electrum.org/#community

- Jay -

[_BlackStar]

3: Do not freak out:

One of the biggest benefit of long term investment is you don’t have to check market again and again. Thus you will face no tension. But to do that you have to build patience in yourself. Which you can do by not becoming a prey of FOMO (Fear of Missing Out).

I'm sure this will be difficult for most new investors especially for those who are new to investing. Panic is normal when the price drops 10%-15% in less than 24 hours, but when a trader or investor ignores these fluctuations and chooses to hold on and believe in another potential in the future then they have become a strong hand.

Don't panic, it's much easier said than realized in day-to-day or short-term trading practice. I agree that if one can avoid panicking when the price drops ^{[in particular bitcoin]} then they will have no regrets in the long run if the bounce occurs in a relatively quick timeframe.

OP, by the way you could also consider moving this thread to a trading discussion board instead of a bitcoin discussion board.

[Doan9269]

I had discussed some of the wallets types before, you can go for hardware base crypto wallets for better security, and I only mentioned 3 hardware wallets there

I appreciate the effort put together in bringing this up, nevertheless you could have lay more emphasis on hardware wallet here as well aside the embedded link provided to your previous topic on that, also there is more need as well to add the type of coins each wallet support, but in conclusion, its all a beautiful display of efforts you've put out altogether to present this as part of your contribution to the forum.

[Rruchi man]

4: Prevent from News Cycle:

This can also be difficult to achieve since the news that you have made a conscious effort to avoid listening to or follow may also be headlined (posted) here in the forum or shared amongst friends and it will definitely arouse your attention.

 If you decide long term investment in crypto, have a strong resolve to hodl regardless of whatever you hear. Having such a resolve prepares you to accept the possibility of  any sort of news, but hinges you to the resolve that you have made to hodl regardless. It requires a lot of discipline, but it is not impossible.

[sunsilk]

Following those whales alert, it will make you more emotional because it adds to that feeling of yours of being frightened that a whale has just moved a huge amount of bitcoin from his wallet to an exchange.

Although the possibility of selling it off is high but if it's taking your mental health which I think is really happening for some, you guys better stop following those alerts for your own sake.

As for the wallets, if the plan is to DCA and accumulate and to hold for long, aside from electrum, there should be the other wallets like wasabi and samourai and most likely, the hardware wallets - trezor & ledger.

[Kelvinid]

Whale's participations really have a huge market influence bringing most of us to rely upon them. We tend to know what really they do and plan next in order for us to be prepared but unfortunately, we did not.
In this situation of the market, DCAing is certainly the most applicable way of accumulating Bitcoin. Buy low, hold and sell if there is already a profit. In fact, this idea has already been practiced by many so I believe this is really working despite how these whales are doing and manipulating the market.

[TelolettOm]

Every decision that we made in the crypt business always has its own risk, the lower to higher risks. the risk will depend on what we are doing, planning, considering, and also deciding. However, we know that the crypto business in this bear market is highly more volatile and riskier. but on the other hand, this is the right time to accumulate Bitcoin. Why should be Bitcoin? Because Bitcoin is the most trusted and valuable cryptocurrency asset to have, much better compared to all altcoins.

Tips to keep in mind before accumulation:
1: Use Dollar Cost Averaging (DCA) Technique:

And this DCA system is the best for me so far. We can really implement this technique due to considering the market changes every time. By doing DCA, we can utilize very chance to take Bitcoin at any rate. With this, we may not miss every chance. Although we may have fro the highe rprice to lower, at least we also know n what rate to target to take profits.

[sheenshane]

1: Use Dollar Cost Averaging (DCA) Technique:

In Bitcoin accumulation, this is very important.
In the DCA way of buying Bitcoin, you can minimize your possible loss because you only purchase Bitcoin when it will drop.  Buying a little by little using this method, will surely your investment becomes profitable when there's a new ATH.

All in all, OP has good input, and newbies should know this and educate themselves when it comes to accumulating Bitcoin.
It's a complete process of accumulating Bitcoin.

[ChiBitCTy]

This is a pretty nice write up and I can tell you took some time doing so, appreciated. One thing that I would add or mention with your write up..I believe mycelium works fine with android devices, but I don't think that it works with iPhones.  I used to have it on the iPhone and they simply stopped supporting the app.  Luckily I was able to get my bitcoin off of it, but just a heads up, you might want to build that note in to your write up.  Otherwise, good stuff.

[cheezcarls]

I usually do DCA with Bitcoin every month and may be planning to buy again after my extra money arrives soon. I don't mind about my losses though because I just knew and believe that one day Bitcoin will be reaching new heights again especially the upcoming BTC halving.

Back then after the 2020 halving, BTC rose up to almost $70k. How much more for the next halving. But of course, I am aware of the uncertainties and the risks that I am taking, but I just don't mind as I already acknowledge whatever results that I'll be getting in the future.

[moderator's note: removed redundant OP quote]

[Hamza2424]

OP, by the way you could also consider moving this thread to a trading discussion board instead of a bitcoin discussion board.

Yeah there are some elements belongs to trading still i think the Topic is more relevant to the BTC Discussion so lets the the others response.

This is a pretty nice write up and I can tell you took some time doing so, appreciated. One thing that I would add or mention with your write up..I believe mycelium works fine with android devices, but I don't think that it works with iPhones.  I used to have it on the iPhone and they simply stopped supporting the app.  Luckily I was able to get my bitcoin off of it, but just a heads up, you might want to build that note in to your write up.  Otherwise, good stuff.

Thanks for your appreciation,

4: Prevent from News Cycle:

This can also be difficult to achieve since the news that you have made a conscious effort to avoid listening to or follow may also be headlined (posted) here in the forum or shared amongst friends and it will definitely arouse your attention.

 If you decide long term investment in crypto, have a strong resolve to hodl regardless of whatever you hear. Having such a resolve prepares you to accept the possibility of  any sort of news, but hinges you to the resolve that you have made to hodl regardless. It requires a lot of discipline, but it is not impossible.

Exactly point is its all up to your determination and grip on your investment as far you are confidential about the market you can easily avoid the news cycle but if there comes a weak mindset then thats a easy trap for you and you can lose potential assets.

1: Use Dollar Cost Averaging (DCA) Technique:

In Bitcoin accumulation, this is very important.
In the DCA way of buying Bitcoin, you can minimize your possible loss because you only purchase Bitcoin when it will drop.  Buying a little by little using this method, will surely your investment becomes profitable when there's a new ATH.

All in all, OP has good input, and newbies should know this and educate themselves when it comes to accumulating Bitcoin.
It's a complete process of accumulating Bitcoin.

Most of Us, even

That's very true about 80%+ Bitcoiners do DCA. DCA can be more worthy instead of the savings account as BTC market follow all these phases, Accumulation in bear, Sideways in Consolidation zone and Mark Up/ Profit booking in Bull Run. DCA minimize the risk on the investment which attracts the users and a time to time investment helps to create better Avrage price setup for your assets more positive results can be obtained through this system.

I had discussed some of the wallets types before, you can go for hardware base crypto wallets for better security, and I only mentioned 3 hardware wallets there

I appreciate the effort put together in bringing this up, nevertheless you could have lay more emphasis on hardware wallet here as well aside the embedded link provided to your previous topic on that, also there is more need as well to add the type of coins each wallet support, but in conclusion, its all a beautiful display of efforts you've put out altogether to present this as part of your contribution to the forum.

Thanks Dear, I've got your point and working on it, My previous topic seems to be weakly composed and low researched  because i was trying to move onto the basic go through of that topic for new comers but still there are flaws in it. I think now i should cover both Hot and Cold Wallets one by one again with more detailed information as i need to also follow some of suggestions mentioned in replies.

[ajiz138]

This content is very interesting for those who make a long-term investment in this explanation we must know and some other basics.

1: Use Dollar Cost Averaging (DCA) Technique:

I now always use Dollar Cost Averaging (DCA) although this is a little different from your explanation but I make weekly purchases above $50 or more that's how my balance is in spending dollars so I don't place more orders but I just buy at the appointed time on a weekly routine within my own Dollar Cost Averaging (DCA).
Although different techniques are used but the goal is the same for the long term.

3: Do not freak out:

This is the most important thing, don't ever panic under any circumstances let alone get carried away by FOMO, hype or any other kind of trend that can trap you in selling your own assets, I never check the market every day but I am always consistent not to be influenced by any news that makes me panic, I will remain patient with some bad news but with patience and discipline make us more confident.

1: Whales Alert

I've never followed the movement of whale transactions that move assets to the exchange, for me this will not affect myself to worry but I prefer to maintain my own balance.

[Ahli38]

some tools to detect the movement of the Whales are really needed. I myself to monitor movements and large transactions in and out of the exchange to my personal wallet and vice versa, I use whalebot_alert (https://t.me/whalebotalerts). so that we can monitor the movements of the whales' major transactions via telegram notifications.
like when the price of BTC will experience a correction. then usually starting with the day before there is always a large amount of BTC transactions entering the exchange from personal wallets. me when I found this. then it will wait first and not enter the market first. and I put the price at the nearest support that might be subject to correction. of course with DCA. and most of them always prove to be true. after a large transaction of btc to the exchange enters, after that most of the BTC will be corrected. so it is very important to monitor the movement of this Whales transaction.

Besides that, we must always keep up to date with the latest news.
I myself put a special notification on telegram from special channels that are considered the fastest in publishing news. because news sometimes matters too. and it is very useful to always collect information as the basis of our analysis before making accumulation.

if you also want to always be notified of the latest news all the time then I suggest some of these channels.
- https://t.me/crypto_panic_news
- https://t.me/CryptoPotato
- https://t.me/cointelegraph
- https://t.me/CTMarkets
- https://t.me/CryptopolitanOfficial
- https://t.me/WatcherGuru
These are the channels that I think are the fastest in providing up-to-date news

[Techkoy407]

and the most important thing for beginners is to keep looking and continue to dig up all the information little by little and must be understood because basically investing there is such a thing as profit and loss so to reduce losses look for information and dig the knowledge because I believe a little knowledge and lack of information will be less profitable. important point in my opinion for beginners don't panic easily and buy bitcoin when the market is down.

[Darker45]

Actually, it may not be as complex or complicated as it may appear here.

The first step, of course, is to only get to know the basics of Bitcoin. The second is to buy it. You don't even have to DCA or be familiar with indicators or techniques; you don't even need to care about these so-called whales. You don't even have to learn analysis and how to track whether the price is already hitting bottom or not. You just buy. You already know that the target is long term. And because you intend to keep it for a long time, store it somewhere safe. That's all there is to it.

[bittraffic]

According to the source, the accumulation was spotted as BTC price refuses to fall below $30K. Those who accumulated must have been also the ones selling when the price plunged down to $20K.

Short-term investors would find it unprofitable to accumulate when the bear market isn't over. It would make sense for them to buy when the market is about to form a bullish momentum. It's why I find it too early when Bukele bought BTC above $30K,  its okay if this is going to be for longterm however.

[noormcs5]

Which wallet is best to accumulate Bitcoin?

I had discussed some of the wallets types before, you can go for hardware base crypto wallets for better security, and I only mentioned 3 hardware wallets there and some other hot wallets. But in here, you will find the best options to store your BTC for long term using hot wallets.

1: Exodus:

Exodus is best for beginner as they have 24 hour lives support and you can use it on phone and pc.

Pros:

•   You can add Exodus with Trezor hardware wallet.
•   Combining with hardware wallet increases security.
•   It supports 240+ assets.
•   You can use its web 3, desktop and mobile version as per requirement.
•   Built in exchange.

Cons:

•   It is not an open source wallet

To see the difference between open source and close source wallet. Pay visit here.

2: Electrum:

Electrum is a free cold wallet which provide next level security with its unique features. It’s in the market since 2011.

Pros:

•   We can use it on all the operating system, such as Android, Window, MacOS, Linux and Python.
•   We can use their Cold Storage option to keep seed phrase to perform actions, and hot storage can be used to watch the balance.
•   It supports hardware wallets like Trezor, Ledger and Keepkey.

Cons:

•   Only useable for storing Bitcoin.
•   24 hours support is not available here.

This made me a little confuse as maybe i am missing something as why the Exodus wallet is better than the Electrum wallet. I am more curious to know this because i haven't used Exodus wallet but frequently used the Electrum wallet.
Also as per my knowledge , Electrum is the best and safest software wallet after the hardware wallets.

[Hamza2424]

This made me a little confuse as maybe i am missing something as why the Exodus wallet is better than the Electrum wallet. I am more curious to know this because i haven't used Exodus wallet but frequently used the Electrum wallet.
Also as per my knowledge , Electrum is the best and safest software wallet after the hardware wallets.

yeah dear i can explain it very well as dear i said its best for the beginners there is 24/7 support for any queries and also there is a builtin exchange for them. Also dear one more thing i want to add is Exodus is supports 240+ assets and Electrum is a primarily Bitcoin wallet for alts im not sure about it. No doubt Electrum is on top of Hot wallets but i made point there for beginners so consider it.

[Despairo]

yeah dear i can explain it very well as dear i said its best for the beginners there is 24/7 support for any queries and also there is a builtin exchange for them. Also dear one more thing i want to add is Exodus is supports 240+ assets and Electrum is a primarily Bitcoin wallet for alts im not sure about it. No doubt Electrum is on top of Hot wallets but i made point there for beginners so consider it.

Electrum is primarily for Bitcoin, but there's many altcoins currently support, you can read below. There's few alts currently can be accessed, it seems they're stop supporting those alts e.g. DASH and DOGE due to internal problem of the one who created. There's a discussion where it might be re-run by someone, but it will increase the risk since it's possible he add malicious code.

Hot wallet aka custodial wallet aka exchanges are completely different with non custodial wallet since you not get the private key. Electrum is non custodial wallet since you're get the private key.

Code: (https://1209k.com/bitcoin-eye/ele.php)

Various chains
chains	count(chain)
bcd	1
bch	39
btc	159
btg	4
cesc	2
cgr	2
cpc	4
crp	8
crw	1
dash	6
dgb	6
doge	6
firo	8
grs	115
iq	1
kmd	6
lbc	2
liquid	3
ltc	15
lynx	5
mona	15
nmc	4
ppc	2
rtm	7
rvn	10
sbtc	1
sgrs	1
tbch	6
tbtc	17
tgrs	6
tltc	4
tmona	4
vrsc	6