All You Need To Know About Bitcoin Halving In 2020
One of the most anticipated crypto events scheduled for 2020 is the halving of Bitcoin that is already getting a lot of attention and publicity. There is a lot of confusion surrounding this practice, which has happened before as well. Crypto investors are concerned about how it will impact the market as a whole and many fear the drop in valuation and losses. Well, we are here to give you a neutral account of what’s what. Here’s all you got to know about Bitcoin halving.
What is the halving of Bitcoin?
Bitcoin halving or halvening is a process or event during which the usual method of rewarding for mining new blocks is cut by half. It means that the miners get fifty percent lesser bitcoins each time they verify a transaction. The halving process takes place every four years approximately until the maximum number of Bitcoins amounting to 21 million is generated by the Bitcoin network.
It is a very important event for the traders as well, as the number of new coins generated by the network is reduced. If the demand remains stable then due to a lesser number of coins, this might trigger the price of the crypto. This has happened before. However, the valuation depends a lot on the situation and the market demand, which is yet to be seen in 2020.
What to expect in the 2020 Bitcoin halving?:
The 2020 Bitcoin halving is scheduled to happen in May, so here are a few tips that you can follow to balance your coin valuation. Firstly, one can guess the price of the crypto by making use of CFD like derivatives. Secondly, one can buy the crypto through an exchange. The positive side of trading crypto with derivatives is that one does not need to own the underlying coins, which helps in various ways. The process allows an individual to trade without using a wallet or exchange account.
It also allows the trader to take a position on the bitcoin whether there is a chance for the rise or fall of value. Using derivatives also allows one to take advantage of the leverage by opening a position by making a deposit considered as the margin. This will give access to a larger market. It helps the trader to gain exposure to the financial market by tying up a small amount as capital to the amount.