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Multiple sources are pointing towards the fact that the cryptocurrency industry is due a serious bull run in 2023 and beyond. While price predictions of $100,000 for Bitcoin can be taken with a grain of salt, there’s definite evidence of a rising market.
Bull runs typically coincide with 4 year cycles, and we can expect to see price appreciation start in mid 2023. It’s also worth keeping in mind that the deflationary nature of Bitcoin encourages long-term price appreciation, and where BTC goes, the rest of the crypto world follows.
Of course, rising inflation and a series of systemic world crises are other reasons to favor an investment in crypto assets, which serve as both a hedge and an investment. You will have full autonomy over your funds and information, and such assets are not so heavily affected by political decisions and macroeconomic policies.
Plan In Advance
Most people react to market conditions, instead of timing them and preparing for them. The end result is that people get in when the market is at its peak and sell when it’s at the bottom. If you’re waiting for sensationalist headlines regarding the crypto market, then you’re too late.
Bull markets also see the rise of exchange hacks and scam artists, because people are typically being foolish with their money at the time. Smart money always invests before the bull market. Ironically, investing in a bull market also means that all of the building and creation has been done ââ— there is little further growth and innovation.
Due to this hype and greed, the bull market collapses, leading to a bear market. And the 4 year cycle repeats itself. These cycles occur in all industries, but are particularly precise within cryptocurrency, where certain trends seem to be exaggerated.
Prepare For All Markets
It’s true that you can leverage a buy and hold strategy within the crypto markets to increase your returns. Over time, crypto assets will rise in value, just like the well established stock market. But this is a somewhat naive and basic strategy, and won’t make you rich for a very long time.
The good news is that you don’t have to wait for a bull run, because it is possible to make profits in all markets.
Automated trading platforms such as Bitsgap will enable you to generate an income whether markets trade up, down or sideways, though you’ll have to take the time to understand how they work, invest a sensible amount, and apply the right strategy. No fees are taken on trades and Bitsgap has no access to your funds.
These bots also allow you to deploy simple yet effective trading strategies, such as Dollar Cost Averaging (DCA). This means that you can invest smaller amounts, at regular intervals, in a number of cryptocurrencies. Regardless of experience level, all traders and investors can take advantage, and the bull run is not even required.
Small crypto profits made in a bear market can increase in value during bull markets — which is why it's good to try to earn small amounts as consistently as possible, instead of trying to make money during a market frenzy.
Develop Skill, Knowledge, and Resiliency
Understanding cryptocurrency price movements is largely a study of psychology. Success is a function of standing independently of the crowd and market sentiment, which is not always logical. Only when you stand apart from it can you accurately understand where it's going and make objective evaluations.
There are well established trends and patterns that can also assist. For instance, cryptocurrencies tend to perform well in February, April, and May, meaning this is a good time to issue sell orders. This is known as asset seasonality. Technical indicators like the RSA and MACD can be learned by new traders to assist with market timing.
Automated trading bots can also be of great assistance, with a range of bots to cater to different trading styles. Trading bots can be studied to access the rate of return and upon what conditions trades are executed.
Aside from this, the traditional investment principles will be the same. Don’t invest more than you can afford, diversify your assets, and invest across time. This will ensure you are prepared for the next bull run, but that you’re also protected against adverse price movements.
Above all, make sure you do something. We could be on the rise of a very sharp crypto bull run, and it would be a shame to miss out.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.