CRYPTOCURRENCY MARKET- Either we stay or leave this market.

in #bitcoin5 years ago

  • What is happening to Bitcoin price and what is taking place to cryptocurrency market in general?
  • Why is Bitcoin rate falling?
  • What are the reasons for that? Is it the cease of the cryptocurrency market or simply the beginning?
  • And the essential question: how to make money on this market?

These are the most vital questions for those who have already invested their cash in crypto, and for those who are simply going to do it. In this article I’ll try to answer all of these questions and furnish you with all the facts needed for successful cryptocurrency investing beneath today’s uncertain market conditions.

So what’s taking place to Bitcoin price? The answer is simple. It’s falling. Right here and proper now. And it’s very in all likelihood that Bitcoin will continue its downward movement. Moreover, Bitcoin is the foremost currency and, as we can see, all coins are highly correlated. That’s why the complete market goes down when BTC rate goes down.

In fact, you can take benefit of this state of affairs if you have a appropriate strategy. It’s a commonplace truth that an possibility lies in each and every crisis. It may additionally be a desirable time to buy Bitcoin and different currencies for cheap, however you need to be careful: you might also free your dollars as well.

Are you fascinated in what leads to this complete downward trend?

You have to understand what a Market Cycle is to recognize the underlying reasons for that.

What is a Market Cycle?

On the screenshot below you can see a standard Market Cycle with its major stages. Guess where the cryptocurrency market used to be when Bitcoin price used to be 19K$? The proper answer is that the market used to be in its Euphoria stage.

What happens on the pinnacle of Euphoria? Everyone who desired to buy BTC has already executed it. Nobody wants to purchase anymore however almost anybody is waiting for a future growth. Someone starts to sell. The fee convenient goes down without resistance of buyers. More and more people promote their cash (Fear stage and Panic stage). In Depression stage, everyone who wanted to sell their cash has already completed it. Nobody needs to promote anymore. This is a suitable factor to purchase because the fee will effortless goes up except resistance of sellers
It’s apparent to me that the modern downward fashion is not the cease of the cryptocurrency market. The market will start to go up when the resistance of marketers runs out. But this leads us to another question. How do we recognize when the Depression stage starts? At which point a smart investor or a long-term profitable trader make investments with low threat and excessive opportunities?

Unfortunately, we can’t be aware of for sure when the Depression stage starts. But a method I advocate will assist you to purchase in a excellent area and time, supplied that you study to apprehend standard signs and symptoms of market stages. First of all, let’s identify the fundamental signs and symptoms of market depression:

  • Big quantity of negative information concerning cryptocurrency
  • Big number of human beings who have already sold their coins
  • General loss of faith in cryptocurrency amongst the crypto community
  • All of it may sound depressing, and it is depressing.

But in fact these are the signs and symptoms which indicate that it might also be a very right time to enter the market.

If we purchase Bitcoin in the right time, when anyone has already sold it and its rate is on the bottom, we will get it for cheap. And, when the market receives into the right stage and the rate rises, we can sell it for profit.

However, we can’t recognize for sure where will be the cease of the downward movement. That’s why we want a properly threat administration gadget which lets in to purchase cryptocurrency with minimal risks.

Investment Risk Management Strategy
There are many types of threat management strategies, however in my opinion the following one is the best for these unique market conditions.

The strategy I advocate is pretty simple:

Decide for yourself how a great deal cash you are prepared to make investments in cryptocurrency now
Divide your capital into 10 parts
Buy crypto for 1/10 of your capital when you see that the market is in Depression stage
After 2–4 weeks purchase again. Repeat it many times. After 2–4 months you’ll invest in cryptocurrency the total sum you intended.
The foremost benefit of this strategy is that you can purchase on the falling market with minimal risks. For example, you can buy BTC when it fees 4500$, then you purchase it when the rate is 4000$, 3500$ and so on. Let’s say, your average price will be 4K$. Even if Bitcoin rate rises up to 4500$ again, you will double your investments.

Play big. Don’t close your role after you double your capital. Your target is to make a income from the future bull market. Stay in role for a lengthy time. You can expand your capital 10–12 times. Just hold.

It’s very essential to perceive the next Euphoria stage and promote your coins in the right time. These are the symptoms of market Euphoria:

  • Many high quality information regarding the cryptocurrency
  • Big range of humans who have already invested in cryptocurrency
  • Notable rise of trust in crypto
  • And one more essential thing. Diversification. I relatively advise you to purchase at least 3 of the most popular and commonplace cryptocurrencies in order to decrease your risks. This may additionally help you to shop your capital if some thing goes wrong with one of them

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