Generally
If you’re like most people, you’re probably still recovering from the latest major decline in the cryptocurrency market, caused by the world economic situation. However, with the beginning of 2023 In 2000, cryptocurrencies experienced a renewed rise in popularity. Primarily, bitcoin grew a phenomenal 39% in January, and Ethereum lagged behind with a slightly smaller 31%. Judging by the price rise, the bear market is coming to an end and it’s the right time to start thinking about entering the market before the start of the next bull market. In order to maximize profits in the same, we have prepared a list of important preparation steps that could help you. Before the very beginning, it is important to remember that market conditions are changing abruptly, and that if necessary, you are ready to change your strategy.
Source: cointelegraph
The Best Investment Strategies
In the bull market, prices jump irrationally quickly, with the vast majority of investors this often leads to a rejection of caution and poor risk management. It’s essential to remember that the crypto market is unpredictable, and that taking a conservative approach and setting accurate price goals where you’ll take profits is the best strategy. This may seem like a wrong decision if prices continue to rise, but once the bear market starts again, you’ll have accumulated capital ready to invest again.
Source: cointelegraph
Buying and holding (buy and hold)
Usually, the bull market is expected to last for a longer period, so a great strategy would be to simply buy and save certain cryptocurrencies on your hardware wallet, where they are most secure. You can always make part of your purchase on our Kriptomats. In addition to holding, you can also “acquire” some cryptocurrencies, thus securing the network, but also earning extra coins as a reward for the investment.
Source: cointelegraph
Average investment (dollar cost average)
Dollar cost averaging is an investment strategy in which the same amount of money is periodically invested, regardless of the current price of the asset being purchased, in our case cryptocurrency. This approach helps reduce the effect of price fluctuations on final return, and also helps to avoid investing your capital at the peak of the market. For example, if you invest 100 euros a month in a cryptocurrency, it is dollar cost averaging. If the price of this cryptocurrency is low, for one hundred euros you will buy a larger number of coins, on the other hand, if the price is high you will buy fewer coins. In the end, you have an average price. This way, you’ll never catch the bottom of the market, but you’ll also never invest at the top. This means that this is one of the safer methods of investing in cryptocurrencies.
Source: cointelegraph
Taking profits
Predicting the market’s next move is extremely challenging, especially when it comes to a cryptocurrency market that is extremely volatile and variable. That being said, taking profits regularly is a smart idea. By selling a smaller part of your position, at a good price, you will secure profits and prepare for purchase at lower prices. For example, if you have an unrealized profit of 1,000 euros, you will realize five hundred and thus prepare you to buy at lower prices. You left the remaining five hundred in a position if the market continues to grow upwards.
Source: cointelegraph
Portfolio diversification
Portfolio diversification is a key strategy to reduce risk and increase expected return on investment. It is achieved by investing in different cryptocurrencies or even types of assets in different sectors. When you have a diversified portfolio, a loss in one cryptocurrency or market sector can be offset by gains on another, this way you minimize the overall risk of your portfolio. In short, portfolio diversification can help achieve an optimal balance between risk and expected return on investment.
Source: cointelegraph
Latest Opportunities
Ethereum, with the help of Merge, has completely switched to the proof of stake system of validation of transactions. In doing so, Ethereum replaced miners with validators, and eliminated Ether’s supply inflation, and recently Ethereum has even achieved deflation, i.e. a decrease in the supply of coins in circulation. This was followed by a Shanghai upgrade, which allowed network validators, to unlock locked ethereum again. The next upgrade of the Ethereum network expected is the so-called Surge, which in theory should enable cheaper and faster transactions. In addition to all this, Ethereum layer 2 solutions will guarantee even cheaper and faster transactions. All these advancements of the Ethereum network attract large institutional investors from the traditional world of finance. It is important to see where these big investors are paying attention, so that we can use their knowledge to our advantage.
Source: cointelegraph
Conclusion
With the recent rise in the crypto market and bitcoin halving approaching every day, we can slowly start preparing for the next bull run. However, we must be aware that the crypto market is very unpredictable, and that average investors should take a somewhat more conservative approach, because they are likely to reduce losses if there is a sudden market reversal. For this reason, we remind you once again that regularly taking profits is a great strategy in the bull market. We hope you enjoyed reading today’s blog, and we would love to know how you are preparing for the upcoming bull market. You can write about this to us on our social networks (Twitter, Instagram).
