“Many will come for the money, few will stay for the tech.”
A very popular phrase in crypto, and I’m starting to see it happen again, just like the last cycle.
The markets are no different than the seasons when it comes to cycles — Every year, we know it’s coming, yet it always comes to us in a different form, every time.
Summer last year for example, was way hotter than it is this year, but perhaps because the rainy season might be kicking in sooner — we never truly know.
Same as with the markets — we know a Bull run is coming, we know what coins are about to break out, but we don’t actually know to which extent or at what rate of growth we’ll see. These “cycles” do not exempt bear markets, only the news changes, but the FUD (Fear, Uncertainty, and Doubt) stays the same.
Once we understand that history will always repeat itself in some shape or form, trading will make much more sense.
This so-called “crypto winter” that we’re seeing now isn’t something new -. Just as there is a time for planting, there will always be a time for harvesting. Identifying when to plant your seeds is essential for harvesting fruits that are healthy & ripe enough to your liking- a well-prepared, sensible trading plan must be in place in order to achieve this.
These cycles I’m referring to can be seen across all markets with every asset, and it is in these moments where whales and institutional money will be flowing into the markets at a bargain price while retail investors remain fearful.
Now there are many types of cycles, and it is up to the trader to identify the “pattern” or “trend”. These can be anything from historical cycles, deflationary mechanisms, emerging markets, like NFTs, Play-2-Earn games, etc. These all take place at some point in time — History will always repeat itself.
Besides LUNA and a very small handful of cryptocurrencies, a project going to zero has always just been a meme and a tactic to instill fear into retail investors as the market capitulates in each cycle. Putting that aside, a sensible approach I would apply in these market conditions would be gradual cost-averaging on the strongest trending coins & indices in the spot market, as we work our way to the next bull run. Historically, this should happen towards the end of the year — in Q4. Until then, I only expect to see occasional breakouts throughout the year if we still don’t see anything close to BTC’s ATH in the 2nd quarter.
For the remainder of this quarter, I’ll be shifting my focus back to my personal blockchain projects, my 9–5, and my bonsai… and hopefully to take them a step further into the space. After all… mending ecosystems was always the mission. Trading is just a side quest.
“The day you plant the seed, is not the same day you will eat the fruit”
I’ll be updating my trading ideas HERE, but if you already follow any of the BestCryptSecret Channels, then you’re sure to stay in the loop.
If not, then come and hop in.
That being said… the quest continues…