All financial markets have cycles, and the cryptocurrency market is no exception. Right now, we are in the best time to invest - Altseason. This is your chance to make life-changing wealth in a short period of time. But if you don't have a clear strategy and reason, you may be back to the old days overnight.
Below I will share with you some suggestions to help you make money and protect your wealth in this bull market.
Dear friends, please follow me, like and forward this post after reading it. This will help my account grow and motivate me to continue creating more valuable content for you. Thank you everyone!
1/ Biggest rookie mistake:
Many people overlook a simple fact - the market won't go up forever.
The market will eventually pull back, and it may even fall deeply. Just like now, we may see Bitcoin return to $40,000. So when formulating your strategy, remember to expect the market to eventually crash and be prepared.
2/ Cyclical nature of the market:
It is important to understand the general pattern of a bull market. Generally, a bull market can be roughly divided into three stages:
· Bitcoin takes the lead: Bitcoin rises first, attracting new investors and driving widespread market acceptance.
· Altcoins follow up: Investors begin to pursue higher returns and gradually turn their attention to altcoins.
Profit-taking: Some people start to cash in their profits, causing the market to pull back, and the cycle starts all over again.
3/ Take a look at the major currencies on the market now, and you will know which stage we are in now:
ETH: Up 100% in the past three months
SOL: Up 150% in the past three months
DOGE: Up 400% in the past three months
XRP: Up 500% in the past six months
4/ The transition from Bitcoin dominance to altcoin season is critical:
Bitcoin hits a new high: Bitcoin price hits a new high, and the market focus begins to shift from Bitcoin to other currencies.
Declining Bitcoin Market Dominance: This is when Bitcoin’s market share starts to decline and investors’ attention starts to shift to altcoins.
Altcoin explosion: Eventually, the total market capitalization of altcoins will explode.
5/ To sum up, it is actually a simple rule:
Bitcoin Season: Market Dominance Greater Than 55%
Altcoin Season: Market Dominance Less Than 55%
Now, Bitcoin’s market dominance has dropped to 56%, indicating that we are not far from the altcoin season.
6/ Focus your investments on current hot trends:
In the last cycle, the hottest trends were NFT, GameFi, and P2E. At that time, projects in these fields rose sharply, but this time they may not perform as strongly because the hype is outdated.
This time, we have entered a new cycle and new trends have emerged: the hottest trends now are RWA (real world assets), AI (artificial intelligence) and Meme coins.
7/ Risk Management:
It is very important to do a good job of risk management. Here are a few rules I recommend following:
· Clarify your risk/reward ratio.
· Do thorough research on any project before investing.
· Develop a solid trading strategy and stick to it no matter how volatile the market is.
8/ Money Management:
Financial management is the other half of success, and smart financial management can take you further in this bull market.
Here are some of my financial advice:
· Set a clear selling target price before investing.
· Don’t invest more than 5% to 10% of your total funds in each investment project.
These simple tips may seem basic, but they are very important. When the altcoin season comes, a sound investment strategy and money management can help you make money while avoiding most of the risks.
$btc
