In the past two days, the price of Bitcoin has exceeded $93,000, which has once again ignited the enthusiasm of the cryptocurrency circle. Looking back at the beginning of 2023, Bitcoin was still over $16,000. At that time, market sentiment was sluggish and few people dared to believe in the arrival of a bull market. And it was from that time that I began to lay out for this wave of market conditions. Today, I will talk to you about how I have come step by step from the "market winter" at the beginning of the year to today, so that you can take fewer detours.
1. Insights from the market trough: How to judge the start of a bull market?
The market volatility of the cryptocurrency market is extremely high, but after experiencing several cycles, I always believe that the market has cycles. 2022 can be regarded as a big winter in the cryptocurrency market. The prices of BTC and ETH are hovering at low levels, but in early 2023, I gradually saw some "warmth". The most critical signal is the slowdown in the Fed's interest rate hikes. In the past, loose policies usually heralded a warming of the capital market, especially the recovery of high-risk assets such as the crypto market. I felt at the time that the start of the bull market was only a matter of time.
In addition, the re-entry of institutions has further strengthened my judgment. Large funds such as Grayscale and MicroStrategy have begun to increase their holdings of Bitcoin at low levels, which shows that a lot of funds are quietly deploying. These funds are "signposts" for the market direction to me. If this market is never short of opportunities, then what is more important is whether we can "understand" the market's signals and find opportunities. After making a clear judgment, I think it is time to prepare positions in advance and wait for the "spring" of the bull market.
2. Review of the layout at the beginning of the year: the core position of BTC and ETH
At the beginning of 2023, the price of Bitcoin hovered between $16,000 and $18,000, and almost no one in the market was optimistic about it. But as a "veteran" in the cryptocurrency circle, I know that behind this pessimism is often the best time to make a layout. So, I began to increase my BTC position in the $16,000-18,000 range. Why choose BTC? The reason is simple. The scarcity and safe-haven value of Bitcoin give me enough confidence, especially when the bull market starts, it is often the leading asset in the entire market.
But Bitcoin alone is not enough, I also focused on increasing my position in ETH. After the upgrade, Ethereum not only improved transaction efficiency, but the development of Layer 2 also greatly alleviated the congestion problem of Ethereum. At that time, the price of ETH was around $1,200, and I thought there would be huge room for growth in the future. Therefore, at the beginning of the year, I decisively increased my position in ETH, and this decision later proved to be extremely effective. This year's ETH increase not only made me earn a wave of profits, but also made me more confident in my judgment.
3. Mining the primary market: early investment, focusing on future hot tracks In addition to the spot layout of BTC and ETH, I also set my sights on the primary market in 2023. Early projects in the primary market are similar to "original stocks in the stock market". Although the risks are high, the returns are very attractive. I did not enter the market impulsively this time, but carefully screened several emerging track projects with good prospects.
First is Web3 social networking. Web3 is the future development direction of the Internet, especially in terms of data privacy and user autonomy. For example, I participated in a Web3 social project. The core team of this project has backgrounds in Google and Facebook, and they are very solid from technical documents to actual product design. I studied its project background and technical details in depth, and even used a ladder to access a large amount of information on the Internet before finally making an investment decision. When the bull market started in the middle of the year, this project was listed on the exchange, and the price doubled several times, becoming one of the important sources of my income this year.
In addition, Layer 2 ecosystem and emerging public chain projects have also become my focus. For example, the ecosystems of emerging public chains such as SUI and Aptos are becoming increasingly prosperous, and I decisively participated in their token investments in the primary market. In the middle of the year, these tokens performed well and their appreciation potential was evident.
4. Multi-chain layout: the potential of Layer2 and ecological projects
In the layout, I also paid attention to the development of Layer 2 technology. Layer 2 projects in the Ethereum ecosystem, such as Arbitrum, Optimism, etc., have made significant progress in early 2023. These projects not only solve the problem of high transaction fees on the chain, but also improve the processing efficiency of the entire network. I selected some emerging projects in the Layer 2 ecosystem. The number of users and developer communities of these projects are growing, and they are expected to receive more capital support and bring benefits in the future.
At the same time, in addition to ETH and Layer2 projects, I am also deploying in different public chain ecosystems, such as Polkadot and SUI's ecological projects. The technological innovation and ecological development behind these projects are worth looking forward to, and my multi-chain layout strategy has also helped me effectively diversify risks and maintained the stability of my income in the bull market.
5. Summary: Insights and insights from the layout
Looking back at this layout in 2023, every investment makes me more convinced that real returns come from calm judgment and long-term perspective. In the market winter, most people are in panic, but I see hope for the future. Although the currency market fluctuates violently, the law of cycles still exists. What investors have to do is to choose the right project at the right time, lay out in advance, and wait patiently. This bull market layout has not only brought me rich returns, but also made me understand more that no matter how the market fluctuates, persistence in learning and calm judgment are the foundation for a foothold. I hope that my sharing can inspire everyone to layout the bull market, take fewer detours, and move forward steadily.
