If you have already been a crypto enthusiast for some years, you should have noticed that crypto goes through predictable cycles.
One of the best ways to look at the crypto
cycles is to check the historical data of BTCUSD. You can see the BTC monthly
chart below.
You can see that dips have always been
followed by rallies and lower highs are always followed by higher highs.
Long-term hodlers will always win in the long
run, because dips in Bitcoin price, no matter how deeps they are, will always
recover eventually, and make more and more returns for holders. All these are
just a matter of time.
Crypto Winters Are Often a Test of Viability
Whenever cryptos are bearish, what go behind
the scenes are technological developments and innovations that bring cutting-edge
use cases.
Crypto winters
help sieve out bogus and ineffectual crypto projects: they floor jokers and
opportunists and create rooms for sound crypto business ideas.
Bearish markets are no picnic, but they are
priceless since they coerce us to be serious with only the principles that can
stand tests of the time. To innovate, to try passionately, and solve new
problems in new ways.
Bullish markets are for traders, while bearish
markets are for innovators. The crypto cycles are ups and downs in the markets,
but the ups will forever be higher than the downs, hence a nice bullish curve.
Whenever there is
a crypto winter, innovations that will bring out the next crypto summer are
often made. The innovations may be DeFi, DeSci, NFTs, DAOs, etc. The next
bullish cycle in the markets would be powered by new emerging tokens that bring
forth cutting-edge use cases.
You may want to invest in tokens that have
interesting use cases and great future growth potential. I’m not talking about
useless tokens out there, which are created out of thin air, with no real-world
uses, except for buyers who buy with the hope that the prices would go up.
I once talked about sound principles that must
be behind each crypto project, for the project to stand tests of the time.
Sound principles that work should be a prototype that emerging crypto
businesses ought to emulate. I mean honesty, trust, transparency, tangible
returns, verifiable revenues, and most importantly, approaching the world of
blockchain as you would approach any other demanding area of human endeavors.
I appreciate all
crypto investors worldwide, particularly those who have stuck to their
investments in the face of the vagaries of the markets.
In a foreseeable future, you will be
compensated by the crypto markets, even more than what you could think is
possible.
Source: https://learn2.trade/get-ready-for-the-next-big-crypto-cycle
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