Crypto winter is the time to have patience and Build

There are two cycles of the market and these are bull market and bear market. This is applicable across the markets so no matter what market you trade in or invest in but this fundamental will remain the same. We also can see that the people who are part of any market always expect the market to be in bullish sentiment and they hate to be in the bearish market. The fact is that no market can stay in the bullish sentiment all the time and correction is surely needed to have a balance. sometimes this correction loss is longer which can take a few years, especially in the crypto segment however in traditional markets things can turn the other way around in a couple of months.

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Up and down is the basic function of any market and Smart Trader or the investor always knows what action is needed at what time and plans accordingly. This time in the cryptocurrency market we are in a bearish sentiment and because of that traders and crypto companies are affected badly and even some of the exchanges are having a bad time. It generally takes three to four years for the next bull cycle after the last one based on the historical performance and it is never guaranteed. The next Bitcoin halving event is scheduled to happen in the 2024 year so after that people are anticipating that the market will turn into a better situation.

Assets building during Crypto Winter

I believe that the bearish market is good for us and it is because if we can build a good portfolio during this period then we can book nice profit in a bull market. the beer market or which we call crypto winter is needed to have the balance in the market because if everyone makes money out of it then obviously someone has to lose and this is the time when the weak hands are out of the market. Currently, we are in a situation in the Crypto market where the majority of weak hands are already out but when the market will be doing good then probably they will be back to make some easy money in the short term. This is not the time to get panic instead it is the time when you can plan the strategy and do a proper investment with the goal of at least three to four years and there are higher possibilities that you will end up making a good amount of money in the next cycle.

Long-term strategy with backup

Many of us talk about how long-term strategy is good but the question is how to determine what period is called as a long-term. sometimes this can take much longer time than we expect and because of this, it is also important to have some backup plan because if things do not work as expected then also we are not in a situation where it requires us to sell the holding on loss. Having a backup option will help us to ensure that we are not selling off in a loss-making situation and this is something that is surely needed for us to think about and plan accordingly. Market behaviour is hard to predict and this is why its always good to plan considering the worst outcome so that we are prepared to deal with it if it happens.

I keep on reading different articles available on the Internet to understand what people are talking about Crypto and what is their next expected move in the market. majority of experts are saying that we are almost at the end of the bearish market and probably by the end of this year or the next year could be the situation when we are going to see the price rise. Some people also say that the end of 2024 or the beginning of 2025 can be the period for the next cycle but we need to understand that nothing is guaranteed. it may happen or it may not so to deal with this situation we need to have a plan in place but we should not stop investing in the projects that we have already shortlisted after thorough research.

DCA is the best strategy I would say to invest in the projects that you think are solid by potential and invest in whatever you think is fine and you do not need for the next couple of years. I am doing the same and I expect that whatever I have invested is not for the next three to 4 years so even if the bull run cycle does not start after 2025 then also there is nothing for me to worry about because I am already prepared to be in that situation. the bullet cycle is something that we all expect and even I do but based on my planning I can say that my plan is not to sell off anything for next three to 4 years at least and if the cycle starts at the then it is good for everyone who is part of the crypto market.

Thank you

Posted Using LeoFinance Alpha