cutting edge
The crypto market has grown rapidly in 2020-2021, with a total market value of ≈3 trillion US dollars - on par with the five major technology giants FAAMG, equivalent to the sum of the FAAMG market value in 2017. In this digital age, the crypto market has become increasingly important and has become an indispensable part of the global financial system! As blockchain technology continues to mature and develop, the entire industry is changing with each passing day. We have seen a series of exciting projects and innovations emerge, and the industry has begun to usher in the landing of applications.
Bitcoin has only been around for over a decade, and the industry is still in its infancy with many different concepts! In this market full of opportunities, there are also all kinds of risks and scams!
This channel focuses on investment research and analysis in the field of encryption. Investment is risky and you should be cautious when entering the market! If you don’t understand, please don’t enter the market blindly. The article is only for personal sharing and does not provide any financial investment advice!
1: Historical evolution of cryptocurrency
At present, the cryptocurrency market has experienced three rounds of bull-bear transitions. Each bull market tells a different story. In the process of the bull market blowing bubbles, the bear market is also digesting bubbles. Each bull market has created thousands of currencies, but very few projects have survived the bear market. This has also caused many people outside the circle to misunderstand the cryptocurrency circle and believe that blockchain is a scam.
As a new financial market, the crypto industry is like a newborn baby, and there is still a long way to go in the future! In the early days, the cryptocurrency market was suppressed by the policies of various countries, but looking back at the past, it was not affected too much. On the contrary, the price and market value of the currency continued to hit new highs, and the entire industry was developing better and better...
Let's talk about the three bull and bear cycles in the cryptocurrency world in a very simple way...
The first bull market:
1: Bitcoin halved for the first time on November 28, 2012, and the price rose from US$12 to US$1,200.
The evolution of cryptocurrency originated from the birth of Bitcoin. Since its launch in 2009, it has opened a door to the blockchain world. Initially, it was used by a group of technology enthusiasts and geeks! Looking back, the industry was very primitive at that time. There was no Ethereum, no public chain, and no applications. In the early days, everyone built applications on Bitcoin (narrating stories around Bitcoin). Because the Bitcoin code is open source, some geeks directly copied the code, slightly modified it, and renamed a token. Therefore, many altcoins were born in the first bull market, but as the bear market entered, most of the altcoins died in the bear market!
The second bull market:
2: Bitcoin halved for the second time on July 9, 2016, and soared to $19,800 on December 17, 2017
As time went by, the birth of Ethereum created a new blockchain application field and truly promoted the development of the blockchain industry, but Ethereum was in its infancy and had many problems. (The storyline began to revolve around Ethereum), various public chains that claimed to surpass Ethereum were born, ushering in the ICO craze...
Just like the first wave of bull and bear markets, tens of thousands of projects were born and developed during this period, but only a few survived the bear market.
The third bull market
3: Bitcoin halved for the third time on May 11, 2020, and hit a new high of $69,000 on November 9, 2021!
After the two previous bull-bear transitions, blockchain began to see real application landing, DEFI and NFT began to rise, and concepts such as Web3 and Metaverse became popular during this period, greatly bringing huge traffic to the crypto market! At the same time, some large investment institutions and companies began to include Bitcoin in their investment portfolios, gradually increasing the legitimacy and acceptance of the cryptocurrency market.
2: Opportunities and risks
With the development of the blockchain industry over the past decade, amazing achievements have been made in technology!
The surge in the value of Bitcoin and Ethereum-related tokens, as well as the recent popularity of Web3, have undoubtedly provided investors with abundant investment opportunities.
With the popularity of Web3, the whole society's understanding of cryptocurrency has gradually increased, and governments of various countries have begun to change their attitudes towards this emerging market. Some countries have even begun to accept and encourage the development of cryptocurrency, which undoubtedly brings more opportunities to the entire industry, entrepreneurs, and investors! However, the application layer of the industry is still in its infancy and has not ushered in a real ecological explosion. It takes time to settle!
Compared with traditional financial markets, cryptocurrency is extremely volatile, and investors need to have a certain risk tolerance. In addition, the technologies involved in the encryption field are extremely complex, and it is also a challenge for investors to understand these technologies and make wise investment decisions. If investors want to get good results in this market, they must first be fully prepared, at least have risk awareness and good fund management capabilities.......
3: How to prepare before the bull market comes?
The next Bitcoin halving is expected to be in April next year, that is, April 2024. The fourth halving is not far away, and there are already a series of clues to the start of the bull market. I will not share too much in this article for the time being. Friends can continue to follow my channel...
For some investors in the industry (miners, retail investors, etc.), they often talk about "value investing" and say that as long as you buy and hold for a long time, that's all.......
Regarding this topic, let me share my views: any investment must pay attention to timing, and in the fast-paced market of the cryptocurrency circle, it is also divided into several stages, such as the early, middle and late stages of a bear market. If you talk about value investment "buying" in the early stage of a bear market, it is nothing more than being stuck on the top of the mountain. Those who understand cryptography in this industry do not understand K-line analysis and do not know how to identify bulls and bears, such as (miners, retail investors), and those who understand technology do not understand cryptography and fundamental analysis. In other words, analysts who understand technology are also divided into two levels (amateur and professional)
Okay, that’s all I have to say about the simplicity of the great way!
Next, I will share with you how we, as investors, can prepare for the bull market.
1: "Improve cognition" Make a corresponding learning plan, make sure you understand the basic concepts of the project before investing, and avoid blind investment
2: "Risk Management" Only invest in sectors you are good at and bear the corresponding risks
3: "Diversified Investment" Don't put all your eggs in one basket
4: "Avoid all-in thinking" and set your own investment ratio
5: "Stay away from fake exchanges." Fake exchanges are often followed by running away, so just stay away from them!
6. "Keep a calm mind" The market is often accompanied by fluctuations, so avoid emotional investment decisions
7: "Institutional Custody" can diversify investments and choose a reliable institution for custody
