Because of the following downtrend, a lot of people have stopped investing in crypto. But the cryptocurrency will keep growing and so will the confidence come back. It is just a matter of time. Thus, before I can tell you the best Cryptocurrency investment strategy for 2021, first, we have to analyze what happened in the past years.
“Best Cryptocurrency Trading Strategy for 2021” – Content:
- Why did all the Cryptocurrency drop that hard?
- But what about the crash?
- What are the trends for the cryptocurrency market in 2021?
- What are the Cryptocurrency trading strategy for 2021?
Why did all the Cryptocurrency drop that hard?
A lot of people seem to blame regulations for the fall of prices of the crypto market. However, that is not the whole story. Those who control the Bitcoin supply and the bagholders benefit from people who think that these fluctuations are caused by anti-market events in the world, not by Bitcoin itself.
But Bitcoin did not mainly crash because of regulations. It crashed because it was set up for that big crash like most of the other cryptocurrencies. And here is the reason why.
Four years after the Bitcoin whitepaper got published, it crashed from $1000 all the way down to $300 overnight. It then followed a slow downtrend for two years. In November 2015 Bitcoin started it’s uptrend again. Another two years later Bitcoin crashed again for almost the exact amount. So Bitcoin crashes were nothing new. It was simply the repeat of the market.
So Cryptocurrencies grew mostly by the purchase of coins by inexperienced people. As a result, it took 4 years from 2008 to gather enough excited people to create the first bubble and another 4 years to create the second bubble.
But what about the crash?
It seems that the next crash will happen in around 4 years. A lot of people will get excited again in the next few years. As a result, Bitcoin could increase its value by over 1300 percent. Thus, the price of Bitcoin could skyrocket to over 400k per coin. This seems impossible, but it is actually quite a small rise.
If you compare the 800 Billion crypto market value to the dot-com bubble with 9,6 trillion dollars, this valuation is pretty low. So there is a lot of space for Bitcoin and other Cryptocurrencies to skyrocket. Following the trend, we expect that an uptrend should happen again in around two to three years. In four years it might reach his high point and crash again.
What are the trends for the cryptocurrency market in 2021?
As the analysis has already shown, the crypto market has suffered a lot in the past year. As a result, a lot of people have lost their money. Because of that, there are not many people out there that want to trade with Cryptocurrency. Therefore, the trading volume will drop.
But that is actually good for us. Because of low training volume, the price volatility will below. So it is easier to figure out when the cryptocurrency market bottomed.
We also will most likely never see such a bull run as in 2017. But we can expect small runs at the end of the year.
There are also more institutional investors that will invest in crypto. This is a big sign that at the end of 2021 the crypto market could see huge gains again.
What is our Cryptocurrency investment strategy for 2021?
The Crypto market suffered a lot and many investors have quit. But with all that fear we see a lot of potential for good investments. Now, that is your time to shine. Don´t be scared to invest in cryptocurrency. Use the first half of the year to find out everything about the cryptocurrency that has the most potential for you. After that, buy small amounts and wait to see if the market stabilizes. If this is the case, buy larger quantities but do not invest all at once.