Are you new to cryptocurrency? Then you must know about the cryptocurrency market cycle.
Why?
If you enter the cryptocurrency field at the wrong time, You may lose your money. Besides, You’re a newbie and you don’t have much experience.
Because of that, Knowing about the cryptocurrency market cycle is really really helpful to make perfect tradings and investing at the perfect time.
Have you heard about the market trend? The market cycle is some kind of combination of 2 trends in the cryptocurrency market. Which is,
- Uptrend
- Downtrend
When a coin gaining in the price for a long period of time, It’s price chart called an uptrend. And adverse of that called as downtrend.
How is this happen?
A lot of things depend on that. But in general, the demand is. Yes. Everything that happens in the cryptocurrency market is about demand. If a considerable amount of people interested in a coin, It will rise in price.
But, How can you identify that? That’s exactly what we’re going to talk about.
Understanding the market cycle
Here I start with an image.
Could you understand that? Open this image and read it from the left.
Most of the people entering the cryptocurrency in the wrong place. That is the reason to lose their money.
The repetition of the above process called, “Market Cycle”
But, Here’s a thing.
If you’re educated enough, You can still earn profits if you’re entered in the wrong place.
How?
Technical analysis and day trade. I will do an article for technical analysis in the future. I found a great article about technical analysis from swissborg.com. Check that out .
This is where most people entering as a beginner to the cryptocurrency field (red highlighted area).
They invest and quickly make happy about themselves. Because, they invest in the hype and they earn profit more easily. “I’m going to be rich” “I’m such a genius”
They have no idea about the market cycle. And they have no idea what’s going on.
My purpose, Is to make people educated about these important facts and lead them to success earnings.
Okay, Let’s get into some real-life examples for the cryptocurrency market cycle
Bitcoin
You can see this pattern is very similar to the image that we talk about above.
Litecoin
DigiByte
Dogecoin
Here’s another perfect example of the market cycle.
Got an idea? I hope. Always be alert on how the cryptocurrency market reacts.
Investing in the right place, the perfect time is always good for you and your life with cryptocurrency.
What do you think?
Is the market cycle familiar to you?
Comment your experiences and opinions. That would help beginners much.
