When you start investing in cryptocurrency, you speculate on the price of a currency (most of the time). Everyone wants his or her cryptocurrency to increase in value over time. There are some risks involved in investing in cryptocurrency, but if you read in well, do good research and invest in the right coins, you should be fine. When you expect that the price of a coin will rise in the future, you’re probably not the only one. If there is confidence among a large group of investors and the prices actually go up, you speak of a bull market.
Cryptocurrency market is often described in one of two ways: as a bull market or a bear market.
To put it simply, a bull market is a rising market, while a bear market is a declining one. Because markets often experience day-to-day (or even moment-to-moment) volatility.
So, what is a bull market?
A bull market, or bull run, is defined as a period of time where the majority of investors are buying, demand outweighs supply, market confidence is at a high, and prices are rising. If, in a given market, you see prices quickly trending upwards, this could be a sign that the majority of investors are becoming optimistic or “bullish” about the price increasing further, and may mean that you’re looking at the start of a bull market.
What are the characteristics of a bull market?
*Prices go up for a long time
*There is a lot of confidence in the market
*Certain projects are overpriced
*Prices rise hard in case of good news
*Prices barely drop in case of bad news
*Mainstream media talks about cryptocurrency
*People who weren’t interested in cryptocurrency before are going to read in
How to invest in bull markets:
Bull markets provide ample opportunity for wealth creation. It is the ideal time to take advantage of rising prices by buying stocks earlier and selling them at higher rates. Losses in a bull run are minor, and the investor has a greater probability of earning returns. Some of the ways to profit in a bull market are as follows:
Evaluate personal goals – Assessing your own goals is the first move to making informed decisions.
Long positions – Taking long positions with your coins means to buy them at a lower price and sell them when the price rises. The stock is purchased under the anticipation that the price will increase.
Buy coins with strong use cases – Invest in coins that meet needs.
Buy low – Before the bull run, the bear market presents the opportunity to buy coins at low price. Buy low and then sell at a higher value.
Diversify your portfolio – As the popular saying goes, do not put all your eggs in one basket.
The Cryptocurrency market posts positive returns in the long term. However, if you are looking to make the maximum out of a bull market, it is necessary to take some time before making an investment decision. PLAN AHEAD OF THE MARKET.
So what do you think, are we entering a BULL MARKET?