The crypto market is experiencing its annual seasonality, or “crypto winter,” as some have called it. This period is marked by low investor interest and diminished volumes of trade activities. However, this doesn’t mean you should wait the rest of this year to invest in cryptocurrencies. In fact, the time between January and April is ideal for new investors to get their feet wet with a small amount of money before diving into the market later. This article will help you understand what factors make this period favorable for new investors while explaining why many experts believe it could extend even further than usual this year. Keep reading to learn more about how you can capitalize on these conditions to start investing in crypto now and not miss out on any great opportunities moving forward.
The concept of a seasonal crypto cycle is one that is often overlooked by investors, new and old. But when you look at the chart of the market, it’s easy to see why this is an important time to begin investing in cryptocurrencies. You’ll notice that after a volatile, upward-trending summer, the autumn season ushers in a major dip in market activity and prices. This seasonal trend of market behavior is similar to that of equities, commodities, and other traditional assets, where high volumes and rising prices are typically seen during the fall and winter due to seasonality. This is primarily due to the fact that less new money flows into the markets during this period due to the reduced savings rate and the overall sentiment around the markets.
Suppose you’re looking to take advantage of the current seasonality of the crypto market. In that case, you may consider implementing some of the following strategies. If you want to get in on the action as early as possible, you’ll want to start researching and reading up on new companies and coins. This way, you’ll be prepared to make your first investment as soon as the first week of January rolls around. Alternatively, you may want to wait until the very end of the month to start your investing journey with crypto. If you time it right, you could get lucky and get in just before the seasonality ends and prices start to rise once again.
As with any investing cycle, you’ll want to keep an eye out for any major announcements from large companies and government bodies that could affect the prices of cryptocurrencies. Keep an eye out for any news that affects Amazon’s relationship with blockchain technology, as this could spell big things for the future of cryptocurrencies. You may also want to keep an eye on the annual meeting of the World Economic Forum, which typically takes place in Davos, Switzerland, each year. This event is notable for hosting major heads of state, CEOs, and other notable figures of the business world who could make important announcements or comments related to blockchain and cryptocurrencies. Finally, you may also want to start monitoring the price of the U.S. dollar. Typically, a declining dollar yields positive results for cryptocurrencies and vice versa.
An airdrop is a marketing strategy that many blockchain companies use to get people to start investing in their tokens and/or cryptocurrencies. With an airdrop, a company will distribute free tokens to a wide range of individuals interested in exploring the world of crypto investing. If you actively look out for these types of events throughout the season, you may be able to get your hands on some free tokens that you can then sell for a profit once their value goes up.
If you’re new to crypto investing, you may be under the impression that you can only buy and sell Bitcoin and other altcoins. That’s not the case. You can also easily buy Ethereum, the second-most valuable crypto in the world and the most widely used in terms of blockchain applications. You can buy Ethereum either through Coinbase or another major exchange. As an added benefit, Ethereum has the same general seasonality as Bitcoin. This means you should expect to see the price drop significantly over the next couple of months. This makes it an ideal time to buy into the market and set yourself up for a profit as the prices start to go back up again come spring.
Short-term investments are a great way to start if you’re eager to get your feet wet with investing in cryptocurrencies. Short-term investments in cryptocurrencies are expected to have a very short lifecycle. The most common short-term investment is an ICO or Initial Coin Offering. You should be wary when investing in ICOs, however, as many of them turn out to be fraudulent or otherwise end up failing. You may also want to consider investing in STOs, or Security Token Offerings. While STOs are similar to ICOs, they are regulated by the SEC and carry less risk.
As you’re looking through the different crypto assets currently listed on various exchanges, you may notice some of them are trading at absurdly low prices. There are a few reasons why this might be the case. One of them is that the crypto asset in question may be very new to the market and hasn’t had a chance to garner significant volumes of trading activities. Another reason could be that a crypto asset is trading at a very low price because its value is so low due to some major issue it’s facing. For example, a crypto asset could be trading at a very low price due to being delisted from an exchange due to a breach of the company’s terms and conditions. Keep a close eye out for these situations, as they can often result in a significant profit for investors who buy the asset at its low price.
As you can see, there are many ways to capitalize on the crypto seasonality of the financial market. You can start researching and reading up on new crypto assets and companies and keep an eye out for major announcements, shake-outs, and absurdities in the crypto asset market. Once you’ve made a few successful investments, you may even decide to extend your seasonality window and continue investing in crypto well into spring. No matter which route you choose, there’s no better time to get started with crypto investing than right now. With our guide, you will hopefully navigate the issues of crypto seasonality and create wonderful new avenues to gain from trading in cryptocurrency. As always, you must remember to protect your capital while trading in the crypto markets and not blow up your account in only a few trades.