A bull market, also known as a bull run, is a period in which the majority of investors are investing, demand outnumbers supply, market morale is high, and prices are increasing. In a bull market, investors are more optimistic about the future because they expect prices to rise for a long time.
Global Cryptocurrency Market 2021
The global cryptocurrency market grew at an unprecedented rate from 2014 to 2021. Digitization and penetration of high-speed internet are powering the increase in buying crypto.
The legalization and control of the selling, purchase, and exchange of cryptocurrencies in many developed countries have also aided market development. Today’s crypto industry is more advanced than it was in 2017. Cryptocurrency transfers and storage have become simpler thanks to advancements in network and computing technology.
Thanks to streamlined integration frameworks, integrating crypto payments is easy. The entry barrier is smaller than it has ever been, allowing institutional investors to participate in the crypto markets. Consumers will be able to use common cryptos as a form of payment as adoption accelerates.
Effect of COVID-19 on the Market
COVID-19 had a major effect on the ongoing bull market as well. Social lockdowns, record unemployment, inflation, economic instability, and concerns of contracting the coronavirus have pushed substantial investment into crypto.
Finally, numerous crypto exchanges have sprung up in recent years, making cryptocurrency investing safer and more streamlined, particularly for skilled investors. There are more reliable names in the market, and investors are not afraid of exchanges taking the funds and disappearing.
Buying Crypto in the Bullish Markets
Here are a few steps to buy cryptocurrencies during this bull run:
Keep an Eye on Savings
In general, investors will profit from bullish markets by buying crypto early, profiting from increasing rates, and exiting the market as soon as the asset has reached its height. No one knows for sure when the demand will hit its apex. Even so, if you keep a close eye on your savings, losses are normally minor and only last a short time.
Buy and Hold
Many who are new to cryptocurrency investment should consider averaging into a spot and holding instead of trading. Each strategy, however, has advantages and disadvantages. The key explanation why HODL is beneficial to new investors is that it prevents them from panic selling at a low point and taking profits ahead of a major run.
Average into a place over time, particularly when prices are low compared to recent highs and lows, HODL is the right way. And, when you see any very good income, think about getting some money off the table to put back in later. This necessitates a great deal of patience and emotional control.
Prepare for a Bearish Trend
If it appears that things are spiraling out of control and you anticipate a bearish trend, you should consider reducing your positions. It is imperative if you have positions in less-proven cryptocurrencies. It may be a good idea to diversify your holdings into other properties, such as cash or precious metals, at this stage.
These assets may be able to withstand a crash and may also prepare you well for the upcoming bear market. Many high-quality cryptocurrencies could be available at low prices at the end of a bull market, allowing you to double (or even triple) your investment.