We’re in a bull run. Some of us have been in cryptocurrency for a number of years. Others are new and only buy their first cryptocurrency…
Note that it is very likely that the prices of cryptocurrencies will not continue to skyrocket as we see for the moment. The price of cryptocurrencies is cyclical. Indeed, every 4 years (2013 – 2017 – 2021 – …) the price of cryptocurrencies explodes and then corrects. Why? It is because of the halving on Bitcoin that is rarifying the offer of new Bitcoin in the market. This creates a sharp increase in prices, which inevitably attracts many people into cryptocurrencies. So the supply is lower and the demand is higher and higher.
However, after each cycle, a price correction has always taken place. This year, halving is combined with a tremendous beginning of massive adoption by institutional players, businesses and individuals. This bull run will forever mark the history of Bitcoin. During a possible correction, many beginners risk selling because they will see for several days a series of percentage in the red. The weaker ones will sell and if they arrive late, they may lose money.
However, do not panic. The underlying trend is bullish, we must not forget that cryptocurrency prices can fall tomorrow, as in 1 month or 1 year. We must therefore be careful and use strategies like DCA to position ourselves wisely. I hope that this little reminder will prevent new entrants from getting caught up in an unfamiliar market