Market cycles: how to make money on the downtrend

 

The cryptocurrency market has been at the steady downtrend since the beginning of this year. After Bitcoin’s incredible growth in December 2017, the inevitable correction followed, and now the overall situation is only getting worse.

However, a wise investor can see an opportunity here.

“Buy low, sell high”. This is a well-known rule, but the truth is that 95% of crypto-traders don’t follow it. Most people are only focused on short-term gains. Now that Bitcoin price is coming down every week, they watch daily and weekly graphics, lose their patience and get out of the game.

But the true winners in this unstable situation are those who bet not on short-term price movements, but play on market cycle. Clever investors know that the best moment to enter the market is when it is at the downtrend. Because when it seems that things cannot get worse than they are at the moment, everybody quits, and exactly at that moment the market starts going up again.

We have already seen such a situation. Bitcoin reached its all-time high in November 2013 and after the abrupt fall, it stayed at its lowest for 4 years. This period is long enough to make even most patient investors give up and get out of the game. However, those who managed to hold on to their bitcoins until December 2017 must now be very rich people.

Not every project will last for that long, most altcoins will drop out of the market and never rise again. But the strong projects such as Bitcoin will last and live to see better times. The best investment strategy here is not to wait until the market reaches the bottom, buy to buy more and more at every new step. This will help you to lower the average price of the currencies in your portfolio.