Bitcoin Bull market - Now What?

Good question! As you are hopefully aware, Bitcoin has been very bullish recently! This blog will discuss some reasons why we are bullish, and what are plan will look like to capitalize on the coming volatility and uptrend.

Why Is It Going Up?

  1. Halving Cycles should be considered as one of the factors driving supply/demand. Given that less Bitcoin is distributed to the miners, and therefore less enters the market, it exerts deflationary pressure on the asset. Less Bitcoin to go around suggests the valuation of Bitcoin will increase.

  2. Institutional Interest has grown exponentially when compared to the niche in 2016/2017. We're seeing massive companies like Grayscale, Square, Microstrategy, JP Morgan, and Fidelity not only accumulate themselves, but advocate for others to do the same. Its being recognized as a hedge to inflationary fiat - which is our next topic.

  3. Inflationary Fiat is nasty fiat. Dollars are become worth less everyday that the currency supply expands. We have found ourselves in an inflationary cycle, with no clear exit plan. As dollars increase in supply, things become more expensive. The correlation there is logical, but assuming the victim position is illogical. Store your value elsewhere, fiat is in a downtrend. Crypto, metals, and index funds are the three assets we consider as fiat safe havens.

  4. Fomo is a factor that we haven't really seen yet. Given that this Bitcoin spike happened concurrently with the US election, I think that many people have failed to recognize just how explosive BTC has been in the last 14 days. When your family, friends, or other 'normies' ask you about Bitcoin, that is a sell signal to remove some risk from the table.

  5. The final factor that I want to discuss is generational accessibility. Youths are beginning to realize finance is cool. Apps like Robinhood, Webull, etc have increased public interest by making it convenient. Bitcoin, and other crypto products are no longer as challenging as they used to be to access. No longer do you have to wait days, weeks, months to be able to buy/sell. Its typically as simple as registering and getting started.

How Can I Capitalize?

Good question! While it seems to have an obvious answer (buy crypto) this can be easier said than done. So I am going to share some insight that I have learnt over the years to help you execute..

  • Keep it simple!

    • Don't overcomplicate what can be simple! Set up automated purchases that require no work. Weekly or biweekly is likely best because fees can be a burden sometimes. This mitigates much of the risk that comes with cryptocurrency because of the effective strategy of dollar cost averaging.

    • Buying the dip is a great strategy, but never go "all in" on one dip. Chances are, it can go much lower than you realize, and that kind of loss can be psychologically impossible to manage. 

  • Keep your psychology in check:

    • It is easy to get wrapped up in the market conditions, constantly checking your portfolio, and becoming an overall "addict". While this can lead to profits, it can also lead to mental anguish. Don't fret over the short term volatility. Stick to 4H and Daily charts if you find your psychology slipping and making poor choices on small time frames.

  • Don't store investments on exchanges:

    • Unless you are active in the markets with your trading, it likely is unsafe to store your investment on an exchange. Cold wallets that aren't actively connected to the internet are a great way to keep your investment secure. Remember, not your keys, not your coins!

  • Share the knowledge, not the specifics:

    • Don't tell people how much Bitcoin you have. Life is easier when you are low key, and you let others wonder. Work hard. Play fair. Work while they dream and eventually you will dream while they work.

    • That being said, there is nothing wrong with altruism and helping others get started in cryptocurrency. The learning curve is very high, and helping your friends or family get started is a great way to give back. Remember to provide sound advice, and never shill projects you aren't confident in.

What If I Need Help?

Look no further than Performante Premium! We've helped thousands on individuals get started with cryptocurrency, and we can help you. Here is what we provide via the world leading Education Platform:

  1. Educational Resources in both text and video format. These lay down the foundational knowledge required to succeed.

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  3. Our market insight into Crypto, Metals, and major indices.

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It is our goal to breed independent and effective traders. 

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