BEST KEPT SECRET in all of crypto.
Cryptocurrency is in a bear market. What can you do to prepare for the next wave?
It’s easy to find 10 articles predicting the demise of crypto. The fear and greed index is currently at extreme fear.
Markets are down. Bitcoin is down, and most other cryptos are down. But, savvy crypto investors are smiling. In fact, they are drooling.
The mainstream crypto-haters are laughing, saying things like “I told you!” and “I would never have my money in a ponzi scheme”, or even “serves you right!”. And, they will continue to say things like that throughout the bear market. And, when the bull market returns (it will), they will say things like “the bottom is about to drop out! get your money out!”. And, in a way, they will be right. Because, the best kept secret in all of crypto is simple. It’s well-known amongst crypto investors. It separates “paper-hands” (sellers at the first sign of downturn) from “diamond hands” (holders throughout the rough patches).
The secret is actually two parts. The first part is that crypto goes in cycles. There are bull markets and bear markets. The price of bitcoin has shown this time and time again. Look at this chart:
Does this look like a “dead” asset? Does it look like Bitcoin has reached its tragic conclusion? This is a chart that is scaled logarithmically, so that growth is shown with a ever increasing scale. Look for the patterns:
These red arrows show the “local peak”. Not only are they following a pattern, but they are timed. It’s almost like some external factor is controlling the price, and it’s not random. Guess what…it’s not. It’s correlated to something called the Bitcoin Halvening. Every four years, the amount of Bitcoin that is earned through mining is cut in half. And, it marks the beginning of the next bull market. Here is the same cart with the historical Bitcoin Halvenings marked down (2012, 2016, and 2020):
Like clockwork, the price of Bitcoin begins its rise at the halvening. The next halvening is expected in 2024. (They do not occur at pre-programmed dates, rather, at pre-determined blocks on the Bitcoin blockchain).
So, if this is public knowledge, how can it be a secret? In reality, it’s not a secret. But, ask anyone who is not a crypto investor what the Bitcoin halvening is. It is highly unlikely you’ll find anyone who knows what it is that is not in Bitcoin (or crypto in general). It’s a secret because non-crypto enthusiasts don’t want to know. It doesn’t fit with their narrative. The same people who were shaking their heads in 2019 after the market tank following 2017/2018 peak are the same people shaking their heads now. They think Bitcoin is a fluke, and not related to anything. They don’t understand that is follows supply and demand. Simply, when the halvening occurs, the supply reduces. And, over time, more general acceptance and use-case (I’m looking at you, El Salvador), have created more demand. That’s why the price has continued to increase on-average each cycle.
I can’t, and won’t predict where the next top will be. What I do predict is that this bear market is temporary.
The first secret is that Bitcoin goes in cycles related to the halvening events.
The second secret is how to make money on Bitcoin NOW. And it is a two-part recommendation.
Disclaimer: I am not a financial adviser, and I do not recommend you invest ANY money that you can’t afford to lose. While I believe strongly in what I am about to say, that doesn’t mean you should do anything with your money that you have not researched and have belief in.
Part 1: DCA. Dollar Cost Averaging
If you are seeing TODAY as a buying opportunity, and hope to see tomorrow, you are doing it wrong. It is probably that we have not seen the true bottom of this cycle. There is no way to predict when that bottom will be, or how low it will get. Smarter people than I will try.
But, the way to combat that uncertainty is to spread your investment out over a long period of time. If you have money to invest right now, don’t invest everything right now. Spread it out over the next YEAR. Based on the last chart above, the next halvening is not expected until 2024. If you want to make money in Bitcoin, take whatever you plan to invest (again, only use RISK CAPITAL), and spread that out. Purchase BUSD, USDT, or DAI (see Part 2 about what to do with those stablecoins in the meantime), and use that over the course of the next year to put a little bit into Bitcoin or Ethereum (or BNB) over the next year. Every week or month, take a little bit of your crypto nest egg and buy Bitcoin or Ethereum. Gradually convert your stablecoin (BUSD, USDT, or DAI) into a more volatile asset, taking advantage of EVERY PRICE POINT. Some days, it will go up. Some days, it will go down. But, over time, you’ll have exposure to every price point as we sit in this market for the next year.
Part 2: Don’t let your crypto just sit somewhere. Let it EARN for you.
The worst advice I could give is to let your crypto sit on an exchange, like Coinbase or Binance, doing nothing. One, crypto exchanges are failable. We have just seen the demise of FTX. Investors likely have lost a lot of money that they will never see again because they’ve left it on the exchange.
Instead, your money work for you. Personally, I’m a huge fan of investing my crypto into a passive income site like NovatechFX or bridging it to the Binance Smart Chain using the Metamask Wallet and investing it into a yield farm like Pancakeswap or The Animal Farm.
Briefly, NovatechFX is a platform where you invest Bitcoin, Ethereum, or USDT and traders use that on the market to earn you weekly returns on your investment.
Briefly, yield farming sites like Pancakeswap or The Animal Farm are platforms where you invest your crypto into their platforms, where you receive reward tokens that can either sell (Pancakeswap’s CAKE) or re-stake to earn BNB or BUSD rewards (Animal Farm’s DOGS and PIGS).
Whatever you choose to do, this is time to let your crypto work for you. There are flush investors who have $10,000+ of Bitcoin and Ethereum who just leave their money on exchanges, or even the more-secure Ledger hard wallets. Think of how much money they could make if they used that money to generate interest. In the next year on the Animal Farm, you could turn $10,000 into $20,000 worth of Bitcoin. And you can do this without selling your Bitcoin. So, when the next bull run occurs (2025??), you’ll have twice as much Bitcoin as the price rockets.
To summarize, here are the secrets to crypto success:
- Keep buying micro-amounts when the price is low. Also, a good idea to SELL micro-amounts when the price is high. Rinse and repeat, and retire.
- If you own crypto, or after following secret 1, use the crypto that you have to earn MORE crypto while you sleep.
I’m a big fan of NovatechFX and The Animal Farm, but they are certainly not the only crypto sites that can earn you interest on your crypto.
If you are interested in getting involved in NovatechFX, feel free to read this article on the platform. You will need to send Bitcoin on the Bitcoin network/blockchain to the NovatechFX platform to fund your account.
If you are interested in getting involved in The Animal Farm, read this article that details the site and gives a link to detailed instructions on how to get your crypto into the Binance Smart Chain through the Metamask wallet. There’s a great learning curve, but the rewards are far worth it, in my opinion.
See you in the next Bull Market. Your actions until then will set you up for success!
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