Crypto Bull Run – Are You Ready?

Our top seven cryptocurrencies, which we refer to as the “Elite 7,” are Bitcoin, Ethereum, Solana, Avalanche, Chainlink, Polygon Matic, and Polkadot. These are not just any cryptocurrencies; they are the ones we believe will thrive in this cycle.

Unlike traditional stock investments, “long-term” in crypto doesn’t typically mean forever. However, these are the names we’re looking to hold for the longer term within this cycle.  Nothing is forever in crypto but we believe these stand to benefit.

Why Diversify Beyond Bitcoin?

While Bitcoin is a significant part of our portfolio, we don’t limit ourselves to it. Here’s why:

• Bitcoin’s Growth Potential: Currently, Bitcoin needs to increase by only 1.65x to reach its all-time high. We expect it to surpass this mark during this cycle.
• The Potential of Other Cryptos: Other cryptocurrencies in our Elite Seven are still very large markets and have much more room to grow to challenge and even set new all-time highs.  That’s the beauty of diversifying your crypto nest egg.

By going beyond Bitcoin, you can add small exposure to the other Elite 7 markets and potentially add significantly to your overall returns especially once Bitcoin rockets past its previous all-time highs.  We do this by taking in a position in each of these 7 markets.  Once we do that, we then use our trading system to help time us into more intelligent buy points that will occur over the next 2 years.

Market Cap Insights

• Bitcoin’s Market Cap: At the time of writing, Bitcoin’s market cap is about $800 billion, close to a trillion-dollar market cap.
• Ethereum and Others: Ethereum’s market cap stands at $264 billion, while others like Solana and Avalanche have market caps of $30 billion and $15 billion, respectively, indicating significant growth potential.  These markets have vast lands to conquer. It’s a land grab for digital gold, and you now have the shovel.

Active Trading: The Top Eight Markets (Our Secret Crypto Rockets)

In addition to our long-term holdings, we also focus on active trading using our Crypto Rockets strategy.  The top eight markets for this purpose are smaller, more volatile, and offer substantial short-term trading opportunities.

These include BEAMUSD, ILVUSD, IMXUSD, INJUSD, SKLUSD, STXUSD, SUPERUSD, and TIAUSD.

All of these markets have been rewarding us regularly with short-term active trades.  We do not look to fall in love with these trades, we look for trading opportunities and moves from 20% – 500%.  Yes, that actually does happy with surprising regularity if you know where to enter.

Trading Strategy and Potential Gains

Our strategy involves both fixed and trailing exits. We typically exit at least half of our position at a 20% gain, which often occurs within one to four days. The remaining portion is left to capture any further upside, sometimes resulting in gains of 100% or more.

One of our largest gains recently (SUPERUSD) went for over 800%.  Injective Protocol has given us repeated entry opportunities.

You need to identify the right markets, and then have a solid trading system to identify entry points.

Here we see Illuvium/ILVUSD setting up for another run higher potentially:

Understanding the Four-Year Crypto Cycles

Cryptocurrency markets operate in approximately four-year cycles, marked by significant bull and bear phases. For instance, the peak of December 2017 was followed by a bear market, then another recovery leading to all-time highs in November 2021. Understanding these cycles is important for timing investments and trades.  If all goes to plan, we could be in the  midst of the next four year cycle which could extend well into 2025.

It will not come without some sharp sell-offs.  You’ll see 20% – 50% declines during this period.  However, we believe the smart money will be buying into these volatile dips.  That’s what we’ll be aiming to do as well.

Portfolio Allocation: Balancing Risk and Reward

A small allocation in cryptocurrency can significantly impact your overall portfolio performance. For example, allocating just 10% of your portfolio to Bitcoin could potentially outperform the remaining 90% invested in traditional stocks and bonds.

A Real-World Example

• Traditional Portfolio: A $10,000 investment split 60% in stocks and 40% in bonds would have grown to $15,000 by the end of 2023 over the last 5+ years.
• Mixed Portfolio: The same investment but with 10% in Bitcoin would have grown to $26,500, with the Bitcoin portion alone worth over $10,000.  That small, lower risk allocation added substantial returns.  Just a small allocation to cryptocurrency can potentially make more than the rest of your portfolio.

Conclusion: The Time to Act is Now

The current market presents a unique opportunity for both long-term investment and active trading. With the right strategy, even a small exposure to cryptocurrency can lead to significant returns. However, it’s essential to have an exit plan and understand the market cycles.

Remember, the opportunities in cryptocurrency are rare and time-sensitive. If you’re not already positioned, now is the time to consider these strategies and start learning how to navigate these markets.

This post originally appeared at NetPicks.

Category: crypto