It’s an exciting time for Crypto Investors everywhere. With the rise of several AltCoins and the relative stability of BTC, we can expect 2018 to be filled with a lot of lucrative investment opportunities. Today we’ll be looking at what happened at the end of 2017 and how 2018 will shape up. We’ve sourced this from a Coindesk analysis and have provided a link to the full article below. We’ll be commenting on excerpts throughout the article providing the unique CryptoFroggy views.
Brendan Bernstein is a founding member of Tetras Capital Partners, LLC , an investment manager focused on investing in cryptocurrencies and blockchain assets. The crypto market moves in cycles – and understanding these cycles is key to profiting, managing risk and keeping sane.
The past few months in context
Over the last few months, the market has been driven by new capital entering the space and a psychological acceptance of bitcoin. The capital — both retail and institutional (i.e., new crypto hedge funds) — entered initially through the most liquid crypto assets and fiat currency onramps.
Bitcoin, being the most liquid fiat onramp, has performed well. It was also the first asset many investors became comfortable with during that time.
From July 1st to Dec. 10th, bitcoin dominance (or its percentage of total cryptocurrency market capitalization) increased from 41% to 66% – even as the overall market cap of all cryptocurrencies was increasing outside of bitcoin. BTC’s price increased from $2,492 to almost $20,000.
There are a few other AltCoins that are starting to show similar traits. We’ve been analyzing the marketplace and identifying smaller ‘lower-risk’ investment opportunities and hosted a few Hop Trade events where the participants generated significant ROI. We believe Bitcoin will still be the “standardized Crypto Currency” and will continue to grow significantly over the course of the year. It’s good to “Hold” these and diversify into other AltCoins for quicker gains. Our Hop Trade groups are primarily focused on these AltCoins.
The short-term crypto cycle in action
Moving toward December, the market started to become more and more dominated by retail and – let’s be honest – less crypto-educated capital. Coinbase is a great proxy for this phenomenon. From June to October, Coinbase signups were relatively constant at about30,000 per day.
However, starting in early November, this number started to increase dramatically, exceeding 100,000 on some days. Initially, this capital continued to pour into bitcoin, putting fuel on the short-term cycle and building new investor sentiment in favor of BTC. BTC was going to $100,000, and by the time CNBC debuted its coveted “BTC Ticker,” the pendulum had swung too far in BTC’s direction. Larger investors started to take profits, bitcoin began to falter. It was time to find the next new shiny object…
As capital moved out of bitcoin and into other assets, we saw the end of one short-term cycle and beginning of the next. Starting in early December, a new cycle began and the “cheaper” Coinbase assets stole the show.
This is precisely what we’re talking about. BTC is the mother of all whales at the moment and many people will be investing in BTC for the long term pay off. Some experts believe we’ll be hitting $60k per BTC in this year. This means if you’re buying $1000 of BTC today, by mid-year it might be worth $4000. When it hits those marks, be sure to see a dip occur again as many investors will pull out some of their BTC and convert it to FIAT currency. During those dips in BTC, the ALTcoin Market increases significantly and this is where our Hop Trade Groups shine. If you’re interested in participating in these events, be sure to Sign Up to our Membership groups and gain instant access.
Where we are – and how to profit
The answer to investing is rarely black and white. It’s not “get in” or “get out.” It’s usually somewhere in the middle.
When people are increasingly willing to take risk and fear of missing out (FOMO) is prevailing over any sense of security and analytical discipline, that’s the time to be worried. When the fundamentally weakest assets are rallying the most and people are proclaiming BTC is dead, we’re starting to near the end of a short-term, altcoin-dominated cycle.
The problem is that investors tend to think of themselves as analytical, disciplined and contrarian, but the fact of the matter is that most tend to magnify cyclical moves. They cannot stomach the possibility they may miss out on gains. That is why predicting the exact top and bottom is so challenging. But doing so with exact precision is not necessary…
Profiting from the short-term market cycles is not predicated on owning 0 bitcoin at peak alt and 0 alts at peak BTC. The key is that when investor euphoria is widespread, we should lighten up on those assets which are expensive and be more aggressive with those that are cheap. The time to be overweight alts is at the beginning and middle of the altcoin cycle. Not towards the end. And the same generally holds true for bitcoin.
It’s about calibrating and balancing your allocation of capital in accordance with the current cycle and how aggressive or defensive you want to be.
For our Members, we do the heavy lifting. We have several Crypto Scouts always monitoring the market. We think doing several smaller investments while you build your portfolio is key to generating significant wealth. While there might be Skeptics, BTC is just in it’s infancy still…well more like the Toddler of the CryptoCurrency Market. Thus, we’re finding that holding our BTC is creating more gains for us to play with in the Altcoin market where we’re doing quick trades to increase our ROI then store that back in BTC when there’s a dip. It’s been working fantastically thus far and we’re hoping to see significant gains this coming year.
If you’re interested in finding out what all the fuss is about with Crypto Trading, join our Tier Membership program either for Free with our Tier 3 level, or upgrade to Tier 1 (BIGGEST RIO) or Tier 2 (SIGNIFICANT ROI) groups for special benefits. It’s time to join the Crypto Revolution and to Start Hop Trading Today!