Modest Accumulation - More Powerful Than You Think
A Simple Dynamic
Crypto investing is very much a case of sowing and reaping. Bear markets are a time of sowing and accumulation, while bull markets are a time of harvesting. Unless you plant now, there will be nothing to harvest in the next bull market. It is during this phase that we are currently experiencing that valuations of altcoins begin to slowly rise and eventually experience a significant increase as time passes. This however does not negate lower levels being realized in the upcoming weeks and months.
This consistent growth over time eventually provides meaningful returns at the next peak. Although the market often experiences a tremendous acceleration during the final stages of a bull market, much happens over time. Selecting and allocating capital during the final stages of a bear market is the key to eventual success. Significant gains are not captured by timing the absolute acceleration of a bull market, but rather by consistently multiplying growth over time from the market bottom.
When we consider the macro environment, we simultaneously have to consider that the Crypto market could also edge lower. I will however state that I am way more bullish on Crypto than the stock market. I believe that Crypto will seriously outperform the stock market over the next few years, even breaking away in terms of correlation. Possible tragedies would prove to be destructive in the short term for all markets. However, once “absorbed”, certain negative events are likely to transition into a bullish catalyst for Crypto.
All The More Reason
This is exactly why accumulating even modest amounts of Crypto at these levels is extremely powerful. This is especially true of projects that are destined to experience significant returns. For many newcomers, experiencing a few hundred percent in terms of gains is something spectacular. However, gains in this arena are considered almost worthless to an experienced altcoin investor. Just to give an idea, let’s look at prices from the previous cycle’s bottom to the previous cycle’s top. These are approximations of the general price levels attained.
This just helps to put things into perspective of just how meaningful a small investment can be, given one has the foresight and endurance to stay the course. Analyzing Doge and Unibright reveals that both these projects yielded a return of approximately 300X. In other words, an investment of approximately $3300 in 2019 would have grown to $1 million in 2021.
Given the fact that most investors have been programmed by traditional markets, they are automatically under the impression that they require significant capital in order to benefit from a bull market. This is not necessarily the case when it comes to Crypto, especially lower-cap altcoins.
Forget Dollar Valuations & Just Accumulate
There are so many ways that folks can get their hands on free Crypto. Simply accumulating as many coins and tokens at these levels will ultimately become profitable. Too many choose to look at the current valuations and so are defeated before they begin. I say this every bear market, and yet, for the most part, it falls on deaf ears.
The one consolation is that we are relatively close to a bottom being established. Even though there could well be another leg down, we are in the final stages of this bear market, in my opinion. As I see it, September to the close of this year will later be seen as the most beneficial period of accumulation. This means that we are currently in the heart of accumulation, even if we do see lower levels.
This is not investment advice, but rather a call to readers to begin assessing the market. Sometimes a bear market can lull investors into a state of “slumber”. Ensure that your interpretations and analysis of the market are current and up to date.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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