Can the Seasonality of Cryptocurrencies Be a Good Thing?
A person's view and the personality of an investor determine if the seasonality of cryptocurrencies is a good or bad thing. Some novice traders might probably view crypto seasonality as an honest thing, as they are aiming to invest in top cryptocurrencies such as Bitcoin and Ethereum at a low-price value.
However, some long-term investors might hold in contempt about crypto seasonality as their Bitcoin and Ethereum holdings are going to crash every 4 years, drawing them to forcibly deal with the lows or shift into altcoins as reinvestment of their holdings.
Supply and demand are one of the reasons why cryptocurrencies cannot always rise in value. But this perspective isn’t always an assurance since the top cryptocurrency has conventionally jumped to higher price levels when halving over the years.
What You Need to Know About Seasonality of Cryptocurrencies
Crystallisation seasonality means that cryptocurrency has a particular set time period of rising and dropping in value that creates an extremely huge impact on the entire crypto market.
The first ever established and the biggest cryptocurrency in the global crypto market is Bitcoin (BTC). Being the first crypto created has a lot of value that is always locked up in it, and all alternative coins (altcoins) are connected to it in certain ways.
But Bitcoin is not a stable digital asset. The top global cryptocurrency is fluctuating in price value consistently, massively surging high and dropping low at any given point. This kind of Bitcoin's price fluctuation is anticipated to occur every four years, hitting a peak level before relatively crashing caused by Bitcoin halving.
In the Bitcoin blockchain’s system, Bitcoin halving is programmed. This halving is set to happen regularly every four years. Bitcoin halving caused the mining rewards to be split in half, to efficiently guarantee there is less Bitcoin entering into the circulation with each mined block.
Following a halving, there will be an anticipated market correction. Bitcoin's scarce nature makes its price rise in value, however, if an investor withdraws their earned returns, an overcorrection in the market will occur.
Every time Bitcoin experiences a crash, many investors start becoming anxious about their holdings and may decide to reinvest their capital into altcoins.
Dealing With Cryptocurrency Seasonality
Consistent accumulation of digital assets is one way to provide a solution in times of crypto market crash during cryptocurrency seasonality.
There are several options available when dealing with crypto seasonality. Seasonal tokens are good options as a potentially more secure alternative to conventional ways of trading.
These seasonal tokens are structured to rise and fall when a 9-month period occurs, aiming to offer investors a more stable option as an alternative to Bitcoin's downward movement.
The seasonal tokens project is categorised into four seasons. These are:
- Summer
- Autumn
- Spring
- Winter
The concept with these seasonal tokens is that investors would invest in Spring tokens at their cheapest value and hold them when the value rises and reaches its highest possible peak.
In times of seasonal change, investors have to convert these tokens into Summer tokens, which will expectedly rise in price value in the next few days. These steps continue after every season changes.
In a most favourable scenario, every time Spring tokens become the most expensive to generate and Summer tokens are at the lowest price, and investors would exchange their Spring tokens with Summer ones. This will maximise the total number of tokens they possess.
Then, every time the Summer tokens are at their peak level, investors will exchange them with Fall tokens at their lowest value, accumulating more. Moreover, when Spring occurs again, investors will exchange their Winter tokens for Spring ones and earn profits from their rarity.
To find the best available tokens or coins to invest in during the bear market or crypto seasonality, you can use Bitcoin-loophole.io. You can select numerous accessible coins or tokens in this broker-linking platform.
Is Crypto Seasonality Beneficial or Detrimental?
Crypto seasonality greatly affects every investor. However, treating it as good or bad depends on an individual investor's mindset and personality. It can be both beneficial and detrimental.
Some newcomers in cryptocurrency investment may view seasonality as a good opportunity as they have the chance to invest in Bitcoin at a lower value. On the other hand, long-term holders might not find favour in this seasonality due to the regular crash cycle.
They will have no choice but to target the lows or shift their investments into alternative coins (altcoins).
Important Takeaway
The seasonal tokens project aims to offer assets that are consistently accumulating and rising in price value, which gives investors a good opportunity to find a secure place to put their funds in times of a crypto market crash, bear market, or crypto seasonality.