Cryptocurrencies are of various types, and they are very volatile. A concept named Crypto seasonality exists in the market, which states that the prices of a cryptocurrency will rise and fall over a fixed time, which will greatly influence the market. The price fall and rise can be monitored over every Bitcoin Trading Platform. Bitcoin is a very volatile asset, and it has been observed to gain and lose tens of thousands of dollars in value over short periods. The volatility of Bitcoin increases, and it peaks right before Bitcoin Halving. Bitcoin Halving occurs every four years, which witnesses lower mining rewards for Bitcoins. If you are planning to trade Bitcoin, you may consider using a reputable platform to help you out in your trading journey. For more information visit bitcoin-future.live.
Bitcoin halving and crypto seasonality
Due to lower mining rewards, miners tend to mine fewer Bitcoins, which creates a scarcity of the same. A scarcity of Bitcoin in the market tends to correct its prices. Prices start increasing after the halving, which gets investors’ hopes up. However, after some time, investors start cashing out their profits, which leads to a market crash. The market crash alerts other investors as well, and they start cashing out as well.
How investors are affected by Crypto Halving
Owing to the Bitcoin crash, most investors tend to cash out their profits, and they start dabbling into altcoins. However, there is no telling when an altcoin project is about to crash. Therefore, investors are compelled to take higher risks to keep generating profits. In addition to the high levels of volatility, the altcoin market is also prone to scams. The risk of rug pulls looming over the head of investors. Thus, it can be stated that investors are forced into investing in high-risk assets, which sometimes tend to generate even higher profits than Bitcoins in the short term. Regardless of this possibility, one cannot ignore the fact that crypto seasonality can prove to be a menace. It is important for investors to find out how they can weather crypto seasonality.
How you can weather crypto seasonality
One of the most prominent ways to tackle crypto seasonality is by accumulating assets over time continuously. Crypto start-up, Seasonal Tokens has taken this matter into hands by developing a mechanism that will rise and fall over the course of 9 months. This gives investors a safer alternative when compared to the downtrends of Bitcoin. The “Seasonal Tokens” project is divided into four parts. The four parts are Spring, Summer, Autumn, and Winter. The idea is to buy the Spring tokens when they are the cheapest to generate and hold on to them while they gain value. Once the season changes, the Spring tokens are converted into Summer Tokens. When the Spring tokens hold the highest value, they are traded for Summer Tokens, which are then available at a cheaper price, which in turn increases the number of tokens under the possession of an investor. The cycle then moves forward by trading Summer tokens at their higher value, for low-priced Autumn tokens, and so on. Therefore, Season Tokens aims to provide an alternative to volatile altcoins. If things go down as predicted on the basis of the way these tokens work ideally, investors are in for a treat!
Crypto seasonality influences the crypto market prominently, and even Bitcoin is not an exception to seasonality. The major reason behind Bitcoin seasonality is Bitcoin Halving, which reduces the rewards for Bitcoin miners. This discourages minerals from mining Bitcoin, leading to a scarcity of Bitcoins in the market. This scarcity corrects the market for Bitcoin, and prices on bitcoin trading platforms start going up. The scarcity ends up overcorrecting the market. This is followed by investors cashing out, consequently lowering Bitcoin prices. This is how crypto seasonality works. In order to weather this, most investors start investing in Altcoins. Although some of the altcoins are profitable, and they are, you can consider investing in assets that accumulate value over time and are not that volatile. Protecting the overall value that you have gained must be your priority during the lows. Unless you are making informed and strategically planned decisions that revolve around conserving your profits, you always run the risk of losing your crypto gains! Thus, choose your strategies carefully, and think your decisions through very thoroughly.