How To Make Money in Cryptocurrency

The Bear is dead, long live the Bull!

It is increasingly clear that the most recent Bitcoin bear market (‘crash’) is finally over and we are starting the next bull market (‘to the moon’).

Bitcoin Bull Market (Image:
Bitcoin Bull Market (Image:

It has seemed to me that we were at or close to the bottom of the market for some time. In November I was able to add to my Bitcoin portfolio with additional loans from Ledn, at a price around $17-18k per Bitcoin.

Around the New Year, appropriately enough, it looked more certain that we had turned a corner. I increased my holding of Bitcoin,  via dollar loans against Bitcoin (at around $22k), while being cautious and open to the possibility of further significant falls in the market.

However, it is obvious now that the worst is behind us and we should – mostly – be seeing increases in value from here on in. I say mostly because, of course, Bitcoin never goes up in a straight line, and we can expect spikes and troughs as its value on average goes up.

As I write this Bitcoin is at $29160 and Ether at $1969 on Coinbase. It looks like a great time to buy in as the market shakes off its ‘crypto winter’ and starts to build momentum towards a new all-time high.

It is important to be patient, however. Bitcoin’s value rises and falls in 4 year cycles because of its halving, and the rest of the market follows along in its wake. Therefore we can expect good gains leading up to the forthcoming halving, but the real breakout is likely to take place in the 6 months afterward.

The next halving is due in April 2024. In advance of it we can hope for a steady increase in the value of Bitcoin, plus a faster spike in its value in the 6 months from the halving to October 2024. That should produce the next Bitcoin All Time High (when I’ll be looking to sell) – and then, realistically, the usual fall again afterwards towards 2026 until the next halving approaches in 2028.

In terms of Bitcoin as an investment then, I see the current moment as a great time to buy in. That could be via a lump sum purchase (especially while Bitcoin is below $30k and Ether is below $2k) but Dollar Cost Averaging over the next 12 months would also be a very good strategy.

A suggested diversified portfolio would be something like 50% Bitcoin, 25% Ethereum and 25% of either a range of alternative coins or blue chip NFTs such as the Mutant Ape Yacht Club (which currently has a floor of just 11.9 Eth).

Bitcoin Rally Continues, Gaining More Than 80% This Year

The cryptocurrency extended its gains after another big jump on Tuesday, topping $30,000 for the first time since June.

Bitcoin is still the market’s runaway success story of the year. The cryptocurrency topped $30,000 on Tuesday for the first time since June.

Bitcoin Bull Market (Image:
Bitcoin Bull Market (Image:

Bitcoin has gained more than 80 percent in price this year, far outperforming many other assets. The Nasdaq 100, an index of the biggest tech stocks, has gained roughly 20 percent in that period — a strong showing but a far cry from Bitcoin’s resurgence.

The latest Bitcoin rally appears to be partly tied to the Federal Reserve’s monetary policy, which has included nine interest rate increases over the past year. Crypto asset prices sank a year ago as the central bank began to raise rates, but investors are now betting that the Fed will soon pause its rate increases, even though Fed officials have been suggesting the opposite, setting off a big rebound.

Bitcoin’s biggest gains also coincide with the turmoil in the banking sector. The cryptocurrency is up more than 45 percent since the collapse of Silicon Valley Bank last month. Industry advocates point to the recent rally as a sign that investors are converting some of their cash into digital currencies, though there is little evidence of that happening.

Read more: NY Times

2022 was a hard year for crypto — but it may have been just what the industry needed

  • 2022’s crypto collapse wiped out roughly $2 trillion worth of crypto assets.
  • As the sector enters a period of stability, good actors must come together to deliver a digital assets industry that promotes the safe, sound and compliant development of blockchain-powered tech.

Consumers, businesses and investors around the world lost nearly $2 trillion in the digital assets market last year. By any measure, the systemic failures in the digital assets market in 2022 were eye-watering — some argue they are still reverberating in 2023, with correlations in the evolving banking crisis.

Bitcoin (Image: Antana/CCBY-SA2)
Bitcoin (Image: Antana/CCBY-SA2)

Many of 2022’s crypto losses were triggered by a daisy chain of events that began with the collapse of the stable-in-name-only Terra-Luna token, and were punctuated by the collapse of FTX.

The remaining viable players in the crypto industry must take a hard look in the mirror to regain market trust, particularly among regulators and policymakers. Regulators and policymakers, meanwhile, should take heed in not overreacting to crypto risks but responsibly harness the technology.

With jurisdictions adopting policies across the spectrum, de-banking and de-risking are emerging as major threats to the industry. These trends have unintended consequences and, over time, may produce more harm to the countries (and markets) that adopt these policies than the knee-jerk corrections to last year’s financial misdeeds.

Countries that lead in the development of the third generation of the internet (what some are calling Web3), and the novel industries and business models it will produce (including in the core of finance and banking), will prevail in the digital currency race.

Read more: WEForum