Why You Should Invest In Crypto

Why You Should

Invest Into Crypto

Bitcoin: A Hedge Against Inflation

Even If You’re Wrong, You’ll Be Right in the End

If you kept your money in a savings account, 4 years later that money would be able to buy you less stuff.

If you buy Bitcoin, no matter at what price you buy, 4 years later you will be up.

The incredible thing about bitcoin is that even if you invest at the top of the bull cycle, you are only down for about 4 years. After that the price will recover and you will be up 200%

If you enter at the bottom of the bull cycle and sell at the top, you have around 10x in gains you can make.

With Bitcoin you never have to worry about losing your money. Depending on the price you enter, you can make a 10x in 1 year or you a 2x in 4 years. The worst you can do is grow your investment at a rate of 25% per year.

Why Now is a Good Time to Invest in Crypto

What if I told you there is a world with a system in place where you could double your money every four years? What if I told you that this world already exists—and you're living in it right now? This is the world of Bitcoin and Cryptocurrency.

While the stock market has its ups and downs, generally you can make money on stocks every year. But when it comes to crypto it’s a different story. The crypto market moves in two phases. The Bear Market where everything goes down for 3 - 4 years and the Bull Market where everything goes up for 6-12 months.

This presents an incredible opportunity of not having to predict the market but instead follow the reliable pattern it provides.

The Bull Market Has Started

We’ve been in a Bear Market since November 2021 and we have officially entered the Bull Market on Nov 5 of 2024. This took place when Donald Trump won the presidential election.

There are multiple reasons why this was the catalyst to kickstart the new Bull Run.

JD Vance as VP

Our newly elected Vice President JD Vance is a very pro crypto politician and has vowed to bring forth pro crypto favorable regulation once in office.

SEC Chair Gary Gensler to step down in January 2025
Has served as Chair of the U.S. Securities and Exchange Commission (SEC) since April 17, 2021.His time has been marked by an aggressive regulatory agenda, particularly in areas such as cryptocurrency oversight, corporate disclosures, and trade settlement reform. He has passed multiple anti crypto regulations that negatively impacted the space of crypto.

Creator of Cardano in Crypto Advisory Position

Cardano founder Charles Hoskinson has confirmed that he will be collaborating with the U.S. government under Donald Trump to help shape crypto legislation. The goal is to create clear regulatory frameworks for the digital assets space, which has faced years of uncertainty and regulatory challenges. Hoskinson's company, Input Output Global (IOG), will develop a separate policy division for crypto regulations, focusing on bipartisan bills.

Elon Musk & DOGE
Elon Musk is set to lead a newly established government initiative called the Department of Government Efficiency (DOGE). This program aims to streamline government operations, reduce unnecessary spending, and improve overall efficiency. The clever naming nod to Dogecoin, combined with Musk’s significant influence and affinity for cryptocurrency, could signal potential positive developments for the crypto space. With Musk’s hands directly on a program tied to government reform, the initiative could foster innovation and further legitimize digital currencies like Dogecoin in public and economic discussions.

Donald Trump

He is pro crypto and has announced a proposal that states that the US Treasury and the Federal Reserve would purchase 200,000 Bitcoin tokens each year for five years, totaling 1 million Bitcoin. The legislation would require the government to hold these Bitcoins for at least 20 years.

This news could be one of the most bullish signals for Bitcoin yet. Not only would it solidify Bitcoin's legitimacy on the global stage, but it could also trigger a chain reaction, with other nations eager to invest in Bitcoin. News of the U.S. backing Bitcoin has already been widely covered across China and other international media outlets. As countries see America embracing Bitcoin, they may rush to invest, hoping to capitalize on the price surge by front-running future U.S. market movements. This could propel Bitcoin into mainstream adoption as governments around the world follow suit

Recently, several states in the U.S. have been considering adding Bitcoin to their balance sheets as a reserve asset. One notable example is Pennsylvania, where lawmakers have introduced the Pennsylvania Bitcoin Strategic Reserve Act. This legislation aims to allocate up to 10% of the state's funds into Bitcoin, providing a hedge against inflation and diversifying investments beyond traditional assets like bonds and cash reserves.

Apart from Pennsylvania, other states considering adding Bitcoin to their balance sheets include:

Texas: Known for its favorable stance on cryptocurrencies, Texas has been exploring the idea of adding Bitcoin to its reserves.

Florida: Florida lawmakers have shown interest in diversifying the state's assets with Bitcoin.

Arizona: Arizona has also been mentioned as a state considering Bitcoin for its balance sheet.

These states are part of a growing trend of governments recognizing Bitcoin as a legitimate store of value and a hedge against inflation.

Based on previous cycles you can expect Crypto to have the kind of gains it did in the past. But due to the large amount of pro crypto events taking place, it is likely to have even bigger gains than it did in the previous cycles.

Timeline of the Bull Market

The bull market follows a predictable pattern.
It can be visualized as a series of two peaks, resembling hills, a smaller one and a bigger one.

First Smaller Move Up

Prices begin to rise, approaching previous all-time highs

Initial Pullback

Early investors begin to take profits, leading to a brief decline. The market then settles at a higher price floor, which is now the new baseline

(We are here)

Second, Bigger Move Up

Prices surge past previous peaks, setting a new all-time high as more investors jump into the market, driven by the excitement and momentum of the bull run.

Final Pullback

As prices reach their peak, many investors take profits, leading to a sharp decline. However, this drop ends at a new higher floor than before, marking the conclusion of the bull run and establishing the new market baseline.

At the current state of the cycle we have only seen the price rise from the first smaller move up. There is still another price rise coming from the second bigger move up. You may not be here early but you are still not too late

How Different Types of Investors Enter the Crypto Market

Early Adopters
These investors are highly knowledgeable, often having been involved in the crypto space for years. They buy in early, usually at the bottom or in the initial stages of a market cycle, leveraging their expertise and awareness of the technology.

(We are here)

Institutional Investors
Once the market begins to show signs of growth, large institutions such as hedge funds, venture capitalists, and publicly traded companies start to take notice. They make significant investments, signaling more legitimacy to the market.

Retail Investors
As the market gains traction and news coverage, retail investors (everyday individuals) start to get involved. They enter in larger waves as prices rise and hype builds around the market, often contributing to the price surge.

FOMO-driven Investors
These latecomers join the market during the peak, driven by "fear of missing out." Their investments are often more speculative, seeking to capitalize on the momentum of the bull run, but they are also at higher risk of buying at inflated prices.

At the current state of the market we have only seen the price rise from early adopters

We have still yet to see the money flow in from Institutional Investors, Retail Investors, and then finally FOMO-driven Investors. You may not be here early but you are still not too late!

How Money Flows Between Sectors in Crypto

This is how money typically moves from Sector to Sector

Bitcoin>Altcoins>Current Hyped Narratives

The last Bull Cycle it went like this

Bitcoin>Altcoins>Gaming>Meme coins

This Bull Cycle the pattern has changed

Bitcoin>Meme coins>(Altcoins>AI coins)>Gaming coins

(we are here)

So far we had money move into bitcoin, than into meme coins and now we are in Altcoin Season and beginning to enter AI Coins. (as of 12/9/24)

When the 2nd bigger move up takes place you can expect the money to move from sector to sector in the same way. Bitcoin>Meme coins>Altcoins>AI coins>Gaming coins

How Money Flows Through Market Cap Tiers

In the cryptocurrency market, money tends to move through different sectors depending on the market cap of the asset.

Here's how it typically flows across the three main categories:
Large Caps > Mid Caps > Low Caps

Large Caps

Market Cap Range: Over $10 billion

Examples: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB)

Large-cap cryptocurrencies are typically the market leaders, with billions of dollars in market cap. These assets are considered the safest bets in the crypto space, with investors seeking stability and long-term growth.

Mid Caps

Market Cap Range: Between $1 billion and $10 billion

Examples: Cardano (ADA), Polkadot (DOT), Chainlink (LINK)

Mid-cap cryptocurrencies are a bit riskier than large caps but still show significant promise. They have the potential for growth and usually experience larger price fluctuations compared to large-cap coins.

Low Caps

Market Cap Range: Under $1 billion

Examples: Smaller or newer altcoins

Low-cap cryptocurrencies tend to be the most volatile and speculative, with substantial price swings. While they can provide high returns, they also carry significant risk due to their low liquidity and market presence.

How Much Money Does It Take to Increase Each Market Cap

Cryptocoin with 50 Bil market cap takes 5 Bil dollars to go up +10%
Cryptocoin with 5 Bil market cap takes 500 Mil dollars to go up +10%
Cryptocoin with 500 Mil market cap takes 50 Mil dollars to go up +10%
Cryptocoin with 50 Mil market cap takes 5 Mil dollars to go up +10%
Cryptocoin with 5 Mil market cap takes 500k dollars to go up +10%
Cryptocoin with 500k market cap takes 50k dollars to go up +10%

It takes a lot less money to make the smaller market cap coins to go up the same % as the larger market cap coins. The larger ones have a lot less risk, which is why the money flows into them first.

People first invest into the large cap coins.

Those coins go up in value 2x - 3x

People take profit

Then people reinvest those profits into the mid cap coins.

Those coins go up in value 3x - 5x

People take profit

Then people reinvest those profits into the small cap coins.

Those coins go up in value 5x - 10x

People take profit

It's Not Too Late: Plenty of Opportunities to Profit in the Crypto Market

Right now there are still plenty of opportunities to make money in the crypto market.
There are safe investments to put your money in that will 1.5x - 3x
And there are slightly riskier investments that will 3x - 5x

For good risk management you want to put 70% in safe investments and no more than 30% in risky ones.

Here is a list of some safe investments you can make

Safe Bets for a 2x-3x returns

Bitcoin

Etherium
Solana

Dogecoin

Pepe

Slight risk but higher return bets for a 3x - 5x

Cardano
XRP

Avalanche

Chainlink

BRETT

GIGA

SPX6900

Make An Exit Strategy And Stick To It

Don’t get scared and panic sell the dips.

Don’t get greedy and hold for higher prices.

Here is a good exit strategy that balances:

making sure you don’t miss out on taking profit
making sure you don’t take profit too early

Since all prices revolve around Bitcoin you can use the Bitcoin price to plan your exits.

Obviously adjust which coin to sell first depending on which ones pumped first. But this is the general exit strategy outline.

Decide on your target prediction price for Bitcoin.
Create your exit strategy around that price point.
Plan to sell 80% of your coins by the time Bitcoin reaches your target price.
Save extra 20% to sell on the way down or to sell for more in case your target price was wrong and it went higher.

This exit strategy is based around the target price of bitcoin reaching 150k

Plan on investing into the market until Bitcoin is at 110k

When Bitcoin is at 120k sell 10% of your coins

When Bitcoin is at 125k sell 10% of your coins

When Bitcoin is at 130k sell 10% of your coins
When Bitcoin is at 13kk sell 10% of your coins
When Bitcoin is at 140k sell 10% of your coins
When Bitcoin is at 145k sell 10% of your coins

When Bitcoin is at 150k sell 20% of your coins

And so on

BTC at 120k = 10% = 1/10 % of your coins sold
BTC at 125k = 10% = 2/10

BTC at 130k = 10% = 3/10
BTC at 135k = 10% = 4/10

BTC at 140k = 10% = 5/10
BTC at 145k = 10% = 6/10

BTC at 150k = 20% = 8/10

80% of your coins are sold by the time Bitcoin hits your target price.

What you need to get started in crypto

First you will need to create an account on Robinhood.

It is a centralized exchange where you will be able to buy and sell crypto.

It has the lowest fees and it has all the top crypto’s you need to buy.

Create an account using this link and you will receive a free $5 stock.

Conclusion

In conclusion, the crypto market during a bull run offers unparalleled opportunities for growth, with Bitcoin leading the charge and creating a clear path for profit. By understanding the market cycles, the flow of capital between sectors, and the predictable patterns of bull and bear markets, you can make informed decisions and manage risk effectively. Now is a fantastic time to invest in crypto. The key is to stay informed, remain patient, and have a solid exit plan in place. The crypto market rewards those who are strategic and disciplined. By staying informed, managing risk, and sticking to your plan, you can take advantage of the opportunities that arise and achieve lasting success in this exciting and rapidly evolving space.

Useful Tools:

Crypto Bubbles

Check out the website/app Cryptobubbles
It is a great way to quickly visualize how the coins you care about are performing.

Make a custom watchlist of the coins in your portfolio.

Also make a custom watchlist of coins that are not in your portfolio but you are watching for a pull back in price for a better entry.

Phantom Wallet

Go to the app store and download Phantom Wallet.
This is a crypto wallet that supports multiple blockchains including the Solana blockchain.
You will need this if you want to invest in some of the newer smaller cap coins that haven't been listed on centralized exchanges yet.

Useful People to follow

Twitter

Professional Crypto Traders:
Alex Becker
CryptoGodJohn
EllioTrades
Murad

Crypto News Aggregators:

Conor Kenny
Rubicon Tristan
Rubicon Benji

YouTube

Alex Becker

Conor Kenny

EllioTrades

Across The Rubicon
Brian Jung

Fortunes in the Digital Gold Rush

In a world where markets rise and fall,

Crypto stands as the mightiest call.