How To Prepare for the Next Crypto Bull Run

How To Prepare for the Next Crypto Bull Run

There is a lot to learn about what appears to be the first bear market since 2018 in light of recent developments in the cryptocurrency space. For both experienced and novice investors, bear markets have historically been a very trying time, with little to no gains being realized. Many investors suffer significant financial losses during bear markets as they attempt to trade despite the unpredictability of recovering from failures. For a newcomer to succeed in cryptocurrency, learning how to protect your investments and have liquidity for the next bull run is crucial. The aim of this article is to offer informed advice on how to avoid common errors in a bear market and essential steps to take in preparation for the continuation of a bull run in this article.

The upside of the newly created crypto bear market, hard by the crash of Terra and more recently the bankruptcy of 3AC, is the opportunity to improve your portfolio in crypto and NFTs. While there’s plenty of YouTubers advising you to “buy the dip” what does this actually mean in practice? A key to that is a strategy revolving around risk mitigation, bearing in mind that while in the long run crypto and NFTs will likely continue to grow in value, while also accepting a lot of NFT projects are not going to survive. A first step to preparing your bear market strategy is to figure out your risk tolerance.

Types of crypto risk strategy from @krissyos

While there’s lots of discussion and peer to peer pressure about buying the dip whether its Bitcoin or Ether the best approach to help mitigate risk is to adopt a more rational attitude. A key tactic to use dollar-cost-averaging. “If you put a certain amount of money in Bitcoin every single week since 2010, you’d be one happy person right now. If you did it over the last year, today you may not be happy, but maybe in a few months you would be incredibly happy,” recommended Ron Levy, CEO of The Crypto Company. In fact, with most exchanges, you can set up dollar cost averaging, with the benefit that you can set and leave it, However, the fact remains it’s only a worthwhile strategy if the investments in crypto increases over time. “For Bitcoin, I like the dollar-cost averaging strategy because I like Bitcoin long term. It is one of the more stable [crypto] investments that a person can make. When we’re talking about dollar-cost averaging with altcoins, I think that that carries a lot more risk to it,” said Wendy O, crypto investor and popular TikToker.

An essential component of the cryptocurrency industry is research and data. Although profitable investors have previously used the bear market to pinpoint blue-chip projects that would soar in the following bull market, because of how innovative and dynamic the cryptocurrency market is, most of the projects on the market stand a good chance of failing to take off before the next bull run. A good run in the bull market, as in the past, would be yours if you took the time to research the “next big thing” in cryptocurrency. Most research involves reading a lot and collecting a lot of data. Researching projects in a bear market can benefit from a variety of resources, some of which are listed below:

DappRadar -When it comes to discovering, tracking, and trading everything from DeFi, to NFTs and gaming with accurate data and analysis then DappRadar, which was born out of the last crypto winter of 2018, is a beneficial tool. It aims to provide its users with access to “top collections, trending dapps, trader volume and maybe, just maybe, uncover the next blockchain unicorn.” Driving more than 1.5 million users into DApps every month, DappRadar tracks of over 9,000 DApps across 30 blockchains. It’s also recently introduced its own token to enable access to useful investor content, as well as participate in its DAO governance, as it looks to develop its “community-driven Web3 ecosystem,” according to their white paper.

Bankless – Bankless is a well-known podcast in the cryptocurrency industry where thought-leaders and the founders of cutting-edge startups are invited to speak and share their opinions on current events in the industry. In addition, Bankless is a resource for information that supports investment choices by providing direct feedback from seasoned investors on telltale signs of a promising project. Weekly newsletters from Bankless also cover DeFi and cryptocurrency.

On taking a positive attitude to the opportunities in the bear market co-host Ryan Sean Adams said on a recent discussion: “First of all you have to get convicted; if you’re not convicted like just don’t listen to what David and I say go develop your own conviction okay, just like stop the podcast and figure out what this asset class is for yourself.”

CoinMarketCap – It’s the most popular cryptocurrency tracking website in the world, according to CoinMarketCap, with data on thousands of cryptocurrencies. To help you better make investment decisions during a bear market, CoinMarketCap provides helpful information on digital assets to retail investors. The problem is that a lot of people who use it don’t really take full advantage of its resource. For example, right at the top of the homepage there is a snapshot of useful global metrics which helps give a real time view of where the market is at. Another useful but under-used feature is the display it provides of all the places to buy a coin, simply by clicking on the market tab.

 

Source: How to Use CoinMarketCap: 17 Must-Know Tips [2022 Tutorial]

Nansen: Nansen is another helpful blockchain analytics platform that uses on-chain data to tag the wallets of seasoned investors, or whales in cryptocurrency jargon so that retail investors can replicate their holdings and invest in the same projects. To quote data journalist Martin Lee: “Blockchain analytics helps to surface new opportunities, do due diligence and using platforms such as Nansen, you’re able to set up alerts to get real time notifications on certain events. You’re able to make more informed investment decisions by knowing who and what transactions are happening on a blockchain as they happen.” Nansen helps to surface the signal and allow you to focus your time on the crypto projects that matter, as early as possible, Lee added.

Cryptocurrency influencers: There is a plethora of cryptocurrency influencers on YouTube, Twitter, and other social media sites which are well-known for their opinions on cryptocurrency projects, for using their platforms to promote different projects from the bull market. Although it’s obviously not a good idea to take every influencer’s advice, they can also help with investment choices if you choose wisely. Examples worth mentioning include Bitboy CryptoZachXBT, and Laura Shin.

The best action in a bear market is to step back, evaluate the market, and pinpoint potential blue-chip projects that spearhead the next bull run. Your success as a retail investor in the next bull market will significantly depend on how effectively you use the available resources and cryptocurrency data available. I advise investors to start learning about various cryptocurrency projects to position themselves for the next bull run as the bear market appears to be here to stay for now. In order to survive the current bear market the smart thing to do was use the best tools available to guide your decision making. “Now’s the time to double down on use of data and crypto sentiment tools like LunarCrush to up your investor game. It’s a time to improve your understanding both technically and socially. Go re-connect with your friends and family now that things have calmed down, and maybe catch up with what’s happening in the larger blockchain eco-system outside of NFTs and crypto tokens.”

 

Original Source: https://www.securities.io/how-to-prepare-for-the-next-crypto-bull-run-thought-leaders/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Three Arrows, Voyager failures raise questions of who is next in crypto fall from grace

Three Arrows, Voyager failures raise questions of who is next in crypto fall from grace

The crypto winter is killing off companies that took on big risks when markets were booming. So is this the shakeout all financial markets go through?

Hedge fund Three Arrows Capital (3AC) looks like the biggest casualty of the crypto price collapse so far after filing for bankruptcy in the U.S., but according to blockchain business advisor Anndy Lian, the worst may be yet to come.

“It will have a snowball effect,” said Lian, who is a fund manager for blockchain investments at Passion Venture Capital Pte. in Singapore and advises Mongolia’s government on the industry.“[The impact] will not just be on 3AC, it will be on 3AC’s involvement as an investor or as a fund manager, then it will snowball down,” Lian said in an interview with Forkast.

That snowball has already hit crypto lending platform Voyager Digital Ltd., which filed for Chapter 11 bankruptcy on Wednesday in New York. Yet as more companies get swamped, some in the industry are calling it a necessary shakeout after the excesses of last year’s record-setting crypto price surge.

Voyager Digital had earlier halted or limited customer withdrawals, a move adopted by other lenders such as BlockFi. Crypto exchange Celsius was one of the first lending and staking platforms to halt withdrawals in early June, citing the common refrain “extreme market conditions.”

The collapse of Terra, which some argue helped trigger the bankruptcies now being filed, saw its Luna token fall from the ranks of a top 10 cryptocurrency with a market capitalization of almost US$30 billion to effectively zero in a matter of days.

Broken arrow

Any firm with significant exposure to the Terra project was hit hard by the collapse, including 3AC, which had a US$200 million investment in Luna Foundation Guard, the organization behind the Terra stablecoin, effectively wiped out when the project went south.

As 3AC sank into funding trouble, Voyager got hit after disclosing it had loaned over US$650 million in the USDC stablecoin and Bitcoin to 3AC, which it might not be getting back. BlockFi was among the lenders that foreclosed on roughly US$400 million in loans to 3AC.

Chapter 11 generally allows for a company to come up with a plan to pay off creditors and rebuild the business.

In the crypto boom times, many of these companies with lending and staking platforms were venturing into ever more risky areas for profits, Igneus Terrenus, head of communications at crypto exchange Bybit, said in an interview with Forkast.

“It’s almost a repeat or like a rhyming [with] what happened with the subprime mortgage crisis (which led to the Global Financial Crisis of 2008),” he said. “These firms just have to go further and deeper into more risky area because there is so much appetite.”

One of the world’s largest investment banks, Goldman Sachs is said to be looking to raise US$2 billion to buy distressed assets from Celsius, though Goldman hasn’t commented on the speculation.

Smaller pond

Companies native to the crypto industry are also looking for opportunities, with Bahamas-based crypto exchange FTX providing a US$400 million loan to BlockFi that includes an option to buy the troubled crypto lender.

Buying these firms out is a “smart move” Terrenus said, not only as a business opportunity, but in the case of FTX it creates a positive impression of a “savior” within the industry and grants confidence back to those firms and the market in general.

While the so-called contagion spreads in the crypto industry, it hasn’t reached broader traditional markets — this time around.

In its recent Financial Stability Report, the Bank of England highlighted how vulnerabilities in the crypto market, such as over-leveraging and breakdown of confidence in stablecoins, have contributed to the crypto crash.

The BoE recommended increased regulation of the industry to minimize the risk to broader markets as crypto adoption grows and become further entwined within traditional finance.

“It happens to everybody,” he said. “The fact that it’s happening to crypto now I don’t think should come as a surprise to people. The really important thing is what the crypto industry does now that it’s happened.”

Some of these firms will have to look at strengthening their balance sheets and internal controls, Sullivan added.

Many of these firms that are in trouble at the moment are not true DeFi (decentralized finance), but traditional centralized businesses just focused on cryptocurrency, he said.

Total value locked in these protocols has decreased in the past few months, but there have not been the collapses as has been seen in more centralized firms.

“Decentralized protocols actually performed exactly how they intended to and avoided the perils that the likes of BlockFi, Celsius and Voyager are experiencing,” Sullivan said.

Original Source: https://forkast.news/three-arrows-voyager-failure-crypto-fall-from-grace/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Cosmos crypto price prediction: Where next after Terra’s crash?

Cosmos crypto price prediction: Where next after Terra’s crash?

ATOM, the native token of the Cosmos network, saw a bullish run in 2021, surging 453.3%.  In the beginning of 2022 the token continued the momentum, rising above $40. But, the surge was short-lived amid negative sentiment in the cryptocurrency markets fuelled by Russia’s invasion of Ukraine.

The crash of the LUNA token and the TerraUSD (UST) stablecoin at the start of May 2022, both based on the Cosmos network, were also key driving points in the cosmos cryptocurrency’s decline.

Where is the token headed now? Here we take a look at what factors are shaping the cosmos crypto forecast for 2022 and beyond.

What is cosmos (ATOM)?

Coined as “the Internet of Blockchains” by its founding team, Cosmos aims to build an ecosystem of independent interconnected blockchains, allowing them to “interoperate while retaining their security properties”. It was co-founded by Jae Kwon and Ethan Buchman in 2016.

Blockchains can interact through its architecture of zones. Users can build multi-asset public Proof-of-Authority (PoA) and Proof-of-Stake (PoS) blockchains, like the Cosmos Hub.

Through this the network aims to solve a number of limitations of cryptocurrencies, including scalability, usability and sovereignty. The end goal, the platform’s website notes, “is to create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralised way.”

The network’s focus on customisability and interoperability sets it apart from other projects.

Cosmos is based on the Tendermint Byzantine Fault Tolerance (BFT) consensus algorithm designed to ensure finality, order consistency and optional availability. The network also consists of the Cosmos SDK, an industry standard for building blockchains.

Cosmos’ IBC (inter blockchain communication) allows blockchains within the ecosystem to connect so that they can transfer tokens and other data between one another frictionlessly and seamlessly.

In addition, users can also create marketplaces allowing for permissionless global trade. They can build autonomous application-specific blockchains, rather than smart contracts, to avoid high transaction fees and network congestion.

Moreover, users can also create games with unique collectibles in the form of non-fungible tokens (NFTs) and character upgrades that they can monetise without third-party approval or app store fees.

According to the network’s website, there are currently (30 May) 265 apps and services on Cosmos, including the Binance Chain (BNB), Terra (LUNA) and Crypto.org (CRO), with over $66bn of digital assets under management.

While the Cosmos Hub is a multi-asset distributed ledger, it offers ATOM, its native token. ATOM is the only staking token of the Cosmos Hub, and acts as a licence, allowing holders to vote, validate or delegate to other validators.

The token can also be used to pay for fees on the platform to mitigate spam, similar to Ethereum’s ETH. The token provides security to the chain, allows holders to earn rewards and vote.

As of 30 May, there are over 289m tokens in circulation, according to CoinMarketCap. The token has a market capitalisation surpassing $2bn and is ranked as the 29th biggest cryptocurrency on the platform.

The bullish run: Technical view

The ATOM cryptocurrency was listed on CoinMarketCap in March 2019. It was trading in bearish territory until the start of 2021. In February 2021, ATOM  surged by 174.2% from the low of $7.3839 to its first peak of $20.25 on 13 February. Between February and May, the token managed to grow an additional 42.1%, reaching above $28 by 9 May 2021.

The ATOM crypto value bottomed out between May and July, dropping by 67% to $9.4857 on 20 July 2021. This bear trend provided an opportunity for a new bull run, which saw the ATOM/USD price surge to the all-time high of $44.54 on 19 September 2021.

The token’s record level came ahead of the platform’s participation at Mainnet 2021, an immersive, agenda-setting summit held annually for crypto industry leaders.

ATOM to USD chart, Mach 2019 – May 2022

ATOM saw new highs once again in October 2021, surging to $43.22 on 26 October 2021 as Cosmos announced that Terra became the latest chain to enable IBC, bringing its native LUNA cryptocurrency as well as its TerraUSD (UST) stablecoin with it.

The cosmos cryptocurrency entered 2022 on a positive note, surging by 97.9% to $41.99 on 4 January 2022 from its $21.22 17 December 2021 low. A second surge followed on 16 January 2022, which saw ATOM’s value rise to $43.61. This was due to several reasons.

Firstly, Cosmos reported to have neared EVM-protocol compatibility, which would allow assets and projects that operate on the Ethereum network to migrate over to Cosmos. Secondly, the project announced that a liquidity staking module was coming to the platform, which would give additional functionality to the stakes chain assets.

That, however, was the last time ATOM was so close to its all-time high as it embarked on a bearish run for the remainder of 2022. Wider negative crypto market sentiment was fuelled by the start of the war between Russia and Ukraine, as well as bitcoin (BTC) falling below $27,000.

What is your sentiment on ATOM/USD?

The token lost around 79% of its value, hitting as low as $9 by mid-May 2022, as seen on the chart above. Today (30 May), the coin is valued at $9.94.

ATOM technical analysis provided by CoinCodex, as of the time of writing (30 May), showed that sentiment on the token was largely bearish.

Relative Strength Index (RSI) reading of 32.5 was neutral yet extremely close to oversold territory. A reading of 30 or below would indicate that the asset has become undervalued and a trend reversal is likely. Meanwhile, the token was trading above its three-day moving average but below its five and 10-day moving averages.

Can ATOM recover?

In the latest cosmos crypto news, the network’s Gravity Bridge announced a number of milestones at the start of March 2022, including the introduction of ATOM with Ethereum DeFi and the Cosmos NFT platform, Stargaze, working with Gravity Bridge to send NFTs from Ethereum to Cosmos.

In April 2022, Cosmos introduced  its Theta upgrade which saw the official launch of Interchain Accounts, a module that has the potential to boost interoperability, traffic and composability.

In May 2022, KYVE, the Web3 data lake solution, joined the Cosmos ecosystem and migrated most of its blockchain protocol from EVM-based chain to the Cosmos SDK-based chain.

At the beginning of May 2022, the prices of the LUNA cryptocurrency and the UST stablecoin crashed, losing over 90% of their values within days. The tokens were based on the Cosmos network.

“As always, the cosmos ecosystem will continue to be a nurturing and safe environment for bold entrepreneurs to bring forth the Internet of Blockchains. Tendermint, IBC and the @cosmos SDK are showing the world how resilient & secure they are under extreme market conditions,” Cosmos said on Twitter during the LUNA crash.

In December 2021, Cosmos promised that its hub will continue to grow in the coming year, announced the launch of interchain security and accounts, more decentralised finance (DeFi) projects and the rise of NFTs.

“Cosmos is not a new token. It has been around since 2017 and has survived through all the down periods. Cosmos constantly remained in the top 50,  although many new investors may not have heard of it as it is not marketed that aggressively unlike Polygon or Binance Smart Chain,” BigOne Exchange chair in Asia, Anndy Lian told Capital.com.

According to Lian, the ATOM token took off because the Cosmos network offers “a simple experience for blockchain developers” with  “easy-to-understand tutorials, tools, and community assistance for developers.”

In 2020, Jae Kwon stepped down from his position as one of the project’s co-founders to focus on a different project. This, according to Lian, is one of the biggest uncertainties for the Cosmos prediction.

“He exited back then after several high-ranked employees left the company in protest of his leadership and it was reported that Kwon’s return to NewTendermint has continued to feud with his former Tendermint colleagues. I am not sure what is the truth and what are the backstories for this, but I think the lack of unity within their group makes this token vulnerable,” he noted.

Lian added that at the moment, ATOM has a strong support around the $9 range.

“Falling below this amount would mean that it may go below its launch price. This could happen too. Apart from the internal risks, I would caution all to look at external risks to manage your portfolio better.”

Cosmos (ATOM) price prediction 2022-2030

Despite the latest downward price action, algorithm-based forecasting service Wallet Investor gave a bullish outlook for its ATOM prediction, as of 30 May, suggesting ATOM is “an awesome long-term investment” with long-term earning potential at 752.13%.

Based on its analysis of past price performance, Wallet Investor’s cosmos coin price prediction suggested that the token could trade at $26.389 in 2023 and $84.685 by 2027.

DigitalCoinPrice also gave a positive ATOM crypto price prediction but saw a much slower pace of growth in future years. The site projected that ATOM could reach the target price of $13.76 by the end of 2022, $18.73 by the end of 2024 and $24.33 by 2025.

By the end of 2027, the site’s cosmos crypto price prediction expected that the coin could reach $34.02. Its long-term ATOM coin price prediction showed the cryptocurrency could trade at $49.10 by 2030.

Note that algorithm-based and analysts’ projections can be wrong. Forecasts and analysts’ expectations shouldn’t be used as substitutes for your own research. Always conduct your own diligence and remember that your decision to trade or invest should depend on your risk tolerance, expertise in the market, portfolio size and goals.

Keep in mind that past performance doesn’t guarantee future returns. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/cosmos-atom-price-prediction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j