Do you know that the price of cryptocurrencies, especially Bitcoin, will experience an extraordinary increase in 2021 and/or 2022? You crypto enthusiast, here’s a prediction about Bitcoin that might interest you. But before giving you the content of this prediction about Bitcoin, be aware that it does not happen every year. Therefore, you need to prepare now in order to get the most out of the coming Bull run.
This is an opportunity that does not present itself every time. Indeed, several factors are taken into account for the rise in the price of Bitcoin. That’s why you should always be ahead of things.
Here are the 9 steps you can take to prepare to optimize your earnings during a possible rise in the price of Bitcoin.
Step 1: Where are we today?
To better understand the prediction about Bitcoin, it is important to know where we are now. Are we at the start of the bull market? Or is it the end?
By asking this question, we actually want to talk about the level of the rise in Bitcoin. The first step in understanding the prediction about Bitcoin is to know where Bitcoin is today. Are we at the very beginning of the Bitcoin rise? Are we at the end? Or almost at the end?
The evolution of the Bitcoin price
Today, Bitcoin has gained tremendous value. One (1) year ago Bitcoin was worth three thousand (3000) or four thousand (4000) dollars. This is to say that in two thousand and nine (2019), bitcoin was worth 3,000 or even 4,000 dollars.
But today, bitcoin is worth more than seventeen thousand five hundred (17,500) dollars. This increase is a testament to the value this cryptocurrency is taking even though we are only at the very beginning. At present it would be impossible to know with precision the incredible price that bitcoin could take in the years to come.
In 2016, when the RSI was at 70, bitcoin was around a thousand dollars ($ 1,000) a unit. After a few months, bitcoin has seen a 20% rise. In 24 months, bitcoin has grown by one hundred and twenty thousand dollars ($ 120,000).
Yes, it is true that comparison is not right and past performance is no guarantee of future performance. However, it is possible for bitcoin to multiply by at least five (5) or ten (10).
The start of the bull market
This prediction about Bitcoin is perfectly possible. This shows that we are at the start of the bull market. And this is very important to know because it allows you to prepare yourself accordingly. If we are at the very beginning of the rise in the value of bitcoin, we can invest.
It is also important to make certain nuances. First, bitcoin is not magic. This cryptocurrency does not evolve with the snap of a finger. Therefore, it will not be consistent to say that bitcoin can appreciate in value in one month to reach one hundred thousand ($ 100,000) dollars.
The second thing to know about the prediction about Bitcoin is that bitcoin can go up and down at times. This means that it may fall in the medium term but prove its worth in the long term.
As an example, bitcoin may drop in November, December, or even January, but that doesn’t mean it will pick up again throughout the New Year. This drop can vary between 20% and 40%. Which will bring the value of bitcoin down to fourteen thousand dollars ($ 14,000) or see eleven thousand ($ 11,000) dollars. After its moments of jolts, it can resume its course.
Step 2: Anticipate and plan to profit from the prediction about Bitcoin
Nothing surprises those who can read in the future. It is for this reason that it is important to project yourself into the future. Because the future belongs to those who get up early.
You who want to profit from this exponential rise in the value of bitcoin, it is important that you make your arrangements. These provisions are broken down into several stages. The first step is to create a Binance account.
The second step is to deposit capital for investment into your Binance account. When it comes to investing, the strategy depends on each person. To these different stages, we must add another.
This step is complementary and allows you to better understand the prediction about Bitcoin. The additional step is to create a fructify.io account which will be combined with the Binance account which is created for the investment.
The importance of creating a fructify.io account
Why create a fructify.io account again? The answer is very simple. First, let it be known that this account is not needed. So, it is not mandatory but useful.
Its usefulness stems from the fact that it helps you know when to invest. The fructify account can help you invest at better times. For example, in times when the value of bitcoin is rising, fructify does not buy or invest.
She only buys and invests when she sees that the value of the cryptocurrency is falling. It is a policy of investing when the value is low.
The third step is to validate on the platform, before periods of increases, its KYC, that is to say its identity. This step is essential because in periods of increase, the platform is saturated.
It’s saturated because everyone is looking to buy the cryptocurrency when it starts to rise. This even causes the platform to decide to shut down for a few days first.
Even if you are thinking of creating a KYC to quickly pass this step, it will take a long time during these times. The fourth and very last step is to create a strong password followed by two-factor authentication to prevent hackers from taking possession of the account.
Step 3: Set goals to better benefit from the probable rise in Bitcoin
Who can move forward in life without setting goals? The real and correct answer would be: no one. The objectives allow you to fix the moon. So even if you can’t touch the moon, you can at least touch the stars.
The same is true for crypto currencies. To profit from the prediction about Bitcoin, it is desirable that you set goals for yourself when you invest.
If the cryptocurrency you have invested in starts to increase in value, you should have a recovery policy in place. However, you cannot implement this policy in the absence of defined objectives.
This example will show you the risks you run when you don’t set goals. For an individual who does not set goals, when he invests a thousand ($ 1000) dollars and it starts to climb, he thinks of nothing.
From a thousand ($ 1000) dollars that goes up to seventy thousand dollars ($ 70,000). After that it climbs from seventy thousand dollars ($ 70,000) to one hundred thousand ($ 100,000) dollars and then from one hundred thousand ($ 100,000) dollars to one hundred and fifty thousand dollars ($ 150,000).
Overnight, the crypto drops from one hundred and fifty thousand dollars (150,000) to eighty thousand dollars ($ 80,000). It can tumble back to the starting point or even zero (0). Which is a huge loss for the individual who has invested. To avoid this, you must have a table. By doing so, you can be sure that you will profit from this prediction about Bitcoin.
Crypto wallet by fructify.io
In this table, you will have a column for the different cryptocurrencies you have invested in if you have a lot of them. The second column will be devoted to the number of cryptocurrencies you have purchased.
The third column will be dedicated to the level you think you will reach to withdraw your winnings. Then the fourth and last column will include the gains actually made at each level. With this strategy, you can follow your investment and withdraw your earnings at any time. This dashboard allows you to better take advantage of this prediction about Bitcoin.
Step 4: rebalance your cryptos
Do you have the desire to win regularly? If so, then you should rebalance your cryptos as many times as you can. What is the point of rebalancing your crypto currencies? The point of rebalancing your crypto currencies is that it compensates for the fall between them.
First of all, it should be noted that when a cryptocurrency experiences an exponential rise, the others fall as it increases. For example: you have chosen to invest in four crypto currencies namely Bitcoin, Litecoin, Etherum and Chainlink at a rate of 25%.
Among these crypto currencies, bitcoin is gaining in value over all the others. To rebalance, you need to sell some bitcoin and take the money to buy Litecoin and / or Etherum.
The goal is for all three to be at more or less the same percentage level. The point of doing this rebalancing is that when bitcoin goes down, one of the two cryptos will go up in such a way that it not only improves performance but also doesn’t lose too much when the expanding crypto falls.
Step 5: Don’t sell 100%
The value of a cryptocurrency is changing in a real roller-coaster way. No one can predict its highest value or its lowest value. So, in the sphere of crypto currencies, we are groping. It is for this reason that we must surround ourselves with all possible guarantees.
The ban on not selling all of your crypto currencies stems from the fact that no one knows what the next day will bring. If you sell all of your bitcoin when the value is twenty-five thousand dollars, the consequence is that you cannot afford the full wave of opportunity that will come afterwards.
For example: You see today that bitcoin has gone up to twenty-five thousand and for that you will get back all that you have invested in it. When Bitcoin goes up more than that, you can’t get anything out of it.
Which is a loss for you. The interest of the phasing of which we spoke above returns again. You have to recoup 10% of the investment every time the value increases.
Step 6: Protect capital and gains from volatility
To protect your capital and earnings, the only thing you need to do is invest them in a stable cryptocurrency. These cryptocurrencies are stable just like the dollar. An example of a cryptocurrency that can be invested in to ensure stability is USD Tether.
Step 7: Place take profit & stop loss
What does take profit and stop loss mean? Take profit means to take the gains. As for Stop loss, that means placing gains in a place so that they do not disappear. Stop loss and take profit must be placed at the time of investment. Placing take profit and stop loss helps to fight against volatilization and loss of earnings. The best performing platform and the only one in the world that allows you to do it automatically is fructify.io.
Step 8: Invest every month
We are at the start of the bull market. Therefore, it is best to adopt a strategy that allows you to invest regularly. Today you can automate your monthly investment with the “Auto” function of the wonderful fuctify.io platform. It is important to invest every month. Whether you are a newbie or an expert, the only way to come out on top is to set aside some funds to invest each month.
Step 9: Declare and spend
You have already created a Binance account. Through this account, you can recover your earnings in cryptocurrencies. But long before that, the earnings must be declared to the state. Then you will be able to spend your winnings using your credit card.
Related Article: 21 good reasons to be interested in Bitcoin in 2021