Cryptocurrency trading is currently one of the most important trends in recent years, whose main peaks occur when there is a fairly strong bull market. Currently, the main exponents of the market are at a point of stagnation and a bear market that has lasted for almost the entire year 2022 and was preceded by a bullish period that catapulted them to values never seen before in their history.
However, even though this part of the market, which has the vast majority of the capital in the industry, is in a significant downturn, some cryptocurrencies such as EOS are at a good point in the market cycle, and the so-called Altcoins have tax, but, like the main ones, they are very volatile, and you have to maintain a reasonable dose of caution when operating in them.
Improve your long-term forecasts
The long term is the biggest challenge for forecasters since it is certainly quite uncertain and unpredictable by traditional methods. However, long-term trading is based on the theory that, by buying shares or assets when they are at their minimum value, that is, when they start trading, their price will eventually rise, unless the company in question or the cryptocurrency in question is doing very poorly. This type of trading does not obey momentary trends, but the year-on-year growth of assets. That is why it is possible to do it with cryptocurrencies. One of the best ways to analyze this market is to look at year-over-year growth charts, as well as compare its current performance to its performance a couple of years ago.
Continuing with the cryptocurrency example we used at the beginning, you can check EOS long-term predictions from 2025 to 2030, in case you plan to buy and hold until the end of the decade. You can also set longer-term goals, for example, 7 or 10 years, and be aware of the performance that the cryptocurrency is capable of registering, prepared, of course, to respond in case the asset in question turns unfavorable.
Improve your forecasts in the short and medium term
In the medium and short term, although it seems contradictory, it is much more complicated, because the shorter the investment period, the more exposed your investment will be to sudden changes in the trend. If they are intraday operations, you will live on leverage and spreads, and probably this type of investment within the world of cryptocurrencies only makes sense in Bull Market periods.
In cryptocurrencies, you should not risk too much, especially in bearish periods, since these tend to last for a long time, so you should not rush. However, you can look for alternatives to the main ones, which are having a better performance. You should always take into account the current trend, if a cryptocurrency is in a bullish period, or starting one, it is very likely that its value will grow a lot before falling back; Or at least that’s the general pattern. Avoid so-called shitcoins, and focus on projects that have a solid backing, a secure blockchain, or that feature more technological innovation. As in any investment, you should never do it blindly, and always inform yourself about the crypto asset in which you are thinking of investing.