Crypto Investment Guide, Grasping the Four Stages of a booming market

SuperEx
6 min readFeb 12, 2024

The trading market is a cycle of booming and depressing, and the accumulation of each depressing market will become the source of strength for the outbreak of a booming market. This is also a famous saying circulating in the trading market: the longer the sideways trend lasts, the higher the pull up!

How to grasp the trajectory of a booming market and layout entry in the early stages of a booming market is the key to achieving wealth freedom in the cryptocurrency market.

This is the operation manual we have prepared for you:

  1. Familiarize yourself with every stage of a booming market and plan for the early stages of a booming market!
  2. Master the language of technical indicators and maximize your profit margin!
  3. Avoid the most common pitfalls and control investment risks effectively!

Phase 1: Base construction period

The base construction period belongs to the absolute depressing market stage. After experiencing a long depressing market, it bottoms out and rebounds, and the market trend begins to change. We are currently in this stage and it has been going on for about a year. After experiencing the panic of Terra crash, FTX crash, and USDC anchor detachment, the market bottomed out and rebounded.

After experiencing several ups and downs, the market will form a stable bottom structure and complete the bottoming process.

The most difficult time has passed, and the next step is to wait for an opportunity and the arrival of liquidity.

This is the best entry stage, and the bottoming out period of the market is also the time for traders to build positions. sow now and reap the harvest during a booming market.

The best solution at this stage is:

Accumulate high-quality projects: Find and examine projects that you believe will thrive in the upcoming booming market. High quality projects can be evaluated from multiple dimensions: community prosperity, consensus, team, development plan, and financial indicators. Please conduct your own research and do not trust too much in the PPT from marketing articles of the project team.

Save funds: Please remember not to blindly copy the bottom. Except for the top stablecoins, even if other projects are very cheap, they may fall by 90% or even more than 100% relative to the peak price. But the problem is… besides the top stablecoins, every booming market will always be the era of those “new coins (new projects)”.

Don’t overtrade: Frequent trading, even if there is no profit, is also a loss, and blind trading is not advisable.

Learning trading knowledge: booming markets are not the time to learn. A booming market is a time to pick up money from the ground. Now is the time for learning. You can come to SuperEx Academy to learn trading technology indicators or consolidate basic knowledge.

Learning link:https://x.superex.com/academys/4179/

Monitoring liquidity: Pay attention to the inflow of funds into the exchange. Pay attention to the deployment of stablecoins. More liquidity means things are changing.

Phase 2: Early booming market

Prices are beginning to rise in a wave like pattern, and the market is frequently praising and bearish. These are all signs of the early booming market, as the eyes of the market and capital are beginning to gather in this market and prepare for entry. exaggerating is the act of bulls praising in order to enter, while conservative is the act of bulls speaking out in order to make money.

Attention and liquidity are the best drives of a booming market!

What factors may trigger a booming market?

The occurrence of milestone events, such as the approval of BTC’s ETF and the upcoming approval of ETH’s ETF.

Bitcoin halving: 2024 will see Bitcoin halving. Of course, the past cannot guarantee the future. But if enough people believe it, then.

The birth of new technologies: The previous cycle was the popularity of DeFi and NFT. What will be popular in the next cycle? No one knows, but you must always keep an eye on market changes and new news.

Macro changes: The Federal Reserve has turned and stopped raising interest rates. This may allow more liquidity to enter the market.

Supervision changes: The United States and other countries may offer more transparent and friendly cryptocurrency frameworks.

Asian market: The United States is the leader and main market for cryptocurrencies. However, in recent years, the Asian market has also gradually played an indispensable role. Do not underestimate the power of South Korean retail investors and the trend of Hong Kong becoming more cryptocurrency friendly.

The best solution at this stage is:

Stop loss and add profit projects: You need to have the courage to cut off losses, be ruthless in cutting the flesh of loss projects, and add profit projects. Holding onto loss making assets is not impossible, but more importantly, it is a long wait and missing out on the booming market. More importantly, an old project may not necessarily return to its former peak.

Profit appropriately during the upward trend: Don’t think about buying at the lowest point, no one can do it perfectly. Please establish a profit suppression system and strictly follow to it.

Be careful of excessive risk-taking: In the early stages of a booming market, it is uncertain whether it will be a surge or a slow booming, so be cautious when engaging in high-risk behaviors such as leverage, financing, and selling off net assets.

Phase 3: booming market Top

When the booming market was at its craziest, retail investors began to flood in. As prices rise, this will trigger panic buying (FOMO). This is a positive feedback loop, constantly pushing up prices. At this stage, the market can be said to be filled with gold, and everything is rising. A $10000 garbage coin can turn into a life changing benefit.

FOMO and ecstatic emotions began to spread. It feels like the party will never end, and everyone’s common sense is lost.

At this stage, there is no best solution. You need to be able to see the top: when the world is reporting on the cryptocurrency booming and sharing the joy of getting rich, when mainstream brands or celebrities frequently start using their own NFTs to get profit, please calmly analyze and exit in time. This party is coming to an end.

Phase 4: Early depressing market

The end of a booming market is the beginning of a depressing market, and the amplitude of the economy is limited. Although I believe most participants in this market hope that this party can continue to climax, it requires uninterrupted liquidity to support it. Once liquidity dries up, the market will collapse much faster than accumulation.

At the end:

SuperEx has brought rich wealth effects to many projects. If you don’t know how to evaluate projects on your own, you may want to pay attention to the Super Start section of SuperEx, which has undergone strict review and evaluation by SuperEx and is empowered through a strong user base.

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