I'm sure you've heard about Bitcoin and other cryptocurrencies by now. But seriously, if you have any interest in investing or making money, then there's no way to avoid the topic of cryptocurrency. For making money, you can trade in cryptocurrencies with bitcoin by visiting its own site. It's probably one of the most important topics in finance right now.
How to Predict the next Bitcoin Boom
So, how do you know when the next Bitcoin boom will come? There are several ways to predict it.
- Look at ICOs
- Get in early on a good one
- Look for big money (e.g., VCs) involved in the project and its team members
Find a good ICO
Once you have chosen a good ICO, it's time to look for a good team. A great team needs to be composed of people with diverse skills and experience. Look at their resumes and LinkedIn profiles to see what kind of degrees they hold, where they worked before, etc.
Look at the company's product or service and make sure it is something people need or want. Why would anyone invest in it if there is no demand for this product or service? Find out what other investors think of this company's ICO through online reviews and see if any experts recommend investing in it. Also, check whether any prominent personalities endorse this ICO by reading their tweets, blogs, and Facebook posts.
Get in early
The best time to get into Bitcoin is before the rush. That means before the hype and media attention started, which are usually two to three months away from a significant price rally. The next boom will be no different. But if you wait too long and buy when everyone else is buying, your potential profits will be significantly lower than they could have been if you had invested at an earlier stage of the cycle.
On the other hand, if you invest after a rally has started, but before it has peaked, there's no guarantee that your investment won't lose money in the short and long run.
If we look back at previous booms starting in 2011 and 2013, we can see what happens when people got in early vs. late:
- Early investors gained over 1,000% on their initial investment over six years. Those who waited until October 2012 missed out on all gains since then and lost money overall.
- Latecomers saw profits rise from around 300% until the summer of 2014. However, after that time, they lost almost all of those gains due to high volatility during 2015-2018, when price swings went from $1k-$4k per coin within mere weeks or days at some points.
Look for big money
A good way to predict the next bitcoin boom is to look for big money. Venture capital, angel investors, and accredited investors are the best places to look for big money.
With these tricks, you can get the next Bitcoin Boom.
There's no way to predict when and how a cryptocurrency boom will happen, but there are ways to increase your chances. Here are some tips on being the first in line when the next boom hits.
- Look for an ICO (Initial Coin Offering): The best time to join an ICO is before it even happens. The more people who know about it, the more likely it will be oversubscribed, which means you need to get in as soon as possible. The best way of doing this is by talking with other crypto enthusiasts on forums and social media sites. They'll often let you know what's coming up next so that you can get involved early and reap the benefits of launching their product into production.
- Find a big money investor: If an investor with deep pockets invests early in a project, then this usually means that others will follow suit very quickly after seeing their backing. This means plenty of potential profit for everyone considering investing too!
You can spot the next Bitcoin boom. You need to look for the right signs and then invest wisely. Here we have told you how you can predict the next bitcoin boom.