Crypto bull runs come around once every four years as a result of the Bitcoin halving process, and for traders that have been in the market for a while they know that these periods of time provide unparalleled levels of opportunity for the generation of high levels of revenue.
2021 is the most recent bull run year in the life of Bitcoin and cryptocurrencies, and because of this many traders are looking at the best opportunities in the market throughout this year.
This guide breaks down this exact question, taking a look at what a crypto bull run actually is, why they could for generating profit, and through the best opportunities during a crypto bull run.
What is a Crypto Bull Run?
Bull runs are periods of time in the cryptocurrency market with the price of all assets increased exponentially, creating a parabolic curve and finishing with all-time highs significantly higher than they were before the run.
They are created by the Bitcoin halving process and Bitcoin's influence on the rest of the market, with a once every four year having of the supply of Bitcoin coming into the market leading to increased scarcity and the price of Bitcoin increasing, dragging the rest of the market up with it.
Crypto bull runs typically last for about 12 to 18 months and the price at the end of the bull run is significantly higher than it is at the beginning, with this sometimes being thousands of percent.
Why are They Good for Generating Profit?
Crypto bull runs are the most opportune times to be able to generate profit in the cryptocurrency market because of the high levels of enthusiasm and investment.
The amount of new investment money that comes into the cryptocurrency market during boron's is staggering and leads to huge increases in the price of cryptocurrencies during this period.
Typically through other periods of time there is an equal chance that the price of cryptocurrencies will increase or decrease, however within a crypto bull run there is a very hype chance that at any point in time the price of cryptocurrencies will increase, leading to easier profits.
What Happened in the Last Crypto Bull Run?
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The last crypto bull run took place in 2017 and so the price of Bitcoin set a new all-time high of just shy of $20,000.
This period of time throughout 2017 changed the cryptocurrency market permanently as a huge amount of new traders and investors and really was the point that the cryptocurrency market matured and into the mainstream in any kind of significant way.
It is expected that the 2021 bull run will have an even bigger impact and the price of Bitcoin and other cryptocurrencies will skyrocket this year.
3 Best Opportunities in the Crypto Bull Run
Get in Early
For the best opportunities during a bull run traders and investors should get in early and buy into the crypto market as soon as you can.
This is because as time goes on the price will continuously increase and so the delay of a few weeks to buying in can lead to significantly lower revenues overall throughout the entire bull run.
It's also good to pay attention to the fluctuations in the price of Bitcoin and other cryptocurrencies during a bull run as selloffs are perfect times to enter the market.
Covesting for Improved Outcomes
Covesting is an advanced new way of partnering with other traders and investors in the crypto market to leverage the knowledge and experience and to maximize the positive outcomes of capital investment.
PrimeXBT's Covesting module is the home of Covesting and it facilitates the connection of different traders and investors from around the world and allows them to copy the trades of some of the top performing crypto traders in the market.
Throughout a crypto bull run leveraging the knowledge and skills of other traders on PrimeXBT's Covesting module is a powerful way of maximizing the positive outcomes of the bull run.
Margin Trading for Amplified Profits
Another way of increasing the profits generated during a bull run is to use margin trading in order to do so, with margin trading not only allowing for leverage trades to increase the magnitude of profits but also shorting to allow for profit generation during drops in price as well.
Platforms such as PrimeXBT are powerful crypto margin trading centric platforms that can be used in order to access strong levels of leverage, with PrimeXBT providing up to 100 acts on or cryptocurrencies throughout the boron.
Margin trading is the most efficient way of engaging with the cryptocurrency market and is one of the best ways to maximize returns during a crypto bull run.
In Conclusion
The opportunities presented within a crypto bull run are unparalleled and they are easily the most profitable periods of time to be engaged with the cryptocurrency market.
Three of the best ways to maximize the positive outcomes of crypto bull runs is to get in early, use Covesting for improved outcomes, and margin trading for amplified profits.
Check out PrimeXBT's Covesting module to learn more about how to covest during 2021's crypto bull run for better results.