2023 has been full of important events in the crypto world and surprises.
Everyone expected it to be a down year, but contrary to expectations, it was an up year.
Cryptocurrencies have increased strongly this year, and the price of Bitcoin has increased to break the $40,000 barrier.
But the most important event of the year was the announcement by Wall Street giant BlackRock of its intention to open a Bitcoin ETF.
This announcement resulted in a complete change in the world’s view of Bitcoin and since then in June 2023 the cryptocurrency has been on a continuous upward trend.
What are Bitcoin ETFs?
ETFs (Exchange-Traded Funds) are a way to invest through giant investment companies like BlackRock.
These companies have a strong reputation and create an Exchange-Traded Fund for a financial asset like Gold or Bitcoin.
After this, this fund is listed on the American Stock Exchange, and if the investor wants to invest in it, this is done through a company such as BlackRock, which launches this fund and is responsible for it.
More than one different Bitcoin ETF was applied for, but all were rejected.
Now more than 6 giant investment bodies led by BlackRock have applied for Bitcoin ETFs again and this time these funds are expected to be accepted.
Applications are expected to be accepted by the US Securities and Exchange Commission (SEC) at the beginning of 2024.
That is why we want to talk in this article about how to prepare for this important event and how you can benefit from it.
The first thing is that if you do not have an account on a central platform, you should create one now.
We recommend one of the three platforms below since it is one of the most popular and trusted platforms currently:
Why should I create an account on a centralized platform now?
The year 2024 will be a bull year for cryptocurrencies, according to experts’ expectations. Therefore, preparing for this rise from now is extremely important.
The first and most important step is to create an account on a reliable, central platform. This is to easily obtain the USDT coins needed for trading.
Also for easy purchase of Bitcoin, Ethereum, Solana, and other famous currencies.
The price of cryptocurrencies is high now
But the price of cryptocurrencies is high now, wouldn’t it be better to create an account later when the price corrects?
Many people fall into this trap and think they have plenty of time to prepare for the ascension.
But in reality, the bull market fools a lot of people hence be careful.
It is also important to understand the nature of centralized platforms. These platforms have features that help you prepare for the bull market.
Creating an account on any of these platforms will only take a few minutes, but you will need to go through KYC procedures.
After this, you will need some time to enter your bank card information and purchase cryptocurrencies, and this can also be done through the free market (P2P).
In any case, all this time during a bull market will be very valuable. Therefore, the best step you can take is to create the account now and fund it with money.
This is because there is a type of purchase order on central platforms known as a limit order on the spot market.
Through it, you can place a purchase order for any currency, and when its price falls to a certain extent, this order will be executed.
For example, if you expect Bitcoin to fall to $36,000, you can place a buy order at this limit and in the quantity you want. This way the order will be executed automatically if the price drops that far.
But beware that if the price falls to 36100 and then bounces back, the order will not be executed.
Bitcoin ETFs are expected to cause a lot of price volatility so be careful.
Could the market fall after Bitcoin ETFs are accepted?
There are also several scenarios to consider when preparing for the Bitcoin ETFs season.
The price can fall after the orders are accepted by the SEC. but why?
This is because there is a rule that says to buy the rumors and sell when the rumors come true.
Therefore, some analyses say that the price of Bitcoin is increasing now due to the expectation that orders will be accepted, but the price may fall once orders are accepted.
This will give space for those who want to buy to enter the market before the start of the bull market.
Always remember that a bull market officially begins after the previous bull market price high has been crossed and closed above.
Reject Bitcoin ETFs
So far all indications are that Bitcoin ETFs will be accepted.
But you must be prepared for the possibility of rejection for any reason. Hence keep this in mind.
Most likely, the market will fall violently if this happens. Hence be careful.
Determine your goals and plan from now
Finally, don’t forget to always be prepared for all possible scenarios. But also form a plan and clearly define your goals, and do not change the plan or goals except when you see outcomes that you can try to change.
Always monitor the market situation so you know where we are in the market cycle. Also, decide whether you are an investor or a trader. Are your goals close? Or long-range?
Learn technical analysis to help you understand the market situation, and you can do this through our many articles on the subject.
It is also necessary to avoid the most important mistakes of the bull market and control your feelings and emotional stability so as not to lose your capital.
Don’t forget to visit our website to learn more about cryptocurrencies!
