Accumulation: No Party in the Short Term

The market cycles are driven by emotions, liquidity, and global factors that may have a direct impact on the trends being followed. Although many people tend to see the market as consisting of barely 2 trends, named Bull and Bear trends, they miss the third guy in the club: Accumulation

Honestly, Accumulation phase is my favorite one as there is no serious spikes in the prices and in the first half of the phase, the projects slightly lose their liquidity, the value of the tokens and the engagement. However, similarly, through the end of the accumulation, the projects increase all these aspects slowly but firmly.

It may not be quite different from gambling in crypto while the projects are bleeding in a bearish down trend. Even if the cryptocurrencies make local highs within a downtrend, it is a psychological challenge that you must go through to take an action.

Accumulation, on the other hand, slows down everything for investors to fill their bags with undervalued cryptocurrencies with low risk (the risk as much as the support and resistance levels of the trend) and higher promise of return. For long term investors, neither bull-run nor bear market may bring that level of high return as there is an exceptional opportunity to grow your bag slowly over time.

Accumulation Psychology

I love having conflicts with my investment decisions in the accumulation phases. So far I've never regretted the investment decisions that I made in these phases as the strong projects and promising ones are capable of handling the harsh conditions while the Zombie projects have no other choice but for wiping out.

In this phase, I make regular purchases as I have no rush to buy something ASAP to make gains. Contrarily, long accumulation phases may result in temporary loses if the market has no story to sell new people. In my regular purchases, sometimes I question myself whether I'm doing the right thing by buying the token / coin though it loses its value each time.

The suspicious approach to my investment decision also makes me comfortable as, in crypto, if you have no doubt but for hype, you are likely to be scammed or rugged 😅 Thus, being suspicious and sticking to your long-term projections may bring good fortune as a result of patience.

Accumulation Strategies

One thing that I'm not going to do this time is over-diversification of my portfolio. When it is made, the crypto bag starts to be diverted from its focused majority and the attention shifts on the little coins that may pump higher. However, while focusing on the gains from at most 20% of your bag, you forget / spend no time on the 80% of your money without noticing.

Having fun and keeping my motivation high may play a critical role in the way to use the accumulation phase effectively. Untill the global risks settle down, I do not expect the start of the bull-run in crypto. However, accumulation phase offers incredible opportunities if someone wishes to take the risk.

What are your ways to utilize the advantages of Accumulation?

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