Does it make sense to start shifting part of my portfolio back to exchanges at the moment? Well we have lots of expert traders saying that they expect a huge bull run coming very soon and all of us should be ready. As to ready for what, that I am not too sure what. Ready to sell? Ready to buy? Or ready to get rekted in such a volatile market. Or a combination of all? However admittedly it does look like there will be indeed a bull run coming again but I don’t think it will be such a huge one. At least not for the upcoming run. There are just too many negative news coming out for such a big bull run to occur. The biggest letdown would be that US infrastructure legislation aiming to tax and regulate cryptocurrencies. Even if you don’t live in the US, this will impact you significantly. Of course I am not saying that all regulations are bad but if it is coming out of legislators who have no idea what the heck are cryptocurrencies, then I know we are all in trouble. I would rather them not getting involved at all.
But there are indeed a lot of good news as well. The miners are starting to stabilize their hashrate and there are lots of projects starting to mature and improve. And the increased adoption of cryptocurrencies is also very positive news. Ethereum is looking very good too. Their London upgrade went smoothly and this is always something very encouraging. Oh we shouldn’t forget about the biggest gainer at the moment – Cardano and their native token ADA. It is running wild at the moment. And this is with good reason. Their smart contract is soon to be launched and we will start seeing lots of projects built on Cardano being launched as well. Thus I am seeing Cardano carrying the market this time round. As long as the momentum is there, the entire crypto market should have a upturn. But with that said and even though ADA is currently the third largest cryptocurrency by marketcap, everything still boils down to Bitcoin. And I am not seeing anything really that positive regarding Bitcoin. Not now and not in the near future. The taproot upgrade should take place somewhere in November. And it is just only a minor upgrade anyways. Nothing to be too excited about.
So if you guys are expecting like a huge payday coming for all the cryptocurrencies you have been hoarding, I think you should tamper your expectations. The upcoming bull run will be relatively short and will probably not go to the levels like what happened early this year. If you are looking to sell, I would suggest selling just a portion of your portfolio. And do you guys expect another major “crypto-winter” coming soon after this bullrun? If you are asking me, I believe that whatever crypto-winter there will be, it will still be short. Maybe at most a few months unlike the previous crypto winter which lasted at least one or two years. The last freeze spell lasted from 2018 to 2020/2021 with some minor thaw in the middle.
Anyways I have started moving some of my cryptocurrencies from the other interest generating platforms back to exchanges. And yes, I will be selling them off when the time is right. Only cryptocurrencies I will be hodling will be ADA, ETH, CAKE & VET. These I am confident that they will still do decently well even if there is a downturn. Oh before I forget, I am no financial advisor. You should always do your own research when investing with your money.