3 trends to consider before the Bitcoin bull market resumes

Cryptocurrency’s next bull run has already begun. One of the biggest differences compared to past cycles is the types of new investors entering the market. The Bitcoin (BTC) exchange-traded fund (ETF) has effectively opened the door to more participation by making it easier to take action, and an Ethereum (ETH) ETF is widely expected to launch soon.

Newcomers may find cryptocurrencies somewhat difficult to understand, but there is a valuable framework to consider when considering your first investment.

Easy to start, reasonable gains

Beginners often start investing in well-known companies such as Bitcoin or Ethereum. In most cases, you can wait at least six months before investing in Bitcoin and see if the price has grown enough to sell. However, for those who only have a few thousand dollars to invest, investing in Bitcoin will not make you a millionaire. The mid- to long-term growth potential is 2 to 3 times the current value.

Related: Runes Protocol Will Spark a New Season for Bitcoin After Halving

Experienced players understand that they need to stay up to date with the latest trends. If done right, investing in a dozen small projects can pay off big. Assets that became popular during previous bull markets, such as new layer 1 protocols and lending platforms, can provide opportunities to increase your investment by 5-10x.

However, risk and return are two sides of the same coin. How much you are willing to gain or lose in cryptocurrency really comes down to the time, resources, and energy you are prepared to put into market research. This is where the beauty of cryptocurrency lies. It is completely accessible to those who want to learn.

Three stories to watch out for

Here are three stories that the average newcomer with no impressive experience can understand and naturally believe. The key is to understand the story behind each product. Innovation is at the forefront of this field as people in the cryptocurrency industry are innovative and constantly looking for new things. I see three such trends emerging.

First, it is a combination of artificial intelligence and blockchain technology. Numerous projects are currently attempting to innovate at the intersection of blockchain and AI. There’s no guarantee that these efforts will yield good results, but the narrative itself is powerful. Riding the wave of the potential of blockchain and cutting-edge advancements in AI, this trend could capture the imagination of investors and enthusiasts alike. I am following RitualNet and Morpheus.

The second trend explores more fundamental aspects related to the tokenization of real assets or tokenization of liabilities. In traditional markets, the bond market is larger than the stock market. However, there is currently no debt market in the cryptocurrency space. Stablecoins can be considered a starting point, as companies issue stablecoins in exchange for real dollars and then purchase U.S. short-term bonds themselves. However, the concept of corporate debt remains intact within cryptocurrencies. So there is tremendous potential in anything related to debt tokenization. PV01 and Ondo Finance are two projects in this field.

The third trend focuses on enhancing blockchain technology itself, including improving efficiency, increasing throughput, and reducing operating costs. It uses new technologies like parallel Ethereum Virtual Machines (EVMs) to speed up transactions by processing many tasks at once. Likewise, zero-knowledge (ZK) proofs keep things simple while keeping everything private, making the overall system run more smoothly and cost less. Sei and Monad are projects to watch in this field.

Related: Solana Shows the Dark Side of Monolithic Blockchains

But how can we use these narratives to explore our products? Imagine an investor researching a product. He is interested in the project, maybe even intrigued. Whenever he finds something in the document that he doesn’t understand, he highlights it in red. He then looks at the full description and sees that there is too much red in the document. There’s too much I don’t understand about the product description. And he doesn’t invest. This is a simple strategy. If an investment is too complicated to understand, it may not be the right investment. This approach emphasizes the need for clarity.

So when considering investing in a trend, remember that large-cap funds have already made the move. If you have a compelling narrative, you’re likely already invested. This is a good reminder to understand that in the world of investing, it’s often the big companies that drive the game, and to stay informed.

This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.