We just covered about the boring crypto prices not long ago – what should crypto holders do during that period. Well, this article is the direct follow up to it.
You see, October has always been a month of interest for crypto enthusiasts. Historically, the crypto market has shown significant price movements during this month, leading to the term “Uptober.” But what exactly is Uptober, and how has it impacted the crypto market in the past? Let’s dive in.
What is Uptober?
Uptober refers to the observed trend where cryptocurrency prices tend to rise in October. This phenomenon has caught the attention of many investors and traders, leading to increased discussions and speculations around this time of the year.
To understand Uptober better, let’s look at some historical data of the market-moving crypto, Bitcoin (via https://cryptorank.io/price/bitcoin.)
image credit: CryptoRank.io – note: Edited, omitting the Jan-March data for this article’s specific purpose
As you can see from the diagram, only two out of ten October data showing a percentage down, since 2013. So far, October 2023 is following the strong price trend; The Bitcoin price is starting strong, up by 4.08% (as of today, 07:20 UTC.)
What Should I Do During Uptober?
Given the historical trend of Uptober, it’s easy to get carried away and FOMO’d in by putting your currency into crypto – often more than you should. To avoid those mishaps, investors and traders might want to take a deep breath and consider the following:
- Overview Historical Analysis: Delve into the past performance of specific cryptocurrencies during previous Octobers. Especially for Bitcoin, takes into account the Bitcoin Halving timelines, and see how those correlate with the Uptober price movements. This can give you insights into potential patterns or anomalies.
- Watch for Upcoming Developments: Some cryptocurrencies might have planned upgrades, partnerships, or announcements in October. Such events can influence price movements.
- Focus on Asset Diversification: Instead of focusing solely on top-tier cryptocurrencies like Bitcoin and Ethereum, consider exploring altcoins that have shown promise and stability.
- Adopt Diversified Investment Strategy: Apart from the traditional buy-and-hold strategy, consider other strategies like staking, yield farming, etc. after thorough research.
3. Stay Updated and Seek Expert Advice
- Choose your News Sources Carefully: When the market is up, everybody is suddenly becoming experts. Stick to the reputable sources to stay informed about the latest developments.
- Seek Community Insights: Join reputable crypto forums, discussion groups, or social media channels. The community often provides valuable insights, discussions, and early news that might not be immediately available on mainstream platforms. Avoid those that are full of hypes, hopes and dreams without proper backing of claims and info.
- Financial Planning: Consider consulting with financial planners who specialize in cryptocurrencies. They can provide personalized advice based on your financial goals and risk tolerance, especially during the bullish Uptober.
- Attend Crypto Workshops: Attend workshops or webinars that focus on crypto investments. These sessions can offer valuable insights, strategies, and even networking opportunities with seasoned investors.
4. Managing and Mitigating Risks
- Set a Budget: Determine an investment budget for October and stick to it. It’s essential not to invest money you can’t afford to lose.
- Use Stop-Losses: If you’re trading, consider setting stop-loss orders to minimize potential losses. This strategy can be especially useful during volatile months like October.
- Stay Calm and Avoid FOMO: The Fear of Missing Out (FOMO) can lead to rash decisions. Remember that the crypto market operates 24/7, and there will always be opportunities.
Uptober has historically been a significant month for the crypto market. While past performance is not indicative of future results, being aware of these trends can help investors make informed decisions.
As always, it’s crucial to conduct thorough research, stay updated with the latest news, and seek expert advice when needed; this article is clearly not a financial advice.