How to deal with crypto seasonality

One crypto seasonality answer exists within the type of frequently accumulating belongings.

Whereas there may be a number of options to crypto seasonality, one crypto startup, Seasonal Tokens, is creating a probably safer different to conventional buying and selling strategies. Seasonal Tokens are designed to rise and fall over the course of 9 months, hoping to offer traders with a extra secure different to Bitcoin’s downtrends.

The venture breaks up its tokens into the 4 seasons: Spring (SPRING), Summer season (SUMMER), Autumn (AUTUMN) and Winter (WINTER). Ideally, traders will purchase Spring tokens whereas they’re the most cost effective to supply and maintain them over the interval once they grow to be the most costly.

Because the seasons change, traders will swap these Spring tokens to Summer season tokens, which might presumably rise in worth subsequent, and so forth by way of the later seasons. In an ideal state of affairs, an investor would commerce Spring for Summer season when Spring tokens are the most costly to supply, and Summer season tokens are the most cost effective, rising the entire variety of tokens they personal. Then when the Summer season tokens peak, the investor would commerce them for Autumn tokens at their lowest level, accumulating much more.

These peaks and valleys are the reason for interval-based manufacturing cuts, just like the Bitcoin halving. For instance, in June, Spring token manufacturing will probably be reduce in half, making it dearer to supply than different tokens. By the point Spring rolls round once more, customers would convert their Winter tokens to Spring tokens and revenue off of their rarity, all with out contributing extra real-world funds.

Primarily based on this mannequin, Seasonal Tokens hopes to offer an asset that’s always accumulating and rising in worth, giving a secure house for traders to switch their funds throughout a Bitcoin bear market.