To dive deeper, check out the complete article from original source:
https://droomdroom.com/what-should-investors-know-about-crypto-market-cycles/

Crypto markets, like traditional financial markets, move in predictable cycles, consisting of four phases: Accumulation, Run-Up (Bull Market), Distribution, and Run-Down (Bear Market). Each phase presents unique opportunities and challenges for investors. 💹

During Accumulation, after a market crash, smart investors start buying assets at low prices. As confidence grows, the Run-Up begins, marking a bull market with rapidly rising prices driven by fear of missing out (FOMO). Eventually, the market enters the Distribution phase, where early investors take profits, leading to price stabilization. Finally, the Run-Down follows, characterized by sharp declines as panic selling takes hold.

Crypto cycles are more extreme due to volatility, 24/7 trading, and speculative nature. To navigate these cycles, hedging is essential. Hedging strategies — such as liquid staking, perpetual contracts, and restaking — help protect investments from market downturns while still enabling returns. 🔄

By understanding and applying hedging tools at each phase, investors can safeguard their portfolios and avoid emotional decisions. 🛡 Platforms like ChaiDEX offer innovative strategies to maximize profits even in bear markets, ensuring long-term success. 🌐