Why gold is good during bullish markets?

Well, for our newcomers, let’s define a bullish market. This expression comes from the posture of the animal at the exact moment it’s ready to charge. Face up, horns to the sky, back legs close to the ground, ready to jump. Let’s dive in.

When an investor (you) believes in an asset, a stock or a crypto, he decides to buy with the aim to gain profits from it. The more people believe in it, the more will buy, increasing the general demand. Over a certain period of time this will have various consequences.

The first consequence of that particular market situation, is the rise of the value of said asset, stock or crypto. Any investor arriving early will be able to get profits out of it, he/she will then have to decide whether it is wise at this exact moment to sell.

Seconcondly, the thing is, in a bullish market, everybody believes in it, so most of them will report their profits in the search of future, bigger profits. As the market keeps growing, more and more people will try to know what this sudden rise in value is about and how to gain from it. All of these newcomers get in by fear of missing out (FOMO) on these opportunities

But values don’t rise eternally and holders don’t hold that much time too. So then, some decide to sell, followed by others, and then followed by others creating a cascade of offers, readjusting the value and maybe letting you with nothing but loss of money. Or at least, no profits. 

But then, how to prevent losses of money and keep the FOMO out of it ? Well, experienced traders use a mix of various techniques to hold a properly managed portfolio. And all of them have a common point, they keep their heads cool. They do it by investing on reliable values, maybe less risky, less attractive, but the ones they know they can retract to when the stakes are lost on a risky bet.  And that’s precisely where gold-backed stablecoins get in the game.

But then, how to prevent losses of money and keep the FOMO out of it ? Well, experienced traders use a mix of various techniques to hold a properly managed portfolio. And all of them have a common point, they keep their heads cool. They do it by investing on reliable values, maybe less risky, less attractive, but the ones they know they can retract to when the stakes are lost on a risky bet.  And that’s precisely where gold-backed stablecoins get in the game.

We won’t be discussing here the difference between gold-backed stablecoin and FIAT-backed stablecoin. The never-ending quest to margin profits is sure a way to capitalize and make short/mid-term revenues. But what if there’s a way to get both.

Since the very beginning of civilization, the only thing common to each and every market as the reference is gold. Inalterable, impossible to create out of anything else, gold is and will stay the only physical material with the same properties as cryptocurrency. With the development of financial markets it has become the emergency reserve for any type of investment entity. Public administration as a token of their economical power, companies as a token of their stability, and private investors as a way to capitalize without suffering from inflation. You got the basic principles, gold is an anti-nightmare stuff for everyone. But what if you could use in another way

As we saw before, whenever there’s full blown trust into an asset, it becomes bull market material. And whenever there is bullish material. There are profits to make, and losses to bear. In both cases, it’s about time management. What if you could take that time ? While making profit, it’s easier to take the margins made, convert them into a stable asset and get back at it when the time is right !

As William F. Rickenbacker beautifully wrote : “Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape […].”

To sum up, we could say that everybody has the FOMO about the crypto-age, and that’s okay.  But whenever it comes to real, long-term investment, always bring your golden parachute with yourself. You never know when you are going to jump out of the crypto-world  and for how long. We provide the ‘chute, you get to leap in and out as you desire.