One of the terms frequently heard in the cryptocurrency market is the term accumulation. Accumulation means that when the price of a cryptocurrency is low, investors buy and hold that cryptocurrency for a long time. In this way, investors wait for the price of the coin to rise and then sell it to make a profit.
The term accumulation can also be seen on cryptocurrency charts. While the price of a cryptocurrency is at low levels, an increase in its volume can be interpreted as a sign of accumulation. In this case, it can be said that the demand for crypto money is increasing and investors are buying. After the accumulation phase is over, an uptrend can begin in the price of the cryptocurrency.
We can take Bitcoin as an example of the term accumulation. After the big drop in Bitcoin in 2018, its price started to hover between $ 3000-4000 in early 2019. Although the interest in Bitcoin seems to have decreased during this period, many investors actually accumulated by buying Bitcoin at a cheap price. Towards the end of 2020, the price of Bitcoin started to increase rapidly and reached record highs in 2021. In this case, the accumulating investors made huge profits.
The term accumulation is an important concept to be successful in the cryptocurrency market. Investors should evaluate the potential of a cryptocurrency, buy and wait patiently during periods when its price is low. Thus, they can make a profit if the price of the cryptocurrency rises.