3 trends to consider before the crypto bull run continues

Cryptocurrency's next bull run has already begun. One of the most significant differences compared to previous cycles is in the type of new investors entering the market. Bitcoin (BTC) exchange-traded funds (ETFs) have opened the door to wider participation with easy access to a piece of the action, and Ethereum (ETH) ETFs are expected to follow soon.

Newcomers may have trouble understanding crypto, but there is an important framework to consider in terms of initial investments.

Beginners often start by investing in big names like Bitcoin and Ethereum. For the most part, you can invest in Bitcoin and wait at least six months before testing the price to see if it has grown enough to sell. But for those who only have a few thousand dollars to invest, investing in Bitcoin will not make you a millionaire. The near-medium term growth potential is 2-3 times its current value.

Related: Runes protocol sparks new era for Bitcoin after halving

Experienced players will understand that they need to check the latest trends. If done right, investing in a dozen small projects can really pay off. Assets that were popular in the previous bull run, such as new Layer-1 protocols and lending platforms, can offer the opportunity to grow your investment five to 10 times. Once the bull run starts, many projects have the potential to crash 50 to 100 times.

Risk and return are two sides of the same coin. When one is ready to study the market on how much one is willing to gain or lose in crypto, it falls on resources and energy. That's where the beauty of crypto lies: it's completely accessible to people willing to learn.

There are three narratives that the average new user with no impressive experience behind them can understand and believe effectively. The main thing is to know the story behind each product. Innovation is at the forefront of this space because people in crypto are creative and constantly looking for something new. I see three such trends for the bull run.

First is the marriage of artificial intelligence and blockchain technology. A large number of projects are now trying to innovate at the intersection of blockchain and AI. While there is no guarantee that these efforts will bear fruit, the narrative itself is strong. This trend is likely to capture the imagination of investors and enthusiasts on the wave of both blockchain potential and AI startup developments. I am following RitualNet and Morpheus.

The second trend delves into the more fundamental aspects of real asset tokenization or debt tokenization. In traditional markets, the debt market outperforms the stock market. Yet, in the crypto realm, there is currently no debt market. Stablecoin can be considered a starting point, as companies exchange stablecoins for real dollars and buy short-term US bonds themselves. However, the concept of corporate debt remains untouched in crypto. Therefore, everything related to the debt token has a great potential. PV01 and Ondo Finance are two projects in this area.

Related: Solana reveals the dark side of monolithic blockchains

A third trend focuses on improving blockchain technology itself – improving efficiency, increasing revenue and reducing operational costs. It uses new technologies such as parallel Ethereum virtual machines to process many things simultaneously, speeding up transactions. Likewise, Zero Knowledge (ZK) authentications keep things private but simple, making the entire system smoother and less expensive to operate. Sei and Monad are projects to watch in this area.

But how can we use these narratives to immerse ourselves in the product? Imagine an investor researching a product. He's interested, maybe even excited about a project. Whenever there is something incomprehensible in the document, it will be highlighted in red. Then he looks at the whole description and sees that there is a lot of red in the document: there is a lot that he does not understand about the product description. He doesn't invest. This is a straightforward strategy: if an investment is too complicated to understand, it may not be the right one. This approach emphasizes the importance of transparency.

So, when considering investing in a trend, keep in mind that the big funds have probably moved. If there's some sort of visual narrative, chances are you're already invested in it. This is a good reminder to stay informed – understanding that in the investment world, the giants rule the game.

Ruslan Fakhrutdinov is the CEO and founder of X10, a self-sustaining crypto exchange in London. He was previously head of crypto operations for Revolut. He holds a master's degree in corporate finance from Gisom SPbU and a master's degree in international management from CEMS.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.