What to look out for in this bull-run
During a crypto bull-run, always keep your own trading/HODLing strategy in mind, despite what you hear on social media and the news.
Now that Bitcoin and Ethereum are up, each and every crypto investor is waiting with bated breath to see what will happen next. Is this a true “bull-run” or is it simply another market movement that will result in a quick correction a few days down the road?
Whatever you choose to believe, it would seem that DeFi and all of its related parts are engendering market growth that we haven’t seen in quite a while. If you decide to conclude that this means a greater bull market is on the horizon, then it’s best to be prepared.
For that reason, I’ve put together a few thoughts on surviving whatever may come our way over the next few days, as well as over the long term.
- Know your “HODLing”/trading strategy and stick to it.
If you’re a trader, know what cryptocurrencies you plan to trade in and what amounts you plan to trade with, at all times. This includes knowing how you will react to significant bull and bear markets. Will you buy in more at all if prices go up? What about if they drop suddenly? Always have clear time horizons in mind, including when to enter and exit each and every trade you make. Developing a clear trading strategy in these ways and in every way is key and if you’re a beginner, consult with those who are more experienced than you and form opinions of your own based on their aggregated counsel.
If, on the other hand, you’re a “HODLer,” which refers to someone who buys and holds on to one or more cryptocurrencies for a certain length of time, know when you plan to buy or sell, in response to anything that might happen. For some, this means planning to buy or sell only at certain prices, for others, it gets a bit more involved.
Whichever of these two categories you fall into, the key point to remember is that proper planning, instead of buying, selling, and trading on a whim, will help you be ready for whatever might come.
2. Take in the opinions of others, but always act on your own judgment and your own research in the end.
As said above, it’s okay to take in the opinions of others on the crypto markets and trading strategies, especially when you’re a beginner. Still, with this comes the stipulation that it’s important to be careful who you trust and always make your own conclusions based on the aggregated opinions you’ve taken in, instead of anyone in particular.
A primary example of what not to do is: you see a bunch of Twitter profiles advocating that you buy at a certain time and you act on that advice.
3. Together with the above, keep a clear head and act rationally in times of market turbulence.
With both of the points above, comes the idea that no matter which turns the crypto markets take, you need to act logically/rationally. Never let fear, panic, doubt, or anything similar make buying, selling, or trading decisions for you.
Years of wisdom back up this assertion in the investing world-at-large.
4. In the end, crypto is a nascent asset class and will be subject to high volatility for quite a while. Most industry sources conclude that you should never invest more than you can afford to lose at any given time.
Sticking to these tips as a sort of overarching strategy of their own should leave you in a good place for whatever’s down the road.
If there’s one thing to be remembered here, it’s that without a clear, well-thought-out trading/hodling strategy, you won’t be properly prepared for any aspect of crypto investing.
Unlike some of my past posts, this was just meant to be a quick series of thoughts on the current state of the market. None of this, however, is direct financial advice. As I’ve said above, take all the opinions that you read on the crypto markets together, and make your own conclusions on them. If you found this useful, let me know below and on Twitter here.
Finally, most of my free time is being taken up with my newsletter, which is completely free and focused on how the rise of the Metaverse improves things for everyone. Sub here.
Disclaimer: None of this is meant to be financial advice. I’ve researched and worked in crypto since 2016 and I aim to merely educate people on the upsides and downsides of all sorts of projects and the market itself. Additionally, I’m a student just as all of us are. Therefore, my thoughts on projects evolve naturally over time as I learn more about them. Last but not least, none of these posts represent the thoughts of NBX unless otherwise stated and this includes all posts that preceded this one.
