How Not To Fall Off The Bull

in LeoFinance4 months ago

About three years ago I bought my first ten LTCs and although I had basically no strategy on what to do with them and how to profit out of this crypto market, I am still here alive and well. I learned everything I know about this space/movement on my own and there's a whole lot to be still poured to my little brain. Starting my journey in the middle of one massive bull run and getting out of it alive to enjoy the next massive bull run for BTC makes me somehow slightly old and salted(credits to @onealfa for this metaphor that I love).

I'm definitely not the best nor the worst to be learning crypto from, but I sure have my experience with making money, loosing trades and learning all the way in crypto, hence I got inspired to create a short newbies guide for BTC's current bull market. We're still early on and you, the newbie that's probably reading this, might find it useful. First things first.

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Why a bull market for BTC to begin with?

Considering that you already have an entry level knowledge regarding Bitcoin and crypto in general, you should definitely educate yourself about BTC's halving which is a highly important event, occurring once every four years, when Bitcoin miners rewards are cut in half for the next cycle, and this in my opinion, is the major catalyst for BTC's bull market. From my research, it seems that it takes BTC about 500 days after the halving to reach its new peak. Considering that the last halving occurred on May 11, 2020, then we should have the next ATHs for BTC in... Well, I'll let you do the math, but don't expect surgeon precision for such dates. Just have in mind this time frame so you won't get caught pants down when it happens.

It's actually Bitcoin's Party

Taking a look at coingecko.com or coinmarketcap.com you'll find a plethora of lets say shitcoins waiting to bought or sold, some being true shitcoins while others actually being backed by really good and full of perspective projects. A few will definitely massively outperform BTC in terms of ROI during the bull market, some will probably won't even reach their previous ATHs, but overall it's BTC's party. Satoshi Nakamoto made Bitcoin, not dogecoin, so you should expect BTC to be the leader of the pack to dictate trends and somehow to decide how high they will all jump. Usually BTC's dominance grows as we approach its peak and afterwards it deflates leaving room for altcoins to have an after party, quite a wild one I'd say.

Get educated... and there's a money flow channel that you should be aware of

Dealing with crypto is a hell of a fun, spicy, painful, but enjoyable at the same time journey, so don't be the lone wolf in here. There are plenty of crypto bloggers on this platform that I can recommend following, and learning from, such as @toofasteddie, @edicted, @empoderat @trumpman, @rollandthomas, @behiver, @onealfa, @khaleelkazi, @taskmaster4450le, @cryptomaniacsgr, @inallitlewhile, @whatageek, @revisesociology and many others. Definitely give them a follow and digest their content. I would also highly recommend @rektcapital on twitter from whom you can learn a lot about crypto and definitely read about his money flow cycle analysis. In my case, for now, the crypto education seems to be the best paying one yet and with the most perspective.

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There's no straight moonshot

We're still early in this Bitcoin bull market so don't be fooled by FOMO, or all sort of crypto influencers that are calling all sort of exaggerate targets, from a day to another. It will take time for BTC to reach its future peak, and there will be corrections on the way, quite many of them, some really painful(like 20-30%) for the fainthearted, but the trend is clear and we still have about a year till BTC will reach its peak, if it's going to walk on the same pattern, so no worries, but don't let yourself fooled that it will go higher and higher for like forever, because it won't. That's coming from someone who bought BTC at $18,000, but was discouraged to do that at $4,000.

Diversify

In this regard I am a good and a bad example at the same time. I will admit that I don't hold any BTC or any small portion for the time being and most of my crypto life I've been holding alts, but diversification is the mother of success and this will tell you any crypto investor that you'll probably ask. Hence I will not recommend keeping all your eggs in one basket. Gambling on just one coin will increase you stress during these times as you will probably have to wait a hell of a time until that one pumps like crazy. Moreover if you pay attention to the money flow cycle that I linked above, and feel like swing trading a bit, you will be able to make the most out of your investment. There's no sure trade though...

When HODL makes sense

If you don't know by now what HODL is then go google it. I learned this term through my own experience in 2017-2018 by simply not respecting it. I was acting so delusional, jumping from one crypto to another that I missed the entirely bull market. I sat on XRP for weeks when it was getting almost stable at 22 cents just to sell it a week prior to its launch towards $3,6. Held LTC from $50 to $55, just to watch it from the sidelines how it went to $360... and back to $22. Have patience, they will all pump when the time is right and if you're not experienced as a trader it's really better to just HODL and take your profits out when you feel like.

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Choose your eggs and your tribe right

Investing in crypto is a high risk investment, with some cases of high rewards as well, but you should definitely watch out what eggs are you pouring money into. Some are scams, some are very low volume that will keep you trapped on them, there are great projects with poor performing tokens such as Hive, and there are great projects with great price performance, liquidity and tons of potential, so do your own research. Not everything that flies is digestible. You can always pay attention to crypto influencers calls, invest in what they might call gems, but wisely choose your tribe and who you're listening to. Also, if you got into one token out of inspiration and belief in the one shilling it, and it seems to be performing bad short term, as I did with AVA lately, don't panic. Remember why you chose it and who recommended it. Don't fall into my mistakes of missing good ROIs for not having patience and falling into disbelief.

Dollar cost average

Again, something that I haven't done during the previous bull market. I was either all in or all out... Hence I learned from my own experience that the best way is to gradually buy into the market and the to exit it with small steps as well. You never know what bargains wait ahead or what profits you might loose. Make your plan of investing, one small percentage at a time, and sell in small chunks as well. Can't talk much about buying as I don't have powder left to do that, but I sure know I'm not getting out of the market in one jump.

Always have a moonbag

It's really hard to predict how high will really BTC get, and altcoins, for their future peaks and since I mentioned about dollar cost averaging I will also mention the moonbag. That one that you might have heard of many times before, or never, which will probably make you the most money, or not... Don't know about you, but I am saving and risking some 15-20% of my portfolio for the fireworks. This bag gets to an exchange, will have decent stop losses set so I won't end up to regret I haven't sold on a profit, and simply wait and see how high it can get, while moving up the stops to make sure decent profits are ensured. Maybe I'll score a great revenue, maybe not, but it will for sure be worth the risk. After all what is a high reward without risks.

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There's no overbought in a bull market... until it's really overbought

I remember quite vividly my emotions during the 2017 bull market, when BTC at $10,000 seemed so overbought, just to see it sky rocket to $20,000 in less than a month, and same happened with alts as well, hence the crypto bull market bagful may seem that it has no end, and that's when true FOMO will kick in, but the same as mist goes away when the sun starts shinning so will the peak be reached and the retraces of prices begin. Two words for you, and myself of course: don't sell to soon, don't hold for too long, the meat in between tastes the best.

If anyone reading this post has any word of advice to give for newbies entering the crypto market, feel free to share it in the comments section. I would definitely appreciate that and the ones willing to get educated as well. I also don't mind critiques to this post, not considering myself yet a crypto guru. I have a bit of experience and some lessons learned in the past years spent in this space and hope my words will come at hand for someone.

Thanks for attention,
Adrian

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I had fortunately gotten into crypto during the last bull run,but I didn't even know what was going on or that it was a bull run, I was on Steem at the time, and 1steem = 7$, lol. Fun times.

This present run is the first I'm experiencing from the enlightened perspective, knowing what has led to it, the occurrences around it, now I hope to make the right moves to take full advantage of it, most of all I hope to be carrying the right bags.

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I'm pretty much in the same position.

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@acesontop, When it comes to the Point Of Knowledge it's not good to remain Ignorant. Stay blessed.

That's coming from someone who bought BTC at $18,000, but was discouraged to do that at $4,000.

The truth :) well said. I believe, the bull market not started yet. We are still going through uncertainties and early 2021 will have the foundation stone of the bull market.

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I think we are in its early stages.

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I love the fact you've actually put an exact date on the peak!

I like dollar cost averaging, that's me to a T!

Thanks for mention, I'm honoured to be amongst some of those names, although TBH I know very little about Crypto - my strategy is basically:

  • BTC
  • LTC
  • ETH
  • Hive and especially LEO/ DEC
  • BAT/ RUNE more recently
  • Cryptokitties

That's basically it!

And hodl, hold for dear life, I still haven't cashed out a single cent of crypto, and I don't trade that much between TBH.

P.S. One of those on that list was a joke!

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You do write about crypto quite often and I would definitely recommend newbies to read your posts. Half my portfolio is BAT and LTC by the way 😀

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Hey thanks!

I have a bit of a soft spot for LTC, I still think there's potential purely on the basis that it's easier to own 1 whole one! Psychologically I think that's worth a lot.

BAT - I like the fact that the whole lot has already been printed!

I don't hold too much of the later, but I've got fair chunk of litecoin.

The way the Hive price is taking it won't be long before by LTC is worth more!

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don't sell to soon, don't hold for too long, the meat in between tastes the best.

So true and so damn hard to achieve!

Not impossible you know 😉

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I really enjoyed this post buddy. And I feel pretty glad to be in your list.

We're a bit rekt on AVA, but better times will come ;)

I 100% agree with you that the journey here is much better if you're surrounded by good people. Definitively makes a great difference.

Thanks. I have absolutely no worries with AVA. Even if it takes one year to moon, I'm fine. Your shills are definitely worth catching, especially for newbies.

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