Surviving and Thriving in the Bull Market: Essential Steps for Crypto Traders
Explore the powerful story of the Valli tribe's resilience and unity in the face of a charging bull, drawing parallels to the unpredictable nature of the financial market, particularly in the world of cryptocurrency.
Once upon a time, in a small village nestled at the foothills of a mountain range, lived the Valli tribe—a close-knit community known for their bravery and resilience. When a massive bull named Kranthiraja ventured into the village, the tribe united to protect their loved ones. They constructed a network of strong barricades strategically placed to deter the charging bull. Additionally, they employed diversion tactics using bright flags and loud sounds to draw the bull away from the heart of the village.
When the fateful day arrived, the Valli tribe stood united and determined. The bull encountered the barricades, slowing its progress, while the diversionary tactics successfully attracted its attention away from the village. Through their coordinated efforts, the tribe guided the bull towards the outskirts of the village, ultimately ensuring their safety. The tale of the Valli tribe's survival became a legendary testament to their unity, resourcefulness, and respect for nature, serving as a reminder of the strength found in community bonds and the power of working together in the face of adversity.
This story shows how powerful and overwhelming the sign of the Bull represents.
WHAT'S A BULL MARKET IN CRYPTO?
Business Insider defines a bull market (aka a bull run) as a long, extended period in the market when overall stock prices are on the rise. There's no specific metric to explain a Bull run. But this is something people know when it comes. For example, maybe a 20% increase in a two-month span can tell us if we're headed into a full-blown Bull market.
An example of this is Bitcoin. this is the reason analysts believe we may be in a bull run. this is due to the fact that this year Bitcoin has rallied 80% higher than the previous year's levels. However, the road to recovery is long, as Bitcoin is still down almost 50% from its all-time high. which crossed $69,000 in November 2021. but this is a sign we may be going fully into that Bull season
This is similar to the present financial market, especially in crypto. You should strategise and prepare for what the market brings.
A bull market is incoming.
And you may be wondering: should I invest now or wait? Well, only you can answer. The good news is crypto coin prices have been surging recently, and because a bull market is on the horizon, this is a good time to invest. We know it's probably nerve-wracking to invest right now but waiting too long could also be a costly mistake.
"How do I navigate this upcoming bull run?" Let’s dive into the tips on how to survive and thrive in a bull market.
BEST PRACTICES IN A BULL MARKET
I. Do Your Own Research (DYOR)
Cliché but essential. The start of the bull market brings every micro-cap coin out of hiding, and people start to whisper about what and what not to buy. Take your time to study these coins and know the best to invest in.
As the popular Yoruba proverb goes, don’t get easily swayed by people's opinions when in the market. Do your own research about all investments before you get started. Please, I can't over-emphasise, don't invest mindlessly or by ‘word’ on the street.
II. Invest periodically
During the 2021 impressive bull run, some 'novice' traders didn't take a profit and held on, leading to an unprecedented investment loss. It's hard to imagine that prices will come back down when prices are shooting up.
From euphoria, investors continue to wait until they have earned enough, never to work again. In hindsight, it's clear that substantial speculative price increases are largely unsustainable. Whether you are a holder or a trader, it's best to take periodic profits.
Of course, you may miss out on some enormous gains. But when you also make your profits, you’ll be glad.
III. Trade with caution
There’s an adrenaline rush that follows a bull market. And on social media, the ‘greens’ are everywhere. Don’t be fooled. Time to stick to your strategy and DYOR.
Don’t over-leverage your position in the market. Carefully select the size of your trade based on the overall size of your trading capital.
IV. Dollar-cost average/limit order
This is especially useful for newbies in trading or busier people. Crypto trading is no simple task. It takes time and a keen eye for observation which we may honestly not have time for.
According to Standard Chartered, dollar cost averaging is investing a fixed amount of money into a particular investment at regular intervals (typically monthly or quarterly). With its potential to minimise timing risk, this strategy is used for riskier assets, such as stocks and mutual funds, as opposed to bonds or real estate.
It’s a great way to reduce the high volatility in the market.
V. Avoid FOMO
The dreaded “fear of missing out”. When we go into a full-blown bull market, it gets tempting. But that's a sure way to lose your money. Don't jump on every trend.
Contain your FOMO. Enter the market on your terms.
BONUS: Stay safe out there
Cryptocurrency can get wild real fast. Watch out for hacks, scams, and phishing attempts - all of itKeep your funds safely stored and use an exchange you can trust.
HOW TO MAKE MONEY IN A BULL MARKET
Now might seem like a risky time to buy, but it doesn't have to be. If you’re investing in the right places, you can give your portfolio a better chance of thriving during the next bull market.
Busha is Nigeria's leading cryptocurrency exchange and the best platform to grow your portfolio with. Get started today.
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