The markets have an excitement in the air, bitcoin has reach a 3-year level price high, ethereum is on the verge of eclipsing its 3-year high as well, and the DeFi coins are coming back to life recently as well. It is truly an exciting time. Some people claim that this is perhaps the top and we will see further price drops from here. But in my opinion, this is the start of something special, the next bull run. But if it is the start of the next bull run, that gives us a very important question that each and everyone of us needs to know the answer to; are you ready!?
The last few years bitcoin and other cryptocurrencies have been going through a bear market, with the price of bitcoin reaching the $3,000 range, and ethereum also going under $100. If you were a believer in the future of cryptocurrency and these coins, it was an unbelievable chance to accumulate as much as possible for the next bull run.
But, perhaps you were scared off by the diving prices and didn't think it was the right time to invest, or maybe you just entered the crypto markets and are just now beginning to invest. Some of these people may feel that it is too late to get into the markets as the prices are already going up significantly.
In my opinion, we are still very early on in the life of cryptocurrencies. Similar to how the internet was in the 1990's, that is where we are now in crypto, but we are about to move into the 2000's. With this in mind, if you still haven't invested, it is time to get off zero.
But before you invest you always need to remember this.
Never FOMO
(fear of missing out) this means that when you see the price spiking up quickly, you feel the fear of potentially missing out and then quickly buy. But more often than not, there were soon be a price dip and you already lost profits with this quick decision purchase. Before I tried to control my purchasing decisions better, years ago I was often making FOMO purchases only to have the price dip significantly after my purchase. Or the opposite, the price was dipping significantly and I sold, only to have the price go back up almost instantly. These quick reflex purchases or sells can end up losing you a lot of money.
But how can you prevent this?
Always Dollar-Cost-Average
This may seem like a boring technique, but it is incredibly successful! If you bought bitcoin at the peak in 2018 at $20,000, but you from that moment you continue to make monthly or weekly buys, you would still far in profits. But at that moment if you made one lump sum purchase, you would still be in losses. So invest each time you get paid, an even or equal amount, just invest it and forget about it. Actually I like to schedule re-occurring purchases that do this for me, so I never even have to think about it. By using the dollar-cost averaging technique you will catch some of the great price dips, but there will be days where you get the higher price, but at the end of the day you will get the average of all of these purchases which means you will be outperforming most of the buyers out there.
Don't Be Too Greedy
This is the area that I admit that I still struggle with the most to this day, and it can mean a variety of things. In my case, I am almost never satisfied with my holdings in my portfolio, I am always wanting more. And as prices go up insanely during the bull market, in my head I have the fear that I don't have enough bitcoin, ethereum, chainlink or any other coin out there. I will often feel that I just wish that I had a few months longer to accumulate. But the bull market waits for no one and you have to be ready.
Be ready to accept what you already have and be satisfied. As the bull run happens in my opinion it is a better, less-stressful experience just to hold what you have, and watch the show happen, or watch the bull market unfold. This is the time to take advantage and enjoy all the hard work that you have been putting into stacking your portfolio since you began.
Also, don't be afraid to take profits. Remember that profits aren't actually really until you sell off and receive the cash. You could be up $30,000 today, and you have to remember that tomorrow is a new day and there is always a chance it could go down to $0. So if you are up a lot, it is never a bad idea to take some profits, especially if that money can help to improve your life. (pay off debts, money towards a house etc.)
As for me, right now I have reached my current goal with bitcoin, but I always will want more. I'm still inching towards my ethereum goal, but still feel very satisfied with what I have.
Remember to never compare your holdings to someone else's portfolio! What is a small amount for one person, might be life changing for you, and vice-versa!
So how about you!? Is your portfolio and mindset ready for the bull run? What coins are you trying to accumulate more before the prices go up even further and become more unobtainable to stack!?
As always, thank you for reading!