When the crypto bear market hits, we see a full-scale cycle of denial. Nobody wants to accept that prices are coming down lower and for longer than we all want them to. But, they inevitably do. The blood starts running, leveraged players get flushed out. Billions of dollars in market cap are lost.
Altcoins usually take the brunt of the hit first in the bear market crypto. We saw DeFi, NFT, and many other altcoin-based projects take a massive dive. Over 99% in many cases.
Optimize Your Crypto Strategy: Why Simplicity Triumphs in a Bull Market
When it comes to the crypto bear market (especially in 2022 and 2023), things get brutal and they get brutal insanely fast. You need to tighten up, stay vigilant, and be incredibly smart. I think we can all look back on what we did at the end of the Bull cycle and the beginning of the Bear cycle that we wish we would've done better.
For me, I obviously wish I had taken more profits and moved them into stablecoin savings like HBD Savings or other stablecoin liquidity pools. I did move a lot and take a lot of profits in the last cycle, but if I could do it over, I would have done more.
I also would have planned my expenses better. I would have reduced some expenses and ensured a separate-from-crypto income for the length of the bear market.
Well, in the next bull cycle, I will make sure to set these things up for myself. The bull is just beginning to rage and it's time to evaluate what we did wrong last cycle and carry that knowledge with us into the next one.
You Have to Lower Your IQ to Win in a Crypto Bull Market
In a Bear market, you need to increase your IQ. You need to evaluate moves and be incredibly smart and tight in your actions. The men and women to your left and right are dying in the trenches.
People are blowing up. They're losing their life savings. Projects are going under water.
How will you survive? In a bear market, surviving is the definition of winning.
In a bull market, quite the opposite is true. The dumb money starts making a killing. Look to pepecoin. Look to dogecoin. Look to NFTs.
Dumb money wins in a bull market. It wins because dumb money is always chasing the next move. A lot of people are unaware of this phenomenon, but it is incredibly true.
Lowering your IQ actually means being a smarter investor. It means looking at the trends instead of your biases.
For example, I would have bet some money on the XRP case and the outcome that occurred. I didn't bet on it though, because I don't like XRP.
In a bull market, sometimes you need to reconsider what you are okay with.
On the same hand, I like to buy assets for 10 years, not 10 minutes. I am not a trader.
So while there are profits in many assets like XRP, if I don't love them I most likely won't buy them.
Lowering Your IQ Without Lowering your Standards
I would like to say this - it's wise for an investor to look at crypto assets with a different lens in a bull market but to ALSO keep a heavy weighting on the long-term.
I have made the vast majority - really all - of my money by playing the long-game in crypto. This means dollar-cost averaging a massive BTC, ETH, RUNE position.
I found a handful of cryptos that I truly believe in and I slowly acquired a larger and larger stake in them.
This proved to be the #1 way to make money over the past 8 years that I've been in this industry. Far more money is made doing these things than by trying to trade the trends.
It seems that I'm contradicting myself here - I am saying to lower your IQ, but I am also saying to not lower your standards.
My intention is to say that our biases will trick us into the opposite reality.
We are used to the bear market. We are used to shit not going our way. We are used to seeing our fellow crypto frens dying in the trenches to our left and right.
But in a bull market, you need to consider the opposite to be true. Idiots are going to make money left, right, front and sideways.
It's going to frustrate you as a long-term holder. It's going to make you question your positions and make dumb mistakes if you try to chase dumb money.
Instead, I challenge you to do this:
Stick with your long-term mentality. Understand WHY you hold what you hold. Is it BTC? Is it HIVE? Is it ETH? Is it LEO?
Hold these things and build on top of them because you believe in what you're aiming to achieve 10 years from now.
Nobody wants to hear that they'll be rich in 10 years. They all want to be rich in 10 minutes.
The funny thing about striving to be rich in 10 years is that you just might get there in 10 minutes along the way.
Be wise and understand your biases. Question your decisions from both sides. Provide both an argument for and a counter-argument against what your next moves are.
Stay frosty, frens 🦁
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