Bitcoin and altcoins have been experiencing a significant decline recently, with many analysts on Twitter claiming for weeks, if not months, that we are on the cusp of an insane altcoin season, but so far, there has been no sign of it.
While some AI coins have outperformed the rest of the market, and some meme coins have done extremely well, most alts are still over 90% underwater from their ATHs over a year ago.
Some will recover to 2021-2022 levels, while others won't perform well during the next parabolic phases. The question is, how can we know which ones are the "golden fish," and how should we make the most of our crypto investments?
Buying low and selling high should be the number one priority in making money in crypto, but doing that may not be as easy as it sounds. When should you buy, how should you buy, and when should you pull the ladder?
Bear markets are the best times to build your portfolio, but how do you know when we are in a bear market? In my opinion, once BTC has dived around 60% or more from its ATH, you should know we are in a bear market, and alts will bleed even more once BTC does that.
This would be the time to start accumulating, but how do you know when the best time to do that is? Should you spend it all in one place at one time or wait for a signal from the market?
The key is to buy the damn fear, but not just mild fear. For instance, when LUNA crashed, the whole market tanked, but it wasn't the end of the world. BTC was still 40% away from its ATH, which is not a good entry if you're aiming for maximum profits in the next bull market.
You have to buy extreme fear, such as bans, domino pieces collapsing, the cheap Bitcoin granny buying near the peak and now selling at a huge loss, the barber's lack of confidence, and last but not least, buy boredom. When BTC is ranging, and alts seem to be in deeper trouble than Bitcoin, it's a great financial opportunity.
DCA is king, and once you're on "the certain side" of the trade, and you know it's time to stack up on sats (or whatever), it would be a good move not to unload most of your capital at once. This bear market, I have been successful, but not perfect. Once you decide to buy back into the market, don't forget to buy the FUD.
Getting in early sometimes means taking risks by buying certain coins from shady exchanges or jumping on projects that are full of promises that have yet to deliver anything. EGLD, one of my biggest holdings, is currently trading for $37, peaking at $544, and I knew about it when it was $10, way before its parabolic rise. It took me a long time to jump on the MultiverX wagon.
The same applies to almost every crypto out there. Just a few have bought BTC under $1000, ETH when it was a few bucks, and so on. Whoever has done that had the patience to sail the stormy waves of crypto and has dumped high, earning a lot of money.
It all seems so simple when you analyze it from a macro perspective, but going from point A (your entry into the market) to point B (your exit on profit) will involve plenty of challenges and nerve-wracking episodes. It will all be worth the hustle, I guess.
Thanks for your attention,
Adrian