After entering the cryptocurrency field for a few years, I deeply feel the difficulty of this market. Today, we are in a fiercely competitive stage. Facing multiple pain points such as venture capital drama, SEC crackdowns, cultural coins, poor token economic models, and high FDV projects, we need to be extra cautious in this bull market to avoid capital withdrawal due to market fluctuations.
We have to be cautious because when a startup is valued in the billions and has yet to achieve any real results, how can this not be worrying?
This bull cycle is complex; if not careful, many users will eventually experience capital withdrawals.
I have witnessed this situation with my own eyes and have experienced it personally, so I did not escape the top in time when this round of altcoins plummeted. So I want to say that in order to exit this bull market with good liquidity, you must understand the difference between gambling, trading, and investing.
Gambling is putting money into a project and hoping it goes through the roof.
Trading involves strategy, timing, and understanding of market movements.
Investment is a long-term belief in the fundamentals of a project
If we confuse these, we are setting ourselves up for failure.
As an investor, you should know why you are here and focus on that, because we all have different goals in life. It is also important to remember that a bull market is a once-in-a-lifetime opportunity, but it can also become a trap if you are not careful. People tend to hold on too long, expecting the market to continue to climb, only to see their gains evaporate when the market corrects. Many people, including me, learned this lesson the hard way in the last cycle.
Just like HHGTTG at that time, although it was a local dog, I only bought 2,000 US dollars, but the high point profit was more than 50,000 US dollars. I always wanted to sell it when it reached 100,000.
To avoid a pullback in this cycle, I think we can do the following:
Keep learning from other people’s mistakes: Some mistakes include not believing in your own beliefs, not taking action, not taking profit, and so on.
Set clear profit targets: If you want to be successful here, decide when you want to take profits. Whether it's a 20%, 50%, or 100% gain, having a plan in place can help avoid emotional decision-making.
Diversify your portfolio: Don’t put all your eggs in one basket, spread your investments across different projects to reduce risk.
Stay Informed: As a cryptocurrency investor, you must always keep an eye on market news, project developments, and macroeconomic factors. As the saying goes, where your money is, there your heart is.
Don't be greedy: The temptation to wait for the next big move is great, but markets are unpredictable. Sometimes it's better to lock in smaller but guaranteed gains. Taking profits should be an important part of your strategy.
As the market heats up, it’s easy to get caught up in the excitement and forget that what goes up must come down, so start planning now. Consider taking profits in the year-end months, as now is the time to buy, not sell. This market is different than 2021 and will test your resolve and strategy. However, with careful planning and disciplined execution, you can avoid the pitfalls of a drawdown.
Stay sharp, stay informed, and most importantly, profit.
If you can seize the opportunity, this bull market may be your biggest opportunity.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together
