Author: Route 2 FI
Compiled by: TechFlow
The market has been doing pretty well over the past 10 days. Does this mean we are finally heading for UPtober?
Is now the time?
Let’s discuss whether it’s time to truly “lock in,” or whether it’s time to “get out.”
When should you “lock in profits” and when should you “go out and relax”?
Hello friends!
Let me start with a metaphor:
The crypto market is like that girl with a rating of 9.5 who always loves to play mind games.
One day, she showers you with all her attention and love, making you feel special.
The next day, she gives you the cold shoulder, causing you to question every decision you make—or worse, your own self-worth.
Sound familiar?
That’s pretty much what crypto investing is like. But let me tell you one thing: knowing when to go all in on “her” and when to take a break is the secret to not only surviving, but actually thriving in this financial Wild West.
So, friends, let’s dive into how to balance your crypto obsession with leading a normal life, shall we?
“Part 1: Locking in Profits”
OK, let's make one thing clear - I'm not here to preach holding on 24/7 like some kind of digital hermit. That's a one-way ticket to burnout city, where the only inhabitant is you.
But sometimes you need to put down your roots, lock your doors, and ride the crypto wave like your portfolio depends on it (because, let’s be honest, it kind of does).
"Market"
Remember March 2020? Yeah, that was fun.
The world is heading toward destruction, and Bitcoin has decided to take the express elevator straight to the bottom.
But here’s the twist – those who kept calm and bought at the lows? They’re now sitting on a private island sipping margaritas.
Major economic changes bring the kind of chaos that cryptocurrencies thrive on. It’s like the market is playing a game of musical chairs, and you need to be ready to grab a seat when the music stops.
Take the Fed's rate hikes, for example. Every time Jerome Powell opens his mouth, you can bet there will be some wild moves.
So how do you deal with this game? In short:
Stay informed: Set alerts, follow key crypto figures and anime avatar accounts with less than 1,000 followers, don’t just read the headlines. Dig into those whitepapers, participate in the Discord/TG channels, and maybe attend a crypto conference or two (honestly, conferences are not necessary, but I still enjoy them). Knowledge is power, and knowledge is money.
Get your funds ready: Get some stablecoins ready. When everyone is panicking, that’s when you buy. But don’t just throw money at every dip, have a plan and look for quality projects that are being sold off due to widespread market panic.
Know your price: set clear entry and exit strategies. Emotions are for writing love letters, not for trading (can someone make this a classic quote?) Of course, you can use technical analysis, but don't become dependent on it. Remember, in cryptocurrencies, sometimes fundamentals will be dominated by market psychology.
Remember, volatility is a double-edged sword. It can make you rich, but it can also bankrupt you faster than a Lamborghini Huracán V10 5.2-liter asynchronous ignition. Understand what's going on behind the scenes. Are we in a macro bull or bear market? What's the overall sentiment in the market? Is this a short-term correction or the beginning of a long-term decline?
These are the questions you need to ask yourself before you decide to “get in”.
'The next big thing'
Let’s take a look back at 2017.
ICOs (initial coin offerings) are hot.
Jump to 2021.
Everyone is talking about NFTs (Non-Fungible Tokens).
Now what?
Now it’s all about those memecoins.
Crypto markets love a trend. It’s like fashion week, but instead of expensive clothes, we’re dealing with killer ETH projects with no actual product, expensive APE JPEGs, and new memecoins released every minute like pump.fun.
But here’s the thing – if you can spot these trends early, you’ve earned it.
It’s not just about making a quick buck (although let’s be honest, we’d all love that).
The key is to understand where technology is heading and adjust your strategy accordingly.
So how do you stay ahead? Here are my two suggestions:
Go to places where professionals hang out: Telegram groups, Discord, niche crypto Twitter accounts (comments), and obscure Reddit forums. These are the places where you are most likely to get real alpha. Don’t just lurk — participate in discussions, ask questions, and share your own insights. The crypto community is very friendly if you participate with genuine curiosity.
Follow the smart money: Watch what venture capital firms (VCs) and whales are investing in. They are not always right, but they have resources we can only dream of. We can use tools like Nansen or Dune Analytics to get insights into whales’ dynamics. But remember, just because a big player is investing, doesn’t mean you should just follow them. They’ve been screwed too.
Look for real-world applications: Projects that survive long term are often those that solve real problems. Think about how blockchain can disrupt industries beyond finance — supply chains, gaming, social media. That’s where the revolution really happens.
Try new things (responsibly): Don’t just read about new trends — try them yourself. Mint a new standard NFT, provide liquidity on a decentralized exchange like Layer4-zkVM, play a Web3 game. But (and this is important) only use funds you can afford to lose.
Be aware that being an early adopter is a very risky business. For every Bitcoin there are one thousand BitConnects.
DYOR is more than just a buzzword, it’s your lifeline.
But it’s okay to miss out on some trends. FOMO is real, but the risk of loss is just as real.
3. “Regulatory dynamics”
Ah, regulation. The nightmare of the crypto world.
One moment we were enjoying the beauty of decentralization, and the next moment the U.S. Securities and Exchange Commission (SEC) came knocking on Binance’s door.
But here’s a new take — regulation isn’t always the enemy. In fact, some level of regulation might be exactly what cryptocurrencies need to enter the mainstream.
For example, the news of the approval of the Bitcoin ETF. This news made Bitcoin rise like a rocket. On the other hand, the news that China decided to "ban cryptocurrencies" in 2021 happened to coincide with the market highs.
So how do you play the regulatory game?
Stay on top of the news: Follow key regulators on social media.
It's really boring, but necessary.
But don’t get your regulatory news from Reddit threads.
That being said, don’t expect to successfully trade on this news.
Understand the implications: Not all regulation is the same. Learn to separate FUD from facts. A crackdown on a shady exchange is a different thing than a blanket ban on cryptocurrencies. Develop a deep understanding of how different types of regulation affect various areas of the crypto market.
Adjust your strategy accordingly: If you know a regulatory storm is coming, it may be time to prepare for it (or buy “compliant tokens”). Consider how regulation may affect different projects. For example, privacy coins may receive more scrutiny than DeFi protocols targeting institutional investors.
Global Perspective: Cryptocurrency does not exist in a regulatory void. A ban in one country may mean an opportunity in another. Pay attention to crypto-friendly regions and how they are positioning themselves. The next crypto hub may appear where you least expect.
Let’s not forget the political variable. One day Trump is calling Bitcoin a scam, the next he’s practically its spokesperson.
Welcome to the world of crypto, where the only constant is change.
The key is to stay nimble, stay informed, and maybe have some popcorn ready to watch the next congressional hearing on encryption.
“Part 2: Get out and relax”
Well, we talked about when to “go all in.”
Now let’s talk about something equally important — knowing when to take a break. Because let’s be honest, if your idea of stepping into reality is binging on TikTok, we need to talk.
"breathe"
We’ve all been there. The market is in free fall, your portfolio is looking redder than a sunburned tomato, and you’re convinced that if you make just one more trade you can turn things around.
Warning: You probably won’t.
Losing streaks cloud your judgment. Before long, you’re over-leveraged, FOMOing into questionable investments, and before long, you’re considering selling a kidney to buy the dip (pro tip: don’t do this).
In this case, taking a step back is not just a good thing—it's necessary.
So, how do you break this cycle?
Set strict stop-loss limits: Decide how much you are willing to lose before you start trading. Play like your portfolio hangs on a thread (because it does). This isn't just about the money—it's about preserving your mental health. No gain is worth sacrificing your sanity.
Identify emotional trading: If your decisions are driven by fear or greed rather than strategy, it’s time to back off.
Do you check prices every five minutes? Dreaming of green stuff?
Yes, it's time to take a break.
Mandatory Breaks: Sometimes the best trade is to trade nothing. Log out, delete the app if necessary. The market will still be there tomorrow. Use this time to reconnect with the real world. Remember? The one with trees, the sky, and those people who didn't know what a CumRocketExtrax1000MoonSonic was.
Focus on self-care: As awkward as it may sound: exercise, meditate, read a non-crypto book. I promise, your thinking (and trading decisions) will become clearer.
Reflect and learn: Use this time to analyze your mistakes. Keep a trading journal. Be honest with yourself and see where you went wrong. Was it a poor strategy or did you just have a weak mindset? Learning from losses is the difference between successful traders and “one-shot winners.”
Click here to see the full tweet in the screenshot above. Remember, crypto is a marathon, not a sprint. Taking breaks is not a weakness — it’s a strategy. The most successful traders I know aren’t the ones who stare at a screen all day. They’re the ones who know when to engage and when to walk away.
2. “Big Shot”
Picture this scenario: You’re scrolling through social media and suddenly see Elon Musk tweeting about Dogecoin.
Your cousin who takes Bitcoin like a vitamin supplement is giving you trading advice.
Pepsi and Budweiser are interacting enthusiastically.
If this isn’t the height of hype, I don’t know what is.
Mainstream acceptance is a good thing for crypto, don’t get me wrong. But when your Uber driver starts giving you advice on leveraged gains, maybe it’s time to step back and reevaluate. Markets have a weird way of humbled us, especially when everyone thinks they’re geniuses.
Here are some ways to navigate the hype cycle:
Beware of unlikely recommendations: When celebrities who misspelled Ethereum a week ago start promoting certain coins, be cautious. I like Kim Kardashian as much as the next person (just kidding, I don’t), but I don’t take financial advice from her Instagram stories, and neither should you.
Track Google search trends: If “how to buy Bitcoin” is suddenly trending with “Taylor Swift,” we may be in a bubble. Use tools like Google Trends to understand public interest. When your non-crypto uncle who you haven’t seen for a decade suddenly calls and asks you how to buy, it’s usually a sign that we’re near a market top.
Beware of the Fear of Missing Out (FOMO): If you are buying only because you are afraid of missing out, it is time to get out. FOMO is a powerful temptation, but it is also a great way to buy at the top of the market and become an exit liquidity for those who read the first part of this article.
Look for signs of market exhaustion: Is some project with no utility or even a complete joke surging? Are people borrowing money to buy crypto? These are warning signs, folks. Short story:
Don't be that person.
The party always ends.
3. “This is too much.”
Let's talk about market irrationality.
Like that friend who always takes things too far – it’s funny at first, but you know you’ll end up crying.
In crypto, these crazy periods can feel like you’re taking some crazy medicine. But recognizing them for what they are can save your portfolio and your sanity.
Signs that the market has gone crazy:
A coin with a misspelled name is worth more than a top public company.
People mortgage their homes to buy the aforementioned currencies.
Influencers are promoting a new “revolutionary” project almost every day.
Everyone thinks they’re a genius (until they’re not).
The words “this time is different” are uttered without irony.
When the market loses its mind, it's time to step back and take a fresh look.
How to stay sane in a crazy market:
Stick to your strategy: Don't abandon your plan just because others seem to be getting rich quick. If you wouldn't buy it in a bear market, think twice before buying at the peak of the craziness.
Research the projects yourself: Don’t trust the YouTuber who looks shocked in the thumbnail. They’re probably just as clueless as the rest of you. Dig deep into the projects, read the documentation, check out the GitHub repos, and listen to the developer calls. Knowledge is your best defense against market madness.
Remember the basic truth: if something sounds too good to be true, it probably is. Yes, even in crypto, especially in crypto.
Look beyond the current cycle: Check out the long-term charts. How does the current frenzy compare to previous cycles? History doesn’t repeat itself exactly, but it often does. Understanding market cycles can help you stay calm when others lose their cool.
I can't stress this enough: always have an exit strategy. Before entering a trade, determine when to take profits. It's easy to get greedy when the market is rising, but remember - unrealized gains are only gains on paper.
“Part 3: Balance”
Mastering the crypto markets isn’t about staying online 24/7 or giving up participation altogether, it’s about finding the sweet spot — knowing when to lock in profits and when to relax. It’s a delicate balance, and believe me, we all step on our feet sometimes.
The key is self-awareness. Know your own limitations, both financial and psychological.
Cryptocurrency is a wild ride, but it doesn’t have to take up all of your life. It’s normal to be passionate about this space — gosh, who wouldn’t be when you see the potential for innovation that could truly change the world?
But remember, you are more than just a trader or an investor.
You are a human being first.
As the crypto market continues to evolve, one thing remains constant: the need to find a balance.
So go ahead and analyze those charts when the time is right. If you’ve done your research, take a chance on that promising new project. But don’t forget to keep your head up, relax, and remember there’s a bigger world out there outside of your portfolio.
So, a big shout out to all the holders, traders, developers and dreamers out there:
May your candlesticks always be green (but know when to avoid when they are not).
May your investment have a rich return.
May you always remember that, in the end, this is not just about money—it’s about being part of a revolution.
Stay smart, stay calm, and never stop learning.
The blockchain-based future is bright.
Goodbye, see you at the new market high, or at least at the next interim high!
