In the cryptocurrency market, bull and bear cycles alternate, with bull markets lasting from 6 months to 1 year, and bear markets lasting from 1 to 2 years, resulting in an overall cycle of about 3 to 4 years. If one can seize the bull market well, returns can multiply several times!
Investment key points are as follows:
• Bear market strategy: Patience is required; buy in batches at the bottom of the bear market (when Bitcoin is ignored and market sentiment is low) and hold for more than 1 year.
• Coin selection strategy: Focus on BTC and ETH, buy during bear markets and sell during bull markets, which can yield at least a 50% increase, suitable for large investments. Platform coins like BNB, foundational chains like SOL, infrastructure coins like MATIC, and strongly consensus coins like Doge are also worth paying attention to. Avoid heavy investments in altcoins; many are tools for exploiting investors. In bull markets, altcoins evolve rapidly, making it difficult to position ahead of time without insider information. Buying at high prices can easily lead to volatility and downturns, often leaving investors in a position of breaking even or incurring losses.
• Selling timing: Stop trading after selling in the mid-bull market. Initially, BTC leads the charge, driving ETH and some mainstream coins up, with certain altcoins showing unusual movements. In the mid-phase, BTC and ETH oscillate upward, mainstream coins gain momentum, and altcoins begin to activate. Later, BTC oscillates downward, ETH may surge, mainstream coins peak, and some altcoins skyrocket. At the end, BTC drops significantly; although there may be rebounds, the trend is hard to change, and after multiple crashes, the bull market ends. If locked in, one must cut losses in time, or else the principal will be damaged.
• Reject gambling: In the late bull market, there are many temptations and traps with altcoins. Avoid heavy investments in unproven altcoins, as this is akin to gambling. They often have flashy promotions but false backgrounds, crashing or even going to zero during bear markets. If unable to resist temptation, one should only invest a small amount; do not go all in for small profits. Small investments can be entertaining but should not be considered as investment.
• Patience in holding: Buy during bear markets and hold until selling in bull markets, avoiding operations in between. After selling in a bull market, wait for the bear market, and do not attempt to catch the bottom too early. In a bull market, funds allocated for altcoin trading should not exceed 10%.
• Principal safety: If trapped due to operational errors, prioritize protecting the principal. During a market crash, decisively cut losses to preserve opportunities. Clinging on may lead to total loss of the principal, making it hard to recover.
Recently, I've been keeping an eye on Ethereum-based Puppies; interested friends can continue to follow up.
