Beware in the Later Stages of a Bull Market: Have You Avoided These Pitfalls?

As we enter the later stages of a bull market, especially with the onset of altcoin season, market fluctuations become very intense, and newcomers need to be particularly cautious.

First, never short-sell lightly. In a bull market, the speed at which altcoins rise can often be beyond imagination, with increases of several times; the risks of short-selling are enormous. Many people see the price of coins rise sharply and think, "It can't keep rising like this, it must drop soon," only to blindly short-sell without setting stop-losses, ultimately getting wiped out by the market.

Additionally, short-selling in the short term should be approached with great caution. It should only be considered when there are clear signals of a market top and you have a stop-loss strategy in place. If you are unsure how to identify a top signal or how to set a stop-loss, it is best to stay away from contract trading; preserving your capital is the most important thing.

Now may be a good time to position yourself in altcoins. In every bull market, the explosive phase of altcoins is very short, and missing the opportunity to position at low levels might mean missing the entire rally. Therefore, it is advisable to pay attention to some potential sectors, such as DeFi, Layer 2, and the Metaverse, and to diversify investments rather than concentrating funds into a single asset.

In summary, opportunities and risks coexist in the later stages of a bull market; maintaining calm and rational operations is key to making profits. Everyone should proceed with caution!