I got involved with Bitcoin in 2011 and have experienced three rounds of bull and bear markets. I’ve summarized a few points of experience that I hope will help you if you are new to the crypto world:
Bull markets are more likely to lose money: Even seasoned traders find it hard to control their human nature. Chasing prices may not necessarily result in losing USDT, but it will definitely result in losing coins. The way to minimize losses in a bull market is to reduce trading activities. In the bull market of 2013, almost everyone in the tech industry had some Bitcoin, but what about now?
Bear markets are easier to make money: When your digital currency drops to a certain level, further declines no longer make you feel uncomfortable. Bear markets are full of opportunities, and it’s easy to accumulate digital currencies. Between 2022 and 2023, Ethereum priced below 200 was always available for purchase.
Do not believe in the myth of getting rich quickly in the crypto world: Over 90% of people in the crypto space are losing money. If after going through a bull and bear cycle, your assets have grown by 1 to 2 times, that’s already quite good. Those who like to tell stories will tell you that Ethereum was under 200 USDT in 2019 and rose to 4800 USDT in 2021. But in reality, you could have been trapped when it was 1000 USDT in 2017, and being able to hold on until 2021 and sell at 3000 USDT is already lucky. Looking at historical peaks, Bitcoin grew less than 3 times from 2017 to 2021.
There will also be multiple opportunities to invest in a bull market: Do not FOMO, do not chase prices. Restrain your greed and learn to take profits. Even if you miss the entire bull market, there’s always the next cycle.
Never trade on margin!
