The next 9 months could offer life-changing financial opportunities in crypto. But if youāve been through a few cycles, youāll know this one is different. Unlike past bull runs, this one features the introduction of Bitcoin spot ETFs, a seasoned crypto community, and the influence of on-chain metrics. To make the most of this bull run, discipline is essential.
Below are 23 crucial rules Iāve developed from six years in the crypto market. These principles will help you navigate this unique cycle and increase your chances of making lasting gains.
1. Only Buy Tokens You Believe In š”
If you donāt believe in a project, holding through volatility will be difficult. A strong thesis can prevent impulse selling when prices drop. Stick with projects you genuinely understand.
2. DYOR: Do Your Own Research š
Know what youāre buying! Understand the team, community, and tokenomics before investing. Never invest based solely on othersā recommendations.
3. Refine Your Thesis š
Before investing, outline your technical and fundamental validations and create a spreadsheet with research notes. Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
4. Pay Attention to Tokenomics š±
Great projects can be undermined by poor tokenomics or ill-planned vesting schedules. Prioritize projects with sound tokenomics to avoid price stagnation.
5. Prioritize Strong Altcoins š
Seek out altcoins from strong narratives that show resilience in price action. Itās often better to prioritize strong coins over chasing laggards.
6. Define Your General Strategy šÆ
Trader or Investor? Decide upfront.
Determine portfolio allocation: short vs. long-term, large caps vs. small caps.
NEVER enter the market blindly.
7. Define Your Profit-Taking Strategy š°
Going in without an exit plan is a major mistake. A DCA (dollar-cost averaging) ladder-out system, with pre-set increments, is generally the most reliable.
8. Avoid Over-Rotating š
Frequent rotations stem from weak conviction. Only rotate if itās part of your strategy; donāt do it on a whim because something else is trending.
9. Monitor BTC Pairs šŖ
Many focus on USD pairs, but tracking altcoins against BTC can reveal true performance. Aim to outperform BTC, not just USD.
10. Avoid Over-Diversification š§©
An optimal portfolio is about 10-15 core holdings (about 80% of your allocation). Avoid holding 30-40 tokens; it becomes unmanageable.
11. Donāt Rely on Price Targets šÆ
Instead of fixating on exact price targets, use DCA in-and-out systems based on time and general price action. Trying to time the top or bottom often leads to missed opportunities.
12. Stay Aware of Macro Trends š
Picking the right coins is crucial, but timing matters even more. Even strong coins can yield poor returns at the wrong time.
13. Donāt āMarryā Your Bags š
Outside of BTC, most crypto assets tend to fall by up to 90% in bear cycles. Donāt assume assets will always go upāhave an exit plan.
14. Be Realistic About Your Goals š
Setting outlandish targets can lead to unnecessary risk. The higher the target, the greater the risk. Aim for achievable goals.
15. Understand Rotations š
Crypto is an attention-driven market. Knowing when trends shift and where attention flows can give you an edge in positioning.
16. Follow the Trend š
āWhen the musicās playing, dance. When it stops, run.ā Recognize when the market is shifting to risk-off mode to preserve gains.
17. Manage āPTSDā from Previous Cycles š§
If youāve been through previous bear markets, itās tempting to sell early. The most successful investors are those who hold through volatility.
18. Refine Your Daily Routine š
A cluttered mind often leads to a scattered portfolio. Streamline your research process and stick to a routine to make focused decisions.
19. Pick a Niche and Master It š¬
Instead of spreading yourself too thin, focus on a specific area (like DeFi, AI, or meme coins) to gain a competitive advantage.
20. Curate High-Quality Information Sources š
Donāt overwhelm yourself with endless YouTubers, Discords, and Twitter accounts. Focus on trusted sources that align with your strategy.
21. Get Involved in the Industry š¤
Becoming active in the crypto community opens doors. Whether through content creation, community moderation, or offering services, involvement brings more opportunities.
22. Join a Community š„
Surround yourself with like-minded people. Crypto communities amplify knowledge and expand your āluck surfaceā by pooling ideas and strategies.
MY Final Thoughts: Make the Most of This Unique Bull Run š
This bull run isnāt like previous ones. With new products, institutional interest, and shifts in the macro environment, thereās unprecedented potential for those who stay disciplined and focused. Stick to these 23 rules, manage your risk, and take profits along the way. And remember, the journey is just as important as the destination.
For more crypto insights and strategies, Follow Me @Crypto PM to stay ahead of the trends in this exciting market.
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