10 Things to AVOID at All Costs If You’re Serious About ‘Making It’ This Cycle
Reminder
1. Don't FOMO
Most people get rekt in the bull because they FOMO into hot tokens on green days.
This leaves you more exposed during corrections due to an inflated cost-basis.
2. Don't rush decisions
Make money slowly. Protect money quickly.
3. Don't over-rotate
Hopping from coin-to-coin is likely going to get you burnt.
Make sure you have conviction in all of your trades, so you're not constantly chasing gains on new, shiny objects.
4. Don't over-diversify
Concentration build wealth.
Diversification protects it.
I'm not saying to go all-in on 1-2 projects, but make sure you're not spread too thin either.
5. Don't get greedy
Crypto gains are paper gains until they're realised.
Make sure if you make money, you use it to actually get rich.
Go more risk-off as the cycle progresses, not the other way around.
6. Don't get complacent
If you hit a big winner, lock in some gains.
You could roundtrip sooner than you think.
I like to use an incremental (% based) profit taking system as price climbs, to ensure I'm consistently laddering out as opposed to trying to time the market.
7. Don't use leverage
Leverage is a tool to reduce risk (via increasing capital efficiency), not to increase it.
Unless you're using it with a clear purpose - avoid it all together.
8. Don't panic during flushes
Shakeouts are common during bull markets.
In fact, you should be using these as an opportunity to scale in.
The best Risk/Reward opportunities in the market are during bull run leverage flushes.
9. Don't lock tokens
I think many of us learnt this lesson the hard way last cycle.
Liquidity is key
10. Don't ignore OPSEC
- Don't keep all your funds in CEX utilize @Binance Wallet - Store your seed phrase wisely
These are just a few tips, but just be aware of your actions and always maintain a sense of paranoia to keep you grounded.
You'll see this often in a bull run where you see these short and strong liquidation events.
You know why?
When everything is going up lots of people fail to see the benefit of spot holding.
Why settle for a 2x when you can get a 5x in the same exact month? We are going up after all. Just enter a long contract right?
The problem? One small wick down (like 2 days ago) and either you get liquidated (account at 0$) or hit your stop loss.
A few days after? Position entirely bounced back and higher than it was before.
Leverage traders are wiped one however while spot is still sitting comfy.
Have rarely seen people truly making it with using leverage in this market. I have often however seen plenty of people make it trading spot in this market.
Wouldn't be the first dm I get on my account with the question:
"BitEagle, can you help me? I used leverage and got wiped out"
Learning lessons obviously but that won't make it any less painful ofcourse.
"We're going to do something great with crypto because we don't want China or anybody else, not just China but others are embracing it, and we want to be the head.
We're going to be ahead of AI, we're going to be way ahead of AI, and we've got to produce tremendous amounts of electricity."
2025 could mark a significant increase in institutional investment in digital assets due to clearer 🇺🇸 US regulations and the potential for Bitcoin as a central bank reserve asset, per Sygnum Bank.
According to their analysis, even modest institutional allocations could dramatically reshape the ecosystem.
"Hey BitEagle, what do you think about project X"?
Me: I think they are super solid!
"Ah awesome! So it's a good buy right?"
Me: Nope
"Huh? But you just said they are solid af?"
Me: Yeah, doesn't mean they are at a great entry.
"hmm, okay, but I still believe they will be much much higher so I'll buy them, thanks!"
...
These are questions and answers that really happened btw. And they also happened more than once.
Listen, the markets always operates in the same way (check the entire history of almost every coin out there).
What goes up, most come down.
And if it goes REALLY HARD up for a long time? It goes down even harder as well.
If it didn't it would mean no single individual would actually be making money at all (no sells = only paper profit).
I like many projects, doesn't mean I like all of their entries.
Doesn't matter if you found the next Google, if it already is going parabolic it means everyone else already found it as well.
In the end, the goal of any investor is to buy low and sell high no matter what project you bought.
That doesn't mean we will always be right but you can be sure that you'll almost always be wrong when you buy something that looks like a rocket already.
"If I were a child of a Boomer I would nudge my parents to sell their home, stocks, and bonds now, while prices are high, before the crash that is coming and buy gold, silver, and Bitcoin now," says Robert Kiyosaki.