Bull Maket is Back!? Crypto Updates and Tips

🚀 Welcome to our Crypto Spotlight 🚀

Past 2 weeks have been really exciting, with a lot of people saying that we are officially in the bull market.

Just this month alone, Bitcoin and Etheruem are up 35%+, and a lot of smaller coins are up by more than 100%.

Let’s see what narrative drove the prices up!

Also, I covered some tips to successfully live through the bull market and walk out with a bag.

Let’s take a look.

Market Updates

This is the price graph I see when I open CoinMarketCap, a site for tracking crypto prices:

EVERYTHING IS GREEN!

What happened? Did people just start thinking that Bitcoin and other crypto currencies are a good source of investment?

Actually, after the application of BTC ETF, BlackRock has also confirmed their plan with Ethereum ETF with filling with the SEC.

Once these are approved, it will be a huge improvement in cryptocurrency investment strategies.

WHY?

Once the ETFs got approve, people can start buying bitcoin and ethereum on big stock brokerage like Fidelity and Robinhood.

There are around 160 millions people in the states along that own stocks.

When ETFs are approved, these people will have the option to buy crypto as well, HUGE!

But nothing is actually live yet, the speculations themselves are enough to drive the market up.

Bitcoin is up 37% this month, is the bull market here?

It is really not that difficult to make money in a bull market because everything you buy goes up.

However, it is HARD to preserve the gains. (Trust me I learned it the hard way)

Here are 3 principles I will be using this cycle to make sure I don't leave the bull market with empty hand. 

 1. Take Profit 

Pretty self explanatory, but is very hard to execute.

We are all greedy, who wants to sell a coin when it just went up 50% overnight?

What if it goes up another 50% tomorrow?

This is essentially how bull market is formed. When nobody wants to sell, there is so much demand, driving the prices up.

I recommend setting a exit price the moment you enter a position.

For example:

- I bought 1 ETH at the price of $2000, cost = 2000
- My exit price is $2200, a sweet 10% gain

When the price reach your goal, you will most likely be tempted to sell, since it feels like it can keep going up.

Whenever I have thoughts like that, I forced myself to at least sell some coins, so I still follow my plans.

2. Put Away the Profit 

One of the biggest mistakes I made last cycle was not putting away the profit I made.

I rotated the profit into other coins, NFTs, Web3 games...etc

One thing I really recommend people to do is to lock the profit once they have it.

For example, some people use their profits to buy some physical goods: cars, watches ...etc

If you still want to keep that money in the crypto space, at least rotate them into stable coins or big coins like BTC and ETH.

Here is what I am doing this cycle:

Whenever I made profit on a trade, I am sending 50% of the profit to my cold wallet, and I am not touching my cold wallet at all.

So I will not walk away with nothing this cycle.

3. Do Not Look Back 

One of the worst mistakes we can make when investing is to FOMO and make irrational decisions.

Once you exit a position, just move on.

Doing this will make you less stressful, 100% recommend!

ALPHA TIPS: 

What are some good indicators for a sell signal?

Fear and Greed Index 
When everyone is greedy and is trying to buy more, usually a pretty good time to lock in some profit

When you want to post and tell your friend about your PnL, sell! 

You might think that you are the best trader in the world when it is the bull market, I thought I was, too. Instead of flexing it to friends, I really wish that what I did instead is just locking the profit.

Thank you for reading this week’s protocols recap!
See you next week.
Pingyu