15 Rules for Making Money in Bull Markets

Author: Crypto, Distilled

Compilation: DeepTechFlow

Bull Market is not as simple as you think.

Even if $BTC reaches $100,000, many people may see their returns gradually decrease.

Do not become such an investor.

Here are 15 rules to help you maximize your profits during this cycle.

1. Unrealized gains are not gains

This is the most important rule of all.

Set it as your lock screen, stick it on the fridge - whatever you do, don’t forget it.

Book value is just a hypothetical value until you actually sell.

(h/t TradeSanta)

2. Avoid using leverage

Alts already have enough firepower.

You don’t need more volatility to get substantial returns.

Don’t let greed strangle your profits.

I have seen many people fail because of alcohol and leverage - leverage meaning borrowing. In this world, you actually don’t need to borrow money. If you are smart, you can make a lot of money without borrowing.

3. Gradual Reduction

No one can perfectly time the top of the market.

Plan to exit within the top third of the cycle.

Accept a portion of the profits to secure your future.

(Example strategy from @denomeme)

4. Be prepared for a decline

Considering downside risks is equally important as considering upside potential.

Optimize your strategy to ensure you can withstand the worst-case scenario.

The opportunities for generational wealth are rare. You have to live long enough to seize them.

5. Find Asymmetric Investments

Not all opportunities are equal.

Do not let the price pump lure you into a bad risk/reward position.

The ‘pump’ potential should always be greater than the ‘downside risk’.

(From @ssaurel)

6. When in doubt, take a long-term view.

Don’t get lost in the hype. Take a step back and consider the long-term situation.

Will the long-term trend continue or reverse?

In the next 6 months, will more liquidity flow into or out of the market? Why?

7. Strict Investment Selection

The dilution of AltCoin has reached an unprecedented level.

You don’t need to chase those shiny coins.

Most AltCoins will go to zero after the cycle ends - be very picky.

8. Keep the strategy simple

Complexity does not equal success.

Complex plans often collapse when the market heats up.

Narrow down your follow scope and keep it simple.

9. Doing Big Fish in a Small Pond

The encryption industry spans dozens of fields.

It is impossible to be an expert in every field.

Focus on your own field and master a few niche markets.

10. Without Private Key, you don’t have your Cryptocurrency

Unfortunately, many people learn this simple truth the hard way.

Even the ‘best’ traders can lose their savings due to security negligence.

Develop good habits of using Wallet. Diversify your assets into multiple Wallets or Centralized Exchanges (CEX).

11. Betting on the leader

Retail investors are keen on chasing the “chasing game”.

In the long run, this is almost always a losing battle. The winners always keep winning.

(h/t Tapan Desai)

12. Collaborate as a team

Remember, your social network is your net worth.

Don’t be a lone wolf, you’ll earn less.

With other savvy investors and crypto enthusiasts.

13. Compare AltCoin with BTC

It is a mistake to only follow the dollar valuation of alts.

On the contrary, analyze the ALT/BTC trading pair.

If your active portfolio is not outperforming BTC, please reevaluate your strategy.

14. Trend is your fren

In a strong trend, it’s best to follow the overall situation.

Contrarian investments only make sense during macro turning points.

Otherwise, you will be trampled by the crowd (do not exit halfway).

15. Do not be too obsessed with your highest net worth.

The market doesn’t care about your gains or losses.

Being too persistent will only blur your judgment.

Seize the opportunity and accept the loss calmly.