Well we are smack dab in the middle of 2020, and may be headed into a crypto bull run. While nothing can ever be certain we can see that Bitcoin has managed to hold its ground at the $9000 mark. The rest of the altcoin market is seeing small but steady gains so whats next? Well you need to prep yourself for liftoff. Here are some lessons learned from both making and losing money throughout these last few years.
Tip 1: Have An Exit Plan
Have a written exit plan. At least a reference to execute against. You don’t want to figure out your exit strategy in the middle of a roller-coaster. I didn’t have one three years ago, but now I do. It includes diversifying into other crypto coins, and not having all of your money in one basket!
Tip 2: Don’t Hold Forever
Unless your extremely bullish on a particular coin be ready to sell at some point. Holding is the easy strategy, but not the most profitable one. If all you are doing in the most volatile market that has probably ever existed is playing “long-term optimistic ostrich,” like I did, you are missing out on opportunity. Long-term confidence is a strong start, but identifying the cycles and patterns to minimize losses in prolonged bear markets is much better. Getting good at this can help you prepare for crypto bull run not just in 2020, but many years from now.
Tip 3: Stay On Top Of News
Avoid pitfalls and mistakes by doing extra research. Read up on the history and forecast of any particular coin you currently own. By educating yourself on the market, you can enter and exit the market at the right times and see major financial gains. Plus its your money and no one cares about it as much as you do!
Tip 4: Don’t Place All Of Your Money In One Coin
Common investment wisdom prevails when it comes to cryptocurrency investment: diversification is key. You should at the bare minimum have your money spread into 5 different coins. That way you can at least capitalize on one or two of them while the others may not work out. Since this entire market can be unpredictable its sound advice.
Tip 5: Don’t Cash Out Right Away
If your reason for investing was for a profit and you plan on watching the market and seeing how far your investment can take you, then don’t instantly cash out as soon as there is a major jump in price. With such high volatility levels it’s easy to be caught up in a quick profit when the price jumps, though, there may be far more potential in the long term and it is recommended that you leave your and wait for a second or third jump, which are, historically speaking, far larger than the initial jumps.
Now that we’ve gone over some ways to help you prepare for a crypto bull run in 2020 we also have a course recommendation. I recommend checking out the stackthecrypto.com trading course. There are a lot of things that you can learn on here, whether you’re a beginner or you’re novice. I just think that, you’ve got to learn from other people’s mistakes along the way, and you will learn that in here, but you also learn the different trading styles. Also if your looking for a place to trade crypto right now we highly recommend using the Coinbase App.