What Should Actually Scare You About The Bull Market in Crypto...

Not many of my old mates, who are no-coiners but used to ask me about crypto back in 2021, are still approaching me regarding such a topic. I guess we are still in the early phases of the bull market because, yeah, what we have in crypto in terms of price actions for the past few good months is worthy of a bull market; otherwise, I'd be facing some questions.

I was talking with someone yesterday who is a coiner, and he was asking me why plebs always get into crypto near the top, "why the masses aren't interested in crypto" when the prices are low and getting into such risky assets should be rewarding as heck.

My short answer is that the masses, who often act in herds, need confirmation from the ones dictating their reality, such as the traditional media or social media platforms like Facebook or Instagram, that "now is the time to buy." Well, the media will not precisely use that phrase, but when it starts talking about Bitcoin repeatedly, that will be the sign for the herd to step in.

That will probably be too late, and that's when smart money like us starts to dump their coins and exit the market because, after every bull market, an inevitable bear market follows. The overall accepted narrative is that bear markets should be scary and painful, but this one could not be further from the truth.

In reality, bear markets are a blessing in disguise because they offer insane buying opportunities for whoever has the funds and is willing to get into the market. What should scare us instead is the bull market, and here are a few reasons why the bear market should be scary and not the bull market.

If you buy a coin for $1, and it dives even further towards the bottom, creating a bottom at $0.5, from where it starts climbing higher to, let's say, a peak of $10, and you sell at $5-$7, you've made a considerable profit. But if you buy such a token in the mentioned way and get caught up in the euphoria of the bull market, holding onto it all the way to $10 just to see it drop back to $1 or whatever the next bottom will be, then you're taking unnecessary risks.

The sense of euphoria is dangerous for an investor. I learned that on my own by paying a heavy price for it, and this is why most prolific investors in crypto and traditional markets emphasize the importance of DCA. No one knows what the top for BTC or any altcoin will be this bull market, thus "dollar-cost averaging" your way out of the market is the best strategy you can have.

The same applies for bear markets. My opinion is that most of those who find themselves carrying heavy bags during the bull market and end up draining them into the bear market do so because they don't have a plan for their coins and clearly ignore DCA.

"Do not regret DCA"... Yes, coin X would have probably made you loads of money if you held onto it from bottom to top, but does anyone actually do that? Do you know of anyone who actually bought the bottom and sold the top in crypto? Because I sure don't. Had I held onto my DOGE that was worth $1,200 back in 2019 all the way to the top, I'd have cashed in over $400,000, but I doubt I would have been able to score such a good trade.

The meat in between is what we should be chasing, and securing profits by using the dollar-cost average technique is definitely on the menu for me this bull market. What about you?

Thanks for your attention,
Adrian