The cycle of bull and bear market
Today I was talking to an old investor. We started our crypto journey together. He is a manager from a different team. It was around 6 years back when we all invested in crypto as a team and booked profit. I still remember that during those days the returns were almost double within a very short period. Some people booked their profit and some stayed on. It was when I found Steem and started my journey seriously and traveled here so far.
Those days many people invested money into crypto and then tried to get some return out of it. However, I followed a different strategy to find ways to make money in the crypto world and invest it again back in crypto to build my foundation here. The cycle of the bull market and bear market is common in the crypto world. Some people might even say that it is common in real-world markets too. It requires a few years to understand this cycle and be prepared.
Some of the old investors in the crypto world know that when a bear market happens, it is not going to be the end of crypto but instead a good buying opportunity. Once a wise man told me that we should buy when people panic sell and when everyone is buying, we should be in a position to sell. We have to be managing our portfolio in such a way that something like this happens.
Understanding the market trend
It can take a few years to understand the market trend. Usually, people who are new to Crypto might make some wrong investments by buying crypto when the market is at its peak and selling and exiting crypto when the market is extremely low. We have to understand that this is not going to be the case forever. Of course, we should also aim to book some profits and make some additional investments too. But we have to understand when would be the right time to do that. Some cryptocurrencies show sudden growth and some cryptocurrencies would show slow growth.
Even if China and Russia ban cryptocurrencies, it would only be a temporary downtrend for the market. Most people don't understand this immediately and they might panic sell. But if they are experienced in the crypto world they will be able to understand that these types of events are more frequent and it is more like an opportunity.
Having enough funds during this cycle
It is very important to make use of both the bear market trend and the bull market trend. During the bear market, we should have enough funds with us to invest in our favorite cryptocurrencies. During the bull market trend, we should be able to focus on booking some profits for us. There is a high possibility that we might start thinking that the value would further go up and miss the opportunity to book some profits. At the same time when the market goes down, the same thought but a little different where we might think that the value would go down a little bit further to help us invest cheaply. But we have to set aside greed here and make sure we invest during the right time.
Overall the market cycle is amazing and that's what keeps the crypto market alive. Sometimes the duration of this cycle can be different and we have to make use of it whenever possible.
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Everyone really needs to start getting prepared for this next bull run because it might take another 4 years to witness it again
The market has once again given us a good sign and it has not gone below 39700 which means that the pull market has started and we will see bitcoin at $50k in the near future.
Yeah the price of BTC is tanking well.