Navigating the Crypto Bull Run: Expert Tips for Investors to Stay Ahead
Summary:
Investors preparing for a potential crypto bull run are advised to set clear investment goals, implement dollar-cost averaging, focus on established cryptocurrencies, balance investments between speculative and mature coins, consider emerging themes, and avoid risky practices. Mental health and self-care are also highlighted as important factors in navigating the volatile crypto market.
More than 130 million individuals have entered the world of cryptocurrencies since the end of 2021, leading to the anticipation of a potential crypto bull run as early as 2024. Ben Simpson, the founder of Collective Shift, emphasizes that a bull market is a chaotic and overwhelming experience unlike any other. He stresses the importance of having a clear investment goal and setting a predetermined sell price for each asset in order to avoid getting caught up in the euphoria and making costly mistakes.
James Butterfill, the head of research at CoinShares, suggests that implementing dollar-cost averaging, which involves periodic small purchases or sales, can help mitigate the volatility of cryptocurrencies during both bull and bear markets. CK Zheng, the co-founder and CIO of ZX Squared Capital, advises investors to focus on well-established cryptocurrencies like Bitcoin and Ether, as they offer more stability and diversification benefits compared to newer or speculative coins.
Deryck Graham, the founder of Portal AM, recommends balancing investments between speculative and mature cryptocurrencies, considering investment sectors like Layer 2 and the Metaverse, and evaluating tokenomics, dev team track records, and market momentum. Markus Thielen, the head of research at Matrixport and author of Crypto Titans, suggests investing in new cryptocurrencies that align with emerging themes instead of solely relying on those from previous bull runs.
However, Simpson, Zheng, and Graham caution against overexposure to crypto and risky practices such as taking loans or using leverage. They stress the importance of investing within one's means and having the mindset of long-term investment rather than speculative trading. It's also crucial to prioritize mental health and take breaks from constantly monitoring the markets, as advised by Simpson.
Disclaimer: This article does not provide investment advice or recommendations. Readers are advised to conduct their own research and exercise caution when making investment decisions.
Published At
8/28/2023 11:26:00 PM
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