How to prepare for a crypto bull market

In a bull market, success means staying calm and acting smart. In a bear market, on the other hand, success depends on frequent trading and strategies such as buying/selling and shorting on short time frames. You need to spot potential buy/sell opportunities, but be careful not to make mistakes. The effective approach is different, but in the end, constant monitoring and avoiding mistakes are crucial.

Step 1 - Choose the right cryptocurrency

No matter how long you plan to invest for, choosing the right cryptocurrency is very important. Coins that are heavily hyped but have no proven value usually won’t hold their value over time. Such coins vanish once the promotional campaign stops.

For reliable options, focus on cryptocurrencies that have been around for a while and have shown a steady rise in value during previous bull runs. New coins with strong fundamentals matter just as much. As always, it’s important to DYOR (do your own research) before making your choice.

Step 2 – Choose the right time to buy crypto

If you plan to hold your investments for the entire bull run, it’s important to pick the right time to buy crypto. Ideally, you should get in at the end of a bear market. Even if you can’t find that exact moment, buying during a period of sideways movement (consolidation), like the one we are going through now, is acceptable.

When the bull run arrives, don’t assume cryptocurrencies will hit their peak overnight. This means you have plenty of time to carefully pick the right coins even during the bull run. However, anyone who keeps changing their crypto portfolio during a bull market should realize that their potential profits will shrink significantly.

If you’re thinking of buying a coin that has gone up 10x compared with its price a year ago, you may want to reconsider. That coin may have less upside than other coins that haven’t already gone through such a sharp rally.

Step 3 – Move your crypto off the exchange

Leaving your crypto on an exchange implies, whether subconsciously or deliberately, that you are willing to sell it. It makes it easy to sell at any moment. In a bear market, which is marked by falling prices, it’s good to have the advantage of flexibility. In a bull market, where prices are rising, the strategy is different. It only takes two actions: buy at the start and sell at the end.

Once you’ve bought your crypto, move it from the exchange to a wallet. Ideally, this should be a cold wallet (one that isn’t connected to the internet), or at least one that is hard to access, to make it more secure. The main idea is not to be tempted to sell your crypto too early or too often, so keep it out of easy reach. If everything goes wrong, it only takes a few minutes to move it back to the exchange. However, that should only happen when the bull run is nearing its end.

The bull market rewards the patient

Although we can’t predict exactly when the bull run will end, there are some indicators that can help us (we’ll cover them in another article). You should only sell your crypto on the exchange when you’ve reached your personal target or when there are signs that the market is about to reverse.