Every Bull Run Is Someones First Bull Run

in LeoFinance3 months ago

Hey Jessinvestors

Each day Bitcoin creeps closer and closer to breaking its all-time high, by the time this post does go out, Bitcoin could already have broken it, who knows? Momentum to the upside has been pretty strong, and while those who have been here for some time know that the bull run has technically been in effect for ages, to the outside world nothing is going on.

Until Bitcoin breaks and sustains a run above 20k, the average money hungry investor who is chasing stonks, because stonks always go up won't be interested.

Even though Bitcoin going up in price is not a sure thing, when there is enough of a recency bias towards its been going up for the past few weeks or months, each day it doesn't correct too violently suckers in a new set of investors who have a vested interest in number go up.

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The retail rally

There is for sure smart money coming into Bitcoin and buying up supply either through small, consistent orders as not to move the price or they're doing it over the counter, and these deals have nothing to do with the trading asset price. The shock in supply from institutions wanting to get mean leaves less liquidity for retail to jump in.

Retail who I mentioned has a vested interest in the price going up, so they're pretty much price agnostic as long as its more than what they paid for it.

For lack of a better term, this is the dumb money, and sadly someone needs to take that value off their hands, and that normally heads into the wallets of the more seasoned investor.

Granted there will be those with beginners luck, but the vast majority of profit-taking will be done by those who have a few years under their belt.

There are going to be many retail investors that will get suckered in, that don't understand how the coins work or care about research and buy because of sentiment or the lower unit price.

This is when you know we're well within bubble territory and its time to start thinking of deleveraging. When you see every Tom, Dick and Harry with a hot altcoin pick since "number always go up" you now its time for you to leave those bags to the suckers.

What a difference experience makes

I am by NO means an experienced investor but being around in the previous bull run and seeing what the depths of a bear market is like I've learned so much, important lessons such as:

  • Don't keep crypto on exchanges
  • Secure your crypto in cold storage
  • Researching projects
  • Taking out a comfortable position
  • Generating cash flow through de-fi, ce-fi and staking coins
  • Supplementing your buying with earning crypto
  • Daily cost averaging into Bitcoin
  • How to use crypto and avoid spending too much on fees

These are just the top lessons I learned, and I think it will help me prepare for this next run. I will need to learn not to be greedy and take profits incrementally all the way up and secure positions for the next bear run.

In fact, my mind isn't even on the bull run it's on the bear run, and what I need to secure and projects want to look at after the correction where I can put my profits back into to start generating cash flow for the next bull run.

Life changing profits

There is no doubt in my mind that if you play this next run smarter than you did the last one, well in my case that's what I am hoping to do and not let greed get the better of me. Then I should be able to take sizable profits that I'll be able to reinvest since that is my end goal.

I don't see the reason to cash out, but to ride the wave and recycle the capital into new cash flow/sat flow projects.

The last bull run, the biggest one to date in terms of nominal value helped many not even sophisticated crypto holders make off like bandits and sort themselves out for a few years or even more than that, it is possible, you need to look at setting exit numbers you're happy with and not try to figure out where the top of the market is and try to wait for that.

The truth is the top of the market never lasts very long and has very little liquidity to back it up, so you want to be taking profits at certain exit levels.

Just as you dollar cost average in, you may want to exit the same way.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Man Bitcoin is on fire now tv show are also talking about it and to be true they think of it

Yeah it's getting some media attention but I also see some negative media about KYC for private wallets and BTC pulled back a little bit, which I don't mind, gives me a chance to buy cheaper BTC

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Yeah

I'll be finding myself in a totally different situation this time round. Even thinking about taking profits is a bit of a foreign concept due to just wanting to stack and save. I'll have to think carefully going forward though as being involved and buying alt coins using other crypto is a taxable event in the UK.

But those bullet points are pretty key beginners information which probably won't make much sense until they get involved and see what you mean!

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Yeah I get you, I do have a speculative bag of alts, and some BTC I will mess around with and try to take profits with while my other bag sits safe and secure. Not going to do anything crazy but If I see a good exit value I am going to exit, take that USD and put it into CEL and just wait out the rest of the storm, not really going to try and play this upcycle big time

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Yeah I think that's it, take some gains where you can and if you feel it's right. A lot to think about after we've already ridden through our first 3 years! This is what being in charge of your own finances feels like!

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I feel it is too early to plan a exit strategy on BTC. BTC is just started now.
Think if in 2021 10 more big companies start storing BTC?
At least give 2-3 years before planning any exit strategy.

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Oh I am not planning to exit I am more looking at how I can leverage the rally to sell my alt coins and a small portion of Bitcoin when I feel its become overbought and then to dive back in once the market corrects

Got you, it is little calculated risk that you want to take to increase your holding.

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It was only a matter of time until Bitcoin got more attention again and now, more institutions are getting involved and are seeing the benefits and profits.

A lot are still playing the negativity game to influence price so they can buy cheaper and sell higher, but an overall growth over its all time high is bound to come soon. This recent bull run to the price it hit the other day is always a good sign, especially when alts finally follow suit!

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I don't mind it one Bit, it's a game of accumulation and it will ebb and flow and if someone can craft a narrative to knock Bitcoin down a few percentage points I am all for it because I'd pick it up regardless.

Once we get to hyperbitcoinisation none of these peaks and troughs will matter, they would just be a fun memory of the crazy birth of Bitcoin, well at least that's my theory

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Beautifully written, you're nothing short of a genius. In other words only a person who has seen the harshness of a bull market can relate. It's important as we head into another likely bull as December will be quite instrumental. I've learnt to take little profits as we go as this can help with sustainability

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Thanks man, lol I was burned pretty badly on the last run so hopefully I don't make those mistakes but pretty sure I'll find new mistakes to make lol. I am trying to slowly take profits as I see it push up but nothing major. All of it is going into BTC for now, if the market gets super frothy ill switch over to 50% BTC 50% USDT/C/DAI and hold some profits that ill put back into DE-FI

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Don't keep crypto on exchanges
Secure your crypto in cold storage
Researching projects
Taking out a comfortable position
Generating cash flow through de-fi, ce-fi and staking coins
Supplementing your buying with earning crypto
Daily cost averaging into Bitcoin
How to use crypto and avoid spending too much on fees

If anyone really manages to learn all of the above then in the next bull run his life will change!

I will need to learn not to be greedy and take profits incrementally

totally agree!

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Most of us won't walk into profits, we have to prepare for profits, without a game plan you tend to make more bad decisions than good ones. I hope this time around I make more good bets than bad ones

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I hope this time around I make more good bets than bad ones

i hope the same for both of us :P

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There is no end to learning Crypto knowledge.
If we want to get many profits easily, we can get mote risk.
If we do not take risks, we will not get anything.
We have to take risks based on our resilience.

Thank you for sharing!

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I would agree with you there but I don't think there is a thing as no risk, doing nothing is also a risk, you risk losing out on gains and you risk holding cash that gets devalued, you trust the government with your savings in this regard, so there's always risk in any trade you do, even if you're not trading, its a trade

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