How not to lose everything during the bull rally

With sentiment suggesting Bitcoin (BTC) and crypto markets are on the verge of a bullish rally, Seasoned veterans warn of lessons from previous bullish streaks.

With the Bitcoin price, which posted a correction of 5% last time, The Crypto Fear and Greed Index has returned to 75. In this sentiment measure, which examines the volatility, market volume and social media activity of digital currencies, a value of 75 corresponds to “greed”, slightly lower than 84 – or “extreme greed” – which was recorded on August 10th. But Both readings suggest that expectations for the good times ahead are going through the roof.

In a Twitter thread on Aug. 11, MyCryptoWallet and MyEtherWallet co-founder Taylor Monahan shared some old tips they learned during the 2017 hike The irrational exuberance of the bull markets invariably attracts bad actors who chase after the vulnerable.

Like moths to the flame

How not to lose everything during the bull rally
How not to lose everything during the bull rally

“”You will make a lot of money and people will lose because exuberance, FOMO, greed and hype are the most powerful things in the world.“he wrote. Monahan believes the time for accumulation is over, and pressed Users can store 90-95% of their crypto assets in offline storage. She suggests that you don’t look for shiny new coins::

“”Pick some long-term legal currencies that you like. Invest in them. Examine. Don’t follow the baits […] You will win if you have a constant profit, not if you try to get to the top. “

Monahan also stressed restraint and noted this People who “go into huge debt to get cryptocurrency” will not winInstead, “they lose their homes, their children’s savings.” Don’t be that loser. “

Like many experts, Monahan believes that Investors should only risk 5% of their net worthand once it is lost they should not try to make up for those losses.

“Have fun with it, but once it’s lost it’s gone. Do not double the bet. Don’t take it from your savings account or whatever you have saved offline. ”

Easier said than done

Cryptocurrency researcher Chris Burniske said in a tweet on August 7th it was “difficult to be adequately prepared for a bullish rally. He expects the excitement of “crypto addicts” to be ten times higher than in 2017, which implies In the face of unfounded predictions, there can be reckless buying and selling of assets.

“”Speculative cycles have accompanied promising new technologies for hundreds of years“, said Burniske.

“Although no one can control them, We can control how we react, present, educate, communicate and manage the space“.

Fans of podcaster Anthony Pompliano will be familiar with his frequent advice on what to do in a bullish rally.. Some users believe the advice is a curse there Every time you post it the market seems to turn bearish.

Important message when entering the next bitcoin bull market:
– BTC is very volatile
– You can lose all your money
– Only invest what is good to lose
– Twitter is not investment advice
– Do not buy Bitcoin with credit cards
– Keep the time preference low
– Do your own research
– Pomp ๐ŸŒช (@APompliano) 23 September 2019

information gathering

Market manipulation it’s more difficult than it used to be, but sure will happen in 2020. Cointelegraph reported in June that cryptocurrency whales have the ability to change the price of certain digital assets using various techniques.

And remember, sometimes these can be whales Influencers paid with millions of tokens to advertise coins. Even those who are not paid to promote a project are biased in favor of their own investments. Monahan’s advice: “Don’t trust anyone.”

“Even good people are motivated by the currencies they have and the relationships they have. You may see the edge at some point, but you will never see the abundance. Make decisions based on multiple sources and your knowledge and instinct“.

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