10 tips you need to know

10 tips you need to know

Bitcoin bull markets are typically characterized by enormous price fluctuations, and although the direction points upwards, corrections also take place.

During the last Bitcoin bull market in 2021, the BTC Prize reached an all-time high of almost $ 70,000. At the beginning of the year, the price was around $ 20,000, exploded several times over $ 60,000, fell by almost 50 % in the middle of the year and scored again in November to reach almost $ 70,000.

Coingecko

The previous bull market took place in 2017 and early 2018. Bitcoin had reached a maximum of around $ 20,000, but his chart looked very different:

Coingecko

As you see, every cycle has its own subtleties, and if you play it properly, you can improve or destroy your credit. Following upward trend can be much more difficult than keeping his assets. It's about knowing when the right time is to sell or re -position yourself to bet that your profits are preserved.

The last thing you want is to have an old coin in your hand that has fallen by 99 % since her all -time high, and praying that she is getting there again.

10 tips for the next Bitcoin bull market

Form yourself

Regardless of what you invest in, the acquisition of well -founded knowledge of the underlying advantages is the first step in the guide of every investor. You absolutely need to know what you are investing in and the same applies to Bitcoin (or any other altcoin).

familiarize yourself with the basics of Bitcoin, e.g. B. the limited total offer, the benefit and the acceptance rate.

You can also analyze historical price patterns, market cycles and factors that tend to influence the price of Bitcoin. This knowledge will definitely help you to make sound decisions.

A great place to learn more about the BTC bases is our section "Bitcoin for beginners". It contains a lot of helpful information, e.g. B. who has created Bitcoin, who is entitled to create an account of how Bitcoin is saved, whether it is safe and much more.

research and analyze

As soon as you know the basics, it is important to stay up to date both via Bitcoin and the wider cryptocurrency market. Imagine this: If you invest in land, you will undoubtedly analyze the factors that could affect it. This includes the state of the country what you can grow on it, but also - who your neighbors are, the general area in which it lies, and so on.

The same applies to investments in Bitcoin. You should remain informed about the market. You can read books, follow serious news sources, join online communities and generally do a lot of other things that help you learn more about technology.

This in turn helps you to anticipate market trends and potential catalysts, which can maximize the return of your investment in Bitcoin.

Define your investment goals

What are your plans for the money invested in Bitcoin? When would you like to make a payment? Can you afford to lose it?

The determination of its investment goals is of the utmost importance, since it also affects other important decisions, e.g. B. to the amount of the risk you want to go into and the time horizon.

Although it is the largest and supposedly safest cryptocurrency, it is still considered very risky compared to investments in traditional finance. Please note the diagrams above-the BTC Prize rose by 300 % within a less than six months and then lost 50 % of it. This turbulent appearance is difficult to bear, so you should think about being aware of it in advance and being able to endure him.

Develop an investment strategy

As soon as you have said what is said above, you should be more or less willing to develop a general investment strategy.

There are several ways to invest in Bitcoin. One of the more well -known strategies is the so -called dollar cost average (DCA).

We have a special guide and a video declaration on DCA that you can find here. In general, however, it is a way to buy Bitcoin in similar steps over a similar period. For example, you can buy $ 100 in BTC every month. The advantage is that you achieve the best average price over a sufficiently long period of time.

There are other strategies to invest in Bitcoin. The so -called Value Averaging suggests, for example, to adapt your investment amounts in accordance with the market development. For example, you can buy more Bitcoin if there is a larger decline.

In any case, based on your own willingness to take risks and analysis, you must determine guidelines when BTC is to be bought, held or sold.

Set a budget

Now that you know how to invest in Bitcoin, the next step is to set your budget - how much would you like to spend?

This is very personal and depends entirely on your current and expected financial situation. If you set a budget and adhere to it, you can better pursue your investments and control your risk tolerance.

The most important finding here, which refers specifically to the investment in Bitcoin for the next bull market, is to understand that BTC is a risky purchase. However, you should never invest more than you can afford to lose without significantly impairing your general financial stability.

secure your investments

crypto fraud and hacks occur regularly. In addition, companies that were generally considered reliable (such as FTX and Celsius) failed and led to the fact that investors were empty -handed in search of reparation.

Here you will find a breakdown of the most shocking events in the industry. You will certainly find that some of them are related to chopped or unusual platforms.

Make sure that you use serious cryptocurrency exchanges or platforms to buy Bitcoin. After purchase, make sure that you remove your stock from the chain and keep it in a hardware wallet.

9 Tips to secure your Bitcoin and crypto wallets that you have to follow

diversify your portfolio

As you may have noticed, Bitcoin bull runs also lead to a massive expansion of wider market capitalization. As a reference: In 2021 it reached over $ 3 trillion.

This also benefits other cryptocurrencies from the Bitcoin price increase.

However, a properly diversified portfolio can spread its risk and even take advantage of additional opportunities.

practice risk management

The core of this guide is to help you practice better risk management. The cryptocurrency market is characterized by volatility, and it is very easy to get involved with dealers that publish screenshots with enormous ROI. Take this with great caution.

There will always be chances, no matter how much time and effort you invest or how well you are trained. However, there will also be new opportunities. Do not be fomo, do not sell in panic and don't let your emotions overwhelm you.

Use a risk management strategy and stay with it. If you set your exit strategies, use Stop-Blick-Order (if it is a short-term lever investment) to limit your potential losses and make sure that you follow your rules.

remain disciplined

discipline is just as important as the decision to invest in Bitcoin. It is important to stay true to your strategy and not to have short -term market hypes or fear of missing something (FOMO).

Remember that emotional decisions will probably lead to impulsive actions and lead most often to potential losses.

Stay informed and adapt to

Stay at least partially in the industry. Stay up to date with the latest news, market trends and regulatory developments in the broader cryptocurrency area.

Make sure that you will adjust your strategy in the wider market landscape if necessary to new information or changes.

conclusion

An investment in Bitcoin should be regarded as an investment in several other asset classes, but has its special features and special features. The sheer volatility of the BTC Prize makes it much more difficult to endure fluctuations in your portfolio overnight, but if you have the overall picture in view, they are easier to cope with.

A sign that they are overinvested is that they are constantly on the phone and check the prices every hour.

If it is done correctly, the investment in Bitcoin can be stress -free, and all the tips mentioned above aim at exactly this.

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