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7 practical suggestions for crypto newcomers to help them succeed in the next bull market

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Unless you are buying BTC or ETH, you must not buy and forget.

Source: The DeFi Investor

Translation: Deep Tide TechFlow

During the first few months of my involvement in the cryptocurrency industry, my investment portfolio was consistently in a state of loss, resulting in a significant financial loss. There were several reasons for this, but the main one was my lack of understanding of how the market operated at the time.

But after a period of time, I successfully turned losses into profits.

If you are a beginner, there is no need to repeat my mistakes. Here are 7 cryptocurrency tips that I have summarized to help you succeed in the next bull market cycle:

Reduce Quantity, Focus on Betting

Many people like to diversify their investments, which is indeed a good investment strategy. However, it can only preserve wealth, but not accumulate wealth.

Indeed, if you know your investment is diversified across 15-20 projects, even if one of them dies, it won't have a significant impact on your investment portfolio, and you can still sleep well at night.

But this makes it difficult to achieve wealth growth. For example, if you like 25 projects, you only need to make high-return bets on the top 6-7 projects that you think have the most potential.

Managing 6-7 positions is much easier than managing 25 positions.

Do not sell "winners"

This is one of the biggest mistakes that many people make. When you see one of your tokens skyrocketing while another one is performing poorly, you sell the one that is performing the best... But this approach actually increases your risk on the failing token, so it's not a good idea.

Let your "winners" run and take off in the next bull market! There is nothing more heartbreaking than selling a token after it has doubled in value, only to see it increase tenfold in the following months.

When should you take profits? When the price has reached your sell target or when your non-crypto friends start calling you asking which tokens to buy.

Original post: cevo

In a bull market, it is important to understand the principle of "speculation>fundamentals"

Pumpamentals refers to the factors that drive the rapid rise in token prices, such as narratives, catalysts, or some kind of positive news, but it has nothing to do with fundamentals.

In the previous bull market, the market value of XRP reached 80 billion US dollars, which would not have been possible without its extremely active community. Many other tokens also achieved high valuations due to their strong "whale effect".

Although fundamentals will eventually become the main driver of price increases, in my opinion, we are still far from that point. Therefore, instead of just focusing on finding the projects with the strongest fundamentals, it is better to try to understand what factors are causing retail investors to buy a certain token and look for the simple logic behind their investments.

During a bear market, these things are most important:

·Fundamentals

·Revenue Generation

· Product market fit

However, in a bull market, Pumpamentals become extremely important.

·Community Spirit Leader

·Social media hype

·Narrative and Market Fit

·Powerful Marketing

Previously, I shared more thoughts on "Pumpamentals" in this topic: