With Bitcoin recently making a new all-time high, there is no denying that we have entered the bull cycle. For the first time in Bitcoin's history, this has taken place before the halving. Leading many to wonder just how high prices will go this cycle.
There is almost no feeling like the crypto bull cycle. As prices begin to soar daily, your portfolio will reach values that you never would have thought possible. You will begin to feel unimaginable FOMO, and the urge to pour as much money into this market as possible.
Because everything seems to go up during bull cycles, you will begin daydreaming about what you will do with all of your gains. Perhaps this will be your chance to finally pay off your debts. Or maybe you will even begin thinking about retiring. These are key signs that the top of the market might be coming soon, and that is when you need to use extreme caution.
Anyone can make gains during the bull cycle. But the truth is that it isn't important how much gains you make, but how much you can keep.
During bull markets, it begins far too easy to forget how dangerous this market is. There is danger lurking all around you, and if you aren't using caution you will lose everything.
One of the best examples of this is with the most recent meme coin hype.
Last cycle we saw Dogecoin and Shiba Inu go parabolic. While we are still early in this next cycle, we have already seen newcomers like Bonk and others create unfathomable riches for investors.
People were watching on the sidelines and became jealous that others were making so much money. The result is that people have begun investing in any and every meme coin imaginable. All with the hopes of striking lightning in a bottle and changing their lives financially forever.
While many view this as investing, the reality is that it is gambling. In most cases, it is the same as throwing your money in the trash. Buying altcoins is already risky enough. However, buying meme coins increases your risk by at least 1000x.
You may see some gains, but in the long term, they will trend to zero compared to Bitcoin and Ethereum.
Look back to all the NFTs that were bought during the last cycle. It was similar to the meme coin craze where people were hoping to find a lottery ticket. However, today most of them have no value and you couldn't give them away even if you wanted to. Meme coins will be the same.
While it sounds extremely conservative; most would be better off just buying Bitcoin and Ethereum. The name of the game in crypto is to accumulate as much BTC and ETH as you possibly can. Everything else is just noise. Indeed, both BTC and ETH went down in price by nearly 70% last cycle. But, a majority of altcoins when down by 99%.
Once you have been in the crypto market long enough, you will begin to have the skills to filter the noise away from your real goal. Once you can do that, that is when you will finally have success in the long term.
How about you? Does your portfolio include a majority of BTC & ETH or meme coins?
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As always, thank you for reading!
