When you first enter the cryptocurrency market, you are fed a spoonful of hyperbolic predictions that seem like they are too crazy to be true. One of the most famous predictions that you’ve likely heard is that crypto is on the verge of causing one of the greatest transfers of wealth the world has ever seen. That anyone investing in this market today will be considered geniuses for being so early. That we will all be laughing to the bank. I do believe that Bitcoin, Ethereum, and a few others will cause this great change, but a lot of the projects that we see in the market today will move to the wayside.
However, there is another statement that you have likely heard as well. That you can change your life financially forever during crypto bull markets. That it is entirely possible to trade your way into a fortune. For some people, this will be possible, but for many of us, it will not.
No matter what you hear or say, the hard truth of crypto is that the real money is made during the bear cycles. The times when Bitcoin is down 70%, and altcoins have dropped by 85% or more. If you believe the predictions of where prices will eventually go, those price dips could be considered once-in-a-lifetime buying opportunities. This is a common idea, you buy when there is blood in the streets, and applies to stocks and almost all financial assets.
Here is the problem.
No one wants to hear going to the moon type of price predictions or articles when their crypto portfolio is down by 80%. If you remember, only a few months ago the mood in the market was questioning if crypto would even be able to survive. That FTX had damaged the image of this industry so badly. There was a general idea that it would take several years for the market to recover, if at all. That the next bull run could be several dampened, and we might not even reach Bitcoin’s previous high of $69k.
That was the mood of the cryptocurrency market in December 2022. Maintaining your bullish conviction and continuing to pour money into this market when everyone is doing the opposite can be one of the most difficult things you do. Declaring your belief in this industry, while everyone is trying to exit.
While it doesn’t always work out perfectly, typically throughout Bitcoin and crypto’s brief history, those who have gone against the grain when everyone is feeling extremely bearish; have done very well. Buying when the market is down, or even during quiet days are your best opportunity to build your portfolio.
Many people believe that you can become rich during the bull run. But the truth is that you become rich during the bear cycle. This is when you build your portfolio and accumulate positions. The bull market is when you finally can enjoy the fruits of your labor. If you have prepared accordingly, you won’t need to buy any crypto while the market is exploding upwards with FOMO. Those who rush in and buy when the market has already pumped significantly, have already missed the train. We are now in April, only 4 months after the bottom of the market and Bitcoin has already gone up by nearly 100%, and this is only the start.
How about you? Did you continue buying crypto when everyone was feeling bearish?
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