Getting REKT the Crypto Way: 6 Things Newbies Should Note in the Bull Market
As the candles start to turn green and the alphas start to return, the entire crypto space is becoming optimistic once again. This time, the indicators are good, and they all point to one thing — that the bulls are back and the crypto market is on the precipice of another bull run. This time around, the indicators are great, laying the foundation for the biggest bull run ever seen. Yet, amid all of the excitement, newbies must be careful, and seasoned investors need not be greedy.
There are Reasons to be Bullish!
For the first time since February 2022, there is a general sense of relief in the Web3 community about the prospect of a market upturn. This is further solidified by two key events, both scheduled to be held in 2024. The events are the Spot Bitcoin ETF approval or rejection by the United States Security and Exchanges Commission (SEC), and the Bitcoin halving.
Spot Bitcoin ETF approval will undoubtedly have the most impact on crypto, both in the immediate and in the future. It will usher in huge TradFi investor funds, resulting in an upshot in the price of bitcoin (to the moon as it’s called in crypto). There is also the possibility that the inflow into BTC would eventually trickle down into altcoins, resulting in the long-awaited alt season.
Also, BTC halving (a once every four years event) could lead to more greens. The logic is simple: miners' rewards per block mined will be halved from 6.25 to 3.125. Thus driving prices up as BTC supply reduces and demand increases. Other economic factors, such as expected interest rate reductions and money printing in the United States, could further drive demand. Lastly, there is the American presidential election in late 2024.
As green as the prospects look at the moment, investors need to take caution not to get caught in scams. Below are a few things that all newbies must note for a successful crypto bull run.
Rugpulls are Inevitable
Amid the greens and high profits, a few exploiters are bound to emerge along the way. These groups of people will build projects out of the blue. They will promise unrealistic returns, drive hard campaigns, and make you feel missing out. You should be mindful of such projects. They often become scams that pull the rug after amassing a substantial amount of investor funds.
More often than not, you will never know the faces behind these projects, and your money will be gone forever. The key here is to stay vigilant and conduct due diligence before putting your money into any project.
Take Profit along the Way
As funny as it might seem, no analyst can tell specifically when the crypto market will peak. While there are metrics and indicators, pinpointing the time of the bull market peak is nearly impossible. On this note, you should take profits along the way. Have a reasonable price target for each asset in your portfolio, and take a set amount when prices rise to that point.
If you are a fan of getting into new projects early, never forget to get out when prices are reasonable; otherwise, you could be left empty-handed if markets move in an unplanned direction.
Beware of the Memes
For the pros, meme coins are a good way to cash in bug lumps within a short period. However, you should be careful not to be the meme when it bursts. Meme coins can be likened to get-rich-quick schemes that pump and dump within a short timeframe.
Memecoins do not have utilities, and they are mostly created for speculative purposes. Nonetheless, if you have an appetite for the memes, be sure to follow their simple logic — get in early and get out when the party is at its noisiest.
Follow the Narratives
Making money during the alt season is solely about putting your money where the narrative is. Narratives such as DeFi, NFT, and the metaverse led massive rallies during the last bull market. This time around, the narratives seem to be growing around AI, GamingFi, GambleFi, and the Solana killers. Many more are bound to emerge as we go fully into the bull market. Ensure to stay current on the news to know what the next big trend will be in Web3.
Beware of Influencers
Previous market cycles have revealed the true nature of influencers in the crypto space. While there are a few good hands, a large percentage of Web3 influencers are known to shill projects and make returns. Oftentimes, influencers are after profit. Most do not do their due diligence before speaking about emerging projects.
Following established key opinion leaders in Web3 could be a better alternative. Also, follow known educational outlets and proven analysts to stay on top of trends and gain meaningful insights into prospects and market analysis.
Do Your Own Research (DYOR)
Ultimately, remember that you are your most trusted ally during these times. Ensure to do all the necessary background checks before investing in any crypto project. Doing your due diligence, checking the necessary fundamentals, and weighing the pros and cons of investing in a crypto asset will help you decide on the assets that meet your risk appetite. It is without saying that the whole of crypto is a risky landscape already; throwing caution to the wind could be a recipe for disaster. Hence, the most important lesson of this piece is for you to DYOR.
Final Thoughts
The Web3 landscape is built on volatility. While the candles are getting greener and the postulations are coming positive for the coming year, crypto investors must be mindful of how they tread the road ahead. A careful tread could lead to a fruitful bull market; throw caution to the wind and you get rekt. At this point, a word is enough for the wise. Cheers to the coming bull!!
