A typical cryptocurrency trader/investor is overly optimistic and excited about the profit they make in a cryptocurrency bull run. During this time, impulse trading, panic buying and selling, greed, more awareness, etc is the order of the day.

If you don’t want to end this crypto bull run losing more money, having more enemies than friends, and having your psyche intact, read this piece carefully and avoid the following 10 things during a cryptocurrency bull run.

1. Don’t sell spot to trade futures

The worst time to sell your SPOT holding and go into futures is in a bull run. You have been patient enough to see another bull run, don’t be tempted to sell your SPOT in loss because of a potential big opportunity you see in a Futures trade. Don’t do this.

2. Don’t take loans to buy crypto

Never take a loan to buy Cryptocurrency, bull run or not. This could be your worst mistake ever and can push you into a huge financial mess if your trade doesn’t go as planned. I usually advise people to invest/trade with spare funds. That way, you can endure any unforeseen circumstance. Imagine taking a loan to buy a token and you enter into a huge loss. You may have to work twice as hard to repay the loan with interest. Don’t do this, please.

3. Don’t tell friends to invest in crypto (They’ll invest at the top and curse you)

The worst time to invite friends to invest in Cryptocurrency is during a bull market. Especially newbies. If you do, be ready to receive curses and blame when they start seeing great losses. If you must invite family and friends to trade cryptocurrency, do it when the market has dipped and have low investor confidence. This is the time smart traders buy Bitcoin and other altcoins. They sell when the market is bullish with investor confidence high and new money entering the market.

The wisest rule in investment is: when others are selling, buy. When others are buying, sell.

Whale investors may dump the market when they have seen a significant profit after buying low, causing panic selling. Any friend you invite to buy at this period will have their investment tanked and if they are not lucky enough to recover this season, it might take another cycle to get to their buy price, if it gets there. So, no matter how excited you are, don’t invite friends to buy crypto during a bull run.

4. Don’t buy with your family’s or friend’s money

Never use money kept in your custody to purchase cryptocurrency. This is not just wrong but unethical. It is not your money and you don’t have the privilege of using it as you wish. Suppose you do this and your investment turns South, what will you tell them? You will forever lose their trust. Don’t do it.

5. Don’t keep your long-term holdings on CEX

Remember the FTX collapse in 2022? That was one of the biggest Centralized Exchange (CEX) in the United States that went bankrupt. It can happen to the best of them, including the most liquid and most loved. Only leave your trading funds in a CEX. Your crypto investments and long-term holdings should be stored in a wallet with you alone knowing the key (and maybe your next of kin, of course). There are many wallets and ledgers for your crypto storage. But don’t lose your key.

6. Don’t sell low any token you bought high to buy a token that is pumping

Always use stop loss for your trades. But if you bought a token for the long term and it went down significantly and you waited for months/years to recover with no success, the worst time to sell such a token is during a bull run. If you sell such a token during the early days of a bull run cos it hasn’t gone up as expected only to buy a token that is pumping, you may have purchased the new token at the top, and the long-term hold that you just sold may start pumping afterward. I know many traders can relate to this.

7. Don’t leave all your money in a token

Learn to take profits from your investment. You can lose all your huge profits within minutes. Cryptocurrency remains highly volatile. Keep some of your funds in USDT or your local bank. The market can tumble at any time.

8. Don’t be emotionally attached to a particular crypto project.

Don’t be emotionally attached to any project/token. That overly advertised project may turn out to be a sham after a huge pump. I have lost money in some projects that I invested in cos I saw huge potential. Always follow the news and respond swiftly. If you invest in a new project and get a good profit, as stated in 7 above, take some profits, that way, if the project is rug-pulled, you won’t entirely be at a loss.

9. Not having a plan for each trade.

Always have a plan for your trades. Don’t leave your trades open. You can invest for the long, medium, or short term, however, have a target. Remember, if you fail to plan, you are planning to fail. Cryptocurrency is very volatile and what goes up often comes down.

10. Don’t FOMO

Finally, and importantly, don’t FOMO (Fear Of Missing Out) on any pumping token. 90% of the time, you will lose. Always study the token, read your candles, and check the fundamentals and technicals before making a trade. That influencer you love who is shilling a pumping token might not have your best interest at heart. Always DYOR.

Wishing you a successful bull run.

I would love to hear your thoughts and opinion. Kindly share them in the comment. Thank you.

The post Don’t Do These in a Bull Run: 10 Things to Avoid During a Cryptocurrency Bull Run appeared first on The Total Entrepreneurs.

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