Your First Bull?
Whether or not this is your first bull market or not, most market participants are slow to learn. Many tend to repeat the same mistakes cycle after cycle. An inability to see future moves in the market, as well as not “increasing one’s tent pegs” are key issues that rob investors of truly maximizing the bull market dynamic. Many investors repeat what they did in the last cycle, not factoring in how fast this industry moves, particularly in a bull market.
That being said there are several practices one can repeat. However, it’s imperative to incorporate the “freshness” of this bull market. The average person doesn’t understand that all financial markets are cyclical, regarding bullish and bearish phases. As a result, they interpret a bear market as a type of “failure”. This is a grave mistake… enormously grave. It’s this very dynamic that enriches smart market participants.
This is when and how we make good money in this market. Being in sync with the market is enormously underrated, and can only come as a result of immersion. One of the most important aspects of any bull market is to get into new and up-and-coming projects on top and trending blockchains. As I mentioned, more than a year ago…
Solana will be the Ethereum of this bull market.
Finding new projects on Solana and other chains primed for success is a vital move, and holds enormous potential. Ideally, you want to look at interacting with new protocols before a token is launched, as this can qualify you for a potential future airdrop… what better way to gain more tokens than for free? Regarding Solana, Jupiter and Kamino Finance come to mind. There are several blockchains that I began highlighting earlier in 2023.
Anyone who paid attention to this information can attest to the significant growth already seen in top performers such as Kaspa, Injective Protocol, and others. These chains were highlighted many months ago and have proven to be great investment opportunities thus far. It’s chains like these, and others, that an astute Crypto investor will begin investigating, in an attempt to identify future potential gems.
A lot takes place in a bull market… things move incredibly fast. Projects are launched at an alarming rate. Like a sardine run, it’s a “moment” of enormous opportunity. It’s important not to become complacent. Find potential winners and then move on as quickly as possible. Those investments will take care of themselves. Keep seeking out alpha… this is how a bull market rewards participants.
If you are going to hang around in echo chambers, at least do it in a bear market… don’t squander such a powerful opportunity by missing out on the crazy amount of alpha taking place daily. New projects and airdrop hunting can be extremely lucrative in a bull market. Airdrop hunting in a bear market is another story. I don’t waste my time with that. Most of those airdrops eventually amount to nothing. The bull market dynamic has a way of making everything profitable, even the garbage.
For The More Experienced
When it comes to more experienced Crypto investors, leveraged positions are an incredibly powerful tool. I began building leveraged positions in early September. These included Solana, Polygon, and Cardano. I began building my Solana position at approximately $18 on 10X leverage. This has proven to be an incredibly viable move, and chances of liquidation at this point are incredibly low. I allow the asset prices to climb significantly before adding to the positions.
Addition to these positions is only executed on or after a dip. Risk management is key! I know many view leverage trading as gambling. However, when executed correctly with strong risk management it’s anything but gambling. I also tend to apply leverage when trading blue chips. Highly volatile assets can trigger an unnecessary liquidation. This is primarily why I chose the assets I did.
Final Thoughts
Combining and incorporating these three practices can help boost your bull market profitability. In terms of the risk/reward ratio, airdrop hunting has literally zero risk. Regarding certain protocols, you will most likely have to interact with them. However, this is a momentary risk that can be removed within seconds, in certain instances. It’s always important to find the most beneficial and smartest way possible when dealing with DeFi protocols.
A lot of good airdrops often tend to be DeFi-based, and usually require very specific interaction and usage of the protocol. That being said, there are a lot of alternative airdrops on offer, especially in a bull market. New projects can “ensure” a type of adoption by providing an airdrop, and so, in a bull market, it’s the obvious choice for developers and new projects. Anyway, happy hunting, and see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.