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Bitcoin Baby - Day 27 "Just some little lessons learned from the last bull run"

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Written by   25
1 month ago

As per the title let me share some little lessons learned from the last bull run with you all......

Peaking too early

Don´t sell too early. I have many examples but one of the best is the following

E.g.:

I got a really good tip that MATIC Polygon would probably do very well in the next couple of months. I got in below 30 cents, I sold most around 90 cents and MATIC reached $2.40 in the end.

Now I am not saying you should wait till the $2.40 as timing the top is nearly impossible.

What I am saying is that you should sell on your way up.

Selling on the way up (The right way)

Selling on the way up..... That´s what I did! So what went wrong? Well, I did not spread my sales enough, hence all were sold at 90 cents I got a 3x on my investment and that´s fine. But I am sure you can do better.

Second piece of advice

Do not directly invest your money from sales back into other cryptos during a bull run.

E.G.:

I did the following during the last Bull Run (keep in mind I have several trading wallets next to my hodl wallet. This is all about trading). If I would make a nice sale, I would be looking for a good project that was down like >5% that day and invest the money I just made straight away.

During a bull run that means that you are buying coins on their way up in the hope to sell them even higher. The risk here is that once the run is over you have no funds to buy the real dip and are stuck with bags of coins you bought at a very expensive rate......

Better to slowly sell on the way up, only invest a 30% back into the market and keep building a buy the dip fund ......because what goes up.....

Again I have many examples, but let me use the worst Casper (CSPR)

CSPR was going live at the end of the bull run. While I was closely following another project called Wise in which I had some coins staked I heard very good things about the project and the team.

So I was like Why Not buy some, they dropped a bit after the release, so should be a good time to buy, right?

Well, not quite especially if the crash is happening at the same time.....

The price is right

But hey, we had a good run it can´t be over yet, this must be the dip. Let´s buy some more. The price is right....right?

Well not quite, so although for a second it looked like we would go up. And in a semi desperate attempt to still make a profit I bought even more CSPR when it looked to finally go up......but well it not quite did.

So currently I am holding about 600 CSPR with a net worth of $68 dollars that at one time was worth 5 times as much. Indeed huge loss for a baby portfolio, my biggest mistake so far....

But it´s only a loss when you sell....and this baby ain't selling. This project is still looking good, just not in my portfolio at this time.

The price for any project, but especially new projects during a bull run are never right. Best thing to do is stay away from those and let other people buy them, while you wait to take them off their hands with a smile once they drop 90% during the next crash.

Take this advice from a baby who saw the last bull run turn into a brutal 'crypto winter' bear market, that brought top to bottom drops of 90+% and knows some coins will never recover. 

And if you are all overflowing with Fomo and think that I sound like a Pessimist..... keep in mind that a Pessimist is just an Optimist with experience.

Disclaimer

I do not have any connection with any company I am writing about. I am not being paid to write this article.

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Avatar for BitcoinBaby
Written by   25
1 month ago
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Comments

I think you are wrong here. A profit is a profit, like for example in day trading. The peak is irrelevant, what is important is that you made profit. Do not forget that the money you got from sales, you maybe invested in something else that also increased. What you need to follow is the total of crypto you got, not the peak.

$ 0.00
1 month ago

Thanks appriciate the feedback, but I think you did not get my point or I did not make it clear. As I am not aiming at the peak, but I am aiming at avoiding selling too much too early....so I need to spread my sales a bit more. And ensure that you do not invest all money made during the run, as that will make you end up with very expensive bags and no funds to buy the crash.

$ 0.00
1 month ago

We may have different ways to do it. :)

$ 0.00
1 month ago

I hope we have it would be boring if we would all follow the same narrow path ;)

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1 month ago