02-12-2021, 06:48 AM
As this bull run heats up, it's important to understand which sort of investor you a
<!-- SC_OFF --><div class="md"><p>This post is aimed mostly at newcomers, and is intended to prepare you for what happens if and when the market takes a turn for the worse. Us vets of the 2017 campaign (and before) have been through the ringer, and I hope we've come out wiser with some key bits of advice to share.</p> <p>There are different types of investors on this sub, there are those who trade, there are those who hodl, there are those who are looking for quick gains and those who don't ever plan on converting back to fiat.</p> <p>The type of investor you are impacts the decisions you need to be taking during this bull run.</p> <p><strong>Long term investors</strong></p> <p>Let's take the hodlers for starts. Well, this one is easy, there is only one decision to take: should I hodl or should I hodl. A hodler believes that there will be ups and downs, but crypto will ultimately trend upwards and so the plan is simply to accumulate, through bull runs and bear markets alike. If you are a long term hodler, it may sound obvious, but don't ever sell anything you've bought. Just buy in small amounts regularly (DCA) to smooth out market volatility.</p> <p><strong>Medium Term Investors</strong></p> <p>Medium term investors have to be a bit more nuanced in their strategy. Ask yourself this: how would it impact your financial plans if the peak of this bull run was tomorrow (or next week or whatever), and it ultimately trended downwards for 6 months or so, ending up 80% below your current amount (I'm assuming you're significantly invested in alts here. Dial down the number if you're just in BTC)? Would you be financially devastated? Would you be able to wait it out until the next bull run in several years time?</p> <p>If the answer to the above is that you cannot handle that much loss, then you have to adjust your strategy. At this point in the bull run, there is euphoria all around. Alts are going up 10, 20, 30, 50 percent in a day and everyone's making money. Many people are adding <em>more</em> money into this phase, ending up over-invested. When the crash comes they are not ready. If this is you then you need to be taking profits. When one of your coins has gone up 30% or so, take some out, and don't reinvest it in another coin. Keep taking profits occasionally until you've at least extracted your initial outlay. This will be a massive help psychologically when the crash comes.</p> <p><strong>Traders</strong></p> <p>Traders I'm sure will have their own strategies, and they're not so applicable to what happens after the crash. The only thing I would say is buy low, sell high, and may Odin look kindly upon you.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/unc4l1n"> /u/unc4l1n </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lhos50/as_this_bull_run_heats_up_its_important_to/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lhos50/as_this_bull_run_heats_up_its_important_to/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>This post is aimed mostly at newcomers, and is intended to prepare you for what happens if and when the market takes a turn for the worse. Us vets of the 2017 campaign (and before) have been through the ringer, and I hope we've come out wiser with some key bits of advice to share.</p> <p>There are different types of investors on this sub, there are those who trade, there are those who hodl, there are those who are looking for quick gains and those who don't ever plan on converting back to fiat.</p> <p>The type of investor you are impacts the decisions you need to be taking during this bull run.</p> <p><strong>Long term investors</strong></p> <p>Let's take the hodlers for starts. Well, this one is easy, there is only one decision to take: should I hodl or should I hodl. A hodler believes that there will be ups and downs, but crypto will ultimately trend upwards and so the plan is simply to accumulate, through bull runs and bear markets alike. If you are a long term hodler, it may sound obvious, but don't ever sell anything you've bought. Just buy in small amounts regularly (DCA) to smooth out market volatility.</p> <p><strong>Medium Term Investors</strong></p> <p>Medium term investors have to be a bit more nuanced in their strategy. Ask yourself this: how would it impact your financial plans if the peak of this bull run was tomorrow (or next week or whatever), and it ultimately trended downwards for 6 months or so, ending up 80% below your current amount (I'm assuming you're significantly invested in alts here. Dial down the number if you're just in BTC)? Would you be financially devastated? Would you be able to wait it out until the next bull run in several years time?</p> <p>If the answer to the above is that you cannot handle that much loss, then you have to adjust your strategy. At this point in the bull run, there is euphoria all around. Alts are going up 10, 20, 30, 50 percent in a day and everyone's making money. Many people are adding <em>more</em> money into this phase, ending up over-invested. When the crash comes they are not ready. If this is you then you need to be taking profits. When one of your coins has gone up 30% or so, take some out, and don't reinvest it in another coin. Keep taking profits occasionally until you've at least extracted your initial outlay. This will be a massive help psychologically when the crash comes.</p> <p><strong>Traders</strong></p> <p>Traders I'm sure will have their own strategies, and they're not so applicable to what happens after the crash. The only thing I would say is buy low, sell high, and may Odin look kindly upon you.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/unc4l1n"> /u/unc4l1n </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lhos50/as_this_bull_run_heats_up_its_important_to/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lhos50/as_this_bull_run_heats_up_its_important_to/">[comments]</a></span>Kind Regards R