5 Lessons from the 2017 Crypto Bull Market
The 2017 Crypto bull run seems so far away, but it was not long ago that the price of Bitcoin reached its all-time high of around $19,500.
In this video I will share my top takeaways from the 2017 crypto bull run. As someone who got in the crypto space in 2015, i must say the 2017 bull run was one of the most unreal experiences i have ever experienced, and I don’t think it will be the last.
If you have bought Bitcoin or other Cryptocurrencies in the last recently or are planning to then this video is for you. The 5 Lessons will help you make the most out of your investment during the next bull run.
Let’s get started.
Lesson number 1. Timing is Everything.
It doesn’t matter how smart or experienced or educated you are. Timing is Everything.
The Crypto market is irrational due to the low market capitalization and manipulation. There is also a lot of speculation. That is why you need to think about how long you would like to keep your cryptocurrency. Most people that held Bitcoin for over a year did very well. So apparently there are only 70 days that Bitcoin has been unprofitable to buy. This means that if you’ve bought Bitcoin at any random point in time there’s a 98.17% chance that you’re profitable.
Therefore buy, forget and ignore the small price fluctuations. If you had bought Bitcoin on the 8th of September 2017 and held until today, then you would have easily doubled your money. Long term holding is the key to lower taxes and greater wealth.
Lesson 2: Hype is your enemy
We are all human. And as such we have certain predictable emotions. Greed, Fear, Uncertainty, Doubt. These emotions get multiplied when money is on the table.
One of our predictable behaviours is being vulnerable to the storytelling hype. It could be the fear of missing out on a huge opportunity. story: I remember really well the feelings that happened inside of me when i heard about a new promising ico or read about this hidden gem with an incredible team and super great advisors and so on.
Maybe you have had a similar experience. The feeling of missing out was so great it prevented me from thinking rationally. I wanted to buy that coin as fast as possible dropping everything else i was doing. Very often these projects had massive pre-sale discounts, fluffy claims by projects and paid reviews. After being burnt once and losing my initial investment I learnt how to unravel these layers of fluff and hype and take more time before investing.
If the creator of a project decides to sell or donate his or her coins, the you should probably do the same.
I remember well when At the end of 2017 Charlie Lee, the founder of Litecoin announced that he had sold all of his Litecoin. Why he is selling doesn’t really matter, matter of is that he sold most of his coins around the time LTC hit its all time-high. That is why is important to be extremely cautious when founders decide to sell all their tokens. Especially if this is public information.
As a side note The investing firm, Berkshire Hathaway, held a record $122 billion in cash at the end of June 2019.
This cash holding is worth nearly 60% of its portfolio of public companies, the largest proportion since before the last financial crisis. Is this also a sign that they are scared about a looming financial crisis?
Be careful about all the youtubers and bloggers that speculate about which coins to watch next month or next year. Very often youtubers and bloggers don’t tell you if they have been payed to promote a project. I want to be as authentic as possible and will always tell you if something is sponsored or if i have invested money into a project. Keep that in mind when you see someone hyping a project. They might have big amounts invested.
Do not attempt to day trade.
Unless you are experienced in trading, this will only give you more sleepless nights and anxiety, especially if you don’t have a clue what you are doing. Especially if you don’t want to end up on the Rekt Bitmex twitter account. I’m starting to think that 50x or 100x margin trading on Bitmex is like playing russian roulette with a two barrel shotgun using two shells.
And if you decide to trade then only with a small percentage of your portfolio, something like 5% not more. Long term holding is more profitable in the long run for most investors.
Lesson 4 Don’t count your chickens before they hatch. In other words You didn’t profit until you have cashed out!
One of my bitter sweet memories during the last bull market was when I participated in an ICO called carvertical. I remember clearly when the coin hit the exchange and my 2000usd investment had turned into 35’000 usd. I was super happy and euphoric. Furthermore, I truly believe that the price will go even higher. So I didn’t sell. When the price dipped back down and my investment went back down to 23’000. I still didn’t want to sell as my greed took over me. I was sure this was just a dip and I already started regretting not selling at 35 000. In the end i sold at nearly break even. I’m lucky I didn’t sell at a loss and I learnt a lot on how our the fear of missing out and greed affects our decisions.
A good rule of thumb is to set sell orders at various price points so that you can take out your initial investment and a bit more. These two points are extremely important:
Always take out your initial investment.
Dollar cost average sell
Profit is profit. Don’t fret about the price going higher. You still have coins left.
I’m looking forward to the next bull market. I predict it will be in the year 2021. Hopefully you can use these tips to make the most profit as possible with the least risk. Remember that you should not invest more than you are willing to lose and do not take out any loans out to invest in this market.
