50 Crypto Market Investment Lessons: Bear Markets Focus on Revenue and Users, Bull Markets Focus on Growth and Speculation

Get rid of the bear market model and leave room for the new investment model of the bull market.

**Written by: **0XKYLE

Compiled by: Shenchao TechFlow

This article mainly introduces up to 50 lessons learned by the author in the cryptocurrency market in 2023. I hope these lessons can be helpful to readers in the 2024 bull market.

Before explaining the 50 lessons in detail, the author first explained the point of view he most recognized: to get rid of the bear market model and leave room for the new investment model of the bull market.

He believes that the cryptocurrency bull market is highly reflexive. Although the market seems to be volatile recently, he should not actively wait for a correction before buying, but it does not make much sense to try to grasp the timing of the top. Although the author himself is a bull in the market, he has made this mistake in the past few weeks.

Below, we detail the lessons the author learned in the cryptocurrency world in 2023. These experiences are not only about transactions, but also about the unity of knowledge and action in life.

trade

1. Patience is a stance.

2. Don’t trade your profits and losses.

3. Bulls will continue to go long, and shorts will reduce their positions. In an attention-driven market, assets that are noticed by capital are a sign of strength and are highly reflexive. On the contrary, assets that are underperforming receive less attention and are likely to remain so, resulting in weaker gains.

4. View alt/BTC and alt/ETH charts in Technical Analysis.

5. Trading should be process-driven – write down the steps to be taken and repeat.

6. Normally, your life is guided by emotions, trading is the opposite. You can’t follow your emotions, such as cutting a position “because you feel bad” or adding a position because you “feel good.”

7. Most of your profits will come from a few good trades in a month/year, but you have to watch the market for a long time to seize these opportunities. You can’t just walk away now and expect to come back and close a great deal.

8. Slow and Steady – Don’t rush, there will be opportunities tomorrow and the year after.

9. Be good at applying the framework I commonly use in cryptocurrency trading, which I mentioned in my previous article.

10. The bear market focuses on revenue and users, because valuations return to normal levels and important indicators are based on fundamentals.

11. Bull markets focus on growth and speculation because the important metrics are more reflexive, such as narrative/founders/flywheel.

12. Pay attention to transactions.

13. Checking the price of a long-term position every day may seem trivial, but it is actually a bad practice that exposes you to the daily fluctuations of the market and causes you to subconsciously re-evaluate your investments.

14. Your trading edge is closely related to your personality and your goals in life. Get to know yourself and find out what type of trader you are.

15. When you know what type of trader you are, don’t try to get better in other areas. Instead, continue to hone your style. You won’t see Warren Buffett trying to get better at algorithmic trading.

16. Don’t trade out of boredom, the impact is huge.

17. Use leverage to go long when the public is fearful, hold spot and go long when the public is using leverage to go long, and exit the market when the public is ecstatic.

18. In a bull market, you think about “the more you make, the better”, but what you should think about is “the less you lose, the better”, because the market will do a lot of things for you.

19. Trading and investing are constantly evolving – the coin you were long an hour ago is not the same coin now; that’s why you have to constantly plan different scenarios and plans.

20. Your portfolio is a battleship - decide the trend, take core positions; adjust accordingly to ocean conditions; if volatile: allocate to flexible positions. Changing major positions requires too much time and money;

21. You must have a process for selling because your emotions won’t do it.

22. Price targets as exit points are terrible because they can be arbitrary - SOL at 60? 80? 120? 150? You can’t decide when to sell based on price.

On the chain

23. Always test your trades.

24. For emerging projects, you have to focus on people - they control all the attention in the market. A positive team and strong founders mean that the narrator can tell stories, which means more market attention.

25. Crypto Twitter has always been late to the market, and when you see the whole of Twitter promoting something, it’s unwise to follow up in most cases.

26. Encrypted Twitter is also very toxic and time-consuming. Minimize contact as much as possible. You may wish to use tweetdeck, only for research.

27. In a bear market, expectations should be negative for everything because many projects will not survive. But in a bull market, you must have a positive mentality, because they will bring greater profits.

28. Never chase beta (second best option), a better approach is to be long the leader.

29. Narrative rotation is a game that excels in the short term and underperforms in the long term.

30. Position is very important. The altcoin you hold has increased by 10 times, but your position is only 0.1%. On the contrary, the large position has increased by 2 times, and even if your position is only 50%, you will make more than the altcoin. Much.

31. Cryptocurrencies can easily distract investors. Teams that know how to announce events and milestones are strategic movers and you should always bet on them because it means stronger coins.

32. With low market cap altcoins, you always want to exit when attention wanes.

33. The trap that most people fall into in small/medium market capitalization is that once the project cools down, they convince themselves that they are investing for the long term and expect the market value of the project to continue to rise. I hope you don’t deceive yourself.

Psychology

34. Don’t be jealous of others, use them as your inspiration. You can’t spend other people’s money, and they can’t spend yours. The only standard is yourself.

35. FOMO is an emotional killer. When you feel FOMO, deal with it.

36. Laziness is the original sin, which greatly affects your investment (lazy to do research/try new protocols/think deeply).

37. The four main things that every great trader must recognize and overcome are: making mistakes, losing money, FOMO, and leaving opportunities to make money.

38. The fear of making mistakes stems from the ego - heal it by realizing that your life is more than just trading. So what if you’re wrong? It’s not everything to you, you have friends and family who don’t even care if you make a bad trade.

39. The fear of losing money comes from not fully accepting risks and having to accept that the market has uncertain results.

40. It is impossible to avoid losses. Loss in trading is like a restaurant spending its revenue on vegetables, it is a cost of doing business and it does not matter at all.

41. If you can’t suppress your emotions, learn to manage them and use them to your advantage. Use it as a sell indicator when you feel excited (and vice versa).

42. Stop trying to impose your will on the market and stop having any expectations of it.

Life Advice

43. Never say no, but rarely say yes. If you say yes, it has to be something that moves you forward, or something that adds value.

44. Consistent "okay"s are much better than occasional "awesome"s. Most work just shows up every day, even if you don’t do much work.

45. It is the pursuit of goals that leads you to happiness, not the goals themselves. As they say, “If you are in the process, you have succeeded”.

46. Fear is in your mind. Why aren’t children afraid of insects and the same things we are afraid of? The answer is: We are born clean but are taught to fear certain things. And vice versa – we can be taught not to be afraid of these things. It’s all a matter of perspective.

47. Don’t compare yourself to others, instead of comparing yourself, figure out if you truly enjoy what you are doing or if it is just for social status (prestigious job, etc.).

48. Research shows that connecting with people makes people happier.

49. You won’t suddenly wake up one day and be motivated to do XXX tasks. There’s never been a better time to do something you’re afraid of.

50. Life is simple, but it is not easy either.

I hope the above lessons can bring some help to your investment transactions and life in 2024.