Please click the link below to listen to the 43rd episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome.
External Podcast Link
Two Minute Crypto – Riding the Bull (Part 5 of 5)
Welcome to Two Minute Crypto – this week marks the conclusion of this mini-series focusing on maximizing returns during the current crypto bullrun. Clearly, it’s time to trust the trend and recognize the price momentum before us. Black swan events aside, for the next year or two we have entered ‘buy the dip’ territory.
Sure, there will be corrections and they will be sharp and steep – sharper than you expect and steeper than you are comfortable with but if in doubt scale out. The trend is in.
Today’s focus is that most pernicious of human traits ‘hubris’. We are entering a market phase were price will tend to trend onwards and upwards. A lot of your previous investments will start to creep towards break-even and in time profit. Poorly conceived trades on extended pumps may often be rewarded. The bull is forgiving. However, it is critical you don’t let easier trading and investment conditions lull you into a false sense of your own brilliance.
This is where planning, rules, discipline, emotional detachment and reliable sources of information all coalesce to guide you through the heady months of a crypto run. Soon the noise to value ratio of the cryptosphere will explode – hyperbole and fantasy will re-emerge as dominant narratives. Bitcoin to a million, widespread adoption tomorrow, XYX 4.O and on on the nonsense shall go. Without an established and coherent framework with which to navigate this space, it will be incredibly easy to join the party. But you’re not here to ‘party’ are you? You’re here to make money whether that be as a short-term trader, investor or both.
Remain sceptical – 90% or more of what you read about crypto is hopium at best or simply downright disingenuous. Research projects with the same intensity as you did during the bear cycle and always remember ‘winter is coming!’ Invest only where the fundamentals and your own frame of reference find value. A crypto that has pumped 500% does not necessarily a good investment make.
At some point, this bull too will run out of steam and enter a prolonged bear cycle – do you want to be holding a wide-range of over-hyped, and over-pumped crypto at that point? If you don’t exercise humility, focus, and discipline -you most certainly will.
Thanks for listening.