As a crypto bull run seems inevitable this year, here’s what investors should do to prepare for it

If you’ve followed the crypto market closely, you likely know that 2023 was a lackluster year for the industry, with investors’ activity remaining flat compared to prior years. There were many challenges, and digital asset prices saw dramatic dips. In short, it wasn’t a year for generating returns. But 2024 started on a good note, with cryptocurrencies experiencing a notable upswing that gave investors an optimistic outlook on the industry’s future. In fact, many market analysts and crypto enthusiasts believe this is the year when the industry gets to shine again, just as it did during its 2021 bull run.

Now, before we dive deeper into the following bull run scenario and what investors can do to capitalize on it, it’s worth mentioning that there are no guarantees regarding how things will turn out to be in the crypto market. Remember, this industry is characterized by volatility; therefore, you have to make friends with uncertainty while having a plan in place that allows you to boost your chances of success and minimize losses. Note that we used the word “minimize” and not “avoid”. There will be certain losses when investing in crypto, so if you aren’t okay with this idea, you should learn more about how to buy crypto currency. That said, approaching the market in a smart way could offer great rewards to investors, especially if the bull scenario becomes true.

Understanding crypto bull runs and their impact on the market

A bull run is a time of rapid cryptocurrency price growth driven by increased adoption, demand, innovation, and speculation. While it provides incredible profit opportunities, a crypto bull run also poses significant risks that investors must be aware of. Such an event in the market attracts more attention to the ecosystem, resulting in more adoption and innovation while also creating opportunities for investors to build their wealth. Overall, crypto bull runs are unpredictable, but also exciting, and they play a role in shaping the future of cryptocurrencies.

So far, there have been three crypto bull runs in the market. The first one took place in 2013 when Bitcoin’s price surpassed the $1,000 mark, and even if it lasted for a short time, the bull run resulted in the emergence of other digital assets, including Ripple and Litecoin. The next significant bull run in the crypto space happened in 2017 when Bitcoin reached $20,000 – a new all-time high. This event also marked the rise of ICOs, with new tokens and projects being launched on the Ethereum platform. Finally, there was the 2021 crypto bull run, which began at the end of 2020 and saw Bitcoin’s price experiencing new highs by reaching a price of $67,000. This mainly resulted from Bitcoin’s growing adoption by mainstream institutions and the rising popularity of NFTs and DeFi.

Key tips to help you navigate the next crypto bull run confidently

While a crypto bull run may get you enthusiastic, it’s important to remember to maintain a sound judgment. To navigate the market successfully and maximize your profits, you need three main elements: a solid understanding of the market, strategic planning, and risk management. A bull run amplifies the opportunities you can get from investing in crypto, but it also amplifies the risks. Hence, you need to implement the best strategies built around these essential elements.

Take the time to understand the market cycle

Crypto market cycles tend to be predictable, and understanding how they work should be your first priority when trying to navigate them. You know, as they say: “knowledge is power,” especially when it comes to crypto. When you are well-informed, the path gets clearer, meaning that it will be easier to make decisions.

Crypto bull markets happen every four years after Bitcoin halving events, which are meant to reduce Bitcoin’s supply. Since the next halving is scheduled for this year’s April, investors should expect a new wave of price appreciation for market leaders like Bitcoin and other digital assets.

Build your portfolio strategically

If there’s one thing that you’ll hear often in the crypto market, it is that Ethereum and Bitcoin are the foundation of any successful portfolio. This is because they are the most dominant digital assets in the industry, so allocating a part of your portfolio to them will give you safety and some reassurance, knowing that you have a high chance of making a profit.

However, Bitcoin and Ethereum aren’t the only cryptocurrencies worth adding to your portfolio – some altcoins deserve a place there, too, and to identify them, you should look for innovative features, strong fundamentals, and, of course, high growth potential. Altcoins that could be promising in the next bull run include Polkadot, Uniswap, Solana and Cardano.

Develop emotional discipline

One of the risks of a bull run is that you could easily succumb to FOMO and make impulsive decisions about your investments. It’s something that many investors do, and if you aren’t careful, you could also suffer the consequences of it.

In a bull run, prices are rapidly rising, and it’s essential to develop emotional discipline if you don’t want to end up losing money just because you let your emotions guide your actions. Instead of acting from a place of fear, make sure your actions are based on facts and a predetermined strategy.

Take profits gradually

You may want to cash out all your profits immediately, but this isn’t really the most beneficial way to approach your crypto investments. Instead, you should take profits gradually, as this will go a long way in securing gains while also allowing you to benefit from price rises.

This is a helpful approach because it helps you minimize the risk of losing your profits during a market downturn. Remember, while there’s nothing wrong with hoping for a bull run scenario to come true, it’s also essential to be prepared for dramatic price drops.

The bottom line

Given the historical patterns in the crypto space, there are valid reasons to believe that the next crypto bull run could be on the horizon. And while it could be a smart move to invest in cryptocurrencies in 2024, it’s still important to practice caution and consider the tips discussed in this blog to ensure a satisfying outcome.