Today is November 11th 2024 and as we have been saying since the ETF approval and the bitcoin halving early this year, the bitcoin bull run is here! At the time of this writing the bitcoin price sets at $88,884.24.
The cryptocurrency market is once again capturing the world’s attention with rapid price increases, potential new highs, and a growing wave of interest in decentralized echnologies. But if you’ve never invested in crypto before, diving into the market during a bull run might feel daunting. With this guide, we’ll help you understand what a bull market is, why it’s a promising time to enter crypto, and the specific steps you can take to make the most of this opportunity responsibly and strategically.
What is a Bull Market?
In financial markets, a bull market refers to a prolonged period where asset prices are rising, often with optimism and increased investment from the public. In the crypto market, bull runs have historically led to extraordinary gains. However, they also carry higher volatility, making it essential to have a plan before jumping in.
Why is Now a Good Time to Enter Crypto?
- Institutional Adoption: With major companies, ETF approval and financial institutions investing in cryptocurrencies, the legitimacy and stability of the crypto market is finally here.
- Increased Use Cases: Crypto technologies like decentralized finance (DeFi) and non-fungible tokens (NFTs) are expanding how these digital assets are used in real-world applications.
- Positive Market Sentiment: During a bull run, more people invest in crypto, which often leads to increased liquidity, heightened interest, and further price surges.
While a bull market can be a great time to start investing, it’s important to follow best practices and avoid some common pitfalls. Here’s how you can get started, even if you’re completely new to crypto.
Step 1: Educate Yourself on the Basics of Cryptocurrency
Before investing in anything, especially a volatile market like crypto, it’s essential to understand what you’re investing in. We hope you will find the articles here on cmgcrypto.com as a good source of vetted information.
Here’s a quick primer:
- Cryptocurrencies are digital or virtual currencies that rely on cryptography for security. Bitcoin and Ethereum are two of the most popular.
- Blockchain is the technology that underpins cryptocurrencies, recording every transaction on a decentralized ledger, making the system transparent and secure.
- Wallets are where cryptocurrencies are stored. You can choose between hot wallets (online) for easy access or cold wallets (offline) for more security.
- Register with a crypto currency exchange where you can buy and sale cryptocurrencies. If you live in the USA, we recommend COINBASE, it is the most newbie friendly to navigate in our opion. You can find our step-by-step guide for setting up a free coinbase account here. Setting up a Coinbase account here.
Step 2: Set Your Investment Goals and Risk Tolerance
Your investment in crypto should align with your financial goals, risk tolerance, and overall portfolio strategy. Since cryptocurrencies can experience drastic price swings, it’s essential to understand:
- How much you’re willing to lose: While crypto has seen impressive gains, it’s also very risky. Decide how much you can afford to lose without significantly impacting your finances.
- Long-term vs. short-term goals: Many investors choose to “HODL” (hold on for dear life) with the belief that crypto will continue to rise over the long term, while others take advantage of short-term gains. Your strategy will depend on your financial goals, risk tolerance, and market understanding.
- Knowing when to sale is as important as knowing when to buy.
Step 3: Choose the Right Coins for Your Portfolio
The crypto market is vast, with thousands of coins available. Here are some common categories to consider: I will give you some of my personal pickes to do your own due dilligence on at the end of this article.
- Blue-Chip Cryptos: Coins like Bitcoin (BTC) and Ethereum (ETH) are the most established and often seen as safer bets in the market.
- Altcoins: These are any coins outside of Bitcoin. Some well-known altcoins include Litecoin (LTC), Chainlink (LINK), and Solano (SOL). They can offer higher returns but may also be riskier.
- Stablecoins: Cryptos like USDT and USDC are pegged to the US dollar, offering stability in the often-volatile crypto market. They can be useful if you want to wait for the right opportunity to reinvest or as a low-risk holding option.
To start, many beginners focus on blue-chip cryptos like Bitcoin and Solana, which have shown resilience over time and are easier to understand. I currently have a portfollio of 30 coins. Most are ranked in the Top 100 (Largest) coins in the market. I believe some of these could double, triple, or even 5X in this current Bull Market, based upon their previous all time highs. I have several, well researched speculative plays in my portfollio as well, a couple which I hope to see 10X + returns.
Step 4: Find a Reliable Exchange and Secure Wallet
For beginners, choosing a reputable exchange is critical for a safe and smooth entry into crypto. Look for exchanges with strong security protocols, a good reputation, and intuitive interfaces. Here’s how to proceed:
- Sign up on an Exchange: Register on a trusted platform like Coinbase, Binance, or Kraken. Complete the necessary verification to ensure your account is secure.
- Choose Your Wallet: Some exchanges have built-in wallets, but these can be vulnerable to hacks. Consider setting up a personal wallet—either a hot wallet for quick access or a cold wallet for maximum security.
Step 5: Decide on Your Investment Strategy
- Dollar-Cost Averaging (DCA): This approach involves investing a fixed amount of money at regular intervals (e.g., weekly or monthly). It can help you reduce the impact of volatility by spreading out your purchases over time.
- Buy the Dip: While harder to time, buying during price drops in a bull market can maximize your returns.
- Staking and Earning Interest: Some cryptocurrencies and exchanges allow you to earn interest or “stake” your holdings, generating passive income while holding long-term.
Step 6: Stay Informed on the Market and Technology
The crypto space evolves rapidly, with new developments, regulatory changes, and market-moving news occurring almost daily. Here’s how to stay updated:
- News and Analysis Websites: Sites like CoinDesk, Cointelegraph, and CryptoSlate provide news and analysis on the market.
- Social Media: Follow crypto thought leaders on Twitter, Reddit, and other platforms. However, be cautious about following advice from unverified sources.
- Learning Platforms: Websites like Coursera, Udemy, and YouTube offer courses on blockchain and crypto investment strategies for beginners.
Step 7: Be Prepared to Manage Risks
The crypto bull market presents opportunities, but it also comes with high risks. Some key risk management tips include:
- Avoid Emotional Trading: Bull markets can be thrilling, but emotional trading can lead to losses. Set your goals and stick to your plan.
- Use Stop-Loss Orders: Many exchanges allow you to set stop-loss orders, which automatically sell a portion of your holdings if the price drops to a certain level, helping to limit potential losses.
- Stay Diversified: Consider investing in a mix of assets within crypto or even diversifying beyond crypto to balance your portfolio. Holding various types of assets can reduce the impact of any single coin’s poor performance.
Step 8: Keep Security Top of Mind
The rise in crypto prices attracts not only investors but also scammers. Protect your assets by:
- Using Two-Factor Authentication (2FA): Ensure your accounts are protected with 2FA to add an extra layer of security.
- Beware of Phishing Attacks: Hackers may try to trick you into revealing account information through fake emails or websites. Double-check URLs and be cautious of unsolicited messages.
- Withdraw to a Secure Wallet: If you’re investing significant amounts, consider withdrawing your assets to a secure wallet rather than keeping everything on an exchange.
Conclusion: Start Small, Stay Informed, and Grow Gradually
The current crypto bull market presents a unique opportunity for new investors to enter the space and potentially benefit from rising prices. However, jumping in without proper knowledge or a clear strategy can lead to costly mistakes. By understanding the fundamentals, setting clear goals, diversifying your investments, and prioritizing security, you can enter the market confidently—even as a beginner.
Remember that investing in cryptocurrency, like any financial market, requires patience and discipline. Start small, learn as you go, and don’t let the excitement of the bull market overshadow your long-term strategy. With the right approach, you can make the most of the opportunities this bull market offers while safeguarding your financial future.
Knowledge without action leads to self-delusion. You have taken the time to read this article, it is my hope that you will take action on what you have read. If you are a newbie, here are the first 3 steps we recommend.
#1 Set up a Coinbase account, it is simple and free and you can do that in less than 10 minutes. The step-by-step guide is here: SETTING UP A COIN BASE ACCOUNT.
#2 Acquire some free bitcoin, you can find the steps in the free PDF here. A DOZEN WAYS TO GET FREE BITCOIN.
#3 Here are the Crypto Projects and Coins I recommend to friends and family when they ask.
DO YOUR OWN DUE DILLIGENCE!
TOP 100 Cryptos
(SOL) Solona I entered Solona at $26.00 it is currently at $216.00 I have raised my price target to $400
(LINK) Chainlink My chainlink bag is an average of $10.81 per coin, the previous all time high was $52.88 my target in this bull run is $50.00
(AVAX) Avalanche My average price is $36.83 per coin. The previous all time high was $147.50 My goal is to 3X my investment during this bull run with a target price of $100.00. If the gaming market takes off my target could double.
LOWER CAP PICK
(SUPER) SuperVerse This is a newer gaming play. I originally got in early at .58. When it hit $1.20. I sold half of my holdings to re-coup all my initial investment. I still have 1/2 my origianl purchase. The current price is $1.54. My original price projection was $15.00 which would be a 30X return. Considering, I am playing with the house’s money on this one, I may let it run longer before I cash out.
ONE FINAL THOUGHT.
I believe one of the best ways to enter the crypto market is through a tax dedcutable IRA. iTrust Captial is the IRA my wife and I both have, and recommend to friends and family members. You can learn more by chekcing out the video here: ITRUST CAPITAL