The crypto market is a thrilling and challenging space, where you can make or lose a fortune in a blink of an eye. But there is a way to master this complex and exciting world, and that is by following the Bitcoin Blueprint.
The Bitcoin Blueprint is a set of rules and guidelines that can help you succeed in the crypto market, by paying attention to Bitcoin, the “gold standard” of crypto and the main driver of the entire market. By keeping an eye on Bitcoin price movement(s), you’ll be ahead of the many who are solely looking at their altcoins (other than Bitcoin).
So, what is the number 1 Bitcoin insight that everyone should know? It makes sense to know Bitcoin inside and out, right? Here it is:
Q: What is the average length of a Bitcoin bear market (1st day coming off an All Time High) to the BEGINNING of a new bull market?
A: Approximately 2.5 years starting from the first day of the bear market. It takes ≈ a year for Bitcoin to come down to a bottom. Bitcoin’s All Time High to bottom correction percentage is approximately 85%.
This means that you can expect a long and painful downtrend after Bitcoin reaches its peak, followed by a period of accumulation and consolidation, before a new bull market begins. This also means that you can take advantage of the low prices and buy more Bitcoin during the bear market, rather than panic selling and losing money.
But Bitcoin is not the only cryptocurrency you should invest in. There are many other projects that have strong fundamentals, use cases, and potential to grow in the future. However, you need to be careful and selective about what you invest in, and avoid falling for scams, hype, and FOMO (fear of missing out).
That’s why we have created the Bitcoin Blueprint, a comprehensive guide that covers everything you need to know to succeed in the crypto market, from choosing the right portfolio, to taking profits, to securing your assets. Here are the five rules of the Bitcoin Blueprint:
Rule #1: Know the market cycle and the trend
The overall market trend is king; however, you can still have an upward trend in a bear market (Bull Traps or fake outs) and a downward trend in a bull market (Bear Traps). It is extremely important to know the overall market trend and act accordingly. Don’t be fooled by short-term fluctuations and emotions. When in doubt, zoom out and look at the bigger picture.
Rule #2: Buy low, sell high (Moonbag Strategy)
To be profitable in the crypto market, it’s crucial to adopt a long-term mindset by dollar-cost averaging. Dollar-cost averaging is a technique that involves investing a fixed amount of money at regular intervals (weekly, bi-weekly, etc.) regardless of the price of the asset. By consistently buying in at lower prices, you can potentially become more profitable when the market turns around. Additionally, you should set aside a budget for buying the dip during the bear market (be greedy when others are fearful). Lastly, you should take out your initial investment at a certain price target or market phase, and let the rest ride to higher levels (moonbag). This way, you can secure your profits and reduce your risk.
Rule #3: Diversify your portfolio
Don’t put all your eggs in one basket. You should have a balanced portfolio that consists of different types of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, XRP, ADA, and other altcoins. You should also consider your risk tolerance, age, financial position, and goals when allocating your funds. A good rule of thumb is to invest in projects that have been around for more than 1-2 cycles, have good developers, low price, low supply, strong use case(s), survived during a bear market, and performed well with Bitcoin.
Rule #4: Secure your assets
Securing your cryptocurrency investments is vital. You should use cold storage such as hardware wallets to keep your private keys offline and away from potential hackers and exchanges that hold on to ‘your’ crypto. You should also follow the best security practices, such as never giving your 12 word seed phrase to anyone, using 2-factor authentication, setting up a SIM card PIN, disabling Wi-Fi on your phone before doing anything crypto-related, double-checking receiving addresses and memos before sending any crypto, and staying away from suspicious apps and websites.
Rule #5: Stay away from crypto cults aka HODL cults
The HODL strategy, or ‘hold on for dear life,’ means holding onto a certain cryptocurrency, regardless of market conditions. While this approach may be suitable for Bitcoin, Ethereum, Litecoin, XRP, etc., it can be detrimental holding newer cryptocurrencies into bear markets. Many online communities, particularly on Reddit, promote the HODL strategy and discourage selling, even during the height of a bull market. This is idiotic and dangerous. It’s important to be aware of the influence that these online communities have and to be critical of the information and advice being shared in these groups or crypto cults. Instead, it is important to conduct your own research, and make your own informed decisions.
By following these five rules, you can increase your chances of succeeding in the crypto market, and avoid the common pitfalls and mistakes that many investors make. The crypto market is a wild and wonderful place, where you can learn, grow, and prosper. But you need to be smart, patient, and disciplined. Remember, the is your guide to success in the crypto market. Follow it, and you will be rewarded. Ignore it, and you will regret it.
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