The crazy bull market is coming, but don't forget about risk management.

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1 year ago

Author: Route 2 FI

Translation: Deep Tide TechFlow

Today, let's talk about the upcoming bull market and the scenarios in which you might succeed.

Money can't solve all your problems, but it can solve your financial problems. You have many choices.

If you chase after money, obtain it now, and still feel empty inside, that may not be your ultimate goal. You may want to have more meaning and impact in life. Use your money to improve yourself. Set new goals, set goals beyond money.

Health, fitness, hobbies, family, and friends, etc. You didn't just make a lot of money to stay in the same place. To improve the quality of life, broaden your horizons, and see more of the world.

No matter how wealthy you are, death is inevitable. Therefore, the only limited resource is time. Invest money to buy time, use money to try different possibilities, and invest money to improve the quality of life.

It's hard to imagine how crazy the cryptocurrency bull market is.

The crazy bull market is coming, but don't forget risk management

I have been thinking about my goals recently, what I spend so much time doing, and where I want to go.

I think it's normal to think about these things occasionally, especially during periods of market volatility. I still dream of experiencing another upcoming bull market. The feeling of buying assets at a high price, going to sleep, and waking up to see even higher prices is simply unbelievable. Imagine this feeling lasting for months, with prices rising every day. 2021 was crazy, I remember everything around me becoming meaningless. You don't have time for anything else. Those not in the crypto industry can't understand this. They know that Bitcoin has risen by hundreds of percentage points, but they have no idea that altcoins have risen by thousands of percentage points, and there are new opportunities every day.

It seems like those days are over now, will they come back? Will we experience this again? There is currently a debate about the dispersion of altcoins, because the difference between 2021 and 2024 is that there were only a few reliable altcoins at that time, while in 2024, we have hundreds of high-quality projects. But the liquidity is not enough to drive them into the altcoin season. This time, retail investors are smarter, not just retail investors. Traders are smarter, investors are smarter, venture capital firms, KOLs, and so on, they all have more experience and knowledge than you. They have resources and connections that you don't have. This makes me think that I believe it will be more difficult to succeed in this bull market. People understand the "four-year cycle" and become more cautious, ready to sell your assets at any time. You have to be more vigilant than in previous cycles.

But hope still exists. Because in a booming bull market, all these "rules" will be ignored. People will forget about risk management and make very irrational decisions, hoping to make a huge fortune in a short time. And this is where you need to be smart. When the next project with a 90,000% annualized return appears, stay calm and don't lose your mind.

The crazy bull market is coming, but don't forget risk management

If you are a novice, do you know what a 94,000% annualized return means?

Let me tell you.

If you have $100, after 365 days, you will have $94,000.

This means a daily interest rate of 1.9%. Yes, every day.

Well, people don't invest $100, they invest $100,000.

A daily interest rate of 1.9% for 30 days means a profit of $75,000 on $100,000.

Moreover, the price of this Ponzi asset TIME rose so fast that people became millionaires in less than a month from $1,000.

A cryptocurrency friend of mine made $30,000 a day on this project and actually sold out near the peak, buying a new house. This is an inspirational story. But as we know, this kind of profit situation will not last forever, and the Ponzi scheme eventually collapsed.

Well, that's enough about that. Let's continue.

What are your goals, my friend?

If you don't have grander goals, it's easy to drift aimlessly.

If you wake up every day without any plans and start scrolling through your phone or computer screen, you lose.

I believe in the pyramid structure of goal setting.

Basically, start with a mission of over 20 years, then break it down into a vision of 3 to 10 years. Furthermore, to achieve a 3-year goal, you need to break it down into annual goals, quarterly goals, and so on.

The crazy bull market is coming, but don't forget risk management

What you do every day and every week determines where you will be in a few years. Of course, we all may have bad days. But instead of continuing to procrastinate, try to get back on track.

If your goals don't motivate you, then they may not be what you really want.

Do I have goals? Yes, but if we associate them with cryptocurrency, my goal is to become one of the best writers and a knowledgeable person in this field. In the previous market cycle, money was a more important factor for me. This cycle, I feel more relaxed, I don't need to make money in the same way. Don't get me wrong, I think everyone here wants to make more money. But I'm not desperate, and I won't sacrifice my health for money (as I felt in the previous cycle).

Please check out my post below to see what reflections I have made.

The crazy bull market is coming, but don't forget risk management

Things got so bad that I actually lost interest in everything I cared about. Books, writing (except for cryptocurrency-related), fitness, running, seeing friends, my girlfriend, and family all became very uninteresting. I was addicted to my phone and computer, to the point where I tried to avoid any situation where I couldn't check my DeFi positions, Twitter, Discord, TG, etc. My girlfriend (at the time) tried to tell me how addicted I was, but I didn't listen at all.

This made me think, what is the meaning of money if you don't use it to improve your life.

I wrote more about this in the tweet below.

The crazy bull market is coming, but don't forget risk management

The key is, now that the bull market is accelerating again, I am starting to feel this again. Cryptocurrency is so important, and other things can only be put on hold temporarily. I postpone things in order to make more money (more than I have already made).

It feels natural to hear others on cryptocurrency Twitter (CT) talking about what they plan to spend money on, as seen in this tweet.

The crazy bull market is coming, but don't forget risk management

I think you have enough content to refer to now, my friend.

Let's leave it at that.

But let me ask you one last question, think about it well before next time.

If you make money in 2025, where will you spend the money?

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