How to Play This Crypto Bull Run
Robert Ross|January 9, 2024
What a year 2023 was for crypto.
Most analysts expected crypto to remain in the doghouse.
But I’m not most analysts.
In fact, I had over 12% of my net worth invested in crypto when the ball dropped in Time Square on January 1, 2023.
And this was a good decision, as that 12% of my portfolio went along for the ride as Bitcoin doubled last year…
But you may be surprised to learn that I did not trade crypto last year. Instead, I used a strategy you are likely familiar with.
The Same Saw Holds True
Trying to time the ups and downs of cryptocurrencies is a fool’s errand.
While most investors know this instinctively, many newcomers to crypto are attracted to the idea of turning a small investment into a fortune by riding the waves of meme coins and low-cap altcoins.
And I get why. The allure of flipping $10,000 into $1 million overnight can be intoxicating. And the media makes it seem like this is more common than it really is…
But let me tell you… It’s a strategy that’s more likely to leave you with sleepless nights and empty pockets than with a hefty bankroll.
That’s because the crypto market is incredibly volatile and unpredictable. Attempting to time the market’s peaks and valleys is like trying to catch lightning in a bottle.
Sure, some investors may get lucky and hit a home run with a meme coin, but the vast majority will strike out using this strategy.
The Real Crypto Wealth Strategy
So what’s the real strategy for building wealth in the crypto world?
It’s one you’re likely familiar with…
Buy and hold.
The most successful crypto investors I know aren’t constantly getting in and out of positions or chasing the latest hype. Instead, they’re patient and disciplined. They take “smart risks.” They invest in high-quality projects with strong fundamentals and promising long-term potential, and they hold their investments through the market’s ups and downs.
This approach has worked for average investors in assets like stocks and real estate for decades. And it has consistently proven to be effective in the world of cryptocurrencies.
Why “HODLing” Is the Key
Holding crypto assets may not be as exciting as day trading, but this strategy offers several advantages.
For one, it keeps you from making emotional investment decisions. Trading can be emotionally taxing, and the constant monitoring of charts, news and price fluctuations can lead to anxiety and impulsive decisions.
Holding allows you to sidestep this emotional roller coaster.
Second, this strategy allows you to capitalize on the long-term growth of the crypto market. The global crypto market currently has a market cap of $1.6 trillion. Grand View Research expects this figure to hit nearly $12 trillion by 2030.
That’s serious growth… and holding high-quality projects through the ups and downs will give you exposure to it.
Lastly, as the old saying goes, “Time in the market beats timing the market.”
By holding, you ensure that you are invested in the market and can benefit from its growth over time.
Setting Realistic Expectations
While a “buy and hold” strategy is a proven path to success in crypto, it’s essential to set realistic expectations. Crypto markets can be highly volatile, and you should be prepared for significant price swings.
You will read stories about how XYZ coin went up 1,000X and someone made generational wealth from a small investment. Perhaps they did… but if so, it was luck, not skill. If you want to target 1,000X opportunities, do so with a tiny percentage of your net worth.
The truth is that not every crypto investment will turn into a moonshot. And that’s perfectly okay. The keys are to focus on building a diversified portfolio of strong projects and to let time work in your favor.
As we move further into this crypto bull market, remember that the real path to success involves a patient and disciplined approach.
Avoid the temptation to chase quick gains through risky meme coins and instead focus on building a solid foundation of quality assets.
In the end, it’s not about making a fortune overnight. It’s about steadily and consistently growing your wealth over time.
So if you want to invest in crypto the right way, take a page from the playbook of successful investors: Buy, hold and let time do the heavy lifting.
A Note From Amanda: While everyone’s looking at crypto right now… we’ve been showing readers how to get in on the little-known security token market. In just a few short years… it could be worth trillions. And it could be 10X more valuable than the entire crypto market.
As with any early-stage investment… when you get in ahead of the crowd… you’re in an enviable position.
That’s why we’re reopening access to our first-of-its-kind security token research service. Watch this video for all the details.
Robert Ross
Robert Ross’s unique style of clear and direct stock research helped him build a massive following in the investment research industry, starting his career at investment research company Mauldin Economics and quickly rising through the ranks to become one of the youngest chief analysts in the industry. Today, over a million investors turn to Ross every month for his take on investing, economics, and personal finance. He now shares his unique insights in Total Wealth and Manward Money Report.
