But how do you make sure you’re making the right choices?
The golden rule: DYOR.
What DYOR means
No, it’s not a Pop Smoke song...
DYOR = DO YOUR OWN RESEARCH.
Four words, one simple message: do the research yourself.
In investing and trading, that means:
Don’t trust anyone blindly. Not even me.
Why?
Because I can be wrong. And even with the best intentions, it’s your money on the line.
The reality of a crypto bull run
The truth is that nobody knows what will happen during a crypto bull run.
Nobody knows for certain whether the market will pump tomorrow or dump next week.
Nobody can guarantee that coins that exploded in the past will do it again.
Nobody can tell you which ones will be the next 100x.
Above all, nobody can predict the future of the markets.
The past guarantees nothing.
Assuming previous cycles will repeat exactly is a common mistake.
An unexpected event that radically disrupts markets in an uncontrollable way can happen at any time.
That’s what Nassim Taleb calls a black swan. Feel free to bring that one up at your Halloween party.
Everything you hear is speculation.
Analysts, influencers, self-proclaimed "experts"... they can all be wrong.
Everyone is speculating and hoping.
How do you succeed during a bull run?
If you want to make the most of a bull run, you need to accept that uncertainty and unpredictability are part of the game.
Accept that nobody has all the answers, then do your homework:
- Analyse projects and understand their fundamentals
- Question every "truth" you read or hear
- Understand the culture
- Understand the hype
- Above all, be ready to adapt
When the bull run ends, you won’t be able to blame anyone but yourself.
That’s how you give yourself the best chance of making good choices during a bull run.
How do you analyse a crypto project?
I wasn’t going to tell you what to do without explaining how...
1) Look at the team behind it
- Who are the founders and developers?
- Do they have experience?
- Have they worked on relevant projects before?
- Do they have a good reputation?
2) Read the whitepaper
- Are the goals clear?
- Is the technology explained properly?
A quick note: plenty of cryptocurrencies have no technical foundation, but that doesn’t automatically mean you should dismiss them.
Memecoins, for example, ride a cultural wave, yet some are solid projects.
3) Look at the community
- Is it active?
- Are its members engaged: degens, diamond hands, hodlers, traders and so on?
You can check that online and on social media.
4) What does your intuition tell you?
Sometimes, none of what I’ve just said will help.
In that case, trust your intuition while keeping your feet on the ground.