How to Profit From a Crypto Bull Run

Unless you’re a technology geek, the odds are that you have one primary motive for investing in crypto. That motive is to generate a profit by selling the portion of crypto that you originally invested in. There are plenty of crypto success stories, especially among young ‘naive’ investors who bought into the hype. This has generated a lot of curiosity among newer crypto investors, who wonder if the market still provides a generous profit potential. The answer is… probably, but there’s no guarantee.

How To Profit

A common motto among both stock and crypto investors is ‘buy low, sell high’. Perhaps this simple motto could actually provide some genuine value for novice investors. On the flip side, crypto experts realize there are many different variables. All of which must be taken into account in order to calculate the growth potential of a particular cryptocurrency.

For the sake of this article, a simple method of profiting from crypto will be discussed. Disclaimer, this is a method many crypto investors use when they’re looking to invest more of their money. The answer is simple… patience, but what exactly does patience have to do with buying crypto? As many crypto enthusiasts know, the crypto market is extremely volatile. In other words, the value of the crypto market fluctuates greatly. Knowing this, many experienced crypto experts will patiently await an opportunity that is sure to arise sooner or later.

Bear Markets

The method crypto investors are using to profit is quite simple, all you need to understand is the difference between a bear and bull market. Simply put, a bear market is when the value of the market declines 20% or more within a short period of time. However a bull market is when the value of a given market is increasing steadily, and oftentimes rapidly, over a short period of time.

By understanding this simple terminology, crypto investors patiently wait for a bear market before they invest in any crypto. As the value of these cryptocurrencies continues to drop, investors hold out as long as possible. Oftentimes waiting until the market appears to be on the brink of increasing in value again. It is at this point that investors invest large sums of money, they view the bear market as a ‘discount’ on the regular price of crypto. However there is still one piece to the puzzle that must go right…

Bull Markets

After investors have successfully invested their money during the drop in market value, investors again patiently wait for a bull run. In other words, crypto investors wait for the market to begin rising steadily in value again. After a period of time as the market begins to increase in value even more, the investor sells the crypto that he bought during the bear market. This allows the investor to generate a profit from their original investment. Just like that, a simple game of patience allowed an investor to generate more money than they started with. This is not always the case however, sometimes a cryptocurrency could tank in value only to never climb back up. However the potential to profit is definitely still there.


One More Thing

It is important to remember one final investment rule, a rule that is perhaps the most important of them all. Never invest money that you cannot afford to lose, for obvious reasons, this is not a great idea. Although it may be tempting, remember to invest responsibly, and don’t stop holding!


If you enjoyed this article, please consider following me on Twitter: @natexlee.
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Nate Lee

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I’m a technical writer that specializes in crypto and blockchain.

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