How to Win the 2024-25 Bull Run in 6 Easy Steps 🚀
Years of experience crafted to make things easy for you.
Welcome back to Wealth Vault. As much as many would like to deny it, the cryptocurrency market has yet to mature into a 'respectable' asset class. It remains a highly competitive game where only a small minority of investors win big while the majority lose money.Â
While we hope it eventually reaches its full potential, it does not hurt to be a part of the game. In today's edition, we’ll dive into a step-by-step guide to increasing your chances of becoming one of the few winners this bull season and in the future.
A Nascent Asset Class With Low Liquidity
Unlike more liquid asset classes like stock markets, most cryptocurrencies, except Bitcoin and a few high-caps, have low liquidity. The market capitalization numbers displayed on data tracking platforms such as CoinGecko do not accurately reflect the actual value that can be cashed out.Â
A circulating supply and a few trades will create an inflated price and market cap that do not reflect real demand and liquidity. That is why a few early entrants can score 10x–1000x, while everyone else is left holding a worthless bag. They can get most of the value by selling their holdings into the limited liquidity. Those who follow blindly are left holding a near-worthless bag as prices plummet.
The idea is to be part of the small percentage that wins big, and you can do exactly that with just six simple steps.Â
💎 Step 1: Pick The Right Crypto Exchange
While investing in a project before it reaches CEXs pays off handsomely, the fees can be prohibitively expensive, especially for Ethereum-based coins. That’s where a good CEX comes in.Â
Pick a crypto exchange that lists altcoins that are tied to the current narratives and hype driving the broader bull market. Every bull cycle has altcoin projects and associated narratives that capture a lot of investment and drive massive price run-ups. In 2024, these include AI, RWA, DePIN & memecoins. By being on an exchange that lists these hot altcoins early, you position yourself to get in before the masses and try to sell near the peak for big profits.
As for mid-tier exchanges,
Kucoin, Bitget, Mexc & Gate.io often have the majority of smaller alt coins before they explode and get listed on larger exchanges.
💎 Step 2: Buy The Right Altcoin
Choosing the right altcoins is critical, with narrative being the most important consideration. Look for altcoins with a simple narrative or use case that retail investors can relate to and understand. If you look at the trending narratives in 2024 (AI, RWA, DePIN & meme coins), these are all sectors that anyone outside crypto can understand.Â
Fundamentals become irrelevant during a crypto bull cycle as more retail investors enter the market. You want to avoid altcoins with highly technical/complex narratives that the average retail investor may struggle to comprehend enough to get invested in.Â
In addition, the ideal altcoin should have a low price per token and a small market capitalization. Even though the market cap is what counts, a low token price gives retail investors who do not fully understand the market the impression that there is more upside. In essence, appeal to the psychology of retail FOMO.
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