MyCrypto CEO Explains How to Survive (and Thrive) in a Crypto Bull Market
Crypto bull runs present a unique opportunity for investors – as well as no shortage of potentially crippling pitfalls.
And although there are almost as many theories on how to maximize the benefits of a bull run as there are experts – one has produced a Twitter thread stuffed full of tips.
In a series of tweets, Taylor Monahan, CEO of MyCrypto, a popular open-source tool for generating ethereum (ETH) wallets and handling ERC-20 tokens, has come up with a guide to navigating crypto bull runs, although she prefaced her tip compendium with a disclaimer, writing,
“This is not financial advice. You should not take my advice. If you do things that could have a detrimental impact on your life or [finances] because of anyone’s tweets, you will end broke and angry.”
Here are a few of the highlights of Monahan’s guide to bull runs:
Right now is the best part of the bull run as “prices are up and capital is flowing.” What is more, “most of [the] community has been around the block and can handle losses.”
But now comes the kicker. She wrote,
“In a day or a week or a month, it will start to shift.”
Because of “malicious outsiders who come solely to take money” and “manipulate” the “biggest fools” they can find.
The CEO added,
“The fact that nothing can severely disturb the momentum is what is most attractive to malicious actors. They will make a lot of money.”
“$YAM will be full of lessons to be learned. Enjoy it. Analyze it. Share what created the hype. Talk about the risks. Do all the things. Because it could hit USD 200M, get completely pwned, and this market would keep on chugging.”
Regardless, bull markets have dangers, she warned, and old adages could prove wide.
“The magic of this moment is that if you are here now, you have every opportunity to make money. The way you do that is to HODL. You play with all the things in a bear market. You lose if you do the same in a bull,” the CEO added.
Some sage advice was also on the menu, as Monahan advised that “of 100% of your crypto holdings, put 90%-95% of it in super-cold storage.
“The other 10% or 5% or 1% of your holdings should be worth literally 0. Don’t put them on your balance sheet. They are nothing. This is the amount you can afford to lose. This is your play money,” she stressed.
The CEO also emphasized the importance of avoiding the hype surrounding certain coins and not banking too much on any single token.
“Pick a few long-term legit coins that you like. Be invested in them. Do research. Do not follow the shills. The amount should be no more than 5% of your net worth. Even bitcoin (BTC) could go to 0,” Monahan reminded.
There were also a few sad words of warning, as she opined,
“Accumulation time is nearly over. It’s a joke now but for the next three-18 months, people will take on huge debt to get crypto. And they will not win. They will lose their house, their kids’ savings. Do not be those losers.”
Awesome thread. When the last bull market came, those who had lived through the previous one said, "sell what you can on the way up, because this can re-trace by 90-99%." Did we listen then? Not as much as we should have.— CryptoDjango (@CryptoDjango) August 11, 2020
At pixel time (12:26 PM UTC), BTC trades at USD 11,470 and is down by 2% in a day, trimming its weekly gains to 0.5%. The price is also up by 23% in a month and almost 2% in a year. A the same time, ETH, ranked 2nd by market capitalization, trades at USD 381.5 and is down by 2% in a day and almost 4% in a week. However, it rallied by 56% in a month and 81% in a year.
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