681
views

Tips on What To Do When the Crypto Markets are Bullish

If you’re familiar with financial markets such as crypto trading, you’re probably aware of bullish and bearish markets. The term “bull” and “bear” describe market conditions, and traders must know how to act in such conditions. A bullish market exists when traders are expecting crypto to increase in prices by up to 20%. In a bull market, investors are looking to invest their money due to increased investors’ confidence in the market. However, despite the rise in market prices, the bull market comes with increased risks that make trading cumbersome. 

For both beginner and experienced crypto traders, trading in a bullish market is quite intimidating, especially if your emotions precede you. But what should you do when the markets are bullish? While there is no direct answer to this question, you can implement several investment strategies in a bullish market and come out successful. Here’s what you can do in a bullish market and come out profitable. 

What Happens in a Bullish Market?

In a bull market, also referred to as a bull run, asset market prices rise. A bull market is used to describe a price increase in the financial markets, including bonds, commodities, Forex, cryptocurrencies, and real estate. While being bullish may mean a price rise, a bullish market run may also involve declining prices. Bull markets usually feature periods of price consolidation or decline without necessarily breaking up the major market trend. Nonetheless, a price uptrend is the main trend in a bullish market. 

How to Trade in a Bullish Market 

An ideal strategy in trading in a bullish market is going long and buying dips. This is because crypto prices are rising, and most traders will certainly be bullish. A reasonable trading strategy would be the buy and hold or the dollar-cost averaging strategy in long-term bull markets.

Sometimes in a bullish market, some traders would prefer to go bearish according to their trading strategies. Experienced and more professional traders would implement advanced trading strategies and decide on short-term bearish trades, i.e., shorting. However, this strategy doesn’t always work, and it’s crucial for trade according to the market trend, especially if you’re a novice trader. Many traders record enormous losses by trading against the prevailing market trend, such as short bull markets. Below are 6 trading strategies ideal in a bullish market.         

6 Crypto Trading Strategies to Use When Markets are Bullish

  • Trade according to your financial plan

The best bet in surviving a bullish environment is to trade according to your financial plan. Your financial plan would indicate how you should balance your crypto portfolio according to the prevailing market conditions. By sticking to your financial plan, you’ll ensure that you earn profits at higher valuations and earn liquidity at lower prices. 

  • Keep withdrawing your profits

Many crypto traders argue that withdrawing or booking profits is not an ideal strategy for long term investment. On the contrary, constantly churning out profits in a bullish market is a good trading strategy. The primary rule in financial markets is that: “If something is too good to be true, then it’s probably not true.” This rule should guide you in a bullish market. Keep churning out profits at regular intervals and maintain your portfolio according to your financial plan. 

  • Employ the Systematic Investment Plan(SIP) in Trading

The Systematic Investment Plan (SIP) approach is a great trading strategy in bull markets. This strategy involves investing a consistent amount of money in a particular asset, say a crypto token. You’ll obviously want to buy an asset at a lower price in a bull run, hold it and sell it later for a higher price. You’re not always assured of a market rise, and you can end up entering a trade late, wait for too long for the prices to rise, or even record a loss. The better trading approach in a bull market is to adopt the SIP trading approach. 

  • Don’t hold the assets for too long

Crypto assets are extremely volatile compared to other financial markets, such as stocks on Forex. Therefore, it’s not advisable to hold on to the assets for too long as the market can take a downside trend leading to massive losses. Always exit the market at a particular price based on your technical analysis. The best price to exit the market is at the technical support price level, or the price beyond which you cannot handle the further risk of losing your asset. All in all, knowing when to exit the market is a fundamental trading strategy in a bullish market.

  • Ride along with the market direction

As a crypto trader, it’s vital to note that a bull market takes a single direction. Therefore, you should always stick to the market momentum and never try to outguess the market. Therefore, buy high or buy using dips and be patient enough to increase the asset prices then sell higher. Always remember, the market direction is your friend, not the enemy. 

  • Use crypto derivatives to hedge risks

Crypto derivatives, including futures and options, have gotten increased usability in the crypto space. As such, you can use crypto derivatives to hedge risk in a bull market and come out profitable. In a bull market, you’re not always guaranteed that the prices are going to rise forever. Prices may correct sharply, causing unwarranted losses. Therefore, it’s essential to hedge risks in a bear market by utilizing derivatives such as options. While they eat into your profits, derivatives will ensure you don’t record unnecessary losses. 

Closing Words  

Bitcoin live price
Btc
Bitcoin
$17.016,34
price
0.13725%
price change
BUY NOW

Trading in a bullish market is not always a walk in the park. While you’re assured of profits, a small mistake can lead to major losses on investments. Typically, the best trading strategy in any market, whether bearish or bullish, follows the market momentum. In essence, bull markets present great profit-making opportunities both for novice and experienced traders. However, to come out profitable, it’s crucial to avoid mistakes by managing risks and knowing when to exit the market. The above strategies are great to deploy in a bullish market.     

Stay up to date with our latest articles

More posts

SuperBots – A Case for Imminent Decentralization amid Recent CEX Failures

Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…

Smart Contract Security – Pitfalls and Solutions

Smart contracts are becoming increasingly prevalent as the world moves towards a more digital and automated future. Still, they are far from being the panacea of all technological ills. Smart contracts are self-executing contracts with a predetermined set of rules. They are stored on the blockchain and run by computers, which makes them tamper-proof and reliable. However, as with any new technology, smart contracts have associated risks. This article will explore some of the most common pitfalls and how to…

Looking for Crypto Marketing? Here are The Best Crypto Advertising Agencies in 2023

It is vital to have a strong marketing strategy if you wish to succeed in cryptocurrency. This is where crypto marketing agencies come in. You may successfully promote your project and reach your target audience through a crypto marketing agency.  This article will explore the top crypto marketing agencies in 2023. Moreover, we will look at their services and how to choose the right one for your project.  We will also discuss the benefits of using a crypto marketing agency.…

The Risks of Investing in Crypto Projects without Smart Contract Audit

Smart contracts are self-executing contracts that run on blockchain technology. They are stored and verified on the blockchain, which means they are transparent and cannot be tampered with. This makes them a secure way to conduct transactions without needing a third party.  Despite their many advantages, some risks exist with using smart contracts. One such risk is investing in crypto projects that have yet to have their smart contracts audited by a qualified auditor.  Without an audit, it cannot be…

SuperBots Trading in DEX – The Future of DeFi Trading is Here

Trading in decentralized finance is evolving rapidly and empowering people worldwide to access new forms of income. Spearheading this revolution are platforms like SuperBots, a BSC-based protocol enabling users to deposit their capital in vaults for secure and efficient trades on decentralized markets. SuperBots accelerates the mainstream adoption of DeFi trading through high-performance bots that automatically trade for their owners. This way, users can achieve profitable trades, regardless of their experience or skill. Furthermore, the platform does not charge any…

Top Smart Contract Audit and KYC Companies in 2023

It's no secret that business is undergoing fast change. Companies must adapt when new technologies, like smart contracts, emerge to remain competitive. A crucial part of this adaptation process is ensuring compliance with regulations and safety. This is where a company's KYC (Know Your Customer) process or smart contract audit come into play.  To ensure that your company is compliant, working with a reputable smart contract auditor or KYC provider is essential. This blog article discusses the benefits of using…

Automated Trading with No Subscription Fees – How UpBots is Revolutionizing the Trading Industry

Cryptocurrency trading has enhanced the universe of assets available to traders worldwide. However, this practice is challenging for inexperienced or unskilled traders. Furthermore, the ongoing bear market makes trading costly and inconvenient when most platforms charge upfront or subscription fees. As a result, many people avoid entering the market. UpBots aims to change that and take the trading industry to a new level through innovative and affordable solutions. For one, its automated trading service allows users to trade in CEX…

Top 5 KYC Solutions for Crypto or NFT Projects

As the importance of blockchain technology grows, many people look for ways to get involved in the crypto world. One of the most important aspects of any cryptocurrency or blockchain project is KYC/AML.  Without proper KYC/AML procedures, your project could be at risk for fraud and illegal activities. This article will discuss the types of KYC solutions available and how to choose the right one for your project.  We will also provide tips on how to implement these solutions properly.…

DeFi Scams – Most Common Scams in the DeFi Space

In the world of Defi, scams are unfortunately all too common. This article looks at popular Defi scams, how they operate, and how to protect yourself. We'll also provide tips on what to do if somebody scammed you and how to report a scammer. Finally, we'll discuss the implications of DeFi scamming and present examples of successful prosecutions. What Are DeFi Scams, and How Do They Work? Decentralized Finance (DeFi) is a term that has gained enormous popularity over the…

5 Trading Bots Platforms to Automate Your Crypto Trading in 2023

Crypto trading bots enable investors to automate buying and selling based on advanced technical indicators. These innovative tools compete to provide the highest percentage of profitable trades even during bear markets when trading winnings are at a minimum. Therefore, it’s no surprise they have become the favorite cryptocurrency trading solutions for beginner and expert traders alike. As a new trader, you can use trading bots to emulate the successful strategies of more experienced traders. Alternatively, if you possess the know-how…