How to Prepare for the Next Crypto Bull Market

By Raj

As a crypto enthusiast, there’s only one thing I await when it’s not here and one thing I relish when it is here: the crypto bull market.

If you’ve been in the crypto space for a minute, then you already know that there are bear markets and bull markets for crypto.

A crypto bear market is often called “crypto winter”, as it feels like a cold and punishing time to be an investor. Asset prices are depressed, sentiment is horrendous and the outlook for brighter days ahead is dim.

Conversely, a crypto bull market creates a feeling of seemingly all blue skies ahead.   

What is a Crypto Bull Market

A crypto bull market is typically marked by a market condition in which prices for a large segment of all cryptocurrencies are on the continuous rise.

These periods can last many months to many years. They typically align with positive economic conditions and widespread investor optimism about where the markets are heading.

For reference, the period of Bitcoin running to $20,000 in December 2017 was a bull market, as was the period of Bitcoin running to $68,000 in November of 2021.

A crypto bull market is when many investors put money they have on the sidelines to work.

Something you’ll notice during a bull market crypto cycle are the speculative/euphoric psychological underpinnings of the most bullish and high-risk investors.

For example, this was evident during the most recent crypto bull market in which Bitcoin did something like a 7X and many other smaller layer 1, metaverse and other altcoins did far more X’s than that.

If you’re curious to witness this phenomenon, simply check out some of the stock-related commentary on Twitter during a bull market crypto cycle.

When is the Next Crypto Bull Run

The next crypto bull run is not an easy thing for your average investor to predict. In fact, if you ask five professional crypto investors that question, you’ll likely get five different answers.

Following the economy and the data it produces can be a good way to at least try and determine when the next crypto bull run will be.

In a bull market, unemployment usually dips and gross domestic profit usually grows.

There are plenty of other bullish economic metrics to look at including inflation, consumer spending and commodity prices.

There’s an index that measures stock market volatility, known as the VIX, often used as a proxy to gauge crypto volatility, that will reflect lower volatility, typically below 20 in a bull market.

Also, an event known as the Bitcoin halving has historically triggered bullish patterns for crypto.

This event occurs when mining rewards for Bitcoin are cut in half, lowering the new Bitcoin supply being generated.

These are all great indicators to keep an eye on, but it can be daunting to do so, especially if you’re a more passive or casual investor.

For most average investors, it’s not so much about timing exactly when the next crypto bull cycle will take place. Rather, it’s about preparing during the bear market to take advantage when the bull market does finally arrive.

Steps to Prepare for the Next Crypto Bull Market

When it comes to investing in crypto, the way in which you prepare for the bull market can make the difference between success and failure.

Here are some critical tips for success:

1) Build an Emergency Fund

A solid fundamental of investing is that before you invest even a penny of your money in crypto or other assets, make sure to have an emergency fund in place.

As the name “Emergency Fund” indicates, this is money that’s only to be used for important and unexpected expenses.

Such expenses include critical bills you need to pay in the event of joblessness, medical bills or a major home repair.

One common nugget of wisdom related to emergency funds is that your fund should cover at least six months of expenses. Preferably even longer, were you to lose your job.

If you don’t have such a fund already, believe me, setting one up will bring you enormous peace of mind. Perhaps it’ll even bail you out of a major life set-back in the future.

2) Allocate Funds for Crypto

Once you have your emergency fund in place, it’s time to prepare for the next bullish crypto market cycle by allocating funds for crypto.

This does not necessarily mean you need to go out and buy crypto right away.

It means you’re building a fund, hopefully in an interest-paying savings or money market account. You’ll deploy it strategically and in increments, over a period of time.

Crypto is of course a risky and volatile asset, and as such you should only allocate money which you’re willing to lose.

Is that amount 1% of your net worth? 5% of your net worth? Only you know your financial situation and risk tolerance, so think about it and make a cautiously wise decision.

3) Research Crypto Projects

What kind of cryptocurrencies do you want to invest in?

Some people like to invest in Bitcoin only and call it a day. Others might invest in Bitcoin, Ethereum and a few other top 20 market cap projects.

I like to invest in Bitcoin, Ethereum and other layer 1 crypto projects. I also own a swath of gaming and metaverse cryptocurrencies, too.

If you’re new to cryptocurrency and don’t know where to start, check out this article on How to Get Into Cryptocurrency.

Researching cryptocurrencies, knowing exactly what you’re buying and the potential it holds, will allow you to make informed purchase decisions.

It’ll also help give you peace of mind as an investor, through both good market periods and bad.

4) Open Accounts at Exchanges

Here’s a secret: the best time to open new accounts at online cryptocurrency exchanges is during a bear market.


During a bull market, some of the top exchanges will get overwhelmed and close account registration to new investors. I was made aware of this in 2021, during the height of the bull market crypto cycle.

I suggested to a friend that he open an account at a major exchange. When he tried, he was declined due to the high demand placed on the exchange.

So bottom line, if you think you might want to register for an account at an exchange, do it right away.

One of the benefits of having accounts at multiple exchanges is the variety of cryptocurrencies to which you’ll have access.

For example, Binance.US will have a lot of the major cryptocurrencies. However, if you’re looking for more obscure gaming, Defi or other cryptos, you’ll have a better chance finding them on exchange like Kucoin.

5) Consider Dollar Cost Averaging into Crypto

Dollar cost averaging in crypto is a practice in which you invest a fixed dollar amount at regular intervals, regardless of the price movement. This could be once every week, month, quarter, etc.

It’s a strategy that lets you capture different prices with the goal of ultimately lowering your average cost per coin.

This automated form of crypto investing also allows you to establish a solid and regular investing habit.

It keeps you from trying to time the market (which is typically a fool’s errand in my opinion). It can also bring you peace of mind, too, as you’re not trying to chase price action.

If you dollar cost average during bear markets, you also take advantage of lower prices. This can ultimately pay off when the crypto bull run arrives.

6) Secure Your Crypto Assets

No matter what strategy you employ to invest in crypto, be sure that once you own it, you secure it.

The best option you have is to move it to a cold storage crypto wallet that you own.

With a cold wallet, you enhance the safety of your crypto by storing it in an offline environment.

Taking crypto off of crypto exchanges and into your own wallet is strongly encouraged, as it gives you possession of the private keys.

7) Set a Crypto Bull Market Exit Strategy

When it comes to exiting a crypto position, you essentially have two choices: you can take a loss or make a gain.

Depending on your time horizon, tolerance for losses and requirements for profit, either one of those choices could be right for you.

For me, one thing I like to do on certain positions, especially during a bull market, is if I’m up 100% on a cryptocurrency, I sell half my position.

That way, I’m playing with “house money” after that.

Your exit strategy might be completely different. Here are some things you may want to consider:

  • Hold your crypto for a year (this can have tax advantages)
  • Set price targets, by percentage or other metrics, at which to sell
  • Take profits and set them aside (not back into crypto)
  • Use a stop loss to minimize losses or lock in gains
  • Sell when you achieve a goal (e.g. “I made my tuition money for the year”)

Bottom line, having an exit strategy can help you to stay focused, keep from being too greedy and keep you from staying too long at the bull party. 

Final Thoughts

Crypto investing is, for me anyway, a long game.

I don’t plan to perfectly time when the next crypto bull run will occur, nor do I know exactly how long it will last once it does arrive.

However, if I’m buying quality cryptocurrencies, especially in bear market periods when prices are depressed, then I believe the risk/reward ratio begins to skew in my favor.

Disclaimer: The above is the writer’s opinion and should not be considered investment advice. Readers should do their own research and/or consult a financial advisor. Any actions taken based on the information above is at the reader’s own risk.

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