Reflections on Past Crypto Bull Runs: Lessons Learned and Future Strategies

 My journey through past cryptocurrency bull markets has been full of highs and lows, successes and setbacks. I’m sharing these experiences to reflect on the lessons learned and help others avoid the same mistakes as they navigate the volatile crypto landscape.

Starting Out: No Plan, No Strategy

In July 2019, I took a job at a university startup and began investing in crypto. Bitcoin was hovering around $10,000, and Ethereum was around $150. Market volatility was extreme, yet I continued funneling money into altcoins, hoping they would follow Bitcoin’s trajectory. However, while Bitcoin managed to hold its ground, other altcoins saw constant rebounds followed by sharp drops.

At that time, I didn’t have a concrete plan. I was simply buying and selling repeatedly, with no sell-off plan, no sector or market analysis, and solely relying on charts. My chart analysis lacked depth and logic, and I failed to grasp the broader market trends. I was so caught up in the cycle of trading that I couldn’t see the big picture.

The Big Mistake: Futures Trading

In 2020, I made one of my biggest errors by diving into futures trading. I underestimated the risks of leverage and poured $9,500 into futures. Looking back, it was reckless, and I’m thankful I had the foresight to set aside 1 BTC in a separate wallet—it was one of the few smart moves I made during that period.

The Upswing and the Peak

My real profits didn’t start showing until major coins began moving. Fortunately, I held onto coins like Luna, which saw massive gains, even reaching a 100x return at one point. I sold the 1 BTC I had set aside for around $60,000, achieving a 10x return. I also doubled my profits with TRON, bringing my portfolio to an all-time high of approximately $450,000.

Unraveling and Major Losses

However, my lack of a solid trading mindset led to further issues. I was still navigating the market without a clear approach when catastrophic events like the FTX and Luna crashes occurred. I tried to capitalize on Luna’s rebound but ended up losing a significant amount. On top of that, the scattered investments I had made in various lesser-known coins also suffered substantial losses.

After the bull run ended, I didn’t stop trading but instead doubled down on studying chart analysis and refining my trading criteria. By late 2022, I started to see more consistent results. Eventually, in 2023, I withdrew all my funds to purchase a primary residence. Combining funds from a personal loan, savings, and some help from family, I gathered around $200,000 in cash, and with a 70% LTV mortgage, I was able to buy a home valued at $700,000.

Net Gains: A Harsh Reality Check

After all these ups and downs, what’s my net profit? About $75,000. Of course, there were additional costs, like moving expenses and transaction fees, but the pure profit from my investments barely reached $100,000. Considering that if I had simply saved $1,000 each month for 30 months, I would have reached $30,000 with less stress, it made me wonder if all this trading was truly worth it.

Key Takeaways and Moving Forward

Looking back, I realize that buying a home wasn’t solely due to my trading skills—it was thanks to the support of my family and my spouse. This experience taught me invaluable lessons:

1. First Bull Market: I discovered new asset classes, learned that you could make money through investments, and understood that research is crucial.

2. Second Bull Market: I fell into impulsive trading, which led to a disjointed portfolio and inconsistent gains.

3. Third Bull Market: I’m now entering the third phase with a clearer strategy. While I will still use leverage, I plan to keep my risk small and focus on maximizing returns efficiently. Given that my spouse and I now have a stable residence, I can afford to approach the market with a level of confidence and patience.

Final Thoughts

Reflecting on these experiences has been crucial for me as I prepare for future market movements. By avoiding the impulsive mistakes of the past and adhering to a disciplined strategy, I hope to capitalize on the next bull run with more stability and purpose. For anyone reading this, I hope my journey offers valuable insights as you pursue your own investment goals.