Introduction

In the year 2020, around August, I never knew what crypto or blockchain was. I just kept hearing about NFTs and Bitcoin from almost all my peers. They were like, 'Once you get one Bitcoin, that's a straight ticket out of poverty.' I laughed because that felt too good to be true. I finally bought some XRP tokens after so much pressure. Lo and behold, the tokens skyrocketed. I was like, 'What sort of sorcery is this?' But then I found out it's the bull run.

With cryptocurrency taking over the financial world globally and digital currencies gaining a lot of popularity right now, as the bear market is almost over, it is quite important to stay ahead and be in the right position in anticipation of the next bull run. In this article, we’ll discuss what is meant by the bull run, how it occurs, and ways to prepare it.

Understanding the Bull run.

Bull run refers to a period of significant increase in the prices of cryptocurrencies and a high level of optimism surrounding the crypto market. During a bull run, the price of Bitcoin experiences an inflated growth, often exceeding the previous all-time highs and attracting increased investor and buyer interest. The increase in the price of Bitcoin makes other cryptocurrencies shoot up. Bull runs are generally characterized by a positive market sentiment, with buyers outnumbering sellers. This means there is high demand but relatively low supply, which leads to an increase in prices.

The bull run is driven by many factors, including increased cryptocurrency adoption, optimism among investors, positive news, and high speculation. It is the direct opposite of a bear market, where prices consistently depreciate. There is a general belief that the prices of cryptocurrency tokens will continue to rise during this period. However, investors need to exercise caution as the bull market can also be followed by corrections or bear markets, where prices decline.

How does the Bull run occur?

The bull run can be traced back to a phenomenon known as Bitcoin halving. Bitcoin halving is one of the most vital events in the life cycle of a crypto market. This happens approximately every four years, it is believed that the reward the miners receive for mining Bitcoin is split in half. With that, the supply of Bitcoin introduced into circulation is drastically reduced.

According to past events, Bitcoin halvings always come before massive bull runs. The first halving occurred in 2012 when Bitcoin's price increased from around $12 to over $1,100 within a year. The next halving saw the price rise from under $700 to nearly $20,000 in 2017, and the most recent one took place in late 2020 to early 2021 when Bitcoin reached its all-time peak of $67,000. Based on these patterns, many crypto analysts have speculated that the next halving will occur in 2024, kicking off the next major bull market.

Nevertheless, it is crucial to note that Bitcoin halving is not the sole factor that triggers a bull run. The cryptocurrency ecosystem is constantly evolving, with numerous innovative projects beyond Bitcoin. Projects like Ethereum and smart contract platforms have ushered in a whole new crypto sector, including decentralized finance and NFTs. These sectors, along with government policies in different countries, also contribute to the occurrence of a bull market.

Cryptocurrency tokens to add to your portfolio before the next Bull run.

1. Bitcoin

2. Ethereum

3. Ripple (XRP)

4. Litecoin (LTC)

5. Polkadot (DOT))

6. Binance (BNB)

7. Uniswap (UNI)

8. Cardano (ADA)

9. Aave (AAVE)

10. Solana (SOL)

How to prepare for the next Bull run

1. Stay informed

Stay up-to-date with market developments and news. Market sentiment can quickly change based on global events, regulations, and technological advancements. Join crypto communities and platforms that actively talk about crypto. A platform like NODO is highly recommended to be a part of before the next bull run. Being informed will help you make the right decisions at the right time.

2. Research and educate yourself

Another way to prepare for a bull run is to educate yourself about the cryptocurrency market. Understanding the technology, different coins, and market dynamics is crucial. You can do this by reading books, taking online courses, staying updated with crypto news, and being active in communities.

3. Set clear goals

Before the bull run begins, set clear investment goals. Determine your target profit levels and decide when you'll exit the market. This will help you avoid emotional decision-making during times of high market volatility.

4. Diversify your portfolio

Diversification is a fundamental risk management strategy during a bull run. Have many options; don't put all your eggs in one basket and spread your investments across different cryptocurrencies to reduce risk and increase the potential for gains.

5. Make a hodling or trading decision

Before the bull run, decide whether you want to be a long-term "HODLer" or an active trader. Both strategies can be profitable during a bull run, but it's important to stick to your chosen approach and not let emotions and greediness cloud your judgment.

6. Risk management

Only invest what you can afford to lose. Crypto investments come with inherent risks. Sometimes, you might do everything right and still lose. So, use funds that you can afford to lose, and also set limits on your trading. This can help you manage these risks effectively.

7. Secure your wallet

Security is of utmost importance in the crypto world. Ensure your assets are safe by using hardware wallets to store your holdings offline. This protects your investments from hacking attempts and online vulnerabilities. Don't just connect your wallet to any link because, during this period, there is a high level of hackers looking for the next wallet to tamper with.

Conclusion

The bull run can offer a life-changing experience for those who have prepared and strategically positioned themselves for it. It can be a 'straight ticket' out of poverty if you approach it correctly. Remember, while the cryptocurrency space offers opportunities to make a lot of money, it also comes with high risks. By following the ways listed above, and most importantly, by staying informed, you can navigate the crypto world more effectively during the next bull run as an investor or trader.

Disclaimer: Please note that this article is not trading or investment advice. Always conduct thorough research and ask the right questions before investing in any projects or tokens.