How Can Traders Prepare for The Next Bull Market?

• As investors look ahead to the next major bull run, most are encouraged by the numerous tools and strategies to make profits.
• The concept of cryptocurrency staking is very different from trading, yet combining both leads to powerful portfolio management.

While the cryptocurrency market sentiment remains relatively neutral, a future bull run always lurks around the corner.

Therefore, crypto traders must ensure they take advantage of future market moves. That also applies to those eyeing the staking industry, as it remains an excellent way to build a portfolio. 

Crypto Trader Bull Run Preparations

Many crypto traders have eagerly awaited the next industry bull run. Unfortunately, things have looked bleak since late 2021, and 2022 hasn’t offered much relief. Even so, things can always turn around when people least expect it. A crucial step in preparing for the next bull run is not talking about your portfolio – or how underwater it is today – and keeping one’s head down. No one needs to know the asset you own, how many, or what they are worth.

Crypto traders often overlook operational security (OpSec) in crypto. It is an industry where people get held at gunpoint for their crypto assets when prices spike to never-before-seen levels. Others will try to drain company funds as an employee or scam users in other ways. Bull runs in crypto land can do strange things to a human’s psyche, so there’s no need to put a bull’s eye on one’s back. After all, it doesn’t take much effort to doxx people and find out where they live.

Another viable piece of advice is storing coins securely. It shouldn’t need repeating, but exchanges are not reliable cryptocurrency wallets. They may provide wallet services, but everyone should move funds off these platforms if they are waiting to trade. Instead, store funds on a hardware wallet or cold storage solution. 

A final checkbox for crypto traders involves properly vetting projects one invests in. There are over 12,000 cryptocurrencies, tokens, and assets to choose from. Unfortunately, over 99% of them will have no real value within six months after launching. Avoid the scams by thoroughly analyzing the project, its team, and why it exists. Feel free to dive deeper into reports from entities like LunarCrush, Messari, Kaiko, etc. Following security audit firms may also prove worthwhile to figure out whether a project is a potential scam. 

Staking Benefits Bull Run Hopefuls

The concept of cryptocurrency staking is very different from trading, yet combining both leads to powerful portfolio management. The idea behind staking is increasing one’s balance of a specific cryptocurrency. Many currencies support proof-of-stake capabilities, including Ethereum, Cardano, Solana, Tezos, etc. 

All users need is a wallet connected to the internet to validate transactions and accrue staking rewards. In doing so, users can capture value from network activity, like through GTON Capital, by staking the governance token. That staking process also signals one’s long-term network commitment, as the growing success of the ecosystem will benefit all stakers. Moreover, the GTON Capital network has no fees for withdrawals nor lengthy lockup requirements, giving users their freedom. 

Depending on which asset one stakes, annual rewards can be as high as 44%. In most cases, they hover near the 5% mark. That means one’s holdings will increase by 5% without investing more money. Gaining a similar amount from trading – during a bear market – is tricky and very stressful. Staking is a much safer option these days. Acquiring 5% more ETH by doing nothing sounds pretty good, as does 34% more CAKE or 32% more EOS. 

One option to explore with delegating one’s stake is liquid staking. Through liquid staking, users relinquish control of their assets to accrue rewards but receive tokens in return to retain liquidity. Lido is a popular liquid staking provider for various networks and lets users explore DeFi and Dapps with their liquid tokens for other earnings. Liquid staking can compound earnings, although it is pertinent to research its risks and benefits first.