How To Survive a Bitcoin Bull Market

We expect there might be a little spring in your step this week. Bitcoin’s price has made a significant jump in the right direction and has very nearly crossed the 100,000 US Dollar mark.

That’s an awful lot of government coupons!

Of course, this increase vs the US dollar shouldn’t come as much of a surprise. If you value something that is completely finite (bitcoin), in something that is infinite (fiat), then the former rising in price vs the latter is not only likely, but certain.

That’s why we often try to remind ourselves that Bitcoin’s price is one of the least interesting things about it. On a long enough timeline, measuring anything’s value in dollars will seem an absurdity. Bitcoin will eventually become the denominator when pricing anything.

Nevertheless, seeing Bitcoin accelerate to nearly $100K while being endorsed by Larry Fink and a sitting US President, still feels completely surreal.

For 15 years we’ve had to read premature Bitcoin obituaries written by ill-informed journalists and belligerent economists still drunk on Keynesian economics. While the price might not be the most interesting thing about Bitcoin, it’s undeniably vindicating to see free market demand silence Bitcoin’s critics in such spectacular fashion.

It turns out that those reports of Bitcoin’s death were greatly exaggerated….

There’s no question then that it’s been a great week to be a Bitcoiner. Another bull run looks all but inevitable and the excitement in the community and on social media feels palpable to say the least.

But let’s just catch our breath quickly. Bitcoin bull markets are certainly fun, but before getting too over excited let’s remind ourselves that ‘All Time High’ prices bring with them ‘All-Time-High’ risks to your stack as well. Amidst all the hype and chaos of a bull market it can be easier than ever to make a mistake you could live to regret.

That’s why this week we wanted to offer some friendly advice on how to keep safe and have fun while still managing to avoid any potential pitfalls.

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In a Bitcoin Bull Market - Stay Humble

It’s important, but sometimes difficult, to remain humble during a Bitcoin bull run.

We know this because we aren’t immune from getting a little carried away ourselves sometimes. We won’t try and pretend to be so pious that we can watch our purchasing power surge without feeling a little smug about some of the decisions we’ve made along the way.

Even so, it pays dividends to remain humble. Growing your wealth is only one half of the battle. Keeping hold of it and using it effectively is quite another. Becoming a capable steward of your newfound wealth requires a sober mind and sensible disposition. Becoming too proud or too smug can easily lead to foolish mistakes.

For starters, ignore the temptation that many other Bitcoiners succumb to and don’t perform victory laps all over social media. Sure, you might have bought a decent chunk of Bitcoin at $15,000 and have the screenshots to prove it. But sharing that publicly is a very foolish thing to do. The internet never forgets….

Second, let’s not forget what everything that is happening around us ultimately leads to. Bitcoin’s continued success will eventually coincide with the total demise of fiat currencies the world over. Everything will be repriced, and the economy will be restructured in ways people can barely conceive of today.

Sure, Bitcoiners stand to become very wealthy, but most people are going to be caught completely off guard by this paradigm shift in money. The demise of our broken fiat economy is a good thing for humanity in the long term. But for a lot of people, perhaps even some Bitcoiners, the transition might feel extremely uncomfortable in the short to near term. Important things are going to break before we can start to really rebuild and there is more than likely going to be a lot of social upheaval and unrest. You can’t bake a cake without breaking some eggs.

So, it's OK to be pleased with your choices, but maybe don’t dance. It’s not classy and you could even end up making yourself a target.

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Don’t Get Greedy

History rarely repeats, but it often rhymes. If previous bull markets are anything to go by then at some point, we will reach almost unfathomable levels of greed and mania.

Cycle after cycle, this greed manages to claim the stack of many a well-intentioned Bitcoiner. It’s essential you keep your feet on the ground and avoid being lured into making mistakes you can never unmake.

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Avoid the Meme Coins

Unfortunately, despite what some influencers might tell you, altcoins, ordinals, NFTs and all the other ‘Web3’ garbage in the ‘crypto industry’ won’t simply disappear this cycle. That can only happen once everyone finally figures out that Bitcoin is the only game in town and that altcoins are just affinity scams.

But that doesn’t look likely to happen any time soon. Currently only a very small % of the world’s population truly understands what Bitcoin represents. Even most people who currently own some Bitcoin still only viewit as a way for them to ‘get rich’ in fiat terms.

Unfortunately for a lot of these people, their ignorance can and will be taken advantage of. Those that are here to get rich quickly will allow their unit bias and greed to lure them into buying well marketed shitcoins in an attempt to ‘accelerate’ their potential gains.

I mean, why wouldn’t you buy ‘Dingus’ coin when it’s only $0.01? If it goes to $10 imagine how rich you could get!? It’s quite literally a no-brainer….

It’s a ludicrous notion of course but in a world where fiat money is rapidly dying, the propensity to try and gamble your way out o0 fpoverty will increase dramatically. Some people will find the solution (Bitcoin) but most unfortunately will not, and in their desperation will increasingly turn to frantic speculation. Source: Weimar Germany.

So, for now at least, it makes sense to expect that the degenerate shitcoin gambling is here to stay. Just make sure not to get tempted yourself. You will see ridiculous pumps on meme coins and all manner of nonsense and hype online. Just remember that the dumps will be just as savage and the odds of you making it out alive are incredibly slim.

If you want to make it through the bull run with your Bitcoin stash intact, it’s best to steer clear of all this crypto degeneracy.

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Don’t Become the Yield

We are already beginning to see various companies now moving into position to offer you products that allow you to earn yield on your Bitcoin.

They usually come with a very attractive sales pitch….

“You made a lot of money with Bitcoin. Your purchasing power has soared! Wouldn’t it be nice to use some of that newfound wealth? Why not treat yourself a little? You could even do it without selling any of your Bitcoin, so you won’t miss any further upside!”

Sounds delicious, doesn’t it?

Well of course it does!

Who wouldn’t want to have their cake and eat it too? You now get to enjoy your Bitcoin riches without spending any of your precious Bitcoin! Amazing!

The reality is however that nothing in life comes for free. Including the yield you’re hoping to earn on your Bitcoin. By trying to unlock the spending power of your Bitcoin without actually spending it, you are introducing all sorts of unnecessary risk into your Bitcoin strategy.

First of all, you’re introducing unnecessary counterparty risk. It should be abundantly clear by now that one of the worst things you can ever do with your Bitcoin is entrust it to a third party. Doing so significantly increases your chances of never seeing that Bitcoin ever again. Too many custodians have gone bust in Bitcoin’s short life span that still choosing to take this risk is frankly inexcusable.

Second, understand that there is no such thing as ‘risk free yield’. Even if it is offered by a ‘credible’ financial institution. Think about it; to offer you yield on your Bitcoin these companies are going to have to deploy the capital you give them and earn a return on it. There is every possibility that their investments underperform or fail completely, and your capital is necessarily at risk.

Will they really be able to invest your Bitcoin in such away that outperforms just holding it?

Ultimately, trying to earn yield on your Bitcoin is a fool’s errand reserved only for the overly greedy. People who are typically easily parted from their treasure. Bitcoin is currently less than 10% the market cap of Gold and less than 0.5% of the market cap of global real estate. Holding it islikely to offer you returns that are incomprehensible to most seasoned investors. Trying to scrape an extra 5% off the top by playing fiat games is like trying to pick up pennies in front of a steamroller.

Getting greedy is an exceptionally fast way to get rekt and be left with some serious regrets. If you want to learn more about the risks of trying to earn yield on your Bitcoin check out our article: EarningYield On Your Bitcoin? YOU Are the Yield!

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Don’t Get Complacent

Last but not least, its more important than ever during a Bitcoin bull market not to get complacent. It’s all too easy during the hype and noise to take your eye of the ball and lose focus.

Remember that Bitcoin bull markets attract not only new buyers to the market, but also new scammers and criminals. There will be an increasing number of people intent on trying to get their hands on some Bitcoin without having to pay for it. A bull market is a time when it pays to me more cautious. The more desirable Bitcoin becomes, the more vital it is that you protect it properly.

You should definitely make sure you stay on the lookout for an increase in online scams, dodgy links and phishing attacks. These will increase significantly as it becomes increasingly profitable for scammers to target Bitcoin holders. If you want to learn more about the things to watch out for, check out our article on social engineering attacks.

Other than watching out for scammers, you should also make sure you’re not getting complacent about your security setup and that you’re keeping your skills sharp. It makes sense to ask yourself a few questions…

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-           Is your Hardware wallet still working? Whenwas the last time you powered it on?

-           When was the last time you updated yourhardware wallet’s firmware to the latest version? Is it up to date?

-           When was the last time you wiped andrecovered your Hardware wallet and tested your setup? Are you still comfortablewith that process?

-           Are you comfortable with your UTXO managementand is everything organised and labelled within your wallet?

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The list of questions could go on and on. Bitcoin is technology and technology evolves and adapts over time. There will always be new updates, new hardware and new software. There will always be more you can learn and there are always new ways to sharpen your skills and become more capable and comfortable.

During this bull run the average person is going to spend their time staring at price charts, patting themselves on the back, and feeling perhaps a little too smug.

We want to propose a different path. One that the average person will not take. We want to ask the question…

“What it would look like if you spent this bull run learning new skills, mastering new wallets, improving your opsec and becoming a seriously capable Bitcoiner?”

Not only would you keep yourself out of trouble. You might just become the ultimate self-sovereign version of yourself.

Being rich is cool. Being rich and ungovernable is epic.

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Improve Your Bitcoin Skills The Bitcoin Way

Are you looking to take your Bitcoin journey to its ultimate conclusion and become fully self-sovereign? Are you ready to become the true master of your wealth, your data and your destiny?

That’s exactly what we are here to help you accomplish. Our aim is to help our clients achieve maximum freedom.

With personalised 1 to 1 training our experts can help you learn the necessary skills to become a fiercely capable Bitcoiner with the skills to take control of your Bitcoin, your privacy and your security.

All you need to do to start your own epic journey is to take the first step and book a free30-minute consultation with our team.

The future will belong to those who master Bitcoin. The time to start training is now.