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# CRYPTO ANALYSIS

Why Do Bull Markets Cause Losses? Tips to Avoid Them

Why Do Bull Markets Cause Losses? Tips to Avoid Them

KEYTAKEAWAYS

  • Avoid Risky Leverage – Perpetual contracts are dangerous for retail traders. High leverage can wipe out funds quickly, so steer clear unless you're highly experienced.
  • Stay Cautious and Skeptical – The crypto market is full of scams and betrayal. Assume others may have bad intentions and protect your assets by staying vigilant.
  • Take Profits Regularly – Don’t hold out for unrealistic targets. Secure profits when necessary to avoid watching gains vanish during market corrections.

CONTENT

Learn the essential rules to survive a bull market, avoid common pitfalls, and maximize profits while staying disciplined and minimizing risk in the unpredictable world of crypto trading.


There’s a popular saying in the crypto world: “It’s easier to lose money in a bull market.” 

 

While a bull market might seem like the perfect time to make profits, the reality is that soaring market sentiment and volatile prices often lead to losses driven by greed or poor decisions. 

 

So, how can you navigate a bull market wisely, avoiding pitfalls while capitalizing on real profit opportunities?

 

>>> More to read: Is Bitcoin Reaching Its Peak in 2025?


BULL MARKET SURVIVAL RULES

 

➤ Rule 1: Never Recklessly Use Perpetual Contracts


Perpetual contracts are designed for giga whales, not for the average retail trader. Most people are not GCR, Hsaka, Andrew Kang, or Nexus. 

 

You shouldn’t be trading perpetual contracts. These instruments are typically used by whales to supplement positions or place small bets with low leverage. 

 

Using 10x leverage or higher is like handing control over to the devil – don’t even think about it. Perpetual contracts are, without question, the fastest way to lose all your funds.

 

>>> More to read: What Are Crypto Perpetual Contracts?


➤ Rule 2: Always Assume Others Have Bad Intentions

 

You are in the “Wild West” of finance. There are no true friends here – even those who act like your friends are no exception.

 

The market is filled with countless stories of deception, betrayal, and scams, often by trusted individuals. 

 

Assume that the people you interact with could be malicious strangers or potential scammers. 

 

Trust no one easily, and always expect that anyone could dump their assets on you at any moment.

 

>>> More to read: Crypto Risks 101 | Beginner’s Guide


➤ Rule 3: Don’t Buy Parabolic Assets & FOMO


Avoid chasing assets that are skyrocketing in price. While you might occasionally get lucky, the odds of failure far outweigh the chances of success. 

 

Instead of risking it, practice patience and wait for the market to cool down. Don’t blindly FOMO into price surges.

 

>>> More to read: What is FOMO in Crypto?


➤ Rule 4: Focus on Market Cap, Not Price


Many people fall into the trap of fixating on the price per unit – like XRP supporters believing it can hit $10,000 or SHIB reaching $0.01. In reality, such targets are unattainable. 

 

Always evaluate whether the market cap is realistic, rather than just focusing on the price. However, if others choose to believe in these unrealistic price goals, let them.

 

>>> More to read: What is FUD in Crypto?


➤ Rule 5: Take Profits


If you’re facing financial difficulties in your life, it’s completely reasonable to sell part of your assets to solve those problems. 

 

The market will always be here, and opportunities will continue to arise. 

 

Many traders hold out for arbitrary target numbers – $50,000, $100,000, $200,000 – only to watch their gains evaporate, return to zero, or even turn into losses. 

 

Developing a solid profit-taking mindset will make you a better trader and lead to a more comfortable life. 

 

In the long run, adjusting your mentality this way will greatly benefit you.

 

>>> More to read: Why You Need To Take Profit & Stop Loss in Crypto


➤ Rule 6: Don’t Connect to Unknown Apps


Be cautious before interacting with any new application, as it could lead to your assets being stolen. 

 

It’s wise to first test with a wallet containing a small amount of funds. Only connect your main wallet once you’re sure the app is safe.

 

>>> More to read: 4 Most Common Crypto Scams And How To Avoid Them


➤ Rule 7: Fully Commit to Your Investment Rules


This is the most important rule – the foundation for staying grounded and humble. While it may not always be possible to follow your rules perfectly, striving to stick to them is crucial. 

 

Emotional decisions often lead to regret, and deviating from your strategy in the heat of the moment can undo months of disciplined effort.

 

Consistency is key. Your investment rules exist to protect you from impulsive actions and market noise. Revisit and refine them regularly, but never abandon them out of greed or fear. 

 

The more you honor your system, the more resilient and confident you’ll become, ultimately leading to long-term success.

 

>>> More to read: How to Start Trading in Crypto: A Beginner’s Guide


CONCLUSION


The crypto market is unpredictable, and even during a bull market, experts cannot accurately forecast price movements. 

 

Before investing, always conduct thorough research (DYOR) and only invest what you can afford to lose. 

 

Even the smartest and most experienced investors can suffer losses in volatile markets – caution and discipline are key to long-term survival.


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DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

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