are we in a bull run and how long is this gonna last it's easy to look smart when
most of your coins are pumping day after day but how much do you really know about the workings of
a crypto bull market so in today's corn market cap episode we're gonna be looking at the seven things
you may not know about the crypto buron my name is trev and here at coinmarketcap we love making
videos about all things crypto from crypto news to market moves and educational videos just like the
one you're watching right now and if you want something more than just hype and to actually
learn about crypto make sure to subscribe and hit the notification button down below to make sure
you're not going to miss out on another video so without further ado let's get into today's video
a bull market is an exciting place to be in it's a thrilling rollercoaster ride for any new investor
and every other trade ends up making you tons of money and investors broadcast their exceptional
returns to their friends and on social media and the overall market sentiment is very positive
so nothing can go wrong right well or at least that's what the typical retail investor thinks
when they enter a crypto bull run here are 7 things you don't know about a crypto bull run
alright so the first one is paper profits are not real when the prices are shooting up it's hard to
even fathom that they will ever come back down consumed by euphoria investors just continue to
wait until they have earned enough money to retire and never work again with hindsight it's obvious
that huge speculative price increases are largely unsustainable whether you are a holder or a trader
it's best to take periodic profits sure you might miss out on some larger gains but you will also
lock in some profits something many traders fail to do so remember profits only exist once
you realize them once you cash them in but this is really hard to do when the insane return potential
takes over your imagination which actually brings us to number two which is insane leverage you see
a coin of yours goes up 20 in value overnight and you can't help but ask yourself what if i've
invested double triple five times 10 times 100 times my initial investment have you ever woken up
with your trading account fully wiped out if you haven't yet well you either have not experienced
the crazy leverage available in crypto exchanges or you've just been extremely lucky while doubling
quadrupling or 100xing your gains within a day or less may sound really exciting to the average
investor and unfathomable to the regular market such as stocks it's a very dangerous game to play
especially during the bull run you start to think anything is possible that you can really retire
within a week or two and never work again but it may only take a tweet or a big whale to come along
deciding to cash out and make their paper profits into real gains and within minutes that positive
500 return your scene becomes a negative and then there may not even be a time for a margin call and
you'll be completely wiped out or wrecked so always be careful and that leads us to
number three which is the hype machine doesn't care about you but it's not only leverage that
you should be aware of and how it may turn on you at any second it's the coins themselves that can
go from the highest high to zero within seconds of course i'm talking about rug pools which are
rampant during a bull run this is a perfect time for dodgy individuals who have been pumping coins
through influencers and other marketing methods to exit and realize their own paper gains on coins
they created specifically to separate you from your money and a great recent example of this
is the squid token which was created based on the popular netflix show squid games and hype is real
the market cap is 2.168 trillion dollars and now the mark oh oh it went to zero
so that brings us to number four which it's never been a better time to do your own research
when you go online you see influencers from all over the world shilling out crypto and sometimes
outright forgetting to tell their followers that it's a sponsored ad and of course they tell you
that it's gonna go to the moon and that it's a sure thing and this can be quite dangerous if
you buy at the height of euphoria then when the crash comes you're caught with the coins that
have plummeted the losses become enormous when you buy high and get forced to withdraw your
money during or after the crash be wary of the news and coins that are being shield on twitter
reddit and other social media platforms when investing into a coin or token see what kind
of project it is and if there's actually going to be some good value behind it in some cases
influencers and publishers can actually have a vested interest in causing fud or fomo in order
to manipulate the markets in a given direction when learning about the latest updates across
cryptocurrency markets always try and confirm with multiple sources because in a bull market
everyone is a genius and talking about genius number five is never confuse genius with luck
it's very easy to make money in a bull market and much harder to do the same during a bear
one the greatest trick the bull market plays on new investors is making them think luck is a
skill making money through a lucky early trade is one of the worst ways to win the bad habits that
it reinforces will lead to magnifying losses many investors in a bull market tend to give themselves
too much credit for favorable results and insufficient credit to the positive environment
that played in a significant role in creating the results and this can lead to overconfidence on the
part of the investor in resulting misassessments of risk so before you quit your job and become a
full-time day trader just remember everyone is a genius during the bull market and that brings
us to number six which is a bull run or not greed can still ruin you a bull market is actually the
time to be cautious and invest sparingly in opportunities with positive future potential
on the other hand what retail investors do is get greedy and run after every project that's been
delivering good returns till then many of these projects may have run beyond their fair value
and are soon due for a price correction which means that investors are entering runs nearing
their ends and may face significant risk of losing their money also any traders understand that
market timing can incur losses but still might think that they're the exception to the rule so
you might be thinking to yourself market timing doesn't work for most people but i'm not most
people and i know the markets like the back of my hand when you predicted market events correctly
one time before you might feel overconfident that you can do it again combining overconfidence with
this type of decision making inevitably means that you're going to lose money and other emotions
might play into the mix like fear and greed the bull market may be dangling carrot when you want
to get rich as quickly as possible remember the dot-com boom in the greed that resulted investors
scrambled to buy every internet related stock without knowing about the underlying companies
and well we all know how that ended you cannot control the market but you have control over your
actions and your actions will determine whether you make profit or loss in the crypto market and
this brings us to fomo which is 0.7 on our list today is fomo investors buy in at a high price
and sell at a low price or buy high sell low coins are rising and even your beer buddy who just heard
about crypto is already bragging about his great return he plans to retire next year and live the
rest of his life drinking cocktails in thailand you know very well that anyone can brag about the
extraordinary returns at the end of the long bull market and you know that you should be patient and
those who are the most cocky at the end of a long bull market are the same people who will weep into
their pillow before bedtime and you know that but sitting on your shoulder is a little devil
asking questions like does value investing even work or should i have invested in sheba
floki and doge 2 and what you're suffering from is fomo or fear of missing out and that is really
just another word for greed and greed is one of the few emotions that can ruin you as an investor
the other emotion being fear greed has you buying projects when they are too expensive because you
are afraid of missing out on future gains and fear has you selling these projects when they
fall because you get scared of losing too much and well we've all heard of the famous warren
buffett quote be fearful when others are greedy and greedy when others are fearful so we hope the
things that you know now can help you navigate the uncharted waters of this emerging market remember
to always keep things in mind and always keep your guard up let us know in the comments down below
your thoughts on the crypto market anyways guys this has been your host trev and if you have any
questions just ask alex in the description below and also make sure to subscribe and hit the bell
notification down below to not miss out on another video anyways guys we'll see you again tomorrow