Blockchain Market Cycle Basics: Understanding Bull-Bear Transitions

Having been in the blockchain space for a while, you've definitely heard the terms "bull market" and "bear market". Today let's talk about market cycles.

Let me start with a true story. I entered the industry in 2018, right at the tail end of the previous cycle.

When I first got in, the market was hot, everyone around me was making money, it felt like you could make money buying anything with your eyes closed.

I thought the same way back then, and invested all the money I had saved from working.

Result? Not long after, the market cooled down, the money in my account kept getting smaller, and in the end only a fraction was left.

I couldn't sleep during that time, regretted it so much. But looking back now, that was the most valuable tuition I ever paid.

Since then I've understood: markets have cycles, there's no market that only goes up, nor one that only goes down.

What are cycles? Simply put, it's like the four seasons - spring, summer, autumn, winter.

Plant in spring, grow in summer, harvest in autumn, store in winter. Markets work the same way.

In a bull market, everyone is enthusiastic, everything you buy goes up, it feels like spring has arrived, everything is growing.

But you have to know, spring isn't eternal, after summer comes autumn, after autumn comes winter.

In a bear market, the market is quiet, nobody wants to talk about investing, many people even cut their losses and leave.

But winter isn't the end, after winter comes spring again.

I know smart people around me who quietly studied and accumulated during the coldest market times, and harvested heavily when spring arrived.

I also know people who rushed in at the bull market peak, and cut their losses at the bear market bottom, getting slapped both ways, really painful.

What's the use of understanding cycles? Not to let you predict when the top is or when the bottom is - nobody can predict that accurately.

But to let you keep a clear head when others are狂热, and keep a glimmer of hope when others are绝望.

Remember: be fearful when others are greedy, be greedy when others are fearful. This is easier said than done.

But at least, you need to know markets have cycles, don't go all in at highs, don't leave in despair at lows.

Final reminder: this article talks about market cycle knowledge, not investment advice. Everyone's situation is different, you make your own decisions, you bear your own risks.