The crypto market moves in cycles of bull and bear markets. After the massive bull run of 2017 and subsequent crypto winter, we saw another huge bull market in 2021. Now in 2023, the market has cooled off significantly from its highs. This has many crypto investors wondering - when will the next big crypto bull run happen? And to see how can you prepare your portfolio to take advantage of it when it happens?
When Is the Next Crypto Bull Run?
We can not pinpoint exactly when the next bull run will occur. The crypto markets are highly volatile and move based on hype cycles, adoption curves, and unpredictable external factors. However, most experts agree that the crypto market moves in four-year cycles related to Bitcoin's quadrennial halving schedule.
Bitcoin historically sees a peak sometime around 12-18 months after a halving takes place. The last halving was in May 2020, which lined up with Bitcoin hitting its previous all-time high of around $65k in April 2021. This would suggest the next cycle peak could occur sometime between mid-2023 and mid-2024. However, there are never any guarantees in crypto. It could happen sooner or later depending on various circumstances. The best approach is to prepare your portfolio to capture upside whenever the next sustained rally does arrive.
How can We Prepare for the Next Crypto Bull Market
Here are some tips on how to strategically prepare for the next crypto bull cycle:
Use Crypto to Gain Hands-On Experience
One of the best ways to prepare is to start using cryptocurrencies now during the bear market. You can get comfortable with crypto wallets, exchanges, DeFi protocols, NFT platforms, and other aspects of the ecosystem. This will allow you to take advantage much more quickly when hype returns to the markets. Consider starting small with a little bit of capital so you can learn without too much risk.
Get Involved on Multiple Chains
The 2021 bull run was largely driven by Ethereum-based NFTs and DeFi. However, the next cycle may spotlight other smart contract platforms like Solana, Polkadot, or Cosmos. You have to keep an eye on blockchain innovation and try getting involved on multiple chains. If you have assets diversified across different protocols it can help capture gains as they rotate in and out of the spotlight.
Build Capital With Airdrops
One strategy to build a crypto portfolio is collecting tokens from airdrops. You can find many new projects give away free tokens for engaging with their communities and learning about their ecosystems. The amounts start small, but can become quite valuable as the protocols grow.
Learn Crypto Security
As crypto gains more mainstream traction, cybersecurity becomes increasingly important. You can make an effort to learn proper practices to keep your assets secure. Use strong unique passwords, enable two-factor authentication, avoid phishing attempts, get a hardware wallet for large holdings, and understand how to prevent key vulnerabilities. Don't lose out on a bull run because of a hack.
Get a Hardware Wallet
On the security note, a hardware wallet like Trezor or Ledger can help protect your private keys from online threats. Once you build up more than a few thousand dollars worth of crypto, invest in one of these devices to keep the bulk of holdings offline. Only keep capital actively trading on exchanges