How to Make Money in Cryptocurrency and Keep It: The Secret Formula No One Tells You

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1 Feb 2024

Hello, and welcome to another episode of Crypto Big Stories!
You might have read many articles on how to become wealthy in the next bull market by investing in various cryptocurrency assets. But how many articles tell you how to keep your profits?
You see, making money with cryptocurrency is not enough. But you have to conquer your greed to maximize profits. In this article, I will share some tips and strategies to secure your gains during the bull market.
Luckily, there are different ways to make money with cryptocurrencies, such as trading, investing, staking, yield farming, and NFTs (non-fungible tokens).
But in this story, I will focus on profit-taking to make insane gains in the next bull market. I will also show you how to avoid common mistakes that can wipe out your profits.
For clarity, investing in cryptocurrency means buying crypto assets like Bitcoin, Ethereum, Litecoin, Fantom, and other leading coins and holding them for a long time, hoping their value will appreciate just like stocks and shares.

But once you have invested in cryptocurrencies, what is next?

After investing in cryptocurrency, the first thing you should do is learn how to keep your crypto assets safe. This way, you will not fall prey to scammers, rug-pulls, and phishing websites.
Also, learn how to use cold hardware wallets and hot wallets to store your crypto assets securely. Read How to Protect Your Crypto Assets.
Now, let’s discuss how you can maximize profits during the next bull run, sell your portfolio at the right time, and avoid greed that can lead to losing your entire profit. Are you ready?

Stop Worrying About the Next 100x Altcoin: Do This Instead!

Photo by Arlington Research on Unsplash
I understand you are eager to find the next crypto gems to make you rich enough to retire early and live your dream life.
But here is the truth; your greed may prevent you from achieving that goal. In bull markets, your greed determines how much money you make or lose.
If you have experienced a crypto bull market, you know how easily anyone can make money. You might start acting as a financial advisor to everyone around you.
You would show off your unrealized gains and persuade your friends and relatives to sell their valuable assets and invest in crypto. Yes, this is a common scenario in bull markets, as we have seen in the past. But I have a surprise for you.
If you have invested in altcoins over the past few months, you may have so much money in the next bull market that you will not know how to handle it. You could end up buying things that are not useful to you, such as JPEGs of apes, cars, rocks, and other worthless items.
You see, when the market is bullish, people tend to lose their financial discipline and common sense. But, in the bear market, most people spend wisely and think carefully.
While you can easily make money during the bull market, your greed won’t let you cash out.

Your mind will resist your desire to take profits from the market. It will constantly remind you of the gains you can make by staying active in the market. But do not fall for it.

This story aims to remind you of the importance of taking profits into fiat and keeping them away from the market.
During the bull market, most crypto influencers may advise you to hold on to your cryptocurrencies with a diamond hand because they will change your life.
But here is my stance: in the crypto market, nothing is guaranteed. Everything you see or hear is based on speculation and narratives. So, always take some profits, and appreciate what the market has offered you.

Learn From The Mistakes of Others!

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We have seen individuals who invested $1000 into crypto projects and turned it into over $30,000, only to see their investment plummet to less than $500 because they did not take profits.
This may sound strange, but those who invested in Terra Luna early enough can confirm how profitable their investments became when their $1000 investment turned into over $100,000.
However, during the Terra Luna crash, most people lost their life savings and became indebted due to greed.
One Reddit user wrote: “I have lost over $450,000, and I cannot pay my bank.”
Another user wrote: “I will lose my home soon, and I will become homeless.”

Personal Experience

Please note, I am not sharing this story out of regret, but as a warning so that others can avoid the same mistakes we made during the last bull market. I have learned my lessons and I am ready for the next bull run.

During the 2021 bull market, I bought some Terra Luna tokens (LUNA) and watched my small investment turn into a fortune. I felt like a genius and started making unrealistic price predictions.
I followed the advice of some crypto influencers who told us not to sell our LUNA tokens even when the price surged from about $0.96 to over $100. I became greedy and did not take profits at the market’s peak.
I was waiting for LUNA to hit my price target of $500, so I could have more money for vacations in Candyland or Jungle Safari. I guess I would not have taken profits even if the market had granted my wishes because I was too greedy.
Unfortunately, I was not alone! Even at the peak of the bull market, some other investors staked their LUNA tokens on different platforms to earn more rewards instead of selling and taking profits from the market.
Guess what happened next to the LUNA token? A few days after surging to nearly $120 and setting a new all-time high, we heard rumors about scandals and illegal activities that could cause the Terra Luna ecosystem to collapse.
Panic set in, and there was a massive sell-off from investors who had access to their LUNA tokens. I sold half of my LUNA tokens at around $50.

You might say I did not lose money since I bought them for less than a dollar, but wait a moment to hear what happened next.

Avoid Reinvesting Your Profits During a Bull Market

(The Devastating Collapse of Terra Luna)
After selling half of my LUNA tokens, I was fascinated by Unstoppable Domains and how they could revolutionize Web 3.0. I converted my USDT into Ethereum and bought many domain names, hoping to flip them for a profit. However, this turned out to be a bad investment as I have not sold a single domain name in almost two years.
Another mistake I made was buying more LUNA tokens when the price dropped to $10. I thought it was a bargain, but it was not. The token crashed further to about $0.00001675 and my assets became worthless.
Just recently, the LUNA Terra platform rebranded their token to LUNA Classic (LUNC), which shows how quickly your unrealized profits can disappear if you don’t take them.
These events happen in every bull cycle, and those who experienced the 2017 bull market can confirm that.
They said you need to spend at least four years in crypto to learn how to keep your profits because the market is designed to take them back from you.
But you do not have to wait until it happens to you. Learn from my story and be ready to cash out when you make profits in the next bull market.
You might think you are not greedy now because you have not done a 10x or 20x return on your crypto investment. Well, you need to feel the bull market euphoria to understand the lessons behind this story.
I have been a victim of greed and bull market euphoria. I have shared my experience in this story.
Now, I am a refined and disciplined investor waiting patiently for the next bull market. Next, let’s discuss the importance of taking profit into fiat currency.

The Importance of Converting Crypto and Stablecoin Profits to Local Currency

Photo by micheile henderson on Unsplash
One common mistake made by many crypto investors during the last bull market was storing their profits in UST stablecoin, owned by LUNA Terra.
The team claimed UST was an algorithmic stablecoin pegged to the dollar and you could stake it on Anchor protocol to earn high interest.
Interestingly, many investors who profited from selling LUNA tokens converted these profits into UST and staked them on various platforms to earn rewards.
However, when Terra Luna collapsed, the UST de-pegged from the USD and nearly became worthless, resulting in significant losses for the investors.
Such incidents could happen again to any stablecoin, particularly if government regulations crack down on their operations, leading to a potential disaster in the cryptocurrency market.
So, here is my candid advice. In the next bull market, when everyone in your neighborhood talks about Bitcoin and Dogecoin, just know it is time to sell, and take profits.
Convert those profits into your local currency, and store them in your bank. You can invest in properties, buy a car, start a business, or invest in other sectors like real estate that can provide a steady income.
This way, you will have sufficient funds to invest at the bottom of the next bear market.