Bull Market Or Bear Market? Why Smart Crypto Investors Focus On Strategy Instead
Opinions and expectations continue to reveal that nobody really knows if we are actually in a bull or bear market. I think in 2018, anyone could have said the crypto market was in a bear market, but that is definitely not the case now. We are, however, seeing altcoins perform as if in a bear market, while Bitcoin continues to raise doubts. Many are probably wondering why alts are suffering so badly when BTC is only down 50% from its recent all-time high.
This is a dynamic I outlined in a post just before the bull market began. My concern was that altcoins would begin showing a lesser degree of resilience and ultimately, performance. What you need to consider as an altcoin investor right now is rather important. If alts are at these levels currently, where will they be if BTC drops 85% from the ATH? The answer to this question could be rather scary, but at the same time, it encourages one to build.
One thing is clear right now: it’s a perfect time to get busy building. In fact, it’s always a good time to build! Building passive income and other income-generating systems is always a wise move, regardless of the market. The best way to invest in altcoins is to build systems that ultimately remove the need for investment capital, thereby significantly reducing risk. This is where the builder has an advantage over the average investor.
Why Building In Crypto Beats Basic Investing Every Time
So, what am I actually implying by using the term build? Building something means creating something that will continue to serve you, or perform a service for you, well into the future. Crypto enthusiasts can build passive models, audiences as content creators, or income-generating accounts such as Hive and Leofinance. There are multiple approaches to building within the crypto economy, but the result is the same!
Building ultimately produces crypto income, and the more you build, the more you stand to generate. This is a great time to get stuck in, as prices seem low yet stable. Whatever is generated at these levels will increase substantially when the market clearly shifts toward a strong trend reversal. However, it is becoming increasingly important to identify the right coins and tokens. Blue chips such as Ethereum and Solana are wise choices.
The Dollar-Cost Averaging Machine: How Ordinary Investors Build Extraordinary Wealth
Investors always look back and wish they had done more. Being dedicated to building something that will continue to generate ongoing crypto income is one of the best things you can do for your tomorrow. Building streams of income actually creates a dollar-cost-averaging machine without the risk. Investors don’t have this luxury and are Inferior to builders, who have managed to marry the concepts of investment and work to create a synergy superior to merely investing in a project or coin.
Why Every Market Scenario Favors The Crypto Builder
Yes, even a move lower is beneficial to the builder. Crypto generated from what you have built is ultimately free money, since you are generating new income every day. This is the only way to beat the dip that keeps dipping. If you generate $100 per day, you will just be receiving more coins as the price edges lower. Your $100 will buy a lot more if prices drop, which means you can leverage a downturn to your advantage. If an investor invests $5000 in a coin and the price drops, he doesn’t have many options other than to risk more capital or wait.
The builder, on the other hand, can dollar-cost average by using the $100 he generates each day and avoid the risk of having to invest more of his “own” money. A sideways market will be even more beneficial, and a bullish market, even better! Building is a far superior approach to standard investment ideology. Crypto is unique in that it has so many different opportunities simply waiting to be utilized by the inspired and dedicated cryptoneur.
How To Build Wealth In Crypto As An Investor: Strategies Most People Ignore
Investing capital over the long term with a typical dollar-cost averaging strategy is common, and while this is a good idea, there are additional ways to build. By leveraging the many opportunities in the incentivized economy, one can scale their portfolio much faster. One of the most practical ways to do this is by lending, staking, and DeFi opportunities. These opportunities carry risk, so intelligent allocation of funds is crucial.
Another powerful alternative for building passive income is DePIN and the Machine Economy. I address DePIN at length in this article and explore an extensive list of free-to-use DePIN applications. This particular idea can be taken much further by adding more nodes to one’s own network infrastructure, whether through devices or by leveraging affiliate programs. DePIN can deliver meaningful long-term passive income when implemented effectively.
Another avenue of exploration is SocialFi and other incentivized opportunities within the crypto ecosystem. Creating content on Hive, Arena, and various other platforms can also add additional crypto to your portfolio. These coins and tokens can be HODLed or sold for alternative altcoins or even BTC. Speaking of BTC, visit this article for passive and semi-passive ways to stack more sats for free. Implementing these ideas has a strong compounding effect.
Final Thoughts
Building income streams is something that is extremely beneficial and can help propel your portfolio forward without additional risk, or at least, minimal risk. Downturns are ideal opportunities to build, making the current market an ideal time to begin accumulating through these types of constructs. The builder always benefits, eventually, making it the superior approach in my opinion. The builder creates mechanisms that keep producing.
The builder has a strong focus on passive income and prefers ideas that incorporate it. Semi-passive ideas are often part of a broader strategy that eventually allocates this income to passive ideas such as staking and other similar forms of yield generation. The builder has an edge that traditional investors don’t, and is often able to reach his goals much faster than those who invest over time.