The crypto industry offers a lot more money-making opportunities than simply choosing to buy bitcoin. In this article, we take a look at the things you need to learn and understand in order to become a profitable investor while maintaining a cool, level-headed approach.

So, close the tabs of CoinMarketCap and stop looking at crypto prices for now. It's time to learn how to make the most of the situation we are currently in. Let's get started.

Start by building a strong conviction

Conviction is built through patience, experience, and continuous research. What it means, in short, is that you develop a thesis that exceeds price dynamics, and is directly related to a project's fundamentals, and its position in the macroeconomic world.

In the case of bitcoin, as well as other new markets, building a conviction and really understanding what you invest in is very important. With the price affected on massive scale, emotional reactions are only natural, especially for new investors. Hence, it is important to do your due diligence before you choose to participate in the market.

To help you better understand the most popular cryptocurrency, as well as to offer a good overview as to the whole structure of the crypto market, we recommend checking out the resources on this website. Only after you have a good understanding of Bitcoin will you be able to delve into all the different financial products of the crypto markets and build strategies that enable you long-term wealth.

How to invest in bull markets

Bull markets in the crypto industry are rather short and steep. This means that you have to be ready for when they occur. If you've been around for a while you probably know to 'buy when people are fearful and sell when people are greedy'. This is good advice, but let us take it one step further.

Assuming that you have already taken your position, it is a good idea to split your portfolio in a way that suits your character. Can you handle more risk? Then consider allocating an amount of money towards promising altcoins. Do you prefer a safe long-term plan? Then only invest in BTC and ETH.

Diversification is key to a great strategy that you can follow in bull markets, and one that has enables you to make your money work for you. During bull markets, what you want to do is avoid any sort of leverage trading, and instead find way to earn passive income through your coins (staking, savings, farming). You can then use the passive income to allocate money towards coins you believe in.

If this sounds too complex, or you simply want to avoid any sort of centralized exchange products, you can also simply hold onto your coins.

How to invest in bear markets

The most important point during your investment journey is recognizing when the sentiment switches. In other words, you are able to detect when we enter into a bear market. In this case, what you want to do is either convert your funds into stablecoins or sit in BTC, which tends to decrease in value less than the average altcoin.

Once the market has bottomed out, it is a good time to start allocating your capital back into the coins you believe in. note that you will either be able to buy more crypto than you did previously, an excellent long term play or acquire the same amount of crypto you sold and cash out the profits. The latest option is good for those who are overexposed to the markets, or those who wish to enjoy the fruits of their labor.

How to discover new investment opportunities

Finding new coins to invest in is as much a science as it is an art, and it always starts with proper research. Proper, in this case, means knowing who to listen to, and what sort of information you want to be looking at. Being a brand new industry, crypto is infested with affiliate marketers and shady promoters of coins that have no value whatsoever.

In our opinion, it is best to start by subscribing to newsletters like 'The Pomp Letter' and the research report of 'Delphi Digital'. Both are premium newsletters that you will need to pay for, but the small amount is well worth it.

After you subscribe to these newsletters you can start tracking the market sentiment by making a Twitter account, or by occasionally reviewing social media data from tools like LunarCrush.

Note that if you wish to invest in new projects, like IEOs or ICOs, make sure to always check the partners and investors list to understand which crypto funds are taking part in the early sale. Popular and reliable names include Three Arrows Capital, Binance Labs, Coinbase Ventures, and Parafi Capital.