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How to Invest in a Crypto Bull Market

Sep 1, 2023
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Bull market, source: | Shutterstock

The terms "bull” and “bear” market were typically used when referring to the traditional stock market, but have been adopted by the cryptocurrency industry as well. 

A "bull" market describes a trading season where market prices are high and continue to be on the rise. Price fluctuations are normal in the crypto market, and it is not entirely unusual to see a sudden uptick in the value of a certain coin. However, a bull market features sustained uptrends in prices for longer periods of time. The demand for crypto is higher than its supply in these seasons, and this drives prices up. 

Bull vs Bear Market

One could simply say that in a bull market, prices go up while in a bear market prices are on a downward trend. This is the primary and most obvious difference between a bull and bear market. However, it’s a more nuanced topic than that as other things define and separate these terms. Let's take a closer look;

Strategies to Trade in a Bull Market 

A bull market might seem like fair weather for investors and traders alike, but without a winning strategy, you're still more likely to lose more money than you make. Below are some of the most tested and trusted strategies to profitably invest in a bull market.

1. Buy Early 

When you observe bullish market conditions, pick a cryptocurrency that is projected to see marked growth over time, and buy it quickly. Usually, this is when the asset is cheapest and has the potential to grow exponentially in value if given the time. 

A bull market is a good period to take a long position on an asset. In April 2014, the price of Bitcoin hovered between 450 USD and 500 USD. In April 2021, 1 BTC was changing hands for about 64,000 USD. Any investor who had bought the crypto in its earlier years would have made a killing.

Your asset might be seen to experience small fluctuations in price, but it will most likely increase in value, and thereby increase your profit in the long run. 

2. Diversify Your Portfolio 

Diversify your portfolio, source: HoneyBricks

This simply means investing in more than one kind of crypto asset. You can choose to spread your investments over multiple coins which respond to market conditions in different ways. 

A diversified portfolio not only minimizes investor risk, it ensures that you get the most out of your investment, as you can profit off of bullish trends in multiple industries. 

3. Buy and Sell in Phases

It might seem like a good idea to invest a lump sum into an asset that appears to be growing exponentially, but this kind of decision will more than likely result in losses, not profits. The crypto market is highly volatile, and sudden steep downtrends are not entirely uncommon, even in a bull market. 

It is always best to begin investing with a small amount, and gradually acquire more units of the selected asset in proportion to its growth. The same approach should be applied to selling off the asset, should it no longer be profitable. 

4. Risk Management

This is important, even when market trends are bullish. You should determine in advance exactly how much you wish to profit from your investment, and how much capital you are willing to invest. Never invest more than you can lose, and cut your losses if you suspect your investment might no longer be profitable. 

5. Monitor Market Trends

Market Trends, source: Trading Education

In a bull market, assets generally experience an uptrend in price over time. However, this does not mean that rising prices are a constant guarantee. The market is still prone to ebbs and flows in price, which means that investors must keep a close eye on market trends. Even in a bull market, you should know if, and when to continue in a hold position, and more importantly, when to sell to avoid further loss. 

It is important to follow reputable crypto news sources and join online communities where crypto conversations are actively taking place to stay abreast of the trends. 

Crypto Investment Options

Besides buying and holding, what are some additional ways to invest and earn returns during a crypto bull market? Here’s your answer

  1. Exchange Platforms

These are digital platforms that support the buying and selling of cryptocurrencies. Savvy in investors with accounts on these platforms can take advantage of the wide range of available assets to trade, using market prices and a good strategy to guide their choices. 

  1. DeFi

DeFi is a blanket term for financial applications that exist on the blockchain. Decentralized finance provides access to traditional services such as borrowing, lending, trading, and the option to earn interest directly, all without the involvement of an intermediary such as a bank. Investing in DeFi often involves providing cryptocurrencies as collateral for loans, participating in liquidity pools, or yield farming to earn rewards.

  1. Crypto Mining

Mining is the process some cryptocurrencies such as BTC use to create new coins and validate transactions. Miners use powerful computers to solve complex puzzles that confirm transactions on the network. It’s an energy intensive process that requires expensive equipment and a level of technical knowledge but in return for their efforts, miners are rewarded with newly created digital coins.

  1. Crypto Funds

Crypto funds are managed investment vehicles that provide exposure to a diversified portfolio of cryptocurrencies. They are modeled after traditional investment funds however, they focus on various cryptocurrencies and tokens. Investors come together to pool their money, and professional fund managers make investment decisions on their behalf.

  1.  Initial Coin Offerings (ICOs) and Token Sales

Crypto projects and platforms use ICOs and token sales to raise funds for capital. During an ICO, a new cryptocurrency or token is offered to the public for purchase. Investors buy these tokens with the hope that their value will increase once the project goes live. However, ICOs can be risky and are often subject to regulatory scrutiny.

How to Identify a Bull Market 

A bull market may be difficult to identify, as there is no obvious metric to indicate when one starts, but it is generally agreed upon that a bullish run begins when asset prices rise by at least 20%. Similarly, a bearish run is indicated by a fall in asset values by 20%. 

Other clear indicators of a bull market include

1. High Demand to Supply Ratio

This simply means that more people are willing to buy crypto, and fewer people are willing to sell it off, indicating that crypto assets are valuable and in demand. This scarcity drives up the prices of the assets and is a clear indicator of a bullish trend. 

2. Higher Highs and Higher Lows

In a crypto bull run, market prices are still prone to fluctuations. However, one clear indicator of a bullish trend is that each new high price is higher than the previous high price, and each new low price is higher than the previous low price. This indicates that the market is growing, overall, and is suggestive of a bullish run.

3. Sustained Increase in Price 

Steadily rising prices are perhaps the most obvious indicator of a bull market.

Cryptocurrency's last bull run began in mid-2020 and lasted until the later months of 2021, spanning a full year and a few months. This period saw crypto prices steadily rise, and the premier cryptocurrency, Bitcoin, made history by reaching prices just short of 70,000 USD.

4. Crypto in News Media

In April 2023, popular crypto altcoin, Dogecoin saw a 27% increase in price following Tesla giant Elon Musk's decision to add the Doge logo to the Twitter homepage. 

Typically, in the crypto market, news affects investor sentiment, which can either drive prices up or down. Continued favorable news in the media will favor bullish trends, as investors feel that their money is safe. 

What Marks The End Of A Bull Market

Bull markets can last long, unfortunately however, they do not last forever. At some point, investor confidence starts to decrease. This decrease might be because of bad news, like laws that are unfavorable to investors, or unexpected events, such as scams or hacks.

A common trend at the end of a bull market is a rapid and furious increase in price that typically culminates in a bubble. Prices are up but are not truly in tandem with the general market sentiment. Eventually the bubble bursts and prices enter a downtrend as part of a crash which is typically a few days when prices drop quickly. This could mark the end of a bull run and the start of a bear market.

It’s important to note however that even during a bull run there are periods when prices drop temporarily, that is dips fluctutations, or corrections. These do not always signal the end of a bull market so to better understand what’s happening, instead of just looking at the ups and downs of a few days or weeks, consider how prices have changed over several months or even years.


Investing in cryptocurrency is a highly profitable venture, doubly so if market conditions are showing bullish trends. It is important to know when and how to invest in order to minimize your risk, maximize your profit, and keep you one step ahead. 


A crypto bull market is a sustained period of steadily increasing prices and positive investor sentiment in the crypto market. In this time, the value of crypto typically increases greatly.

How long does a crypto bull market typically last?

A bull market can last anywhere between a few months to a few years. Crypto bull markets are dependent on various factors and there is no fixed timeline. 

Should I invest during a bull market? 

Investing during a bull market can be very profitable, however, it is important to do so after having conducted thorough research on market trends and the crypto you wish to purchase.