- Bull run fortunes are made by those who hold their coins for the duration, not those who try to be clever with their buying and selling
- The best traders make two transactions in a bull run – one buy and one sell
- There are several important reasons why keeping your coins off an exchange during a bull run is important
Bull runs are a gift from the market gods, but unless you play them the right way you can end up making a mess of them and not maximizing your profits. We have already covered the best way of making it in a bull run, and one of the key pieces of advice is to keep your coins off an exchange during a bull run. This is such an important point that it’s worth going into a bit more detail, so here are the three reasons why you should keep your coins off an exchange during a bull run.
Risk of Loss
Every day your coins stay on an exchange increases the chances that they will be stolen either through the exchange being hacked or you yourself being compromised. We all know that no exchange is safe from hackers, and the risk of a personal hack increases if you have easy access to your exchanges across multiple devices. Even the best security practices aren’t worth the risk – only keep coins you actively want to trade on an exchange.
Not Your Keys, Not Your Crypto
Another risk of leaving your coins on an exchange during a bull run is because if they’re on an exchange they’re not yours. This may not bother you now, but what about at the end of the bull run when you’ve made your millions and you can’t withdraw them because the exchange has, for any number of reasons, suspended withdrawals? Or, worse, what if they suspend your account so you can’t even access them?
There are tales of exchanges suspending user accounts on the flimsiest of pretexts, including being influenced by law enforcement agencies who don’t always get things right. You don’t want to risk your hodling ending in tragedy because the exchange decides on a whim that you can’t have them.
Temptation to Sell
Leaving your coins on an exchange makes it easy to sell them. This may seem like a good thing, but in a bull run it’s a temptation that can lose you money. The idea for a bull run is to hold your coins through the entire bull run, which can be years long, and that includes holding through the 20%-30% corrections that occur in any crypto bull run.
Keeping your coins on an exchange increases the temptation to sell on a correction, and unless you happen to time the dip perfectly every single time then you will end up losing out. Corrections during a bull run always un-correct themselves, meaning that in a week or two everything is back to where it was, and you don’t want to be in the position of having fewer coins because you panic sold the bottom.
A Bull Run is For Hodling, Not For Trading
These three reasons should be enough to send you racing to your exchanges to send your coins to a wallet, but make sure that the wallet you choose is a reputable one where you are able to store your own keys. For reviews on software and hardware wallets, look no further than our helpful crypto wallet reviews.