Gearing Up for the Bull Run: A Crypto Portfolio WOF Check

The crypto market seems to move in cycles, two years up, one year down and one year consolidating before repeating again.

Just like how the early bird gets the worm, the wise investor preps in advance—not when the market is already pumping. 

Whether you’re new to crypto or a seasoned investor, planning ahead and having a strategy can make all the difference in how you navigate the opportunities and risks ahead.

In this comprehensive guide we break down the essential steps to help you prepare for the next bull run effectively.

Setting Your Goals

Before jumping into the market, define what you’re hoping to achieve.

Are you looking for short-term profits, extra spending money, or long-term financial independence? Setting clear goals helps you stay focused and avoid impulsive decisions driven by market hype.

Consider your timeframe:

• Short-term (1-2 years): Taking profits from strong rallies.
• Mid-term (4 years): Holding through an entire Bitcoin halving cycle.
• Long-term (10+ years): Building generational wealth with crypto investments.

Related: If investing seems hard, here’s how to make it easy.

Budgeting: How Much Should You Invest?

Crypto markets can be volatile, so it’s important to invest responsibly. 

What you invest is, of course, ultimately a completely personal choice but as a general rule you should only allocate what you can afford to lose.

A structured investment approach may include:

• 1-5% of income: Conservative approach
• 5-10% of income: Balanced approach
• 10%+: High-risk allocation (best suited for experienced investors)
• 100% aka “all in” (not recommended) because you’re a degen!

Avoid overextending your finances by keeping a disciplined budget.

Choosing Your Investing Strategy

The way you enter the market matters. Two popular strategies include:

• Dollar-Cost Averaging (DCA): Invest a fixed amount at regular intervals, reducing the risk of buying at the top. Ideally, the interval should be consistent based on regular interviews (ie. pay day), or certain crypto price targets to spread the risk of entry.
• Lump Sum Investing: Invest a larger amount upfront, which can be effective if timed well but carries higher risk. It’s worth noting for this approach, ideally you would take time to understand your position in the market cycle, then make the decision based on where you are in that cycle. For example, you may want to buy during the bear cycle, or sell after an X amount of time after halving. 

These two approaches can serve as starting points for those who are new or need to recalibrate their investment strategies.

That being said, DCA is often the preferred method for long-term investors as it mitigates the impact of short-term volatility. It also helps shift your focus on the long game, which makes you less prone to impulsive decision making and FOMO.

Learn more: 

• Beginner’s Guide to Auto-Buy/DCA
• What is Dollar-Cost Averaging? Set and Forget Investing Explained

Building a Balanced Crypto Portfolio

A balanced portfolio may look different for each investor, but the common denominator here is diversification. 

Diversification helps manage risk by distributing your assets across a wide range of coins with different utilities, use cases, and ecosystems. 

Below is an example of what diversification may look like:

• 50% Bitcoin (BTC): The most established cryptocurrency
• 20% Top altcoins (ETH, SOL, XRP, AVAX, etc.): Strong layer-1 projects
• 10% Additional themes with strong potential: Strong layer-2 projects
• 10% Thematic investments (AI, DeFi, Metaverse, Real World Assets, etc.)
• 5% High-risk plays (meme coins, speculative assets)
• 5% Experimental investments for fun

Having a mix of assets can help you capitalise on different market trends while limiting exposure to riskier sectors. 

Keep in mind that this is not to be interpreted as financial advice; always do your own research before making any investment decision.

Related: Diversifying Your Crypto Portfolio: A Case Study.

Understanding the Market Cycle

Crypto typically moves in four-year cycles due to Bitcoin’s halving events:

1. Accumulation (Year 1): Prices are lower, ideal for buying.
2. Bull Run (Years 2-3): Rapid growth and hype, best time to take profits.
3. Market Peak & Correction (Year 4): Prices decline, setting up the next cycle.

Learning where you believe we are at in any current market cycle helps you better understand what’s to come, and make more informed decisions. 

Again, there is no definitive formula to predict the market (be wary of anyone claiming otherwise), so be sure to do your own research before moving forward. 

Securing Your Investments

The protection and safety of your assets should be the top priority for any investor. When it comes to crypto, it’s common for people to spread their investments across multiple wallets to diversify the risk and separate their hodl from trading portfolios. 

That being said, the most important aspect is having a good understanding of what type of wallet you are storing your assets in. In general, crypto wallets can be categorised as either hot or cold wallets. The former refers to wallets that prioritise accessibility and ease of use, while the latter emphasises maximum security, ideally for long-term holding.

• Cold wallets (Ledger, Trezor): Offline storage, with maximum protection. This is ideal for long-term holding where you prioritise the security of your assets above all else. Keep in mind that this type of storage places the responsibility of access on the holders, therefore it is imperative that you keep your credentials (i.e. seed phrases) secure.
• Hot wallets (Easy Crypto Wallet): Convenient, beginner-friendly, most popular option for crypto storage. Does not offer the offline protection measures like a cold wallet, but you have easy access to manage, diversify, distribute funds at your discretion. There are custody and self-custody options (i.e. seed phrase or MPC) and additional security features such as MFA. 

A combination of these methods can provide both security and accessibility. It’s also worth taking a deeper look at the organisation and/or platform behind the wallet before you make a decision. Be sure that they are credible, compliant, and have the support to facilitate achieving your financial goals. 

Related:

• Simplify your Crypto Experience with the Easy Crypto Wallet.
• Hot Wallet vs. Cold Wallet: A Beginner’s Guide

Finding Reliable Information Sources

With so much information (and misinformation) in crypto, it’s crucial to filter out the noise. Fear and greed are powerful motivators that can be easily influenced by media, influencers, etc that may impair your judgement and decision making. 

Stick to reputable sources such as:

• On-chain analytics tools (Glassnode, IntoTheBlock)
• Trusted news outlets (CoinDesk, The Block, Bankless)
• Independent research and official project reports
• Crypto YouTubers (curate, fact-check, and review their content for any biases, and/or external influences)

Avoid relying on hype-driven projects commonly found on social media, telegram, and others. If something sounds too good to be true, then it likely is. Always do your own research.

We publish data-driven, weekly market recaps here at Easy Crypto to help investors like yourself navigate the market. 

Don’t miss out! Sign-up and tune in every week!  

Tracking Your Portfolio

A well-tracked portfolio helps you stay in control. Consider using:

• Portfolio tools (Easy Crypto Tracker, CoinStats)
• Charting tools (TradingView, CoinGecko)
• Simple Google Sheets for manual tracking

Set a schedule for portfolio reviews, whether daily, weekly, or monthly, to stay informed without making emotional decisions. 

Incorporating technical analysis into these reviews can also provide deeper insights into market trends. 

• By cross-checking chart patterns, price action, and indicators like RSI and moving averages, you can identify potential entry and exit points. 
• While technical analysis isn’t foolproof, combining it with fundamental research and market cycles can help refine your investment strategy.

Rebalancing to Reduce Risk

As the market moves, some assets will outperform others. When a coin in your portfolio surges, you may want to take action to secure gains while maintaining potential upside. 

A common strategy is to withdraw your initial capital once the asset doubles, allowing your profits to continue growing with reduced risk. 

Alternatively, you can rebalance by shifting a portion of gains into more stable assets or reinvesting in undervalued opportunities, ensuring that your portfolio remains diversified and aligned with your risk tolerance.

Below are other methods to consider:

• Take profits into stable assets like BTC or stablecoins (ie. NZDD, USDT, etc). 
• Rotate funds into undervalued opportunities
• Maintain exposure to long-term winners

Rebalancing ensures that gains are locked in and risk is managed effectively. Keep in mind that your capital does not return until your gains are realised. It’s easy to succumb to greed, and lose sight of what you’ve already gained. 

Taking Profits Strategically

Many investors get caught in the excitement of rising prices and forget to take profits. Consider two common exit strategies:

• Time-based: Selling portions of your portfolio at regular intervals as the market heats up.
• Price-based: Selling when predetermined price targets are reached.

The goal is to secure profits before the inevitable market correction. Again, it’s worth revisiting your financial goals and use that as your guidance for decision making. 

Related: How to make profit from a crypto rebound. 

Understanding Crypto Taxes

Taxes are often overlooked by many in crypto but are crucial for compliance. Crypto transactions may be subject to:

• Capital gains taxes when selling for profit. (Be sure you understand the legal definition of selling. Refer to IRD for details).
• Income taxes on staking, mining, or rewards
• Record-keeping requirements for tax reporting

Using tools such as Koinly can simplify tax calculations, reporting, and record-keeping your growth. 

That being said, for our customers in New Zealand and Australia we have a limited-time promo together with Koinly to get ahead of your taxes this year!

Learn more: Easy Crypto x Koinly Tax Promo.

Celebrating & Recalibrating

Once the bull run peaks, take time to celebrate your wins, but also reassess your strategy:

• What worked well in your investing approach?
• What mistakes can you avoid next time?
• How can you position yourself for the next market cycle?

Crypto is a long-term journey, and most often a slow and steady approach wins the race. 

Refine your crypto strategy with each cycle to help you maximize future opportunities.

Final Thoughts

The next crypto bull run presents a major wealth building opportunity, but preparation is key. By setting clear goals, budgeting wisely, diversifying your portfolio, securing your assets, and having an exit plan, you can navigate the market with confidence.

Are you ready for the next bull run? Does your crypto portfolio pass the WOF check? 

Start planning today and position yourself for long-term success!

Further reading: Explore more topics on all things crypto!