6 thoughts on getting rich in a bull market

By Ri Yue Xiao Chu

1 Although bull markets bring broad price increases, speculation still revolves around sectors. Moreover, if a certain cryptocurrency surges dramatically, it will drive up speculation in its entire sector.

2 Opportunities are everywhere during a bull market, but if you're greedy and try to catch every single one, the outcome will not be good.

On the contrary, simply capturing the main upward trend of one sector is enough to make you extremely profitable. If you’re lucky enough to capture the primary waves of two rotating sectors, the wealth you gain could be unimaginable.

3 What makes this bull market different from previous ones is that there’s more money, more participants, and more professional institutions involved.

Therefore, adjust your trading strategy accordingly:

1) Rather than chasing hot trends, focusing on high-quality projects/sectors and digging deep will yield higher returns;

2) Team up and collaborate with other knowledgeable professionals;

3) Market valuations for highly popular projects are often fully priced, while less mainstream sectors may offer higher multiples;

4 Understand the difference between "impressive" and "high potential return." A project that seems exceptionally strong doesn’t necessarily generate profits for you, because the market often prices in expectations fully. In other words, projects everyone loves may not deliver outsized gains.

I will select:

1) Projects or sectors with some market recognition but not universally hyped—these become my key research targets due to their high potential returns and relatively low risk;

2) Low-market-interest sectors as small “lottery” positions;

5 Going all-in on a single sector might feel exciting, but it could also cause you to miss out on the broader bull market. Given the high risk, this approach isn't recommended. Instead, use a focused yet limited diversification method—allocate across several core areas, distinguishing between primary and secondary focuses, and keep the total number under control.

6 There are three typical scenarios driving sector speculation:

1) Major deterministic events—for example, the Shanghai upgrade drove speculation in LIDO and SSV; Arbitrum's token airdrop triggered rallies in its ecosystem projects;

2) Sudden unexpected events—such as ChatGPT's explosive popularity triggering an AI sector boom, or the release of Sora sparking another wave of gains. Similarly, the metaverse craze in late 2021 ignited a GameFi surge in crypto;

3) A specific coin suddenly spikes and becomes a leader, heating up interest in other projects within its sector;

Most of the time, sector speculation is unpredictable—that's why investors in bull markets often say they're "waiting for the wind." The timing of such speculative waves cannot be predicted. Only the first case—major deterministic events—is relatively predictable. However, its downside is that because the event is well anticipated, the actual price appreciation available to you may be limited, since many players front-run the move. A classic example was this year’s Cancun upgrade, where ARB and OP underperformed compared to other coins.

In past bull markets, there were two main strategies:

First: Allocate all assets heavily into a few selected sectors

The strategy here is simply waiting for the wave to come during the bull market. Advantages include simplicity, making it suitable for most people, especially those with busy day jobs. The drawback? It requires patience and conviction. Holding through periods when other coins are skyrocketing while yours stays flat is a true test of psychological endurance.

Ideally, I recommend focusing on 2–4 sectors. You can go with just one if you have strong conviction and good judgment, though that demands exceptional foresight. Going beyond that increases risk and isn’t advisable.

Second: Maintain a partial position early (accumulate quietly), then add exposure when sector hype begins

This approach offers flexibility—allowing both entry and exit options—and is more dynamic. However, the downside is that it requires sharp market awareness, significant attention, and constant monitoring of market developments.