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Cryptocurrency

Top 3 Mistakes to Avoid When Trading Altcoins in the Next Bull Run

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Bull markets in the cryptocurrency industry can get incredibly volatile. Valuations have been known to skyrocket beyond what many can imagine, especially in the realm of altcoins.

Just for reference, the market capitalization of what back then was a relatively new meme coin – Shiba Inu (SHIB) – reached a whopping $40 billion in October 2021, during the previous massive bull market. Who could have imagined that an obscure meme coin could surpass a number of well-known and established projects in the industry?

But SHIB is just one of the examples. Many altcoins soar to incredible highs, creating a lot of opportunities for those who understand how to play their cards right.

And that’s no walk in the park. The allure of easy money in the cryptocurrency market has been there for as long as the industry has existed, but in 2024, the trading scene has changed entirely.

In this article, we attempt to take a look at some of the most common mistakes traders and crypto investors make and how to avoid them in the next bull market.

If you’re interested in a deeper dive into the 15 must-know trading tips, take a look at our video here:

Getting Scammed

Mistake number one – not securing your on-chain bags and getting scammed. This is a story as old as time if time was 14 years old.

“This can’t happen to me…” are the famous last words of anyone who thought clicking on the link in the most recent tweet of MicroStrategy’s official Twitter account was going to bank them a fortune. That’s right – even the corporate account of a multi-billion dollar company was recently compromised, leading to some $400,000 being lost to the scammers.

There are countless examples of people with years of on-chain trading experience getting their valuable non-fungible tokens (NFTs) stolen or their accounts being completely drained because hackers got the better of it and managed to trick them.

The unfortunate truth is that it can happen to anyone, and it will happen when you least expect it. And while on-chain security has always been an important consideration, it feels like it’s going to be paramount in the next bull market. Why?

Well, the fact of the matter is that on-chain trading volumes are soaring and are already in the billions. This trend is likely to continue, meaning on-chain security will be of incredible importance.

We have a guide that you must definitely check out, related to keeping your coins safe:

9 Tips for Securing Your Bitcoin and Crypto Wallets

It includes some of the best practices, and it’s worth checking out. Don’t lose your hard-earned coins to scammers.

Chasing FOMO

The fear of missing out, otherwise referred to as FOMO, is a common psychological state where people feel tempted to enter a trade after the price has increased significantly, thinking that the rally is just about to begin.

The important thing to understand here is that it’s completely irrelevant whether or not the price continues going up after you have “fomo’d” in a trade. It’s imperative that you have a clear reason for each trade, and FOMO is never a good one.

Sure, no one is immune to it – you are bound to feel as if you’re missing out on the next big thing at some point. But try not to give in to this emotion immediately. Use it as fuel to dig into the asset and the trade.

Use the FOMO to your advantage and leverage it into finding out everything there is to know about this asset, and then, only then, will you be able to make an informed decision whether to enter the trade or invest in it.

Otherwise, it’s nothing but gambling – sure, you make some money here and then, but chances are that you will be left on the other side of the trade when the chart has ended up looking like Burj Khalifa.

trading_altcoins_cover

Lack of Clear Targets

Let’s be honest: unless you’re extremely lucky or extremely well-prepared in this market, you won’t retire off of your $1,000 investment into a random altcoin during the next bull run.

That’s not to say that this is not possible – people have made millions from tiny investments in SHIB (and other altcoins) during the last massive rally in 2021, but these are outliers. Holding a position that has made you, let’s say, $10,000 out of a $100 investment turn from opportunistic to irresponsible really quickly, and, at some point, it’s time to take profits.

It’s entirely possible that you hit a home run during a parabolic bull run, but make sure that you have a clear exit strategy prepared for every scenario. Not only that, make sure that it’s a reasonable one.

In the above example, perhaps it’s a good idea to take some money off the table and leave a small percentage to ride the rest of the run (if it even goes on) – that’s the so-called moon bag.

But don’t fumble your profits and roundtrip your massive gains just because you want to retire from crypto at 25. Set clear and reasonable targets and stick to them.

Of course, there are many more things to keep in mind, which include:

  • Risk management
  • Networking
  • Leverage trading and its risks, and so on.

We highly recommend taking a look at the above video, but if you prefer the written guide, find it here:

15 Must-Read Bitcoin & Crypto Trading Tips

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Cryptocurrency

Ethereum Foundation, Whales, and Hackers: What’s Driving the ETH Sell-Off?

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TL;DR

  • Whales, hackers, and the Ethereum Foundation wallets moved over $500M in ETH through large sales and withdrawals.
  • Ethereum transfers rose to 4.6M ETH, nearing the monthly high of 5.2M recorded in July.
  • Staking inflows hit 247,900 ETH, the highest in a month, locking more supply from trading.

Large Withdrawals and Whale Activity

Ethereum (ETH) has seen heavy movement from major wallets over the past few days. On-chain data from Lookonchain shows a newly created wallet pulled 17,591 ETH, worth $81.62 million, from Kraken in just two hours. 

Over three days, two new wallets withdrew a combined 71,025 ETH, valued at $330 million, from the exchange.

One of these wallets, address 0x2A92, has withdrawn 53,434 ETH, worth $242.34 million, in two days. This includes a recent purchase of 30,069 ETH, valued at $138.46 million, during a market drop.

Major ETH Holders Offload Millions Amid Price Rally

In contrast, several separate entities have been disposing of some ETH holdings. A wallet tied to a hacker address 0x17E0 sold 4,958 ETH for $22.13 million at $4,463, securing a profit of $9.75 million. Earlier this year, the same address sold 12,282 ETH at $1,932 and later bought back part of the amount at higher prices.

A different whale sold 20,600 ETH for $96.55 million over the past two days, generating a profit of more than $26 million after holding the position for nine months. 

Meanwhile, an Ethereum Foundation-linked wallet, 0xF39d, sold 6,194 ETH worth $28.36 million in the last three days at an average price of $4,578. 

Recent sales from the same wallet included an additional 1,100 ETH and 1,695 ETH for over $12.7 million combined.

Network Activity on the Rise

CryptoQuant data shows Ethereum’s total tokens transferred have been climbing since August 9. After ranging between 1 million and 3 million ETH through late July and early August, transfers have risen to 4.6 million ETH, approaching the monthly high of 5.2 million recorded in mid-July. This increase has occurred alongside a price rally from about $3,400 to $4,600.

Ethereum (ETH) Tokens Transferred (Total)
Source: CryptoQuant

Interestingly, staking inflows generally stayed between 20,000 and 80,000 ETH per day over the past month. On August 14, inflows jumped to 247,900 ETH, the highest in the period. 

At the time, ETH was trading near $4,600. Large staking deposits reduce the amount of ETH available for immediate trading, as staked coins are locked for a set period.

Ethereum (ETH) Staking Inflow Total
Source: CryptoQuant

In the meantime, ETH trades at $4,647 with a 24-hour volume of $68.25 billion, down 2% on the day but up 19% over the week.

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Cryptocurrency

Massive DOGE Whale Activity Hints at $1 Breakout

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TL;DR

  • Whales bought two billion DOGE this week, lifting their combined holdings to 27.6 billion coins.
  • A single 900M DOGE transfer worth $208M to Binance drew attention to large exchange movements.
  • DOGE broke key resistance, with momentum building for a possible push toward the $1 price mark.

Price and Market Moves

Dogecoin (DOGE) traded at $0.23 at press time, slipping 4% over the past day but still showing a 2% gain for the week. Daily turnover came in at about $6.18 billion. 

Meanwhile, the broader crypto market saw over $1 billion in liquidations. Hotter-than-expected US Producer Price Index data pushed traders to scale back expectations of a near-term Federal Reserve rate cut. DOGE had roughly 290,500 coins liquidated during the sell-off.

On the two-week chart, analyst Trader Tardigrade notes that DOGE has cleared a downward-sloping resistance line after completing what appears to be a “wave V” in an Elliott Wave sequence. Similar setups in the past, where prolonged declines stayed within falling channels before breaking higher, have been followed by sharp rallies.

Momentum gauges are also turning up. The Stochastic RSI, which had dropped into oversold territory, is now heading higher. Previous reversals from this zone have coincided with sustained upward moves. The current formation points to a possible run that could carry DOGE past the $1 mark.

Heavy Whale Buying and Large Transfers

As reported by CryptoPotato, blockchain data shows large investors have added two billion DOGE in the past week, spending just under $500 million. That brings their holdings to about 27.6 billion coins, or 18% of the supply. The buying streak has prompted speculation within the community. 

Recently, Whale Alert flagged a 900 million DOGE transfer worth about $208 million into Binance. The tracking indicates that it originated from a wallet connected to the exchange, likely as an internal activity. The address involved holds 2.88 billion DOGE, one of the largest balances on the network.

Ali Martinez also reports that transactions above $1 million reached a one-month high, with activity building since early August and peaking as DOGE traded at $0.25.

Sentiment Building

Analyst Gordon described the current setup as “a nice bit of consolidation” before a potential breakout, adding, 

“This will be one of the first coins normies FLOCK to & the pump will be MASSIVE.”

With whale accumulation rising, high-value transfers increasing, and a bullish technical pattern in play, DOGE is positioned for a potential push toward $1 if momentum holds.

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Cryptocurrency

Ripple Price Analysis: XRP at Risk as Key Support Levels Could Trigger Sharp Drop

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XRP has recently entered a consolidation phase after a strong rally earlier this summer, with the price action now hovering around key resistance levels on both its USDT and BTC pairs. Yet, while momentum has slowed, the charts still indicate a generally bullish structure, with multiple key support levels remaining firmly in place.

Technical Analysis

By ShayanMarkets

The USDT Pair

On the XRP/USDT daily chart, the price is currently trading near the $3.10 mark, facing a strong resistance zone around $3.40. This follows a breakout above the $2.70 range in July, which has now flipped into a support area.

Both the 100-day and 200-day moving averages are also trending upward and recently formed a bullish crossover around $2.45, reinforcing the medium-term bullish sentiment. If the $3.40 resistance breaks, a push toward the critical $4.00 range becomes likely.

However, the RSI hovering near the neutral 50 level suggests a lack of strong momentum for now, meaning a short-term pullback into the $2.80 support zone is still possible.

This zone will be key for maintaining the bullish structure. Losing it could open the door for a deeper correction toward the 200-day moving average located around the $2.40 mark. Yet, as long as the price stays above the moving averages, the broader trend remains bullish.

The BTC Pair

Looking at the XRP/BTC chart, the pair has recently pulled back after hitting the 3,000 SAT resistance, with the price currently around 2,600 SAT.

This follows a clean breakout above the long-term descending channel and a successful retest of its upper boundary, which coincided with the 200-day moving average and the 2,400 SAT support zone. This confluence remains a key bullish technical factor, as holding above it could attract renewed buying pressure.

That said, RSI levels around 48 show that momentum has cooled after the sharp July rally, meaning XRP may continue ranging between 2,400 SAT and 3,000 SAT in the near term. A decisive close above 3,000 SAT would likely open the path to the 3,400 SAT zone, while losing 2,400 SAT could shift the bias back toward 2,000 SAT support. For now, the structure still favors the bulls as long as higher lows remain intact.

 

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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