It is easy to have diamond paws when the bull is running. Any moron can do that. The true test comes from being able to weather the times when the market is moving against you.

Before going any further, nothing here is to be construed as financial advice. This is only for educational purposes. Also, this article is focused upon investors, not traders. The latter is an entirely different game.

That said, let's move on.

Many want the major success story. We all want to have the purchase that presents us with life-changing money. You all know what I am talking about. In cryptocurrency, it is the 100, or even 1000, multiple deal.

This is known as a moonshot.

Leaving aside many of those crash as quickly as they went up, the reality is we have a lot of internal adjusting to do. Success is not something most are accustomed to, especially in markets.

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Stop Being Insane

I have stated this before: not only are markets insane but, it appears, so are most people in them.

An observation is that people love it when prices are going up. They are excited, active, and talking about their holdings. Yet, when the bear comes out of hibernation, they are depressed and emotional. You can feel their "aura" even online. They are miserable.

To me, this is totally insane. Here we are dealing with a person who is completely detached from reality. It is akin to an adult waiting by the chimney for Santa Claus to show up.

The simple fact of life in markets is they go up....and they go down. There is not one without the other. This is true in every market, throughout history. Some will go up longer than others but they all reverse course.

Therefore, why do people expect things to be different in cryptocurrency? The bear is going to come out, it is that simple. We never know when, or for how long, but we know it will appear.

Insanity comes from being completely out of touch with what is going on. Anyone who gets upset about market corrections, pullbacks, or even collapses is ill-prepared for them. In short, this person much have believed it was not going to come.

They always come. It is the nature of markets. You breathe in, then breathe out. Markets go up, then they come down.

So, if we are going to succeed in this arena, we best prepare for the downturns so we can handle emotionally. If not, it might be best to get out.

Find Quality Projects

Ultimately the game is always the same. When investing, one has to find quality projects that have strong long-term potential. This is the same no matter what the asset (again, investing not trading).

Within cryptocurrency, we have to focus upon those things that will bring success down the road. We are in the early stages so the idea that we can, with certainty, pick winners and losers is tough. A lot can happen.

However, we can offer our best guess by watching the projects, understanding the focus, and assessing all developments as they arise. This is where the constant monitoring of what is taking place is crucial.

Once we have a project or two, then load up. The worst thing to do is to be right and just make a few bucks. That is what trading is for. If we are after life changing money, one wants to get paid when the market proves us correct. That makes sense since we know the market is perfectly willing to clean out our account if we are proven wrong.

Here is where diamond paws come in. This is one thing the Bitcoin Maxis got correct. They held through all bear markets. Selling was not an option. That is why they went from $100 to near $30K. Of course, it was not a straight line up. There were ebb and flows, the most recent being a drop from $65K.

Yet there are still many of the same people HODLing.

Quality projects are worth holding through the bear times. In fact, buying the dip or using this opportunity to get a larger position on the cheap is never a bad idea. It is how people made bank in Apple, Amazon, and stocks like that. Many are applying the same idea to cryptocurrency.

Whatever your flavor, if you believe it long-term, adding some when the market gives the asset away is a good idea. Of course, be mindful of the time frame and how long it can take for a turnaround to occur.

Crappy Markets Are Part Of the Deal

If we are going to have success, dealing with crappy markets is just a part of life. There is no way to avoid them. Sure, we all would love price to go up forever. Sadly, the only way that happens is with a little help from the likes of Bernie Madoff and that also ends badly.

Getting emotional about price is not the approach. Can you see Warren Buffett throwing a keyboard because the price of one of his stocks got beat up? Of course not, he doesn't even have a computer on his desk. All jokes aside, Buffett knows the game. You can bet if the equity market gets smashed, he will be adding.

Success is not an easy endeavor. Making money in the markets is simple, but certainly not easy. In fact, it might be one of the hardest things to do.

Keep in mind the only rules are the ones you set for yourself. The plan you execute is one you design and it is up to you when to enter and/or exit. Nobody makes those decisions for you. There is no boss, company manual, or anything else to dictate what you do. It is totally up to you.

Thus, you are solely responsible. Stop blaming the market for the choices you made. Be adult and admit you screwed up (if you did). Prices are going to head against us at times. There is no way around that. The big question is what we are going to do about it when that happens.

Ultimately, we can utilize a few key ideas to offset what is happened. Personally, having stuff I like on sale is always an appealing situation. This is a proven path to success.

Of course, it is not the only one. There are as many strategies out there as there are people. It is essential to find one that works for you and stick to it.

Whatever the approach, be prepared for the bear. Hibernation is guaranteed to end and it is a period of pain. That said, another guarantee is the bear will get tired and eventually return to the cave.

We just have to weather that time period.

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