Coin Market

A guide to crypto trading bots: Analyzing strategies and performance

Published

2 weeks ago

April 22, 2025

The cryptocurrency market has witnessed a surge in the adoption of automated trading solutions, with trading bots gaining prominence for their ability to analyze vast data sets and execute trades with precision.

Cointelegraph has dissected historical bot revenues and token price rollercoasters and backtested strategy returns against the buy-and-hold yardstick to decode what bots shine brightest — and when — so you can pick the perfect bot to match your style and stomach for risk.

We have examined three types of trading bots: Telegram bots trading on decentralized exchanges (DEX), non-Telegram bots trading on DEXs and on centralized exchanges (CEXs), and the recently evolving AI agent bots.

Choosing the right trading bot depends on the user’s goals, risk tolerance and experience. At a glance:

Telegram bots are ideal for fast, opportunistic trading like token launches and memecoins.

AI agent bots, such as ai16z or Virtuals, suit users who want hands-off automation and are comfortable with experimental strategies.

CEX bots offer the most control and are best for structured strategies like dollar-cost averaging (DCA), grid or signal-based trading.

Bot trading strategies and performance

Trading bots are sophisticated automated systems that use algorithms to analyze cryptocurrency market data and autonomously execute trades on centralized exchanges or decentralized platforms. These bots typically operate continuously, 24 hours a day, seven days a week, requiring minimal human oversight. Their core function involves the analysis of extensive amounts of real-time and historical market data, including price fluctuations, trading volumes and order book information.

There are numerous potential advantages to employing AI agent trading bots. Their continuous operation ensures that no trading opportunities are missed, as they can monitor markets around the clock, accommodating global market movements. Some platforms offering these bots also provide backtesting capabilities, enabling users to evaluate the potential effectiveness of different trading strategies using historical data before deploying them with real capital.

Telegram DEX bots

Telegram bots operate via Telegram, leveraging its accessibility and real-time communication to execute trades directly on DEXs. They often focus on speed and sniping new tokens, appealing to users in fast-moving ecosystems like Solana. The recently launched protocols also included additional features that are often available in CEX trading bots, such as grid trading, DCA and limit orders.

Telegram bots such as Maestro and Unibot first appeared around 2020–2021. In 2022, many of these bots were already offering advanced features like copy trading and arbitrage.

By the end of 2023, Solana-based bots like BONKBot and Trojan Bot gained prominence for their speed in trading memecoins on DEXs. The biggest advantage of Telegram bots is their ability to trade on mobile devices without the need for a web browser extension to connect to a wallet. It hugely improves the usability of mobile trading, monitoring and integration with social networks.

The top five Telegram bots by historical trading volume across all blockchains are Trojan, BonkBot, Maestro, Banana Gun and Sol Trading Bot. The majority of the trading volumes in the past 90 days happened on Solana, where all of the top five Telegram bots operate.

DEX trading bot wars. Source: Dune Analytics

The functionalities offered by the Telegram bots are very similar, with the exception that some of them (i.e., Maestro and Banana Gun) focus on multichain operations, whereas the rest focus on Solana.

The main use case for Telegram bots is to automatically identify profitable entry and exit points and execute trades quickly; it’s very difficult to track the profits or losses made by individual users from each trade. Since some of the Telegram bots, such as Banana Gun and BonkBot, offer a revenue-sharing model tied to their own tokens in the form of purchasing back their tokens with the 1% fee they charge, the token price and revenue (fees received) are used as an approximation of the performance of Telegram bots.

Daily revenue in USD among Telegram bots. Source: Dune Dashboard

Daily revenue out of total revenue. Source: Dune Dashboard

Looking at the total revenue in the past six months, Trojan has received the most nominal amount in fees (around $109 million), whereas Sol Trading Bot has the highest median daily revenue when normalizing the daily revenue in terms of the total revenue.

They all saw a peak around January 2025 during the memecoin season but are now facing a low-revenue period due to the broader bearish market conditions.

Daily token price percentage change. Source: Dune Analytics

The two Telegram bots that share revenue through their tokens are Banana Gun and BonkBot. Looking at the price evolution in the past six months, the performance of the remaining parts is very similar, except for the significant rise in BONK’s price in November 2024. They both experienced significant price drops during the recent bearish market conditions.

AI agent bots

AI agent trading bots are sophisticated automated systems that leverage artificial intelligence and machine learning (ML) algorithms to analyze cryptocurrency market data and autonomously execute trades.

The term “agent” suggests these bots possess a degree of independence and decision-making capability that extends beyond the fixed rules of traditional automated trading systems. The most well-known AI agent frameworks that exist today are Virtuals and ai16z.

Virtuals Protocol, launched in October 2024 on the Ethereum layer-2 network Base, is an AI agent generator platform designed to simplify the creation and deployment of AI agents on the blockchain. While Virtuals is not solely focused on trading, the platform enables the development of AI agents that could potentially be designed for trading purposes. For instance, Aixbt, an experimental AI agent on the platform, tracks discussions on X to identify potential market insights, suggesting a strategy that could inform trading decisions.

Since Virtuals Protocol focuses on a launchpad model where agents are tokenized individually (e.g., LUNA and AIXBT) and operate across different areas such as gaming, trading and entertainment, we’ll only look into the performance of AIXBT, the token of the trading agent with the largest market capitalization on Virtuals.

AIXBT price history. Source: CoinMarketCap

Ai16z is an AI-powered trading fund operating on the Solana blockchain. Launched in October 2024, ai16z utilizes sophisticated AI agents, powered by the Eliza framework, to autonomously analyze market data, including price movements, social media sentiment and onchain analytics, and execute trades.

The fund functions as an AI investment decentralized autonomous organization (DAO), allowing holders of its native token to participate in governance by voting on key decisions and influencing trading strategies through a “virtual marketplace of trust.” AI Marc, a virtual fund manager built using the Eliza framework, oversees the fund’s trading activities. AI16Z tokens represent ownership in the fund and grant governance rights, with the agent’s actions driving token value.

AI16Z price history. Source: CoinMarketCap

Comparing the trading volumes from these two agents, they both reached a peak in January 2025, with AI16Z reaching $501 million and AIXBT reaching $682 million. AI16Z’s price hit its peak slightly earlier than its volume high, whereas for AIXBT, the price and volume peaks coincided around the same time.

AI16Z and AIXBT price and volume comparison. Source: CoinMarketCap

AIXBT’s price performance is more impressive than AI16Z. At the peak, the token price was almost 4,000x the initial price in November 2024, whereas for AI16Z, this was around 111x. Even after the recent downturn and the broader market trending down, the latest price record at the end of March 2025 is still 478x the initial price for AIXBT and 6.8x for AI16Z.

DEX/CEX bots

These platforms are web-based and operate outside Telegram. You can trade directly on DEXs through wallet connection or connect to a CEX via APIs or a simple login option as part of their integrated exchange solutions.

These web-based platforms offer a wide range of strategies and broader market access; they cater to users preferring both CEX liquidity and reliability as well as DEX’s decentralized, non-custodial nature. Some of these platforms also offer a quick switch between DEX and CEX with one click, making the discovery of price discrepancies between CEX and DEX (or CEX-DEX arbitrage) much easier.

The most common strategies available on these platforms are grid, DCA and signal bot. A DCA bot invests a fixed amount of money into a cryptocurrency at regular intervals — regardless of the asset’s price. The idea is to spread out your entry points over time, which helps reduce the impact of market volatility. This type of strategy tends to perform well during price-trending periods.

A grid bot is built for active trading — buying low and selling high in a structured way to profit from price fluctuations. A grid bot places a series of buy and sell limit orders at preset intervals above and below a set price range. This creates a “grid” of orders, and the bot profits from each completed buy-low/sell-high cycle. Grid bot works best in sideways markets with high volatility.

A signal bot executes trades based on external signals — these usually come from technical indicators, market analysis or third-party services. These signals can be relative strength index (RSI), exponential moving averages (EMA), Bollinger Bands, etc.

The following table shows the historical performance for the token pairs BTC/USDT, ETH/USDT and SOL/USDT for the three trading strategies. The parameter selection for the grid bot utilizes the 3Commas AI optimization built-in functionality to select the best parameters, whereas for DCA, the most popular classic trading strategy from their users is selected.

For the signal bot, Dash2Trade provides strategy presets where the top strategy for each token is selected. These strategies are backtested on a proprietary system used to trade on live markets but are only available for the 120 days before Jan. 26, 2025.

Due to a lack of consistent availability of data on the platforms, three backtesting periods were used for each of the three strategies. The table below shows the simple price change during the corresponding period, which is also the return for the simple benchmark buy-and-hold strategy.

The available data suggests that performance can vary widely based on the specific bot, the trading strategy employed and the prevailing market conditions at the time the backtests were run.

BTC and ETH price. Source: CoinMarketCap

During the 120-day period from Sept. 26, 2024, to Jan. 26, 2025, when the signal bots were backtested, the market prices for Bitcoin (BTC), Ether (ETH) and Solana (SOL) were all upward trending with a buy-and-hold return of 58%, 23% and 55%, respectively. The signal bots’ strategies were performing in line with the buy-and-hold strategy (in some cases slightly worse) for BTC (58.15%), ETH (16.79%) and SOL (48.68%).

Comparing the same 120-day period but from Dec. 4, 2024, to April 4, 2025, when grid bots were backtested, the market prices for BTC, ETH and SOL were all experiencing a downward trend, with a buy-and-hold return of -16%, -53% and -49%, respectively, which is completely different from the previous 120-day backtesting period. The grid bots’ strategies were performing much better than the buy-and-hold strategy during the downward-trending, high-volatility market conditions, giving positive returns for BTC (9.6%), ETH (10.4%) and SOL (21.88%).

BTC and SOL price. Source: CoinMarketCap

For the longest 180-day backtesting period from Oct. 4, 2024, to April 4, 2025, when the DCA bots were backtested, the buy-and-hold returns for BTC, ETH and SOL were 34%, -25% and -18%, respectively. The signal bots’ strategies were performing very differently for the three tokens compared to the buy-and-hold strategy.

For BTC, a 17.75% return is generated from the DCA bots, which is worse than the buy-and-hold strategy. However, for ETH (58.12%) and SOL (80.92%), the DCA returns are much better than the buy-and-hold returns. This might be due to the fact that ETH and SOL experienced much higher volatility during the period compared to BTC, and the DCA strategy was able to spread out entry prices to reduce exposure to bad timing.

Trading bot performance comparison

Telegram DEX bots like Trojan and Sol Trading Bot dominated in revenue over the past six months, with Trojan earning about $109 million in fees. Sol Trading Bot stood out for consistent daily earnings relative to its size.

However, all bots saw revenue peak during the January 2025 memecoin hype and have since slowed due to bearish market sentiment. Token-linked bots (BANANA, BONK) followed a similar pattern — brief surges (notably BONK in November 2024) followed by steep drops tied to broader market trends.

AI agent bots showed explosive growth during the same period. AIXBT reached a peak price 4,000x its initial value, far outperforming AI16Z (111x). Even post-correction, AIXBT held strong at 478x vs. AI16Z’s 6.8x. Volume-wise, both peaked in January 2025, but AIXBT’s token price closely tracked its volume rise, suggesting strong speculative momentum.

CEX/DEX signals, grid and DCA bots showed the importance of market conditions, and the performance results vary quite a lot compared to the buy-and-hold strategy.

Signal bots performed close to the buy-and-hold strategy during the uptrend market condition (backtesting period September 2024–January 2025), with marginally lower or similar returns.

Grid bots excelled during a downtrend and high volatility environment (backtesting period December 2024–April 2025), beating the buy-and-hold strategy by wide margins, flipping negative market returns into double-digit gains.

DCA bots over a 180-day backtesting period (October 2024–April 2025) had mixed results; they underperformed the buy-and-hold strategy for BTC but dramatically outperformed ETH and SOL, most likely due to their ability to absorb and capitalize on volatility.

Key takeaways

We have dived into the wild world of AI-powered crypto trading bots, pitting Telegram DEX bots, AI agent bots and CEX/DEX bots against each other — each a unique tool tailored to different traders and market conditions.

Telegram DEX bots are designed for ease of use, with a simple interface embedded in the Telegram app. These bots focus on trading memecoins or participating in token launches onchain. They appeal to mobile-savvy traders and memecoin enthusiasts who prioritize quick trades and social integration, with features such as copy trade and revenue-sharing through tokens.

Telegram DEX bots generated significant revenue in the past six months, peaking in January 2025’s memecoin season. But not all of them share revenue with the users. The only two who did (BANANA, BONK) faltered in the recent bearish market, with token prices dropping sharply.

AI agent bots use natural language interfaces and AI decision-making to lower the barrier to entry for users interested in governance (e.g., AI16Z’s DAO model) or sentiment-driven strategies (e.g., AIXBT’s X analysis). Their primary strength lies in abstracting complex trading strategies through conversational interfaces.

Although AI agent bots’ token price exhibited explosive growth, the recent market downtrend has led to less trading activity and lower token prices. AI agent bots stand out as a more experimental category. They remain under development and are best suited for users who are tech-curious or seeking a hybrid between simplicity and automation.

Bots operating on DEXs or CEXs directly offer web-based platforms with diverse strategies, suiting more experienced traders who need high-speed execution, multi-exchange access, deep liquidity and complex configurability. The backtesting results show signal bots give similar returns to the bullish buy-and-hold strategy, whereas grid bots thrive in volatile downturn markets, and DCA bots outperform the buy-and-hold strategy for more volatile assets.

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Coin Market

New Hampshire governor signs crypto reserve bill into law

Published

2 hours ago

May 6, 2025

Kelly Ayotte, the Governor of New Hampshire, signed a bill into law allowing the state’s treasurer to invest in cryptocurrencies, including Bitcoin (BTC).

In a May 6 notice, Ayotte announced on social media that New Hampshire would be permitted to “invest in cryptocurrency and precious metals” through a bill passed in the state Senate and House of Representatives. House Bill 302, introduced in New Hampshire in January, will allow the state’s treasury to use funds to invest in cryptocurrencies with a market capitalization of more than $500 billion, eliminating many tokens and memecoins.

Signing New Hampshire’s crypto reserve bill into law on May 6. Source: Governor Kelly Ayotte

With the signing of the bill into law, New Hampshire was the first of several US states considering passing legislation to establish a strategic Bitcoin reserve, including an initiative with the federal government. A similar bill in Arizona passed the state’s House in April but was vetoed by Governor Katie Hobbs on May 2.

This is a developing story, and further information will be added as it becomes available.

Coin Market

Solana bull flag, rising stablecoin market cap hint at SOL price rally to $220

Published

2 hours ago

May 6, 2025

Key takeaways:

Solana’s stablecoin supply rose by 156% in 2025, to hit a new record at $12 billion.

Solana’s TVL grew by 25% to $7.65 billion, with 27.7% decentralized exchange volume share, leading Ethereum and BNB Chain.

SOL price formed a bull flag, with a price target at $220.

Solana’s native token, SOL (SOL) failed to maintain its bullish momentum after reaching $156 on April 25, but an assortment of data points suggests that the altcoin’s upside is not over.

SOL stablecoin market cap hits $13 billion

Solana’s stablecoin supply has skyrocketed by 156% in 2025, surging past $13 billion to hit a new all-time high.

Stablecoins on Solana recently surged past $13B in issuance, setting a new ATH@calilyliu on why Solana is purpose-built for moving digital dollars at internet speed pic.twitter.com/WYPPg0LEG6

— Solana (@solana) May 5, 2025

Circle’s USDC (USDC) remains the stablecoin of choice for Solana users, with a 77% market share.

Solana stablecoin supply surpasses $103 billion, setting a new all-time high. Source: DefiLlama

Stablecoins are integral to Solana’s decentralized finance (DeFi) ecosystem, driving liquidity and increasing SOL demand as it’s used for transaction fees and staking, potentially pushing its price upward.

Increased stablecoin inflows historically correlate with price rallies, as seen between December 2023 and August 2024, when a 230% rally in SOL price was accompanied by a 160% increase in stablecoin inflows from $1.55 billion to $4.06 billion.

Solana TVL and transaction count on the rise

Solana remains the second-largest blockchain in terms of total value locked (TVL) and ranks first in DEX volumes.

Solana’s TVL has risen from $6.1 billion on April 9 to $7.65 billion on May 6, an increase of over 25% in almost 30 days.

Solana TVL and transaction count. Source: DefiLlama

Positive signs include a 44% increase in deposits on Sanctum, a liquid staking application, and 25% growth on Jito and Kamino.

Solana’s daily transaction count has also increased by 25% over the last month to 57.77 million transactions.

While Ethereum and BNB Chain provide competition in terms of onchain volumes, the Solana network is the undisputed leader with daily DEX volumes standing at $2.61 billion at the time of writing. Solana also commands a 27.7% DEX volume market share, ahead of BNB Chains and Ethereum’s 18%.

Blockchains’ DEX volume dominance. Source: DefiLlama

SOL bull flag points to $220

SOL price has formed a bull flag chart pattern in the daily timeframe, as shown in the chart below.

A bull flag pattern is a bullish setup that forms after the price consolidates inside a down-sloping range following a sharp price rise.

SOL/USD daily chart. Source: Cointelegraph/TradingView

Bull flags typically resolve after the price breaks above the upper trendline and rises by as much as the previous uptrend’s height. This puts the upper target for SOL price at $220, up 53% from the current price.

Crypto analyst RisHad said that SOL price needs to hold the $120 – $130 support to increase the chances of moving toward $178 and beyond.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Coin Market

Is it a bull or bear market? How to tell the difference

Published

3 hours ago

May 6, 2025

TL;DR:

Not sure if you’re in a bull or bear market? This guide breaks down how to spot the difference using price action, volume, sentiment and onchain data. Learn how to recognize market cycles, what signals to watch for and how to adjust your strategy for each phase so you can trade smarter.

Crypto markets can feel like emotional rollercoasters, prices soaring one month, then crashing the next. You’re not alone if you’ve ever wondered whether you are in a bull or a bear market.

In the simplest terms:

A bull market is when prices keep going up, people are excited and there’s a general sense that the future is bright. Think back to late 2020 and early 2021; Bitcoin (BTC) climbed from around $10,000 to nearly $70,000. New projects were launching daily and it felt like everyone from your cousin to your Uber driver was buying crypto.

On the flip side, a bear market is when prices drop consistently, investors pull back, and sentiment sours. A good example? 2022. After hitting all-time highs, the market tumbled. Bitcoin fell below $20,000, projects collapsed (remember Terra?), and even veteran traders started discussing “building in the bear.”

Knowing what kind of market you’re in helps you make smarter moves, and that’s why this all matters. You don’t want to ape into memecoins during a downtrend or panic-sell just before a rebound.

Recognizing market phases helps you invest more strategically, manage risk and crucially, keep your emotions in check. Which, in crypto, is half the battle.

Did you know? In 18th-century England, “bearskin jobbers” were early short-sellers, traders who sold bearskins they didn’t yet own, betting prices would fall. The saying “don’t sell the bear’s skin before you’ve caught the bear” stuck, and so did the metaphor. The term bull came later, not only as the bear’s opposite, but also because of the upward motion of a bull’s horns when attacking.

Understanding bull and bear markets

Sure, crypto is “numbers on a chart.” But, it’s also stories, headlines and entire communities’ constantly shifting mood. Here’s how to understand bull and bear cycles:

1. Bull market characteristics

a) Sustained price increases

Prices rise in a bull market, sure. What’s more important is that they keep rising, often over weeks or months. You’ll see major coins climbing steadily and altcoins riding the wave.

A textbook example? Bitcoin’s run in 2020–2021, where it jumped from ~$10,000 to $69,000. That rally had momentum, institutional backing (Tesla, Strategy, etc.), and serious retail FOMO.

Or Dogecoin’s meme-fueled sprint in early 2021, going from joke status to $0.45 thanks to Elon tweets and Reddit hype.

b) Positive investor sentiment

You’ll know sentiment is bullish when X feels euphoric, everyone’s calling for a BTC moonshot and new projects are launching daily with sky-high valuations. Money flows in fast, and even risky bets feel like obvious plays. That’s when you know that positive investor sentiment is in the air.

c) Favorable economic indicators

Bull runs often line up with low interest rates, easy access to credit and generally tech-friendly conditions. During the 2020 bull, for instance, pandemic-era stimulus checks and low borrowing costs gave retail and institutional investors more ammo to deploy into digital assets.

2. Bear market characteristics

a) Prolonged price declines

Bear markets will drag on until the cows come home. Prices fall, then fall some more, and every slight bounce is sold off. Think 2018’s “crypto winter,” when Bitcoin crashed from $20,000 to around $3,000.

Or 2022’s brutal downturn, when BTC dropped from $69,000 to under $20,000. That crash wasn’t really about price either; it was fuelled by implosions like Terra-Luna, Celsius and the FTX scandal. The dominoes just kept falling.

Bear markets tend to feel like the party’s over.

b) Negative investor sentiment

During bear phases, fear takes over. Headlines turn grim, social media goes quiet and even die-hard believers start questioning their convictions. Funding dries up, dev teams go silent and “exit liquidity” jokes make the rounds.

c) Adverse economic conditions

Macro headwinds don’t help. High interest rates, inflation fears or tightening monetary policy often make things worse. In 2022, for example, the Fed’s aggressive rate hikes made risk assets, including crypto, far less appealing.

Key indicators to identify market phases

While no single metric can give you 100% certainty, there are a handful of time-tested indicators that traders and analysts rely on. Let’s break down the indicators you can use, aside from the obvious one (price).

Trading volume

Volume tells you how much conviction is behind the price moves.

In a bull market, rising prices are often backed by strong trading volume. More buyers step in, more liquidity enters the market and the rally feels supported.

During a bear market, volume tends to dry up. Price drops are met with weak buying pressure and it can feel like no one wants to touch the market.

Low volume plus a declining price? Not a great sign if you’re hoping for a bounce.

Did you know? During the 2021 bull run, Dogecoin experienced a surge in trading volume, with nearly $70 billion traded in a single day as its price soared to $0.45

Market sentiment

One tool many investors rely on is the Crypto Fear & Greed Index. It measures social media activity, volatility, Google search trends and more to gauge whether investors feel optimistic (greedy) or pessimistic (fearful).

Extreme greed often pops up near the top.

Extreme fear tends to appear near the bottom, though it can hang around in deeper downturns.

Check it daily, but don’t let it drive your whole strategy. It’s a mood ring, not a crystal ball.

Technical indicators

You don’t have to be a chart wizard to spot a few helpful signals.

Moving averages: When the price is consistently above the 200-day moving average, it’s generally bullish. When it dips below, that’s often a warning sign. These are long-term trend indicators, not day-trading tools.

Relative strength index (RSI): This measures whether an asset is overbought or oversold: Readings above 70 suggest it’s overheated and due for a pullback, while readings below 30 may indicate it’s oversold with potential to bounce.

None of this is gospel, but it helps you get a feel for momentum.

Fundamental factors

Sometimes the biggest market movers don’t show up on a chart.

Bullish signs might include:

Big-name institutional adoption (like BlackRock applying for a Bitcoin ETF).

Friendly regulatory news or court wins for crypto firms.

Major tech milestones (think Ethereum upgrades or layer-2 rollouts).

Meanwhile, bearish signs often look like:

Regulatory crackdowns (the SEC targeting major exchanges).

High-profile security breaches or protocol failures.

Global instability — inflation, war or financial contagion.

Once you know what to look for, the next step is figuring out where. Fortunately, crypto comes with a treasure trove of free tools if you know where to dig.

Charting platforms

If you want to understand price action, you need solid charts.

TradingView is known for customizable charts and technical indicators.

Cointelegraph offers clear overviews of prices, market caps and volume trends that are especially useful for tracking newer or smaller tokens.

Did you know? TradingView’s charting tools are integrated directly into many of the world’s top crypto exchanges, including Binance, Bybit, OKX, and Bitget.

Sentiment analysis

Crypto is more mood than math.

Tools like LunarCrush track social media activity, influencer buzz and trending tokens. If Dogecoin starts heating up again, you’ll probably see the early signs there.

Onchain data

Want to know what the whales are doing? Platforms like Glassnode and CryptoQuant surface data like wallet flows, miner activity and exchange balances. It’s like reading the blockchain’s heartbeat. You’ll often spot capital shifts before they show up in the price.

Strategies for navigating different market conditions

Understanding the cycle is one thing. Knowing how to act on it is another. Your playbook should change depending on whether you’re riding a bull or surviving a bear.

Bull market strategies

Trend following: When the market’s running hot, sometimes the best move is to go with the flow, but stay disciplined. Focus on assets in strong uptrends, and don’t get caught chasing green candles without a plan.

Profit-taking: Set targets and honor them. It’s easy to get greedy when everything’s pumping, but taking profits on the way up helps you avoid the dreaded round trip: watching your gains vanish in the next drawdown.

Risk management: Even bull markets pull back. Use stop-losses or trailing stops to lock in gains and guard against surprise reversals. You’ll thank yourself later.

Bear market strategies

Defensive positioning: Sometimes, the smartest trade is no trade. Moving part of your portfolio into stablecoins or sticking to less volatile assets like Bitcoin and Ether (ETH) can help preserve capital while others panic.

Dollar-cost averaging (DCA): Trying to time the exact bottom? Good luck. DCA smooths the ride by spreading your entries over time, lowering your average cost and helping you stay engaged without overcommitting.

Focus on fundamentals: Bear markets strip away the noise. What survives are the projects with real use, strong teams and long-term vision. If you’re holding through a downturn, ensure you’re holding for the right reasons.

By failing to prepare, you are preparing to fail

Bull or bear, crypto never stops moving, but that doesn’t mean you have to react to every swing. Price trends, sentiment shifts, volume patterns and fundamentals can all clue you in on where you are in the cycle. Armed with the right tools and a calm mindset, you can tune out the noise and act with clarity.

Markets reward preparation, and knowing whether you’re in bull territory or bear country is one of the most powerful tools you can have.

Happy trading!

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.