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The crypto market is heating up, with Bitcoin surpassing $98,000 and other digital assets riding the wave of optimism. Crypto market cycles can be very volatile, so whether you're celebrating gains or preparing for potential corrections, it’s essential to keep your strategy sharp. Here’s how to potentially navigate both bull and bear markets without losing sight of your goals.

1. Avoid Emotional Decision-Making

In booming markets, the fear of missing out (FOMO) can lead to hasty decisions, like jumping into investments without proper research. Similarly, in downturns, panic selling locks in losses. A disciplined approach—aligned with your long-term goals—keeps your emotions in check no matter what the market is doing.

2. Rebalance Your Portfolio

Market movements can shift your asset allocation, often making your portfolio riskier than intended. For instance, if crypto has outperformed and now dominates your holdings, consider rebalancing by reallocating gains to other asset classes. This ensures your risk tolerance and goals remain aligned.

3. Use Dollar-Cost Averaging

Markets rise and fall, but your investment strategy doesn’t have to follow their every move. Dollar-cost averaging—investing a fixed amount at regular intervals—helps reduce the impact of volatility. You’ll buy more when prices are low and less when they’re high, smoothing out your investment costs over time.

4. Focus on Due Diligence

In bull markets, hype can overshadow sound decision-making. Before adding to your portfolio, evaluate the logic:

• Does the cryptocurrency have clear use cases?

• Is the technology robust?

• Is there active development or adoption?

Investments with strong logic are better positioned to weather volatility.

5. Be Mindful of Taxes

If you’re cashing out profits, don’t overlook the tax implications. Capital gains taxes can eat into your returns, so ensure you're tracking your transactions. Strategies like holding assets for over a year (to qualify for lower long-term capital gains rates) or consulting a tax professional can help optimize your approach.

You can also consider holding your investments in a self-directed IRA (SDIRA). Investing via your IRA into crypto means you can benefit from either tax deferred growth (Traditional) or tax free growth (Roth). Your gains can compound more effectively over time, and you’ll diversify your retirement portfolio with alternative assets.

Crypto investments remain highly speculative with potential for significant losses, regardless of the account type used to hold them. Before considering crypto in an SDIRA, consider speaking with tax and investment professionals about your specific situation.

Learn more about holding crypto in a Carry SDIRA here.*

6. Maintain Adequate Liquidity

While it’s tempting to go all in during a bull run, maintaining a cash reserve is critical. Liquidity ensures you’re prepared for emergencies and gives you the flexibility to take advantage of market dips.

7. Stay Informed Without the FOMO

The crypto space evolves rapidly, and staying informed is crucial. However, resist the urge to act on every hot tip or market rally. Follow trusted sources, understand the projects you’re investing in, filter out the noise, and most importantly do your due diligence! Remember, Cryptocurrency prices can drop dramatically with little warning. Past performance does not indicate future results.

Markets will always fluctuate, but successful investors stay the course. In a bull run, stick to your strategy, rebalance when needed, and focus on quality investments. In a downturn, avoid panic, explore tax strategies, and look for buying opportunities.

Whether the market is up or down, the goal remains the same: long-term growth. Stay informed, stay disciplined, and keep building.

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If you want more resourceson building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k

*Alternative Investing into Crypto is solely available for Carry Self-Directed IRA accounts held with AET. Additional fees may apply for crypto transactions made via AET. Investing in digital assets is highly speculative and volatile, and only suitable for investors who are able to bear the risk of potential loss and experience sharp drawdowns. Digital assets are not legal tender and are not backed by the U.S. government. Digital assets are not subject to FDIC insurance or SIPC protections.

All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. Any material provided is for informational purposes only and does not provide personalized investment or tax advice, nor does it account for your specific financial situation or holdings elsewhere. Investments in alternative assets are speculative, generally illiquid and involve a higher degree of risk. Those investors who cannot afford to lose their entire investment should not invest in alternative assets. Before making any financial decisions, consult with qualified legal, tax, or financial advisors to ensure appropriateness for your individual circumstances.

Self-Directed IRAs (SDIRA) are offered through American Estate & Trust, Inc. (“AET”), a licensed custodian for retirement accounts. AET administers these accounts on a custodial basis and does not provide investment advice, endorsement, or recommendation of any investment options available within the IRA. All decisions regarding investments are made by the account holder and are subject to IRS rules and regulations. Accounts offered by AET are not serviced by Carry Advisors.

Eligibility, deductibility, and contribution limits for Traditional and Roth IRAs depend on IRS rules, income, and retirement plan participation. Traditional IRA withdrawals are generally taxed as ordinary income, while qualified Roth IRA distributions are tax-free. Early withdrawals may incur penalties. Traditional IRAs have Required Minimum Distributions; Roth IRAs do not. Advanced strategies like backdoor Roth and mega backdoor Roth conversions may be available but have specific rules and potential tax implications. Contribution limits, rules, and available strategies are subject to change. Individuals are responsible for the ongoing compliance of their plans with current IRS regulations. Consult a tax professional for personalized advice on basic and advanced IRA strategies. Carry does not provide tax or legal counsel.