How to win over the next 6-12 months 🥇

The knowledge vault: learning from past reports 🔍️

December 21, 2024

GM! This is Milk Road PRO, your crypto coach!

(Now drop and give me twenty bips!)

The crypto market is once again booming.

We’re sitting at a $3.5 Trillion market cap and there are more than 15,000 tokens listed on Coingecko, not to mention another 10,000 launched daily on pump.fun.

How can anyone decide what to invest in in this scenario?

We believe the crypto market cap is heading to $10 trillion in the next year, yet 90% of the tokens in crypto today will go to 0.

Milk Road PRO is here to make sure you invest in the other 10%.

We’re here to make sure you actually make money during what could be one of the biggest crypto booms we’ve ever seen.

We’ve had 3 crypto booms in the last 15 years and after every one, the bulk of the retail investors leave worse off than when they started. 

It’s wild that that could happen in an industry that does a 20x in 2 years, but it’s the reality.

Today we are going to outline everything you need as an investor to ensure you capitalize on this moment, an opportunity that you may never have again in your lifetime. 

Whether you’re brand new to crypto or a seasoned investor, it’s crucial that you have a clear strategy and a plan for this moment. That’s why we’re here—to give you a complete framework on how to invest in crypto.

Today we will do that through recapping our most important PRO reports of the last year, breaking down the following:

• How crypto works in cycles and what the hell ‘the banana zone’ is.

• How high crypto can go in the next 12 months.

• How to spot a good opportunity in the crypto market and when to sell it

• And finally, how to build and think about your portfolio

Why are we doing this now?

• We’ve had a wave of new PRO members, and we want to help everyone get up to speed quickly.

• There’s so much happening in the space right now that it’s easy to lose sight of the bigger picture.

We believe that if you follow our suggestions and recommendations outlined below, you’ll outperform 90% of market participants! 

That’s a bold claim, we know! But here’s the truth—investing should be simple, and we’re here to help make it simple. The problem? Most people overcomplicate it, chase hype, and make mistakes that end up costing them big time.

Please don’t be one of them. Stick to the basics, follow the strategies, and you’ll thank us in a few years.

You’re at the right time and the right place—now all you need to do is make the most of this report. Keep it handy to guide you through all your important investment decisions.

Let’s start from a high level, so you can understand how we think about investing in the crypto market and what forces drive it. 

THE BUSINESS CYCLE

In case you are unaware, crypto has moved in 4 year cycles historically. 

Generally up for 3 years and down for 1 year. While this likely won’t happen forever, it’s the world we have lived in since the inception of crypto back in 2009.

[

Source: TradingView

Today, we are moving into the final “up” year of the 4 year cycle, assuming it plays out once again. This is one of the reasons we believe right now is such an important moment in time to be invested in crypto.

But why does crypto move in 4 year cycles? Many believe it’s the Bitcoin halving, but in fact, it is the same thing that moves all markets: the business cycle.

The business cycle tells us how the global economy is doing. 

When the economy is booming, crypto thrives right alongside it. But when things slow down, crypto struggles too—just like the rest of the market.

It’s a simple concept, but incredibly powerful. Look at the chart below. 

[

Source: FinancialDesignStudio

The business cycle has 4 distinct phases, and each one calls for a different investment strategy. 

Understanding these phases can help you allocate your funds wisely and maximize your opportunities at every stage.

Here’s the bottom line: the best time to buy crypto is when the economy is struggling, and risk assets are undervalued—when the odds are firmly in your favor as an investor.

You don’t want to be the one chasing the hype when prices are sky-high. That’s why knowing where we are in the business cycle is absolutely essential—it directly affects your investment decisions and strategy.

Feeling like this all sounds a bit too complicated? 

Don’t worry. We recently wrote an entire PRO report on the business cycle and how it impacts the crypto market, as well as how to allocate throughout the cycle - this is a MUST read for all PRO members.

And of course, we track the data for you and provide weekly updates every Thursday in the daily Milk Road newsletter to keep you informed about where we are in the business cycle. 

Here’s our Milkify’ed version of the chart

We’ve officially entered the summer phase—the time when all risk assets, including crypto, start to soar! This is the moment every investor has been waiting for, now famously known as: The Banana Zone.

Before we dive into the banana zone and what it means, we need to quickly cover the liquidity cycle, one of the key factors influencing the "business cycle" chart.

LIQUIDITY CYCLE

The liquidity cycle essentially tracks how much money is flowing into the economy.

Hint: Yes, it correlates quite well with the business cycle.

Simply put: when more liquidity (money) flows into the market, people spend more, companies invest more, and governments allocate more resources.

The result? More money circulating in the economy drives business growth—and ultimately, pushes markets higher.

Don’t believe it? Just take a look at the correlation between global liquidity and Bitcoin.

[

Source: CrossBorder Capital

Coincidence? We don’t think so. That’s why we rely on the business cycle and liquidity cycle as our key tools for deciding how to allocate money—and when it’s time to start taking profits.

If you’re only going to read one report and you haven't read it already, make it this this one.

Alright, now we understand the forces working behind the scenes to drive the markets. Let’s zoom in and take a closer look at how the next 12 months might play out, shall we?

(Spoiler: it looks like things are about to get WILD!)

THE BANANA ZONE

By now, you probably have an idea that the summer season is the best phase in the business cycle to be in the markets. But we like to call this phase something else—because it’s our favorite phase, and all the charts look like bananas! 🍌

Take a look at the last three cycles and see how crypto absolutely took off during the banana zone

[

Source: RealVision

If history repeats itself (and we believe it will), we’re on the verge of another strong 6-12 months in crypto.

But a lot of people are going to mess this up. It is the one thing we know for sure. Before we move into how to invest in the Banana Zone, please read this PRO report: Welcome to the Banana Zone

This report is your ultimate safety net. Think of it as your last line of defense before entering any position or doing something stupid. If you read it every time and avoid the mistakes highlighted in it, you should be just fine. In fact, we’re confident this report will save you at least 100 times over the next 12 months.

Print it out, keep it handy, and let it protect you from acting too quickly, emotionally, or giving in to FOMO!

But we’re not just bullish on crypto because the business cycle and liquidity cycle point in the right direction. We’re also bullish because crypto has matured—it’s now primed to attract mass adoption and disrupt countless traditional industries.

GOLDEN AGE OF CRYPTO

Many are calling this the golden age of crypto, and it’s easy to see why. All the key ingredients are finally in place:

• Fast and cheap chains – Blockchains are now faster and more affordable.

• Critical mass of users and liquidity onchain – A thriving ecosystem with enough users and capital to sustain and drive growth.

• Normie-friendly onboarding infrastructure – User-friendly tools that make it easier than ever for newcomers to get involved.

• Maturing developer tools – Advanced resources that empower developers to build and innovate like never before.

• A non-hostile government stance – Reduced regulatory pressure, paving the way for further adoption and growth.

This is the moment.

Let’s make sure we make the most of it by building a solid crypto portfolio. 💪 

HOW TO SET UP YOUR PORTFOLIO

You will be tempted and overwhelmed by the amount of tokens that seem interesting to buy. 

Today we’re already witnessing people in our PRO discord community asking about some new tokens we’ve never heard of or dead tokens from previous cycles. 

This will only get worse as we further our way into the banana zone.

The key here is not to try to invest in every new shiny thing or to catch every pump.

Instead, you want to keep things simple. Invest in a few tokens you understand and have conviction in, hold them until the end of the cycle and sell them before crypto winter hits.

That’s the strategy. Everything else is just noise!

This also starts however with setting up your portfolio to follow the 80/20 rule. Meaning, 80% of your investments should be in the majors ($BTC, $ETH and $SOL) and 20% in the rest of the higher-risk tokens.

This should be the basic set up of your portfolio. If you don’t do this, you WILL end up losing money this cycle. Yes, it means 80% of your investment won’t have a chance at doing a 1000x in the next year, but that’s ok, because honestly your chances of hitting those types of returns in any other token are next to none.

Don’t let greed get the best of you!

To understand more about the 80/20 rule, read the “How To Build A Crypto Portfolio" PRO report here.

Ok, now that you are going to set up the 80/20 portfolio (you are, aren’t you??), let’s dive into how to choose the winners for the 20% of your portfolio.

HOW TO PICK THE WINNERS

While memecoins are all the rage and likely the reason that many new people are entering crypto, we don’t believe it is the best place to invest your capital.

In fact, we don’t believe it’s investing at all. It’s gambling.

Now, there is nothing wrong with gambling in memecoins, many of us do it ourselves. But, we need to make a clear distinction between the capital we are using to invest and the capital we are using to gamble.

If you want to take a small % of your portfolio or monthly income and gamble it, by all means, go for it! But if you want to invest in crypto assets that have a real chance of not just achieving a 10x+, but also give us real data and fundamentals to value them, then that’s where this section fits in.

These are the types of assets we like to make up the 20% higher risk part of our portfolio, as we can not only value them but have alpha on when to sell them. We don’t feel this is possible in the memecoin mania.

As we look at the broader crypto industry and try to decide which of the 15,000 tokens should fit in our portfolio, we find it most useful to break down the industry by market sectors and map out where the highest growth opportunities are on a risk adjusted basis.

As we mentioned above, we believe crypto will head to a $10T market cap, below is our breakdown of which sectors will make up that market cap. 

We’ve identified 9 key sectors in the crypto market, all with significant growth potential. However, a few sectors, like L1s and DeFi, truly stand out—offering an ideal balance of high-growth opportunities and manageable risk.

To learn more about these predictions and the breakdown of each sector, read through this report here. 

If there’s one takeaway from this report that deserves your full attention, it’s the risk curve we’ve outlined. It’s a crucial tool to help you evaluate and structure your portfolio effectively—and trust us, it’s a game-changer!

After reading this report, you’ll realize that talking about “crypto” isn’t as simple as it seems. 

People could be talking about Bitcoin, Cardano, Solana, or even the latest memecoins. Yes, they’re all crypto, but they belong to entirely different sectors. 

By the end of this report, you’ll have a clear understanding of these distinctions and the diversity within the crypto space. 

It is essential because investors need to understand all the opportunities available in the crypto space before they invest!

That’s a perfect segue into diving deeper into the sectors and opportunities we are most excited about…

CRYPTO SECTORS

Before we get into the different sectors, if you want to ‘click the easy button’ and simply see the assets that we hold in our Milk Road PRO Portfolio, you can do that here.

We also have a 2 part update which breaks down why we hold every asset in our portfolio, you can read part 1 here and part 2 here.

Now, once you take a look at our portfolio you will notice that outside of the majors (L1 blockchains) we mainly hold DeFi tokens. As you just saw above, we believe DeFi is going to grow its market share the most this cycle, while remaining one of the least risky sectors in crypto.

Let’s start this section off with a quick thesis on why DeFi, and then we’ll share some resources to help you move into other sectors like: AI x Crypto, DePIN, memecoins and more!

Decentralized Finance:

In case you’re unfamiliar with DeFi, think of it as all the traditional financial products—but onchain and permissionless. It opens up a whole new world of opportunities! 

Here’s why we’re so bullish on DeFi:

• Global access → Everyone connected to the internet can access DeFi.

• Superior products → Outperform traditional alternatives.

• Faster and cheaper infrastructure due to blockchains → Lower costs.

• Growing user base → Increasing demand.

• Profitable DeFi apps with low valuations → Attractive investments.

Just writing those points gets us excited. 🤩

We believe the DeFi market cap will grow from its current $120B to $800B, a 6.6x increase. 

Want to know more? Check out this report, which dives deeper into our DeFi outlook. If you’re even slightly intrigued by DeFi (and we hope you are), it’s a must-read!

After reading, you might become a fan of specific DeFi categories—or maybe all of them. If you’re a DeFi bull like us, consider diversifying across categories.

Pro Tip: Don’t hold three DeFi tokens that are all DEXs (within the same category)—pick the one you have the most conviction in and diversify across categories for better balance.

That’s how we think about it, and how we position ourselves to capitalize on the DeFi boom. We hold exposure to all DeFi categories. Here are some examples of reports covering some of our DeFi holdings: 

• Ethena ($ENA) – Stablecoins & derivatives.

• Aave ($AAVE) – Lending/borrowing.

• Cow Protocol ($COW) – DEX.

TL;DR: We’re bullish on all DeFi categories this cycle. Some might skyrocket, some might not—but diversification is our edge.

When it comes to diversification, you might also want to explore other sectors like DePIN, AI, or memecoins.

Decentralized Physical Infrastructure (DePIN):

DePIN is a newer sector gaining traction lately, and the upside potential is huge. However, the sector hasn’t matured enough to fully deliver on its promise, making the risks significant.

DePIN has all the ingredients to catch fire as the next big narrative. It’s new, exciting, and hard to value—perfect for hype-driven price movements.

Here are two projects we’ve covered:

• Helium ($HNT): Decentralized wireless networks.

• Hivemapper ($HONEY): Crowdsourced mapping with real utility.

Both have solid traction and a growing user base—great signs for investors.

Moving on to another very hot topic, which everyone is also very bullish about.

AI:

AI needs no introduction—it’s been the defining narrative of recent years. But here’s the real question: Why does AI need blockchain?

We answer that in this report, where we also share insights on a few standout AI tokens, including one we believe could perform exceptionally well in the next year.

And like DePIN, AI is hot and hype-driven, which means prices can skyrocket quickly. But at Milk Road PRO, we focus on fundamentals. That’s why we recommend small exposure to AI tokens—enough to capture upside, but not enough to overextend.

The more narrative based holdings, the more risk. But obviously higher upside potential too.🤑

Talking about high upside potential, we have to mention memecoins. 

Memecoins:

Memecoins are cryptocurrencies inspired by internet memes, trends, or humor. We bet you already know our stance on memecoins—they’re fun, risky, and purely speculative.

Memecoins are basically gambling: win big or lose big. And because gambling has been around for centuries in different forms, we believe memecoins are here to stay.

Here’s the thing—we don’t know which memecoins will explode next. So instead of gambling, we focus on picks and shovels, looking for projects that profit from memecoin mania in a less risky way. Check out this report for more details.

If you choose to invest in memecoins directly, that’s fine too. Just use a very small portion of your portfolio (<5%), because the odds of success are slim. 

But you can also skip memecoins completely and be fine too. That’s what we do anyway.😆

All right, that wraps up our sector coverage. Do you see the huge variety of opportunities here? And how vastly they can differ?

Great—that’s exactly what we wanted you to understand. Only you can decide your risk tolerance, your expectations, and how much time you’re willing to spend researching projects. All of these factors will ultimately shape your portfolio structure.

Now, let us share two more reports that can help you on your investment journey.

HOW TO ANALYZE TOKENS

Let’s say you heard about a token you should invest in or that might be the next big thing. 

The first thing you should do (rather than ask: “wdyt of X token in our Discord) is to take the time to analyze it. 

• Is their product good? 

• How does it perform compared to competitors? 

• Do they have users? 

• Who’s on the team? 

• What do their tokenomics look like? 

And there are many more questions like that. But you need to know the answers. 

This is where you build your conviction. Unfortunately, it’s also the step most people skip—or worse, outsource to TikTok influencers or other influencers. Don’t be that person!

If you don’t know which questions to ask, don’t worry—read this report, and we’ll guide you through the entire process. 

The more time you invest in this step, the better you’ll sleep at night—we promise. Without it, you’ll constantly doubt your decisions. 

(Trust us, this has been tested!)

If, after doing this exercise, everything still looks good, you can start thinking about entering a position.

HOW TO ENTER/EXIT POSITIONS

This is one of our most recent reports, so most of you might still have the insights fresh in your mind. We’re entering a phase of the cycle where waiting too long could become very costly.

Now’s the time to think about moving your funds—getting them ready to deploy as soon as possible.

We also share exit strategies in this report, which might actually be more important than entry strategies. 

Why? First, because everything is likely to go up over the next 12 months—it almost doesn’t matter how you enter 🤣(take that with a grain of salt, of course). But you get the idea, right?

Secondly, because many people in previous cycles were “rich on paper” at some point but didn’t take profits and ended up in a bad position.

That’s why we strongly recommend reading this report. It highlights all the key scenarios where you should start considering selling to lock in your gains.

And that’s it! That was a lot, we know. Let’s break it down and summarize it for you.

CLOSING WORDS

We are all incredibly lucky to be part of these exciting times, witnessing something as novel and transformative as crypto. 

And we’re especially fortunate to be here right now because it’s showtime. 

What does that mean? 

It likely means we’re about to experience 12 months of incredibly bullish charts and green candles. 🥳 These are the moments when investors make the majority of their money.

But do you know who your biggest enemy is?

It’s you—your ego, your emotions, your FOMO...

All of these will creep in and challenge you constantly. But unless you’re a gambler, you shouldn’t let them take over and influence your investment decisions.

Remember, investing should be boring. You’ve already done the hard work over the past months or years. Your portfolio should already be well-set and diversified. If it’s not, make it a priority to get that done as soon as possible. After that, your job is simple: sit tight, stay patient, and let the compounding effects work their magic.

We’re not here for emotions or fun—we’re here to make the most out of this incredible opportunity!

DONT F*CK THIS UP! 

Good luck out there, and take care!

AI-GENERATED PODCAST 🤖

We’ve turned this PRO report into an AI-generated podcast to make it even easier to digest. Head over to our website and give it a listen! 🎧️ 

You’ll find this episode, along with all our other AI-generated podcasts, waiting for you there.

Disclaimer: This podcast was created using AI and is based on the research report above. While we've done our best to ensure accuracy, the audio may contain minor errors, technical glitches, or mispronunciations. Please note that this podcast provides an overview of the report and is not a comprehensive or definitive take on the topic.

ACTION STEPS FOR PRO MEMBERS 🥛 

Join the private PRO community now!

This is your all-access hub for engaging directly with the Milk Road PRO research crew and fellow PRO members, diving into live AMA sessions, digital events, and daily robust discussions on market trends, fundamentals, and industry insights.

🚨 Important: Upon joining the Discord, you’ll be asked to fill out a form. Please, please pay attention to 2 things:

1. Enter the exact email address you used to sign up to PRO with.

2. Enter your exact Discord username. To find your Discord username, click on your profile picture in Discord. Your username is the smaller text name under your profile picture.

Do this with bomb-defusing precision—a single typo might lock you out! 😬

Join the PRO Discord Community Here

See you on the inside! 🥛

Start the Crypto Investing Masterclass (50% off just for you)

If you want to supercharge your portfolio and capture a piece of crypto's growth to a $100T market cap, then you need to understand these 4 basic concepts:

1. The fundamentals of crypto cycles

2. Liquidity flow in crypto

3. How to pick the right coins for your strategy

4. Building a portfolio that outsmarts 99% of crypto investors

You can learn all of the above (and more) inside the Milk Man’s Crypto Investing Masterclass — your ultimate cheat code to become a successful crypto investor.

This masterclass lays the foundation of investing in crypto, so you can maximize the value of the Milk Road PRO reports and build a portfolio that brings you generational wealth by the end of the next bull cycle.

The best part? Milk Road PRO members like you 🫵 get a 50% discount for lifetime. 🥳