I'll tell you five things you need to know so you can learn.
These are absolute gems.
Knowledge is power.
So understand it.
1. Check the Volume-to-Market Cap Ratio:
You want coins with high volume because you want coins with hype.
Check out the 24-hour buying volume and divide it by the market cap.
I usually look for a ratio higher than 10%.
2. Story Adds Value:
What’s the story behind the coin?
Is it actually funny or is it just some cat-like name and an image?
Does the creator have a vision?
It doesn’t need to revolutionise crypto, but it should at least be funny.
3. Avoid Rug Pulls:
Rug pulls happen when the developer sells all their holdings at once,
Or the liquidity pool gets drained, and the coin becomes worthless.
Ensure the distribution of top holders is fair.
For a general overview, check out rugcheck.xyz.
4. Hold Your Winners:
Yes, at some point it’s smart to exit.
But you don’t want to sell a holding when it 2x or 3x.
That way, you will never hit that 10x.
Hold it for as long as the hype is increasing.
Take out your initial investment, but hold the rest as long as hype is still increasing.
5. Check Their Twitter Page:
Is it active? Are there updates being posted?
Don’t fixate on followers; those can be purchased.
But check out the number of posts being created.
Are other influencers tagging the coin?
Simple.
If you want more knowledge like this,
Just like this post and follow me.
