Altcoins have now become something everyone avoids; what should we do?
Just this weekend, altcoins experienced a significant decline again, resulting in the liquidation of 142,513 people, with losses amounting to 350 million USD, and most of the losses occurred in altcoins. In this round of market, altcoins have completely become the target of 'everyone shouting to hit'.
In fact, the root of the problem still lies in liquidity. Of course, there are some other factors, such as the surge in the number of altcoins, funds being endlessly diverted, and the large issuance of VC coins, leading to a series of sell-offs in the later stages of the market, with retail investors' confidence long since depleted.
The current altcoin market has mostly turned to speculation on meme coins, but the market reaction has been that almost no one has made money from it, and the entire sector seems to be like a gust of wind, with retail investors' funds evaporating. Worse, people can no longer concentrate their funds to drive the market.
However, we still believe that with the end of interest rate cuts and QT, once the easing policy is initiated, the bull market for altcoins will return. However, this time we cannot compare with past prices; the opportunities for speculation will be concentrated on fewer hot projects. As we have always emphasized, altcoins are not suitable for long-term holding and layout; they are more of a trading tool.
Aside from Bitcoin and some large-cap leading projects, here are some ideas for selecting altcoins:
Market capitalization should be small: preferably below 100 million USD, or even below 10 million USD. If it is an early-stage project without significant institutional investment, that would be even better. One advantage of a small market cap is that when the market is favorable, the price increase may be larger, potentially resulting in a tenfold or even greater increase.
The official team is continuously working: for example, the team or officials are consistently promoting project development, official media is continuously updating, and the code is being continuously optimized. These are potential signals of ecological explosion, indicating that the project has long-term development plans.
There must be a concept: some projects may not currently attract much attention, but who knows when the wind will blow, and once the concept explodes, it could lead to a surge. Therefore, it is best to choose projects with some innovation or potential.
It is best to still be in the primary market: that is, not yet listed on major exchanges. These types of projects will have greater room for price increases in the early stages, as early entry opportunities are often the most advantageous.
Do not heavily invest: this point is very important! Even for good projects with low market capitalization, do not start with a heavy investment; risk control is always the most important. You can diversify your positions and gradually increase your investment, avoiding putting all your funds in at once.