In the cryptocurrency market, how to allocate positions is crucial for investors. Based on the market performance, liquidity, fundamentals, and other characteristics of different cryptocurrencies, they can be categorized into heavy positions, medium positions, light positions, and ant positions. Below are my views on different types of positions for your reference.
1. Heavy Position Cryptocurrencies:
Heavy positions are suitable for cryptocurrencies that have already established a foothold in the market, have undergone sufficient accumulation, and possess strong potential. These cryptocurrencies generally have the following characteristics:
- Good liquidity and listed on major exchanges: Ideally, they should be listed on large exchanges like Binance, and have undergone more than 6 months of adjustment and accumulation after listing.
- Continuous accumulation at the bottom: The bottom of the cryptocurrency should have had at least 3 months of accumulation, and the market has not shown significant large fluctuations, forming a relatively solid support.
- Fully circulating market: An ideal heavy position cryptocurrency should be fully circulating, not overly locked up, with strong market liquidity allowing investors to enter and exit flexibly.
Cryptocurrencies suitable for heavy positions include:
MEW, MYRO, BOME, TAO, ORDI, SATS, RATS
These cryptocurrencies generally have strong market fundamentals and broad recognition, and investors can allocate based on their own risk preferences.
2. Medium Position Cryptocurrencies:
Medium positions are suitable for cryptocurrencies that have undergone certain market validation but are still in a volatile phase. Such cryptocurrencies usually have the following characteristics:
- Listed on more than 3 major exchanges: These cryptocurrencies have better market liquidity, but the market attention and trading volume are relatively lower than heavy position cryptocurrencies.
- Experienced around 6 months of market adjustment: Such cryptocurrencies usually go through a period of market consolidation, and there may be continued accumulation at the bottom.
- Clear signs of accumulation by market makers: The funds operating behind the cryptocurrency are relatively active, and investors can judge whether there is accumulation by observing trading volume and market trends.
Cryptocurrencies suitable for medium positions include:
PEPECOIN, NEIRO (uppercase), 1000cat, PIZZA, DOG, DYM, STRK, SAGA, SKL, MANTA, MERL, ELON, PIXEL, YGG, PORTAL, BIGTIME, WLD, TIA, TRU, MASK, ETHFI, ENS
These cryptocurrencies may already have a strong foundation in the market but have not fully exploded, suitable for long-term tracking, and increasing positions when opportunities arise.
3. Light Position Cryptocurrencies:
Light positions are suitable for cryptocurrencies with lower market capitalization and poorer liquidity, but which may have some momentum in the short term. They usually have the following characteristics:
- Poor liquidity and low market attention: These cryptocurrencies have low market heat, may have experienced several rounds of increases on small exchanges, but have a small overall market capitalization and high volatility.
- Market adjustment exceeding half a year: These cryptocurrencies have experienced a long period of adjustment, but market attention remains low, posing a higher risk.
- Relatively large risk, small short-term profits: The profit potential for these cryptocurrencies is limited, and market investor participation is low.
Cryptocurrencies suitable for light positions include:
ETHS, ATOMARC, QUARK, MSN, BILLY, APU, SILLY, TROLL, SEAL, PANDORA
4. Ant Position Cryptocurrencies:
"Ant position" refers to those cryptocurrencies that are very popular, have a sudden surge in trading volume in the short term but are unstable in the market. Such cryptocurrencies usually have the following characteristics:
