Altcoin Investment Key Points

1. Focus on Sector Rotation

In altcoin investment, sector rotation is a key factor. Currently, market liquidity is limited, and major cryptocurrencies like Bitcoin and Ethereum have absorbed a large amount of capital, while the flow of funds back into older altcoins is relatively rare. Therefore, the performance of altcoins heavily depends on opportunities brought by sector rotation.

2. Follow Market Trends and Analyze

A relatively simple strategy is to follow market trends. First, observe the direction with the highest market discussion intensity, then conduct an objective analysis based on market conditions. Factors to consider include whether the current price position of the cryptocurrency is reasonable, its cost-effectiveness, and its potential for future development. If the comprehensive assessment looks positive, one can try to buy in.

3. Seize Swing Trading Opportunities

In the current market situation, it is relatively advantageous for swing traders. If holding altcoins for the long term, it is expected that peak values may not occur until next year. When the held altcoins have a good profit margin, exiting through swing arbitrage is a good choice. Even if this may lead to missing out on subsequent market movements, there is no need to worry too much, as there are many other cryptocurrencies available for investment, offering plenty of opportunities without the need to linger too long on one cryptocurrency.