I used to answer that you can buy BTC and ETH, or a leading token in a sector that I am optimistic about, every time there is a crash.
But now, my point of view has changed. Financial investment is a complex system. Different people should adopt different investment strategies. We cannot generalize. There is no universal investment strategy that is suitable for everyone. We need to analyze each case specifically.
For example, if a person can only invest 10,000 yuan now, then if he invests in BTC, even if BTC rises to 200,000 yuan in the bull market, he will only make 60,000 yuan. It is really meaningless to make 60,000 yuan in several years. For this amount of funds, a more appropriate solution is to use 10,000 yuan to buy 0.7 ETH, and then use ETH as GAS fee to get the wool of L2, which is likely to make 200,000 yuan.
Another person has 1 million yuan of spare money to invest. He can use 400,000 yuan to buy BTC, 300,000 yuan to buy ETH, 200,000 yuan to buy new public chains such as ARB, and 100,000 yuan to buy several new alpha projects. In the bull market, there is a high probability that he will get millions of yuan in investment returns. (Aggressive investment strategy)
Another person has 10 million in investable funds. He can use 4 million to buy broad-based index funds (such as QQQ), 3 million to buy government bonds, 1 million to buy gold, 1 million in cash, 700,000 BTC and 300,000 ETH, a total of 10% in crypto assets. (Mainstream investment strategy for high net worth people)
There is another person who has 10 million investable funds and an absolutely stable cash flow. He can use 7 million to buy stocks he likes, 2 million to buy BTC and ETH, and 1 million in cash. (Buffett Strategy)
People with different amounts of capital have different investment goals and risk preferences, so their investment strategies should be different. It is difficult to simply copy others' homework.
For example, if I see a whale buying PEPE worth hundreds of thousands of dollars, can I follow suit and buy 20,000 dollars?
These hundreds of thousands of dollars may only be 1% of the whale's assets. The fluctuation of the total assets will not affect 1%, so he can accept it even if it goes to zero. But I only have 20,000 dollars in total. If it goes to zero, I will leave the table, so I should not touch it.
So, it’s not about whether a certain coin can be bought, but whether I can buy a certain coin.
Back to the original question, when someone asks whether a certain coin can be bought, this question should have different answers for different people.
Therefore, if a KOL recommends a certain coin or investment strategy to everyone, he is either an ignorant person or an irresponsible person.
These suggestions include: fixed investment in Bitcoin and ETH, forming a world order for BTC and ETH, going long on BTC and shorting on altcoins for hedging arbitrage, casting a wide net and screening for gold-digging, not touching leveraged contracts, dynamic low leverage on the chain, etc.
These suggestions or strategies have advantages, limitations and problems. There is no right or wrong. They are just suitable for different people, and different strategies are suitable for different ranges of people.
Specific instructions:
Fixed investment in Bitcoin and ETH: Suitable for people who are not mainly interested in the cryptocurrency circle. They do not need to invest in research, do not spend energy, and avoid missing out on blockchain opportunities. Disadvantages: It is not as good as buying in full at one time or several times in a bear market, because fixed investment will increase the average cost.
BTCETH Tiandi Order: It is equivalent to buying the market. While enjoying the growth dividend of the blockchain industry, you can also take advantage of the fluctuation of the BTCETH exchange rate to earn some extra LP income. In the end, you don’t have to worry about which one is left. Insufficient, many people do it, and the liquidity depth of the transaction is very good, so the income is very limited.
Long BTC and short altcoin hedge arbitrage: It is a common strategy of stock market hedge funds. The advantage is that there is no industry risk, the risk is low, and you can make money in both bull and bear markets. Disadvantages: The income is limited, and the annualized average may be only a few points. It is better to buy the bottom of BTC and invest in spot for a long period of time to make more money.
Cast a wide net and select the Golden Dog copycats: Many bloggers actually do this. Those who invest in larger projects are called investment researchers, while those who invest in smaller projects are called local dogs. This is a test of vision and investment research. If you have a good level, the return rate in a bull market will be very high, dozens or even hundreds of times. Disadvantages: You can only play in a bull market, and the bear market has a huge retracement. Most projects return to zero or close to zero, which is quite energy-consuming.
Leveraged contracts: small capital, big returns, short feedback time, making money is easy, suitable for professional calm and rational traders. Disadvantages: a shortcut to bankruptcy, making money quickly, losing money even faster, few people can overcome the greed addiction of human nature, without professional training, predicting the short-term market by feeling, the most common group of people who lose all their money and are in debt, also known as gamblers. It is common and requires watching the market, which is very tiring, and can easily lead to physical problems such as impotence, premature ejaculation, prostatitis, fatty liver, etc. (This is really something that most people can't play, so it is recommended not to use leveraged contracts, which is basically correct, covers the largest population, and is a conscientious suggestion.)
Dynamic low leverage on the chain: Get higher returns than the overall market, and the risk is much lower than the leveraged contracts on the exchange. Many whales' operation strategies are to deposit ETH or WBTC on the chain, borrow U, then charge Binance, buy BTC or ETH and deposit it on the lending platform, also known as circular lending. Disadvantages: There is a risk of liquidation when leverage is touched. In the event of the 312 incident, low leverage will also explode. The hidden danger of dynamic low leverage is that when it falls to a certain level, there may not be bullets to reduce leverage.
From the above, in summary, risks and returns are basically equal, and there is no optimal solution. The right way is to truly understand the potential risks and returns of different strategies and choose the one that meets your capital requirements and suits your investment style.