The valuable experience I gained after going through four market cycles, shared with everyone
1/ In the early and mid-stages, just trade on the secondary market; whatever is hot, trade it. Emotion is greater than everything else; the bold thrive, and the timid starve. Don't participate in project research, just trade coins, just trade coins, just trade coins.
2/ In the later stages, the time for trading whatever rises on the secondary market is over. It’s time to start playing with various new projects. At this point, the cost-performance ratio of collecting rewards will increase.
3/ There are two typical types of projects that emerge in the later stages:
A) New entrepreneurs, graduates from various prestigious American universities, with a halo effect and a lot of VC funding. These projects generally fail, but the wealth effect after the coin is listed can still be significant.
B) Large cuts in old bottles with new wine, as they know the bull market is coming to an end and they operate a quick exit strategy. These large exchanges have very strong resources, and their listing capabilities are astonishing.
4/ Senior VCs know that each market cycle will produce 2 DePIN gems and 2 GameFi gems. The characteristics of these gems are: they undergo a long washout period, followed by a sharp rise, which also follows the three-wave theory. The founders of the gems from the last two cycles are almost all of Asian descent with long-term residency/study backgrounds in the West.
5/ Each market cycle will have a very, very vicious harvesting event, usually initiated by a super large project with a broad audience and many followers.
6/ Projects that have survived more than two cycles are worth paying attention to. Unusual turmoil usually indicates something strange.
7/ Ponzi coins perform well in every cycle; currently, several Ponzi coins listed on Binance have been outstanding for two consecutive cycles, with contract performance experiencing significant ups and downs, and retail investors have a love-hate relationship with them.
8/ Once a public chain project fails to build an ecosystem after its product launch, it cannot recover; there is no such thing as a comeback.
9/ DeFi projects are evergreen and have the potential for a comeback.
10/ Don't be afraid of a rising Ponzi; if you're waiting to buy the dip, then don't hesitate. Start with 20% now.