As we all know, “updates and iterations” apply to all industries - the cryptocurrency industry is no exception and is even more obvious. The crypto market generally prefers new tokens rather than old tokens that have participated in previous cycles.
It is necessary to track and seize the opportunities of these projects. At the same time, it is a difficult task to lay out before they create prices that refresh historical highs. In order to avoid missing opportunities, it is necessary to analyze in detail how to discover these tenfold and hundredfold projects as early as possible and participate in token distribution.
Defining the right emotion is key
Markets are cyclical, and the cryptocurrency market is no exception. It has periods of growth and recession. If the market is in a downturn, you should wait for the sentiment to improve. In a bear market, even the most promising projects will barely show any performance and may even delay their releases. The best time to enter the market is when it is rising, not when it is bearish (because you never know where the bottom is) nor when it is extremely bullish. Look at the entire market, measure investor behavior, check the overall trend, and correctly define market sentiment.
Research specific cryptocurrency sectors
Delve into crypto sector categories (DeFi, RWA, GameFi, etc.) to understand their potential and limitations - by delving into these different sectors, we can better understand their opportunities and risks and make more informed investment decisions. In addition, as the crypto space continues to evolve, new sectors and innovations may emerge, so it is also very important to continue learning and tracking industry trends. Tracking the most profitable investment institutions VC
While the entry points and profitability metrics of these VCs may be very different from retail investors, it is always a good idea to follow those professional investment institutions to view their investment activities, identify top investors, and current investment trends.
Screen out high potential projects in the sector
Fundraising and Financial Status: Evaluate the project's funding methods and financial status to understand whether the project has sufficient resources and a sustainable development plan;
Market trends and prospects: Research the overall trends and prospects of the cryptocurrency industry and consider whether the project meets current and future market needs;
Community and adoption: Evaluate the project’s community and user adoption. Twitter is the main social platform for cryptocurrency users and projects to communicate and share insights.
Team and background: The core team members of the research project, including their experience, expertise, and reputation;
Technical strength: Evaluate the technical architecture, innovation and feasibility of the project. Understand whether the project has unique technical advantages and can solve real-world problems or provide valuable solutions;
Product or Solution: Evaluate whether the project's product or solution has market demand and can provide actual added value.
......
Token distribution method for participating projects
There are basically only two options: participating in the token sale and getting an airdrop as an early user — which requires knowing exactly at what point in time the project will enter the market.
Token sales: Token sales used to be the most popular form of distributing tokens to the public, but are becoming less and less of an option for protocols.
Airdrop: Airdrop is the best way to launch a token, both from a marketing perspective and from other perspectives.
Before participating in the crypto projects screened through the above, it is crucial that you develop a specific action plan for each token after researching the market and selecting the project. This plan should be adjusted according to the project and the market cycle. When the market falls, it is best to sell the tokens you hold as soon as possible, because this may be the peak of the price, and it may never reach the historical high (ATH) again in the next few years. Selling early helps avoid further losses. On the contrary, when the market is bullish or at least out of the bear market, you can partially sell when the token reaches the set price target.
You also need to pay attention to:
Risk Management: Don’t invest all the money you cannot afford to lose, invest only the part you can afford to risk.
Diversify your investments: Don’t be too dependent or enthusiastic about one project. Even if one project looks great, diversify your investments and focus on other projects. This will reduce investment risks and help you find growth opportunities in multiple projects.
Exit at the right time: Don’t be greedy and consider an exit strategy in time. Once you have achieved a decent profit or at least recovered your investment cost, consider reducing risk and protecting your gains.
Think independently: Don’t rely too much on influencers or promotional information on social media. When a project or token is widely promoted, the best time to invest may have been missed. You should do your own research and search for projects to get more comprehensive and objective information.
Previous selections:
《Small capital, big returns, one fish, eight meals, airdrop strategy guide (Part 1)! 》
Note: All content represents the author's personal views only, is not investment advice, and should not be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice on tax consequences.
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