I have recently started to explore this field, and after a period of exploration and learning, I have gradually developed some of my own views. The essence of speculation lies in the flow of popularity and funds. We all know that popularity brings heat, and funds can drive prices up, and most of our energy should be focused on how to find both.
However, popularity is relatively difficult to quantify, as it does not have a clear numerical value like other indicators; it is more about judgment based on feeling, but this judgment can easily be influenced by FOMO and FUD, leading to decision-making errors. In contrast, relying on cold hard data is more reliable. For example, when a project claims to be "very hot," how do we determine whether this heat is confined to a small circle or has spread widely in the market? Or, how do we confirm that a project is popular in the domestic market but has not received attention abroad?
By setting up an information circle to track these data, we can help avoid misjudgments, but I believe the more critical aspect is to focus on the flow of funds. The direction of funds often represents the mainstream trend of the market; we should not only track smart money but also observe the overall market fund movements. For example, the current public chain track may be the main focus of funds, and projects like Rebit are also attracting a lot of attention from funds, while projects like XLM have attracted many investors due to their potential and returns. Although we may not be able to clearly analyze whether to use trading volume, total locked amount, and other data now, essentially, the most important thing is to follow the mainstream flow of funds to ride the trend.
Ultimately, no matter how many people in the market claim their choices are good or whose analysis is more reasonable, the one that ultimately determines price fluctuations is always the flow of funds. The projects with the highest price increase and the most funds are the ones worth paying attention to. To achieve this, it indeed requires a lot of time and effort; we must not only continue to learn but also closely monitor the mainstream trends in the market to make breakthroughs in the ever-changing market.
5 years of experience in the crypto space, feel free to consult on any questions, and for friends who want to improve together, check my profile.
