In the second half of the bull market, the following strategies should be followed when investing in altcoins to optimize risk management and potential returns:
1. Avoid altcoins with high FDV and low market value: These coins are usually risky and should be avoided as much as possible when investing.
2. Risks of large unlocking: Large unlocking may cause sharp price fluctuations and requires special attention.
3. Stay away from coins with DWF market making: Due to the risk of market manipulation, it is recommended to avoid participating in the investment of such coins.
4. Pay attention to the unfalsification and valuation of new narratives: Choose those coins with emerging narratives that are difficult to falsify, which may have higher potential.
5. Invest in coins with long-term sideways trading and stable chip structure: Such coins usually have relatively stable upside potential.
6. Choose coins with actual business income: Those with real business income are relatively low risk.
7. Be cautious with pledge operations: Be careful when staking to avoid potential losses due to market fluctuations.
8. Set stop loss points: Set stop loss points according to market conditions to prevent losses caused by uncertain risks.
9. Timely stop profit: Once the expected profit is reached, it should be sold decisively to ensure profit lock-in.
These strategies can help rationally allocate altcoin investments in the later stages of the bull market, maximizing returns while controlling risks.
