What is the core logic of a coin going up?
Today I will share with you what is the core logic of choosing a coin, which everyone must know
Which coins can be held for a long time, and which coins can only be a one-night stand.
The logic of the coin going up is mainly because funds have come in
It is equivalent to saying that other people place orders for purchasing power, demand is greater than supply, and then the price of the coin is pushed up.
The premise is that if this coin wants to rise, should it first let others know about it? The premise for letting others know is that this coin must be displayed.
It can be displayed in various forms, such as on some platforms, with the blessing of celebrities. Or with the blessing of large investment institutions.
So here we have a formula.
Display * click * conversion = capital inflow. Display * click = traffic. If there is no click, then display alone is useless. Otherwise, those coins on the list, why don’t they rise when there are so many displays, it’s because there is a lack of clicks and conversions.
To put it simply, people think it’s good after seeing it, and then few people place orders to buy it. There is no incremental funds.
So when buying a coin, the most important thing is the traffic base.
Why did the coins like Dogecoin, Shib, and Elon all fly to the sky? It is because Musk successfully gave Dogecoin a lot of traffic.
Also, the price of this coin is cheap, and it has existed for a long time. There is no big dealer, so it is very easy for him to pull the market.
So he buys it first, and then the price goes up, and then he calls the order. At this time, when retail investors buy it, the circulation volume is originally small, and the price goes up all of a sudden.
For example, a friend of mine bought sao coins before, which means that the more you move in bed, the more you earn. Do you think this is reasonable?
For long-term holding, you have to choose the best. How to choose? It's very simple. Look at what those powerful institutions have bought, such as a16z, Binance investment, Coinbase investment. Ftt investment. Grayscale investment. The probability that they choose is not pure air coins. Within the scope of their bets, you choose the coins with a large investment ratio for long-term holding, and you can also hold them for a long time.
Why do everyone buy btc and eth? Because the liquidity is good and it can accommodate large funds.
