How to Choose Quality Altcoins?
1. Core of Sector Rotation
The core of the current altcoin market lies in closely following the rhythm of sector rotation. Due to limited market liquidity, mainstream coins like Bitcoin and Ethereum attract a large amount of capital, while older coins have weaker capital liquidity; therefore, grasping the opportunities of sector rotation is crucial.
2. Trend Following and Market Analysis
Trend following is a simple yet effective operational strategy. Investors can pay attention to market hotspots and analyze the market situation to find coins with high cost-performance ratios. If the potential for the future market seems large, one can intervene at the right time.
3. Consideration of Cycles
The current market environment is suitable for swing trading, and there are still arbitrage opportunities in the short term. However, for long-term investors, it may be necessary to wait until next year's market peak to achieve substantial returns.
4. Mindset and Layout
There is no need to feel regretful about missing certain market trends, as new opportunities will always arise. At the same time, it is essential to avoid excessively concentrating funds in a single coin. Funds should be kept diversified to reduce risk and maintain a stable investment strategy.