The bull market is here, how should I select valuable cryptocurrencies for investment?
Let me share some advice on how to find potential digital currencies:
1. Pay attention to new currencies that have emerged in the past two years, and don’t be overly reliant on well-established coins that have already soared. New entries often have a better chance of standing out in the future. At the same time, avoid areas that are too niche or attract too little attention. Choose coins that are innovative and can solve real problems; such innovations should continuously bring value, rather than just short-term speculation.
2. Look for smaller coins with a lower market capitalization (for example, below $500 million) and limited issuance, preferably those that are fully circulated and have a solid fundamental basis. Such coins will have more room for growth in the future.
3. Check the background of the team and see if there are any prominent institutional investors. This not only boosts confidence but also indicates the quality of the coin. Of course, in addition to assessing the coin's value, it’s important to wait for the right timing. Distinguish between when it’s speculation and when it reflects real value. Truly valuable coins will see their prices rebound after speculation, while worthless ones may never recover.
4. The distribution rules of the tokens should be reasonable; ideally, the circulating supply in the market should be controlled at 60-80% to prevent the market from being impacted by large sell-offs.
5. Select major projects ranked in the top 200 by market capitalization, and avoid blindly following niche projects. Major projects are more stable and have a higher chance of making significant progress.
6. Choose leaders in promising fields, such as decentralized public chains, GameFi, cross-chain, AI, and RWA sectors. Don’t be blinded by temporary trends; look at the long term and select areas that can sustain development.