The author of this article shares investment experiences in the AI field, helping readers understand the dynamics of the crypto market and investment strategies. This article is based on a piece written by Terry and organized and compiled by ShenChao TechFlow. (Background: AI Agents are booming, could they become the next DeFi Summer?) (Background Supplement: AI Agent Alpha methodology: Why are 'platform + market' models more popular, as seen in Max and Alchemist AI?) First, a disclaimer: I am not the top trader, but below are some key insights I gained over the past two months while exploring AI meta with some industry elites. This article aims not only to distill the concepts I have learned but also to help you better understand and navigate this market through practical examples and suggestions. Attention and Fundamentals The price of cryptocurrency usually rises for two main reasons: Attention (hype) Fundamentals (real value, technology, application) Attention-based coins: The prices of these tokens soar mainly because everyone is talking about them (like meme coins that are popular on X/TikTok). In this case, the price can rise rapidly but may also fall quickly due to a lack of 'real intrinsic value,' being merely hype. Fundamental-based coins: These coins have substantial value support, such as interesting technology, strong development teams, partnerships, or useful products. Even if the price drops in the short term, it is usually just 'noise' because their long-term potential remains significant. For example, a meme coin may rise in price due to a large number of mentions on Twitter and TikTok, but once the attention wanes, the price will quickly fall. In contrast, a mature project developing AI tools and collaborating with well-known projects or companies may experience slow initial price fluctuations, but as more people observe the actual effects of its products, the price may steadily rise. When trading on hype, closely watch price trends and exit promptly when momentum weakens. In fundamental investing, if you believe in the long-term potential of a project, short-term price fluctuations may be irrelevant (this is my personal investment style). If you notice the fundamentals of a project weakening or changing, decisively cut your losses. Never become overly attached to a particular investment project. Seeking Expansion Space A wiser strategy is to focus on projects that have the potential for several times growth in value, rather than merely chasing small gains. Instead of focusing on a small opportunity that might grow from a market cap of $1 million to $5 million, look for those you believe can grow from $5 million to $100 million or even $1 billion. Such trades, if executed correctly, could yield 'life-changing' returns rather than just quick pocket money. You should always seek opportunities with significant upside potential. This often means focusing on early-stage projects with strong fundamentals or unique innovations, rather than those already 'hyped.' Seizing Early Opportunities Profitable trades typically stem from participating in trends before they become mainstream. If you can identify a potential project or trend (like AI infrastructure or swarm/multi-agent architecture) before others, you can reap the maximum rewards. In simple terms, if you start researching AI-related technologies or projects before AI becomes a buzzword, you might find an excellent coin while its market cap is still low. As the AI craze grows, more people will join in, driving up prices. Early participation means you can capture most of the upswing. Take time to understand emerging trends in AI (such as multimodality, decentralized reasoning, swarm intelligence, traffic engineering, agentfi, etc.) and get involved before they make headlines. This may require you to stay updated on developer announcements, read whitepapers, and review discussions on social media. Establishing a Trading Process Having an advantage, such as using custom scripts, analytical dashboards, or any efficient research methods, can help you find good opportunities faster than most. You can use crypto price alert bots or platforms like Dexscreener to track the release of new tokens. When new projects emerge and suddenly gain trading volume, you should investigate immediately. Review the project's official website, team information, X account, Telegram group, Discord, etc. If it seems promising, you can decide whether to invest immediately. Speed is crucial. You can even utilize simple tools, like a list on X composed of well-known 'AI quant' groups or Telegram groups, to stay alert for new opportunities. Over time, you can acquire more advanced tools, but start with free and simple ones. The key is— you must have a strategy, a process, to help you win in the market. Avoiding the 'Middle Curve' Trap It is often simpler to buy proven leaders or find entirely new low-market projects. Mid-market projects can be riskier if they lack clear positioning, as new competitors can easily surpass them. Suppose you have the following choices: Project A, with a market cap of $1 billion, well-known and continuously launching new features Project B, with a market cap of $1 million, with a novel idea but still unknown Project C, with a market cap of $50 million, lacking innovation and always overshadowed by other projects A beginner might think C is 'safer than B but cheaper than A.' However, if C stagnates, lacking growth or innovation, it is less likely to yield significant returns compared to finding a new, promising B or sticking with a reliable A. The point is, if you choose mid-sized projects, ensure they have a plan to stand out. Otherwise, they may just waste your time and capital— ultimately, it’s a matter of opportunity cost. Focusing on Industry Growth (which is also why I only focus on AI) AI is a long-term trend. We see its impact not limited to cryptocurrency but spanning all industries. When an entire industry (like AI) shows tremendous long-term potential, the entire market can expand significantly beyond current valuations. Early leaders in the industry may see substantial appreciation over time. If the entire AI intelligence domain is currently valued at around $10 billion, but you believe it will become one of the most dominant industries in a few years, potentially growing to $100 billion or more, then the leaders in that field (mature projects with strong communities and products) may achieve growth of 10 times or more as the industry expands. Identifying leaders in the growth story and investing in them now can become safer and more profitable choices as the entire industry matures. Adapting and Continuous Improvement AI is developing rapidly, and cryptocurrency is evolving even faster. You need to continuously update your strategy, reflect on what works and what doesn’t, and learn from mistakes. A good practice is to write down your top 5 successful and failed trades at the end of each month’s trading. Ask yourself: Why did I buy this coin? When did I sell, and why? Could I have identified the trend earlier? By regularly reflecting on these questions, you can identify patterns in your decisions and improve over time. Treat trading as a skill that needs honing. Document trades, assess market sentiment, and discuss strategies with other cryptocurrency traders to help you become smarter and faster. Managing Liquidity and Staying Flexible Keep some cash on hand so you can quickly invest when new opportunities arise. Don’t...

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