I am an investor who believes in philosophy, often saying things that sound very ordinary but I believe are filled with philosophical truths, and I treat them as guiding principles in my trading practice.
For example, I often like to say that if your goal is to make money, your actions must support the result you want. Never do things that cause a divergence between your goals and actions.
Because in reality, many people's operations are like this: they know nothing yet engage in 20x contracts, their capabilities are insufficient to control the contracts, yet they feel they must take a gamble, and the result is liquidation. Sometimes they know a certain coin is a Ponzi scheme yet still gamble, always believing they are not the last one holding the bag, only to end up getting liquidated. This is a typical case of divergence between goals and actions; behavior has fundamentally determined the outcome, wanting to achieve one thing but doing another.
Conversely, if you want to make money, you need to do things that can directly generate income, avoid taking detours, and don't let your actions exceed your capability. This principle applies equally in trading cryptocurrencies; when selecting tokens and managing funds, you can't aim to make money while consistently engaging in activities that are hard to profit from. To make money, you must choose good tokens and put in the effort to think critically. You can't rely on fantasies or hearsay to select coins, nor should you buy coins just because you see others rising; doing so could lead to a divergence between your goals and actions. Even if you profit once, it might just be luck, and you'll eventually lose it back.
Similarly, leverage in fund management should not be set too high; the higher the leverage, the greater the risk exposure, which will obstruct your goal of making money. Therefore, today I will mainly organize my standards for selecting quality tokens and fund management thinking. I hope everyone can find good tokens, match effective fund management strategies, engage in activities that resonate with their goals and actions, think seriously, and execute simply to reap great rewards in the cryptocurrency market.
Selection of quality tokens:
In my view, selecting quality tokens is the top priority in cryptocurrency investment, even more important than judging direction. Finding the right tokens means that you've already succeeded in half of your investment. If investing is like constructing a building, then selecting tokens is the foundation of that building. Only by solidifying the foundation can you build the structure higher. Therefore, selecting good tokens is very important. Only by finding good tokens can concepts like value investment, trading psychology, simplicity in thinking, and philosophical thinking play a positive role. Otherwise, no matter how good the investment method is, it will become a poison hindering your ability to make money.
For example, for many counterfeit tokens, you can't hold them with a value mindset or a dollar-cost averaging mindset. Just look at CoinMarketCap; there are countless altcoins that have dropped over 200 times, and many of these projects have essentially stalled. If you invest in such tokens with a conventional understanding of investment principles, you will likely end up losing everything.
Clearly, the ultimate pursuit of selecting tokens is to find those with high risk resistance and potential high returns. However, the development stage of crypto assets is relatively early, and currently, there is no complete asset valuation model, while the valuation logic of traditional financial markets does not apply in the cryptocurrency space.
Therefore, in the cryptocurrency space, special methods are required to handle special cases. Below are the selection criteria I have summarized myself:
1. Look at project positioning: track, vision. These details are usually outlined in the white paper, and you can also understand them by participating in the project team's activities and listening to founders' presentations. The main thing is to clarify from a personal understanding perspective what problems the project aims to solve; whether the field described truly needs to be addressed using blockchain; the project's expectations and vision for the future market; whether the project's ceiling is high enough. From this perspective, you should definitely choose projects with broad tracks, high ceilings, and ample imagination, such as public chains and platform tokens.
2. Assess team strength: This item also requires looking at the white paper and understanding through various channels. Mainly understand the team's background, financial strength, technical capabilities, the structure of the founding team, investment institutions, etc. Understand from multiple dimensions whether the team's overall strength matches the project they are undertaking and what investment institutions are behind it, as well as the strength of those institutions.
3. Look at chip structure: This item is very important because this is what we are trading. What is the total amount of chips, what are the issuing costs, how large is the circulating supply, what is the circulation model, what is the token's economic model in the project, and is it sustainable? This information mainly assesses whether the project's pricing is reasonable and can be understood as an important indicator of fundamentals.
4. Look at community consensus: Simply put, it’s about checking how many fans the project has. This includes the countries the project covers, community size, overall network popularity, and which exchanges it is listed on.
Among these four points, project positioning and team strength are fundamental items, mainly assessing the strength. Only projects with strength can generate topics and discussions.
Speculative space. On this basis, chip structure and community consensus are the core factors that truly determine the price of crypto assets at this stage.
In essence, cryptocurrencies lack actual assets to support their value; their worth at any time is entirely determined by market speculation. If the speculative space is large and community consensus is strong, prices can soar. If you can catch the market's enthusiasm when it is generally high, you can speculate to great heights. A typical example is EOS, which once had a circulating market value of over 100 billion, how glorious it was!
In a bull market, we must not miss any opportunity to ensure steady profits. If you wish to multiply your investments, want to make a big profit, or wish to break even, please closely follow the steps of Brother Poison and layout for the upcoming bull market! Brother Poison will do his utmost to help you realize your dreams of multiplying your investments in the bull market, making your investment journey easy and enjoyable!
