How to choose altcoins so as not to be cut off, a lesson learned from blood and tears.

This strategy cannot help you not to lose money absolutely, and you may miss some opportunities in the short term, but in the long run, you can avoid blood loss and zero losses.

How to choose altcoins? Simple principle: For newly listed coins, if the circulation volume is 1 billion and the price exceeds 0.5 US dollars, you should be vigilant, and if it is less than 0.2 US dollars, you can basically enter the market.

Similarly, if the circulation volume is 100 million, be vigilant if it is more than 5 US dollars, and if it is 10 billion, you need to be vigilant if it is 0.05 US dollars.

Why do you say that? New coins are often listed at high prices, and entering the market means taking over.

There are two reasons:

1. The market heat is like two young people falling in love. Sooner or later, the heat will fade, and when the heat fades, the coin price will also cool;

2. The project party and VC will definitely find a way to raise the coin price in the initial stage, and then continue to buy coins during the dilution process. Investors who have already taken over at high prices have to cover their positions and continue to take over.

Most of the coins issued with a circulation of about 1 billion will fall below $0.5. If you buy them at around $0.2, you will basically have the possibility of future profit, provided that they are good projects.

First-tier projects or important projects can be priced higher. For example, CRV has a circulation of 3 billion, and it falls to $0.25. If it is X3, it is $0.75. Although it is higher than $0.5, it is an important project, so it is OK.

In addition, important projects, such as NEAR and OP, will have higher prices.

Many new coins are listed with a market value of tens of billions of dollars. WLD has a circulation of 10 billion, and the price has reached $12, which is almost close to the FDV of $120 billion. It is a sky-high price! Of course, you can't buy it.

If you do a little calculation, you will know which projects you should not buy.

Similarly, most of the newly listed projects are too highly valued and should not be bought. They should be sold as soon as they are listed and let others take over.