Four: Avoid being cut off! The bloody lesson will tell you!

Although this strategy cannot guarantee that you will never lose money, it may make you miss some opportunities in the short term, but in the long run, it can help you avoid the huge loss of losing all your money and returning to zero.

How to choose altcoins?

Here is a simple principle: for newly listed currencies, if the circulation is 1 billion and the price exceeds 0.5 US dollars, you have to be careful; if the price is lower than 0.2 US dollars, then you can consider entering the market.

The same logic, if the circulation is 100 million, the price exceeds 5 US dollars, you have to be vigilant; and if the circulation is as high as 10 billion, the price exceeds 0.05 US dollars.

Why do you think so? When a new coin is listed, the price is often hyped up. At this time, entering the market is likely to become a "taker".

There are two main reasons:

The market heat is like a short-lived love. After the passionate love, it will always cool down. Once the heat fades, the price of the coin will also cool down.

Project parties and VCs (venture capital) will push up the price of the currency in the initial stage, and then continue to buy in the dilution process, so that investors who take over at high prices have to cover their positions and continue to take over for them.

For most currencies with a circulation of about 1 billion, the price will eventually fall back below $0.5. Therefore, if you buy at around $0.2, as long as it is a good project, it is basically possible to make a profit.

Of course, first-line projects or important projects can be exceptions. For example, CRV has a circulation of 3 billion, and it is worth considering even if it falls to $0.25; for X3, $0.75 is also acceptable, after all, they are important projects.

There are also some head projects, such as NEAR, OP, etc., whose prices will be relatively high, but they are also worth holding for a long time.

Many new coins have a market value of tens of billions of dollars as soon as they are listed. For example, WLD has a circulation of 10 billion, but the price is as high as $12, and the FDV (fully diluted valuation) is close to $120 billion, which is simply a sky-high price! Such projects, of course, should be avoided.

With just a little calculation, you can know which projects are not worth starting. Similarly, for newly listed projects, if the valuation is too high, it is best not to buy it easily. Instead, you should consider selling it when it is listed and let others take over!