When is the right time to enter the market? The market is moving forward, and historical data can only be used as a reference. But what is certain is that the opportunity to get back on board will definitely appear! Now anxious friends can relax their minds appropriately.
Don’t be overly obsessed with the leaders of large market capitalization. Low market capitalization often has high expectations, and heavy vehicles often can’t be pulled very high! When the market is strong, each sector must have several leading currencies. After all, the train runs fast, all relying on the locomotive. The same is true in the currency circle. How big the potential of a sector is depends on how strong the leader is. The so-called leader is a coin with the highest recognition among investors and plays a decisive role. If the leader rises, other currencies in the relevant sectors will also rise. If the leader falls back, other currencies will also fall. There is no room for two tigers in one mountain. There is often only one leader in a sector. The leader is like a flag, leading other currencies to advance and retreat together!
Of course, some large sectors may also have multiple leaders moving forward alternately! Thus, a magnificent market trend will emerge! The funds in the market are limited, so the sectors are also rotating. During this period, most currencies have come out from the bottom and started to rise along with the sectors. The most popular one during this period is undoubtedly BRC20. Judging from the situation, the Sun Brother sector and the storage sector are expected to take over!
Sometimes you will find that, although they are all in the same sector, some coins continue to rise sharply, while others have a lot of declines. This really tests one’s coin selection skills!
In fact, the best way now is to choose a currency that you are optimistic about and close the software. When it exceeds 100 times, just come back and prepare to clear the position. Otherwise, there are the following situations:
One is to hold low-priced chips, and see a good rise in the prices. However, as you watch the market all day long, you can no longer hold on to the stocks as they keep rising, and are thrown off the bus early. Then your mentality collapses, and the advantages of the low-priced chips are gone. Then you start to chase the rise and sell the fall.
The second type is those who are already on the train, but want to do some swing trading. However, you should know that no one can sell at the peak or buy at the trough of the wave, especially if you sell too early and feel that the price is going up again, then you start to chase the rise and sell the fall. The swing trading actually tests one's mentality very much, because it is difficult for the price to rise as soon as you buy and fall as soon as you sell. Usually, the price will fall for a while after you buy before it will rise, and it will rise for a while after you sell before it falls. This period of time requires you to have a strong mentality to support you.
Another type of people are those who have been waiting for a crash, but have not gotten on the train and have always held an empty position. There are quite a lot of people like this because they are greedy and always want to buy at the lowest point. But in fact, no one knows where the lowest point is. You will only know where the lowest point is after the market has finished. So the best way is to get on the train in batches.
In a rising market, how to choose the skyrocketing coins?
The most preferred currency is the one with active and flexible currency! For example, a currency has obvious wave trend, and the ups and downs are obvious on the big picture, but when you calculate its daily rise (about 3 to 7 days), the fluctuation is only a dozen points. This is a typical plague chicken, and there will not be much potential if you buy it!
On the contrary, if a coin's daily daily increase can reach more than 10%, and it has a complete trend structure, if you ambush during the process of correction and stabilization, you may continue to benefit from the surge! Once this kind of coin is stimulated by news, or when the main force intends to pull the market, the increase in the coin price will exceed that of most varieties in the sector! This can be easily distinguished by looking at the historical trend chart!
Differences in sectors When it comes to sector information in the cryptocurrency world, most of us are not cryptocurrency scientists, and we cannot clearly see whether its detailed structure is good or bad. After all, we are all ordinary people. The news we see is what people in the upper ecological niche want us to see. We hear about the good and bad of a coin from social media or other people, or it may be our own nonsensical imagination. Therefore, the coins we buy are often similar in concept, but the final increase is very different.
For example, in the storage sector, there are two coins, one is based on the previous generation of technology, and the other is based on the latest concept. Both are one generation ahead of the other in terms of security, efficiency, and cost. However, most of us only know that they are both in the storage sector, but do not know the details. When capital enters the market, it will naturally choose the latter to hype.
The information that we retail investors can get is actually very little. Even so, a large part of it is fake or exaggerated. This is the most deceptive part! Some of the deep-seated frauds are so hard that even professionals can't tell the difference, let alone retail investors like us who just started to trade cryptocurrencies!
The expected value of the currency is speculation, speculation is about expectations, expectations are what the main force draws up! Including the application of this technology, the potential for future development, the expected growth..., then what is the core logic of this?
I think there is one thing that is unavoidable, that is, the total market value is small, the circulating chips are few, and the coins linked to popular sectors are most likely to be targeted by major funds. The reason is very simple, that is, it is easy to control and there is a story to tell (that is, expectation). For details, please refer to bigtime, which has almost increased five times in a few days, and find it based on this model!
The impact of market value on expectations (the leader is not the best) We have talked about what expectations are above. One of the most important ones is the expectation of growth. After all, no matter how good a coin is, the purpose of the main force in pulling the price is to sell it at a high price and make more money!
Therefore, when the fundamentals are good, companies with smaller market capitalization are more popular!
For example, a budget of 10 billion is needed to double the size of a 10 billion plate. The same 10 billion can be used to double the size of a 2 billion plate by more than 5 times.
Small-cap coins are easier to control, and the main players of small-cap coins are relatively "poor". It is this kind of poverty plus good control that makes the traders of low-cap coins more ambitious! Therefore, most of the 100-fold coins in each round of market appear in this category!
