In a wave of market conditions, the market will generally rise, sectors will rise, and individual coins will also rise. So should we invest in coins or sectors?
First of all, let’s distinguish the difference between the two strategies. Taking coins as the core of investment means studying individual projects one by one. For example, projects recommended by the media, Twitter, and friends, we should study and analyze them before deciding to buy or sell. Taking sectors as the core of investment means first studying and determining which sector is more likely to be hyped, and then studying the projects in this sector and selecting the better ones. I think that taking sectors as the core of investment will be better than taking coins as the core. There are three reasons
1) From historical experience, a wave of market conditions often rotates with sectors. A sector can accommodate a larger amount of funds, generate more wealth-creating effects, attract more traffic, and form a positive flywheel.
2) When a project produces a benefit effect, the market will look for other similar projects based on its logic, which are often in the same sector. For example, after the surge in ordi last year, everyone would analyze the reasons (bitcoin ecology, 100% fair launch, BTC new assets), and then buy coins with the same logic. The coins that meet these reasons are still those in the inscription sector. This means that if you layout the sector, even if the coins you buy do not rise at the beginning, they will rise sooner or later when the sector is hyped.
3) The trigger of external major events often drives the sector. For example, chatgpt drives the hype of the AI sector. So my strategy is to layout the sector when I layout at the bottom. In the middle of the market rise, there will be an individual project. If I see a particularly good one, I will buy it again. But the main position is still on the sector.
