How to judge whether a cottage currency can get a bull market? ? ?
Let me give you some useful information. I will teach you how to analyze the potential of coins from technical aspects, market aspects, narrative perspectives, and banker aspects. I will also share with you my method of selecting coins. If I just throw a few coins at you, you will just go for it. If you chase, you may unknowingly become someone else's leeks and be harvested. Others say one coin is good, but you don't even know how to buy it on the chain. You don’t even know what is good about this coin, you have no way to judge it, and you have no way to learn other people’s ideas for choosing coins. Let’s talk about some of my understanding ideas below: 1. When deciding on a currency, you can consider these projects with high circulation rates. Let me tell you why a high circulation rate is so important: It is a good idea to choose a currency with a high circulation rate. The idea of investing in currency selection is to unlock at least 80% of the currencies. If a currency has a huge amount of unlocked chips, the selling pressure in the later period will be very large. Even if the project is very good and will continue to grow in the future, that will happen. In the extreme situation where the price does not rise and the market value increases, refer to Flow (it keeps unlocking and the price keeps falling) because the early increase has overdrawn the future market value space. It is very unreliable for the FDV to be too high, unless it wants to exceed BTC, but Basically impossible. For coins with high circulation rates, distribution has basically been completed. Retail investors hold a lot of coins, and the chips are scattered and fully changing hands. In addition, it is also possible that institutions have gradually accumulated funds to take over the goods during the decline, which is enough to control the market, and this currency is a necessary condition for pulling the market. Also, because the FDV may be relatively low, the market value space is also good. The long bear market is very difficult for everyone, and every round of bulls The bears will change a group of people. If the bear market cuts its flesh and leaves the market, or the bear market no longer increases or replenishes its positions, then if you wait until the bull market to chase the rise and participate, you will still have a high probability of taking over the market, and the profits will be greatly reduced. However, there is a risk in the layout of the bear market, that is, you don’t know where the bottom is, and the layout is likely to be in the middle. If the mountain is cut in half, it will be cut in half again. This is a very contradictory problem, and there is only one solution: Don’t try to buy at the bottom, invest in batches, and cover positions 2. Value currency anchor selection method I usually choose a currency that I am familiar with as the " "Anchor" to measure whether the market is in a general rise, following the rise, or sector rotation. It may be a really strong pull-up. The conditions for my personal selection are as follows: 1.The current top 20 non-stable coins by market capitalization. 2. A non-stable currency that has risen to the top 10 even for a short period of time. 3. It has a certain consensus among industry practitioners. 4. Have a broad user base. 5. The project party will hype up the hot spots. 6. Have a position and a certain position. This coin will always be on the homepage of my ALT watch list. When the rise of the coin is lower than#BTCand #ETH, I generally will not judge that there is an entry of external funds into the market, nor will it be a large-scale rising stage. . The probability of a general rise is relatively high. At this time, more funds will still be concentrated on BTC and ETH. And if the currency continues to exceed the increase of BTC and ETH, I will judge that there may be more external funds entering, or the funds on the market are looking for sector rotation. At this time, I will carefully pay attention to the ALT market and select It is a completely different track and type than this coin, but it meets the basic conditions. If both currencies are rising at the same time, and the increase exceeds that of BTC and ETH, I will think that it is the outbreak season. During the outbreak season, most of the top 50 non-stable coins have a strong probability of rising, and they can be selected for their layout. 3. If you can analyze the data on the chain, here are some more advanced methods: 1. The circulation market value and total market value should be low. The total market value of the public chain is best below 50 million, and the dapp protocol is best below 5 million. . It is easy to understand that the circulating market value should be low. If the market value is not low, the space will not be large enough. The lower the better. Why the total market value must be low? That is because tokens will be slowly released in the next 1-2 years. If the total market value If it is not low, it means that the project side can make a fortune without pulling the market and shipping sideways. In other words, if it falls 10 times, the price and profit will still be very high. 2. The ceiling of the track must be high. At least the bull market estimates The value needs to be more than 1 billion US dollars. If it is a meme currency, you should refer to the dog coin. If it is a public chain, you should refer to ETH SOL MATIC. If it is a dapp and other protocols, refer to uni aave LDO, etc. 3. New narrative, too unpopular Do not participate in the track. It is best to solve practical problems. The new narrative must be long-term value discovery, rather than short-term cyclical hype. For example, the current narrative of AI GPU computing power, safer, faster and more decentralized public chains, horizontal Cross-metaverse chain game AR and other track infrastructure. 4. The 100-fold black horse currency must be in a place where no one cares because the coins known to the entire network are basically high open (ICP), or normal valuation (ARB) ), do you think their unit price can increase 100 times? When the market opened, the total market capitalization was tens of billions or hundreds of billions. Let alone a 100-fold increase, even if it increased 10 times, it would have caught up with ETH and BTC. 5. The liquidity of early 100-fold coins was basically very poor, and generally On-chain or small exchanges. So when many novices see others recommending early coins, they don’t study the value. They keep saying that they don’t want to go to small exchanges, they are too stupid, buying is too troublesome, and there are no apps. Participation. These are all superficial phenomena, without seeing the essence of value. When I bought Magic in 2021, it was very troublesome to cross the chain. Then it increased 10 times in one month. When I bought PPI in February 2023, I also needed double wallets. Cross-chain, many exchanges I tried did not support it. Later, gate supported Espace currency withdrawal. Later, the threshold for brc20 tokens was very high, and it was troublesome to have points and OTC. In short, high threshold is the only way to stop Leek. .Binance has no threshold, but it is difficult to make money on it. They are all shipped after going online. Refer to the recent trend of RDNT GNS PEPE FLOKI. 6. The best time for the token to go online is at the end of the bull market or the beginning of the bear market. Research or buy When entering, the best time for listing and washing is 6-12 months, and the best circulation rate is greater than 50%. KAS was launched in May 2022, and the deep washing took about 6 months. The highest increase this year was more than 100 times. PPI is It was launched in May 2022, and started to explode after 9 months of deep market washing. The current circulation rate is about 60%, and the highest increase this year is about 50 times. 7. The unit price is low, and there should be more 0 after the decimal point. If the unit price rises, it will be A few hundred U or a few thousand U will scare away more than 80% of the leeks. Especially in the big bull market, all the new leeks come in. They only look at the unit price and don’t understand the market value. The unit prices of meme coins and public chain coins are all at the beginning. Very low, 3-5 zeros is normal. 8. It is best to be a public chain or the head protocol on the public chain. The most profitable thing in the currency circle is the public chain. In the 21 years of the bull market, it has exceeded 10 times. Public chain coins, sol matic avax sol ftm, each have their own advantages. There are also many head protocols coming out, such as uni aave cake xvs, etc. Why don’t I participate in Hong Kong’s hot currency ACH lina kdy, because they are not public Chains, many things have a short life cycle and are over after a wave of speculation. But the public chain is different. It has always been a hot spot and has always been about ecology and market value. 9. Founder, team background, investment institution, financing amount Be reliable. It is best for the founder to be a celebrity in the currency circle such as the Ethereum core team.Another example is that the founder of KAS is Y Shen, the founder of ROSE is Professor Song, etc. Having well-known institutions participate in investment is equivalent to an additional endorsement. The amount of financing and project valuation are also very important. Good public chain projects generally have a valuation of Very high multi-billion valuation. 10. Those who violate the logic of value investment cannot participate. What does it mean to violate the logic of value investment? For example, AMPL is stable, and there is a deflation token on arb. The more you hold, the fewer coins you have. When you see this, no matter how innovative it is, don't participate. In the end, it will definitely be a piece of chicken feathers, and you will be cut off. AMPL has cut many big Vs. If you think you are born to be a fast runner, then pretend that I didn't say it. 11 Old coins try not to participate unless there is a very strong new narrative. For example, this round of RNDR CFX are all old coins, but his narrative is very good and perfectly fits the main theme of this new round of bull market. The former spans AI GPU NFT chain game AR VR Yuanverse is a hot spot in several tracks, and its basic settings are difficult to eliminate. The latter is a better, faster and safer public chain, and it has the resource support of the national government behind it, plus Hong Kong should become the central core of the new round of WEB3.0, making CFX the core target of Hong Kong's hot spots. Putting aside this Hong Kong hot spot, it is also a better public chain, and it also has its own ecology and value. 12. If you choose Dragon One, try not to choose the latter one. I chose CFX as a hotspot in Hong Kong, and the dex token PPI as the ecological currency above. The ecological coins on CFX are all incubated on PPI, so they are ecological coins Long One. .So it is not easy to choose the right one and organize it. If it is helpful to you, please like, forward and share. I hope everyone can gain something. More importantly, learn to analyze instead of relying on the so-called recommendations of experts.