In the cryptocurrency market, finding high-quality and robust altcoins has become the goal of many traders. However, the market is full of various projects. How to distinguish the authenticity and screen out the real potential coins is a skill that every trader needs to master. The following is a set of criteria I have summarized for screening high-quality altcoins, hoping to help you avoid detours on the road of trading.
1. Choose old coins that have experienced the test of cycles
History is always the best teacher. Among the many altcoins, those that have experienced at least one market cycle are often more able to prove their vitality. The resilience shown by these old coins in market fluctuations is their precious wealth. Compared with the high risk and high return of new coins, the stability and reliability of old coins are more worthy of investors' trust.
2. Focus on currencies with sustainable income
If a project can be self-sufficient through protocol revenue or service revenue, then it is largely free from dependence on external financing. The team of such a project is more motivated to promote the development of the project, rather than rushing to cash out. At the same time, if the project's revenue is linked to the coin price, such as giving back to investors through repurchases or dividends, then such a coin is more attractive.
3. Avoid the virtual coins that are just for show
In this era of information explosion, many projects have attracted a large number of investors with just a white paper and a gorgeous narrative. However, projects that can truly gain a foothold in the market must have real business and the ability to continue to grow. When choosing altcoins, investors should pay attention to the actual application of the project to see if anyone is really using it and whether the number of users is increasing. Be cautious about projects that only have stories but no practical applications.
4. Be cautious with Meme coins
Meme coins have attracted a large number of investors with their unique humor and ridicule, but the risks involved cannot be ignored. In particular, those Meme coins that have not performed well in the primary market are often just cash machines for project owners and early investors in the secondary market. When choosing Meme coins, investors should understand the purpose and logic behind them to avoid becoming victims of high-priced takeovers.
5. Be wary of new coins with too high VC stakes
Some new coins are held by VC and other investment institutions in large quantities at the beginning of listing, and the cost of these chips is far lower than the market price. Such projects often have huge selling pressure. Once the market trend changes, these VC chips may become the main force of the market crash. When choosing new coins, investors should pay attention to the cost of their FDV and VC chips to avoid being cut.
Summarize
In the process of searching for high-quality altcoins, investors should maintain a rational and cautious attitude. Do not blindly pursue high returns and ignore the existence of risks. Although the altcoins selected according to the above criteria may not necessarily bring short-term huge profits, they can provide investors with stable returns in the long run. Remember that only by truly understanding the value and potential of the project can you make wise investment decisions.
As a blogger who has been working in the cryptocurrency circle for many years, I am willing to share my experience and insights with you. In front of my fans, I will share my bull market strategy layout free of charge. I am just a free blogger. I need fans and you need reference.
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