Altcoin layout for this bull market
Recently, the altcoin market has started to show activity. From November 6 to 9, the market welcomed its first 'pump' trend. Then, on November 23, altcoins experienced a second explosion.
The current mainstream view in the market believes that the altcoin season has arrived, and many people think that altcoins will continue to rise. However, it is worth noting that there are some significant differences between this bull market and previous ones:
The rush of altcoins
Since October last year, the rush phenomenon in the altcoin market has impacted the entire cycle structure. For example, the market capitalization of Tao remains at 11 billion, even though the project has not made substantial progress or breakthroughs.
Growth of on-chain assets
Another impact is that part of the market capitalization originally belonging to the altcoin market has been replaced by on-chain assets. For example, the market capitalization of Goat is 1 billion, but it is not counted as part of the altcoin market, such changes compress the overall market capitalization of altcoins.
Considering these two points, in this bull market round, emerging altcoins like AI, Bitcoin ecosystem, Ton ecosystem, etc., have already reached a relatively large market capitalization, which means that subsequent altcoin investments will be more difficult than the previous round.
Investment difficulty in the market
Due to the above factors, in this bull market round, it is more challenging for altcoins to outperform Bitcoin or Ethereum. For most retail investors, holding Bitcoin, Ethereum, and appropriately allocating some Solana may outperform most investors. Moreover, the exit operations will also be simpler and more composed. In contrast, timing the exit for altcoins is very critical, and a slight negligence may face the risk of a rapid drop from the peak.
Therefore, in this bull market round, the best choice for large positions is Bitcoin and Ethereum, and some Solana can be appropriately allocated. Fully investing in altcoins is almost equivalent to 'suicide'.
How to choose altcoins
For those who still wish to invest in altcoins, choosing the right projects becomes particularly important. Here are several strategies and selection criteria:
Preferred altcoins:
On-chain meme coins: Focus on on-chain projects, especially those with the potential to become leaders, and hold on to them.
Emerging small-cap projects: Select some small-cap, emerging projects, as these projects may have significant explosive potential.
Fully circulated projects: Choose tokens that are fully circulated, avoiding liquidity problems caused by locked positions.
Popular concepts: Focus on popular concepts in the market, as these projects typically have greater appeal.
Altcoins to avoid:
VC coins: Avoid investing in projects supported by venture capital, as these projects have high price volatility and may be affected by capital.
Non-fully circulated coins: Avoid choosing projects that are not fully circulated, as projects with poor liquidity are difficult to exit.
Old coins: Some projects that have existed for many years but have progressed slowly often cannot see significant increases again.
Coins not listed on Binance: Choose projects that have not been listed on mainstream exchanges, as these coins have lower liquidity and are difficult to perform strongly in the market.
Non-leading projects: Avoid investing in non-leading projects, as these projects tend to perform weakly in the market.
My own altcoin layout
Currently, individual altcoin layouts are mainly focused on several directions:
On-chain meme coins: Mainly focus on on-chain projects, capturing those that may become potential leaders.
Emerging projects: Select potentially leading coins from emerging projects within the sector for investment.
Bitcoin ecosystem: Bet on Bitcoin liquidity spillover, seizing other market opportunities driven by Bitcoin.
Today's article ends here, welcome to play together on the homepage~
Investment involves risks, the above content is a personal sharing, and does not constitute investment advice!
