Investment and speculation

In the cryptocurrency circle, speculation is often more common. Speculators often do not analyze the fundamentals of the project in depth, but focus more on the market sentiment, storytelling and short-term price fluctuations. Therefore, speculators need to grasp the timing accurately, enter quickly and withdraw at the right time.

However, for those who want to participate in speculation, I would like to remind everyone to avoid those projects with small scale and insufficient liquidity. These projects are often risky and may become "takers" if you are not careful. In contrast, it is safer to participate in projects with large market value and good liquidity.

For those projects that you are hesitant and dare not hold a heavy position, you need to be vigilant, because these projects may just be tools used by others to increase liquidity. Excessive participation in such projects may make you lose sensitivity to real big opportunities.

However, the disadvantages of speculation are also obvious. It is easy for people to miss long-term trending markets. In order to balance this disadvantage, we can adopt a strategy that combines investment and speculation.

In terms of investment, we can choose those projects with long-term potential, gradually build positions in the bear market, hold them until the bull market, and gradually reduce positions when the market enthusiasm is high.

When choosing investment targets, we can refer to some projects that have been verified by the market, such as sol, which have good chip distribution, low risk and potential hype value.

It's like betting in a stable casino. Even if the business is not satisfactory in the short term, as long as the casino is still operating, there is always a chance of a turnaround.

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