In altcoin investment in the secondary market, in order to drop risks and seize opportunities, investors need to keep the following key principles in mind:
First, be sure to stay away from old altcoins that have performed poorly for a long time. These coins often exist in the market for many years, but their market value has remained sluggish, with insufficient liquidity and stagnant ecological development. They may be removed at any time due to non-compliance with new exchange regulations, and once invested, it is likely that the value of the holdings could drop to zero, making it difficult to recover losses.
Secondly, be wary of coins with unlimited issuance. Even well-known mainstream coins like DOT and FIL have adopted issuance strategies. While there may be short-term volatility opportunities, in the long run, this practice will dilute the value of the tokens and may struggle to perform significantly in future market conditions. For small-cap altcoins, issuance directly erodes token value, making them not worth participating in.
Third, prioritize altcoins that are supported by real value. This includes three categories: first, those value-based coins with stable income and undervalued in the early stages, such as LINK and AAVE, which have real application scenarios and cash flow, showing high investment value after market corrections; second, focus on sectors related to stablecoins, such as ENA and CRV, which remain a focus in the market this year with certain demand guarantees; third, pay attention to new coins that are relatively undervalued, as these projects usually have sufficient cash flow, and once the market trend improves, their rebound speed may be significantly faster than that of older coins.
Currently, both on-chain and off-chain, the trading volume has shown a significant downward trend, with retail investor confidence lacking, and even leading exchanges facing traffic pressure. However, this period of market quietude often contains potential investment opportunities. When market sentiment hits rock bottom, if favorable policies or funding news emerge, quality altcoins are likely to rebound first. Therefore, maintaining patience and focusing on valuable investment targets is essential to seize opportunities when the market conditions improve.
Investors should closely monitor market dynamics while maintaining rational judgment. In the current market environment, risks and opportunities coexist. By carefully selecting investment targets and managing risks appropriately, one can achieve potential returns in future markets.
First, be sure to stay away from old altcoins that have performed poorly for a long time. These coins often exist in the market for many years, but their market value has remained sluggish, with insufficient liquidity and stagnant ecological development. They may be removed at any time due to non-compliance with new exchange regulations, and once invested, it is likely that the value of the holdings could drop to zero, making it difficult to recover losses.
Secondly, be wary of coins with unlimited issuance. Even well-known mainstream coins like DOT and FIL have adopted issuance strategies. While there may be short-term volatility opportunities, in the long run, this practice will dilute the value of the tokens and may struggle to perform significantly in future market conditions. For small-cap altcoins, issuance directly erodes token value, making them not worth participating in.
Third, prioritize altcoins that are supported by real value. This includes three categories: first, those value-based coins with stable income and undervalued in the early stages, such as LINK and AAVE, which have real application scenarios and cash flow, showing high investment value after market corrections; second, focus on sectors related to stablecoins, such as ENA and CRV, which remain a focus in the market this year with certain demand guarantees; third, pay attention to new coins that are relatively undervalued, as these projects usually have sufficient cash flow, and once the market trend improves, their rebound speed may be significantly faster than that of older coins.
Currently, both on-chain and off-chain, the trading volume has shown a significant downward trend, with retail investor confidence lacking, and even leading exchanges facing traffic pressure. However, this period of market quietude often contains potential investment opportunities. When market sentiment hits rock bottom, if favorable policies or funding news emerge, quality altcoins are likely to rebound first. Therefore, maintaining patience and focusing on valuable investment targets is essential to seize opportunities when the market conditions improve.
Investors should closely monitor market dynamics while maintaining rational judgment. In the current market environment, risks and opportunities coexist. By carefully selecting investment targets and managing risks appropriately, one can achieve potential returns in future markets.
