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Talking about how I choose altcoins and when is the best time to buy them.
I mentioned at the end of December that altcoins are likely to have a wave of performance, and the market indeed provided opportunities, with many altcoins breaking out into a small trend.
First, choosing what kind of altcoin to buy is crucial; if this step is wrong, no matter how good your subsequent judgment is, it won't help.
1. The trend must follow Bitcoin, such as ETH, SOL, XRP. Never touch coins that move independently because you can't judge whether they are at a high or low level.
2. The market cap must be large enough, and the project should have real business, real implementation, and revenue. Small market cap projects with on-chain income of only a few hundred or thousand dollars per day rely entirely on selling coins to survive. Pumping requires real money, but issuing new coins at zero cost makes it unrealistic to expect long-term upward movement.
3. The exchange liquidity must be good, preferably on major exchanges like AA, with normal trading volume. Some coins only have tens of thousands of dollars traded daily, with a lot of manipulation, wash trading, and fake volume. These coins are destined to zero.
Coins that meet these criteria are qualified to enter your observation pool; if they don't, don't even bother looking.
Next, when to buy is even more important than choosing coins.
During Bitcoin's first wave of rally, don't rush to buy altcoins. No matter how tempting they look, buying altcoins at that time is likely to be catching a falling knife. The right time is definitely after Bitcoin's first rally has completed, entering a correction phase, often called Wave B or Wave 2.
Most altcoins only start to really gain momentum after Bitcoin confirms it has entered the main upward phase. Before that, it's mostly sideways decline, frustrating and testing patience.
As long as you can clearly judge what stage Bitcoin is in, a 50% or even double return from altcoins is not surprising. But the prerequisite is that you must understand Bitcoin's main trend first; otherwise, playing altcoins is just pure gambling.
This is my entire approach to trading altcoins. It's not complicated, but it tests your patience in execution. If you find it somewhat useful, just give a like.