📈 What to Consider When Buying Crypto in a Bull Market
🚀 Cryptocurrency investment principles in a bull market
As the bull market drives wave after wave of gains, every cryptocurrency is rising to varying degrees. Today, we’ll explore some of the basic principles you should consider when investing in tokens.
🔍 Seven key categories
In the image below, you can see seven key categories of consideration:
Fundamental analysis
News and Sentiment
Technical analysis and positioning
Identification of market sector rotation patterns
Understanding Market Participants
Order Flow and Execution
On-chain flow
🎲 Token Analysis Example
Let’s take two tokens as examples for further discussion:
$MATIC
Polygon has underperformed over the past year, citing factors including oversupply, a lack of focus in its roadmap and a failed mid-2023 product launch.
However, Polygon is emerging as a dominant player in the ZK ecosystem and has several important updates planned, such as the launch of the AggLayer Mainnet and the POL conversion of MATIC.
Despite the downside risks, MATIC is relatively cheaply priced, which could be an investment opportunity. However, given its historical performance, its upside may be limited.
$BE
$SEI is an L1 chain focused on asset exchange and transactions, with ultra-high TPS and finality.
The chain has many advantages such as the fastest L1 speed, a team from a well-known company, a large amount of funds raised, and developer support from Terra.
Despite its relatively low TVL in the DeFi ecosystem, its goal to launch a trading dex to compete with Binance/Bybit etc. has huge potential.
⚠️ Risks of a bull market
In a bull market, there are two types of investors who may be at risk:
Those who take profits too early after a small rise lack foresight and the ability to withstand pressure.
Those who are overly optimistic, blindly believe in various narratives and continue to increase their bets may not fully understand the market and may end up losing most of their wealth.
📌 Conclusion
When investing in cryptocurrencies in a bull market, it is crucial to understand factors such as fundamental analysis, news and sentiment, technical analysis and positioning. Through in-depth research and analysis, investors can make more informed decisions and avoid falling into the above two risks. At the same time, continuous learning and adapting to market changes are also the key to maintaining success.
What kind of investor should you be to dominate the market?
To be a market leader, you need to have the courage and foresight of Degen. Those who believe in a bright future, dare to make big bets and hold on for a long time can often reap considerable wealth. But the key to success is not only this, but also the keen insight into market changes and flexible response.
In the bear market of 2022, many investors relied on specific strategies to win the market. However, this does not mean that the same strategy will also work in the bull market. Changes in the market environment require investors to constantly adjust their strategies. Only those investors who can adapt flexibly can stand out in the new market environment.
In a bull market, funds are raging and speculative. Faced with such a market environment, investors need to seize the opportunity and invest in promises and projects that have not yet been quantified. Take Worldcoin as an example. Although the vision of its founder Sam Altman sounds a bit far-fetched, they have successfully attracted the attention of the market by scanning the eye data of the global population. When you don't understand a project, but hear everyone talking about how it will subvert an industry, it is easier for the project to get a valuation of hundreds of millions or even billions.
When investing, don’t be fooled by superficial data. Some coins that seem to have no income and zero activity may actually have great potential. On the contrary, coins with a stable income stream are not necessarily the best investment options. When you come across a project, don’t give up easily just because it doesn’t have a mature product, a small number of users, or insufficient income. These factors should not be the reason for you to refuse to invest in a token.
To make good profits, you must embrace speculation. Many people believe that once a token is hyped, it is too late or too risky to buy it. However, from another perspective, the original intention of the token is to hype. Therefore, when a token is hyped, it has already proven its ability to hype, thus reducing the investment risk.
In short, in the investment market, you must always maintain keen insight and flexible strategies. Don't be confused by superficial data, and dare to embrace speculation and the unknown. Only in this way can you be invincible in the market and become a true investment leader.
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