As cryptocurrency markets return to an uptrend in 2025, traders decide how to make the most of this momentum.
Altcoin Sherpa, a well-known analyst on platform X, identified two practical strategies to navigate the current cryptocurrency bull run. His approach provides insights on how investors can position themselves based on their risk appetite and trading style.
Strategy 1: Chase 'accelerating coins' with high momentum
The first strategy of Altcoin Sherpa involves chasing 'accelerating coins' - currencies that have already surged and continue to lead the market. These include meme tokens like Popcat and Moodeng, as well as trending coins associated with artificial intelligence like AVA Virtual. These assets typically show strong trading volume and provide good liquidity. In this strategy, traders buy the dips and ride the wave as long as the upward trend continues.
Sherpa wrote: 'These currencies are likely to continue.'
Leading cryptocurrencies often maintain their leading position, and these currencies have buy offers.
He noted that chasing high-momentum coins eliminates the opportunity cost of holding slow assets, as capital is already working in active sectors.
However, this 'run' strategy inherently involves higher risks. Prices may have already multiplied several times, leaving limited room for further increases. If market sentiment changes, these currencies could decline rapidly. Sherpa warned that valuations could rise to unsustainable levels, as 'marginal buyers dry up.'
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