1. Ecological Background: I usually start by studying the ecosystem in which the cryptocurrency exists. This includes the market's development potential and comparisons with other related projects.
I like to look at the project's profile, official website, Twitter account, and white paper, as these provide basic information about the project.
2. Fundamental Analysis and Chip Situation: The trend of fundamentals is crucial for timing the entry. I will observe the previous market performance and chip distribution to find relatively low entry opportunities. A reasonable buying point can significantly affect the profit and loss ratio of the investment.
At the same time, I will set target selling points, which can help me avoid emotional fluctuations and make wiser decisions.
3. Project Team and Strength: Understanding the background of the project's team and investors is necessary. I will visit the project's official website, look for professional articles from key opinion leaders, and gather insider information to get more insights into the project's strength. Only a strong team can bring a stable development outlook.
4. Blockchain Positioning: The positioning of blockchain projects is very important for their long-term development. I categorize projects into two types: those that serve the blockchain and those that are served by the blockchain. The former usually has stable market demand and is more likely to achieve self-sustaining functionality without completely relying on market speculation. The latter may depend on market heat and speculation to drive development, but its profitability is poor, making long-term development difficult.
5. Market Psychology and Institutional Analysis: In the cryptocurrency market, investor psychology and institutional behavior play a key role in price fluctuations. I try to avoid blindly chasing price increases and selling on dips, but instead think from the institutional perspective to better understand the market's risks and opportunities. If you've read this far, why not follow me? Let's discover good coins together and become the big winners in the next bull market.