Secondary Market Altcoin Investment Considerations

When participating in altcoin trading in the secondary market, it is essential to focus on avoiding risks and concentrating on high-quality targets. Specifically, pay attention to the following points:

1. Clearly avoid two types of high-risk altcoins

1. Avoid "Super Old Small Market Cap Altcoins": These types of coins have been online for a long time, with small market capitalization, lacking sustained operational support and market attention. They can be delisted by exchanges at any time due to insufficient liquidity or compliance issues, and holding them may lead to risks of being unable to trade or difficult to liquidate.

2. Avoid "Unlimited Issuance Altcoins": Some coins (including some older mainstream coins like DOT, FIL) have started to increase issuance. Although there may still be trading opportunities in the short term, it dilutes the token's value in the long term, and the subsequent rising potential is limited. As for small-cap altcoins with uncontrolled issuance, they directly erode investment value and must be resolutely excluded.

2. Prioritize two types of "Stable Altcoins"

1. "Value Altcoins" supported by actual revenue: Focus on coins that have normal revenue (such as ecological service fees, transaction fees, etc.) and have been significantly undervalued in the early stages, such as LINK and AAVE. Additionally, stablecoin-related sectors (such as ENA and CRV) are this year's market focus, with solid fundamentals, stronger downside protection, and rebound potential.

2. "New Altcoins" with low valuations: Choose new coins that have been online for a relatively short time, currently at low valuations, and whose project teams still have sufficient funding reserves (such as financing funds, treasury funds). These types of coins tend to have stronger funding support when market trends recover, often being able to initiate rebounds the fastest.

3. Operational suggestions in the current market environment

Currently, whether on-chain or off-chain, the overall trading volume of cryptocurrencies has significantly shrunk, retail investor confidence is low, and even leading exchanges are facing liquidity pressure. However, it's important to note: the market downturn often hides opportunities. At this time, it is even more necessary to remain patient, focus on the above high-quality targets, and wait for sentiment recovery and trend clarity before making strategic moves, avoiding blind operations in panic. $ETH $ETH #加密市场回调 #特朗普罢免美联储理事库克 #ETH创历史新高