How to choose quality coins suitable for long-term holding?

1. Look at the track: choose directions with development in the next 3 years

Must-see tracks: Bitcoin (digital gold), Ethereum (smart contracts), Layer2 (such as OP, ARB), DeFi leaders (UNI, AAVE)

Avoid: 'air coins' without actual products and purely speculative MEME coins (such as PEPE)

2. Look at market capitalization: don't touch coins that are too small

Choose coins in the top 50 by market capitalization (less volatile), emerging tracks can be relaxed to the top 100

Examples: BTC (1st), ETH (2nd), SOL (8th), DOT (10th)

3. Look at the team: don't trust anonymous projects

Check the official website: core members should have a background in blockchain or tech companies (for example, the SOL team came from Coinbase)

Avoid: projects with vague team information and no public contact methods

4. Look at deflation: the fewer coins issued, the better

Prioritize coins with a 'burn mechanism': for example, ETH burns transaction fees for each transaction, BTC reduces production once every 4 years

Avoid coins with an annual inflation rate >10% (too many coins issued will devalue)

5. Look at popularity: don't buy coins that no one uses

Use DappRadar to check: daily active users > 10,000, number of DApps > 50

Examples: Ethereum has over 500,000 daily active users, and there are over 3,000 on-chain DApps

Ultimate mantra:

Mainstream coins as a base (BTC+ETH account for 60%), potential coins for trial and error (choose 2-3 small market cap reliable coins), don't all in on one coin, hold for over 1 year