The Essential Guide to Cryptocurrency – Avoiding “Junk Coins”

In cryptocurrency investing, identifying and avoiding “junk coins” is crucial. These currencies often underperform and investors need to be cautious. The following are the main characteristics of “junk coins”:

1. The trend is chaotic

Characteristics: The price trades sideways in a large range or a small range for a long time, with repeated false breakthroughs up and down. Example: The price action of ENS often exhibits this characteristic.

2. Slow pace

Characteristics: Unable to complete a 100% increase within a month, or spending a lot of time in sideways trading. Example: MATIC's price pace is very slow and exhibits the characteristics of dillydally.

3. Keep falling and falling

Characteristics: In a bull market environment, the gains are limited but the declines are large, which is disappointing. Example: Merl and BLUR had disappointing performance in the bull market, with steep declines.

Strategies to avoid “junk coins”

1. Study historical prices

Observe the long-term price trends of currencies and avoid those currencies with violent price fluctuations and chaotic trends.

2. Pay attention to market rhythms

Invest in currencies that have significant growth within a reasonable period of time and avoid currencies that are slow and dragging their performance.

3. Bull market performance

Choose currencies that perform well in a bull market and stay away from currencies that have limited gains but large declines.

By paying attention to these characteristics and strategies, investors can better identify and stay away from "junk coins", thereby optimizing their investment portfolio and reducing risks. #以太坊ETF批准预期 #比特币大会 #美国大选如何影响加密产业？ #山寨季何时到来？ #加密货币社区 $BNB $WIF $PEPE