Today, with nothing in particular to do, I looked at the dismal market trends and want to share my investment philosophy regarding spot investments for everyone's reference.
As I mentioned in my previous article, nowadays in the secondary market, most of the altcoins are not recommended for you to invest in, no matter how much they drop. Don't even think about averaging down; how do you know today's bottom isn't tomorrow's high? As a primary EVM series public chain, it carries the hopes of many loyal Ethereum fans, yet its price has dropped from a peak of $15 to today's $5.4. Not to mention the various project tokens that depend on major public chains; once listed on several exchanges, they often peak, and most will continue to decline, with constant downward trends. The Wormhole token $w, which I was once very optimistic about, has fallen from an initial $2 to today's $0.17. All this happens against a larger backdrop; we are currently in a bull market.
I digressed; let's return to the spot investment strategy:
1️⃣ If you are a new player entering the crypto space in 2025, just mindlessly dollar-cost average into $btc; do it once a week. Make your own plan. The benefit of dollar-cost averaging is that it extends your time horizon, smoothing out losses from buying at peak prices one or two times. You don’t need to judge market points or have any investment experience, thus avoiding the ironclad rule of losses for beginners. Although btc won't make you overnight rich, its annualized return is just a bit higher than traditional bank deposit interest, but it can help you preserve your valuable principal while earning a little! This point is very important.
2️⃣ If you have one or two years of experience in the crypto space, at this point, you can allocate more to mainstream public chain tokens and exchange platform tokens. Think about it—what's the most profitable in this space? Public chains and exchanges. As the value of public chains and the development of exchanges rise, public chain tokens and platform tokens will also increase in value. As a retail investor, you can enjoy decent sustained returns while avoiding the downward risks of various altcoins!
3️⃣ Let's talk about the capital allocation for spot investments. It's still the same repeated advice: allocate 70% of your funds to spot investments for stable, low-risk returns, even if they are small. Use 30% for high-risk investment strategies, such as contracts, meme coins, or yield farming (previously, yield farming was really profitable, but now, due to various rogue project operations, it has become highly risky). Every participant in the crypto space is here to get rich, so it's necessary to engage in high-risk strategies to some extent. When starting out, always invest a small amount! For instance, when I first started with meme coins, I would only invest 0.1s at a time.
Finally, think long term, don't be greedy. Don't fall for FOMO just because you see others getting rich. Be someone who can stay at the table for a long time to seize the opportunity for wealth!