1. How to invest in the cryptocurrency space?
Basic principles
Risk control: Do not invest more than 10%-20% of funds that you can afford to lose, avoid leverage and borrowing.
Diversified investment: The portfolio should include mainstream coins (such as BTC, ETH), stablecoins (USDT), and potential small-cap coins, with a suggested ratio of 5:3:2.
Long-term perspective: 80% of the portfolio should be held in core assets (3-5 year cycle), and 20% for short-term trading.
Practical strategies
Dollar-cost averaging strategy: Invest a fixed amount in BTC/ETH every month to smooth out price fluctuations. Historical data shows that a 5-year cycle of dollar-cost averaging in BTC yields an annualized return of over 100%.
Track layout: Focus on the infrastructure layer (public chains, storage), middleware (oracles), and application layer (DeFi, GameFi, AI + blockchain).
On-chain analysis: Monitor whale addresses (approximately 2,000 addresses holding >1000 BTC), net inflows to exchanges, etc., using tools like Glassnode and Nansen.
2. Potential token screening framework
Core evaluation dimensions
Technological breakthroughs: TPS exceeding 100,000 (like Solana), progress in zero-knowledge proofs (zkSync), modular blockchains (Celestia).
Ecosystem data: The top 10 public chains have a total locked value (TVL) threshold exceeding 500 million, and leading DEXs require daily trading volumes exceeding 100 million.
Team background: Core development members must have blockchain project experience, and VC investment institutions should include top funds like a16z and Paradigm.
Key tracks for 2023-2024
Layer 2 solutions: Arbitrum, Optimism, StarkWare (TVL annual growth rate over 300%)
DeFi 2.0: Curve (CRV), Aave (AAVE), Uniswap (UNI), with top protocols generating annual revenues exceeding $100 million
Web3 infrastructure: Filecoin (storage), Chainlink (oracles), The Graph (indexing protocol)
Emerging concepts: AI + Blockchain (FET, AGIX), tokenization of real-world assets (RWA)
3. Market outlook and risk analysis
Growth potential
The current global cryptocurrency market cap is approximately $1.2 trillion, which still has a 10x space compared to gold's $12 trillion.
The proportion of institutional investors has increased from 8% in 2020 to 22% in 2023, with asset management giants like BlackRock already entering the market.
The process of compliance is accelerating: Hong Kong, Dubai, and the EU have issued clear regulatory frameworks
Risk warning
Market volatility is 3-5 times that of the stock market, with the top 50 tokens having an annual turnover rate exceeding 800%
The project failure rate is as high as 90%, with over 300 tokens going to zero in 2022
Regulatory uncertainty: Recent lawsuits by the SEC in the US involve major platforms such as Coinbase and Binance
4. Operation suggestions
Information acquisition: Daily browse CoinDesk, The Block, subscribe to Messari industry reports
Tool usage: Use DeFiLlama to check TVL, Dune Analytics for on-chain analysis, TradingView for technical analysis
Security practices: Hardware wallet storage (Ledger/Trezor), enable 2FA, regularly change API keys
It is recommended that beginners start with a portfolio of BTC (40%), ETH (30%), stablecoins (20%), and potential coins (10%), and adjust strategies gradually as they accumulate knowledge. Remember, positioning during a bear market (when fear index <30) is often safer than chasing highs in a bull market. Stay rational, avoid FOMO emotions, and remember that opportunities always exist in the market.
