The rules of the game for altcoins have really changed. The core logic of altcoins has always been the pursuit of excess returns brought about by high volatility. After all, without sufficient price elasticity, how can there be a possibility of short-term windfall profits? In the past, I often suggested that if you are optimistic about potential altcoins, take profits and leave the market decisively after earning about 5 to 10 times your investment. But in the current situation, this strategy needs to be adjusted: now, even if you are optimistic about an altcoin, you should cash out as soon as you earn 1x.
Why? The market is evolving. As the participating funds become more rational and information transmission becomes more efficient, the overall volatility of altcoins is significantly narrowing. The get-rich-quick window of "one coin ten times over" is gradually shrinking, and the probability of achieving a leap in wealth through altcoins is also decreasing.
In the end, Bitcoin, as the cornerstone of the market, has an increasingly high certainty of long-term upward movement. However, most altcoins are essentially high-risk speculative targets, and going to zero is the norm. Therefore, the key to playing altcoins is never "holding for the long term," but "knowing when to run" - to lock in profits before market sentiment becomes most frenzied. From another perspective, when more established altcoins go to zero, it actually means that the market is constantly clearing bubbles, and the soil for new opportunities is being cultivated. After all, out with the old, in with the new. Every wave of going to zero is often followed by a new cycle of rising high-quality projects.