Crypto飞哥
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Almost every day, fans ask: which altcoins can be bought? Today, I will clarify the selection criteria for altcoins all at once. Next time you decide to buy an altcoin, first check if the altcoin you want to buy meets these selection criteria:
1. Choose at least one old coin that has gone through a round of market clearing; in 99% of cases, this is correct (I put this first because it contradicts the common sense of most people. If you want to speculate on new narratives, go find them in the primary market, don’t look for them in the secondary exchanges. The chances of finding alpha in new coins in the secondary market are lower than if you randomly choose a coin in the primary market and fill an order).
2. Choose coins that generate income, whether from protocol income or service income. Being able to sustain a team with its own cash flow means it doesn’t need to dump tokens occasionally to cash out. The best scenario is if its income is linked to the coin price, whether through buybacks or dividends (this is why Aave is impressive).
3. Reject air coins; choose coins with business that also have natural growth. The subjective strategy of secondary institutions that can still survive this round has a consensus: everyone is already tired of air coins that only tell stories.
4. Do not touch meme coins that did not emerge from the primary market; this includes all meme coins on the TON chain on Binance.
5. Do not touch new coins where VC shares are more than five times more expensive than retail shares; at least wait until the price drops to that level before considering, especially in this round of VC, where everyone has the mindset of 'breaking even would be good' already.
6. Listen less to others' tips; before buying a coin, use the product yourself and ask if you would continue using it. Check the user base and actual business performance. Look at how much FDV there is and compare it to the valuation in the last cycle to decide if the current price is expensive, rather than judging based on the price chart which has dropped 80%. Control your hands and only buy what you understand and believe in. If you can accomplish these points, you will already be able to outperform at least 90% of people.
1. Choose at least one old coin that has gone through a round of market clearing; in 99% of cases, this is correct (I put this first because it contradicts the common sense of most people. If you want to speculate on new narratives, go find them in the primary market, don’t look for them in the secondary exchanges. The chances of finding alpha in new coins in the secondary market are lower than if you randomly choose a coin in the primary market and fill an order).
2. Choose coins that generate income, whether from protocol income or service income. Being able to sustain a team with its own cash flow means it doesn’t need to dump tokens occasionally to cash out. The best scenario is if its income is linked to the coin price, whether through buybacks or dividends (this is why Aave is impressive).
3. Reject air coins; choose coins with business that also have natural growth. The subjective strategy of secondary institutions that can still survive this round has a consensus: everyone is already tired of air coins that only tell stories.
4. Do not touch meme coins that did not emerge from the primary market; this includes all meme coins on the TON chain on Binance.
5. Do not touch new coins where VC shares are more than five times more expensive than retail shares; at least wait until the price drops to that level before considering, especially in this round of VC, where everyone has the mindset of 'breaking even would be good' already.
6. Listen less to others' tips; before buying a coin, use the product yourself and ask if you would continue using it. Check the user base and actual business performance. Look at how much FDV there is and compare it to the valuation in the last cycle to decide if the current price is expensive, rather than judging based on the price chart which has dropped 80%. Control your hands and only buy what you understand and believe in. If you can accomplish these points, you will already be able to outperform at least 90% of people.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.