Practical Experience: Key Techniques for Trading Altcoins

2024-05-14 06:30:34 Views

Source: ardizor X Account

Author: ardizor, Cryptocurrency Researcher

Translation: Felix, PANews

Cryptocurrency researcher ardizor saw his assets grow from $4,700 to $2.1 million in just 1 year, not through BTC, ETH, MATIC, AVAX, or MODE. This article aims to share his tips on trading altcoins.

Trading altcoins does not require complex strategies but rather trading based on them. For example, trading strategies rely solely on the following key factors:

Understanding cryptocurrency market psychology
Tracking internal wallets
Identifying undervalued projects
Understanding cryptocurrency security principles

Understanding Cryptocurrency Market Psychology is Key

In the crypto world, emotions drive everything. Human psychology remains constant, and market patterns constantly repeat.

Below is a rough visualization of market psychology patterns:

"The best time to buy is when there's blood on the streets in the market."

While many people are aware of this, when fear dominates the market, people tend to sell, only to buy back when greed takes over. This simple rule can lead to significant profits.

Recognize this pattern and go against the flow.

Fear/Greed Index: https://alternative.me/crypto/fear-and-greed-index/

Understanding Insider Trading

Here's a recent example: a wallet bought at $1,500 immediately after HAMMY was launched, then liquidated at $177,000.

How can you be sure this is an insider's wallet and not a random trader?

Consider this: how could this person buy in before the sudden surge when there was no positive news about the project in the market at that time?

The answer is, of course, insider information.

How to Find These Hidden Internal Wallets?

Visit: https://dexscreener.com/
Look for hot tokens in the past 6 or 24 hours
Click on top traders
Search for early trades
Copy wallet address
Go to: https://alphatrace.co/
For better results, consider filtering wallets with profits over $500,000 and a win rate of 60% or more

"How to Discover Potential Coins Before Others?"

Visit: CoinMarketCap / Coingecko
Choose 10-30 tokens from your favorite field
Visit: https://dropstab.com/
On this website, you can view important information such as project investors, Twitter followers, and funding data.

Where to Check Token Economics

Visit Token Unlocks or VestLab for key points:

Tokens allocated to the community
Investor lock-up status
Investor cost vs. current price

Finally, verifying the security of token contracts is crucial. This practice will protect you from potential scams, rugs, and honeypots. The following two commonly used validators may be helpful:

SOL: https://rugcheck.xyz/

EVM: https://www.coinscan.com/

Associated Tags Altcoins BTC ETH MATIC AVAX MODE ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be vigilant against various virtual token issuances and speculations. All content on the site is for market information or related party opinions and does not constitute any form of investment advice. If sensitive information is found on the site, you can click "Report," and we will handle it promptly. 　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.