Knowing These Things Will Help You Limit Investment Losses

Knowing These Things Will Help You Limit Investment Losses


This article summarizes my knowledge & experience. It's a bit messy because if I write each section clearly, it will be long and I hope you will accept it.
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1, How to Price a Project
Surely everyone knows that the majority of coin buy/sell order books are mostly from MM and the project (especially the market wall that matches immediately).  Manipulating up and down the price of a coin requires the coordination of MM and the project.  If they want the price to go down, the project will spread fud or hire KOLs to spread bad news, at which point MM will remove the buy wall and release tokens.  If you want to raise the price, spread good news, remove the sale wall and you're done.  If you are observant, you will see that when good news is released, the price of that coin immediately pumps and no one can buy it in time.  In short, the process of pushing and lowering prices is very easy when they have enough goods.  That's why Ryan said on live that the important thing when analyzing tokenomics is how many coins are in circulation, and who is holding the tokens.

2. How To Choose Coin xx Downtrend
Normally, no matter how broken the market is, there will be 2-3 recoveries per year.  Therefore, in the downtrend, prioritize the following coins, coins following trends/narratives, new coins that are slowrug to shake off goods to the good price range in the last investment round, old coins that no one cares about, pumpdump trash coins on Binance.  You must clearly understand the nature of the game, most crypto comes from pumping tokens and other things like revenue are just a front.  That's why the goods that no one notices are good, the trending goods that not many people know about are even better.

3. Good Tips for Old Chickens in the Next Uptrend
In a new uptrend season, retail investors will be divided into 2 types:
The first type is the old chicken: Having gone through all the levels of the previous season, winning and losing a lot and surviving until the next season, they are often more cautious with the market, have experience playing trends but are careful.  During the up season, don't dare to take risks
The second type is a new jig;  New to the market without knowing anything and new chickens often have two types: play but don't earn, second is play and earn a lot and then think they are superior and then lose everything.
=> In an uptrend, the majority of new chickens enter, usually this group will earn the most and also lose the most, because the bullish psychology of taking risks will often help us win bigger than the fearful bearish psychology.  Therefore, we need to observe what the new group of chickens will play to earn the most profit.  What we can avoid from making the mistake of the new chicken group is to keep the money and withdraw it at the right time.

4. Why Do Some Projects Have Tokens?
If everyone with experience and knowledge of the market understands that most tokens are garbage used only for the purpose of making pumpdump games, and projects that do not need to launch tokens at all but still work well, typically Metamask or Base  Until now, the token has not been launched because of concerns about unclear crypto laws in the US.  So why do projects need to launch tokens?  As mentioned above, tokens are used to pumpdump and tokens are used to incentivize users in a competitive market context, so it is necessary to launch tokens to airdrop, retroactive, encourage liquidity provision... in short, attract users.  to that platform.

5. Components of the Crypto Market That You Should Know
Below are the main components of the market that everyone should know to understand the market, understand who they are and how to play.
-The highest component may be related to the government, have legal relationships for investment funds, they are the ones who hold macro information, government bills
-Investment Funds, Market Makers and Exchanges are the people who directly control the game and create trends
  –Close employees of the upper class or famous KOLS know the inside news
-Traders, smart money, and experienced investors can work together
-The old chickens are still attached to the market
-The new chicken knows absolutely nothing, doing liquidity.
Currently, 90% of the remaining people in the market during this down season are in the 5th segment. Most of these people donate money to the market.  To be able to make money, one is to upgrade yourself or wait for lower components to make money. Those are brand new people, without any experience in the crypto market, when they see people telling them to buy any coin, they just buy it.

6. Common Types of Tokenomics Designs
-Low initial supply of tokens (medium term)
Of this type, most new projects are designed in this style, and there will usually be more supply within the next year. At first glance, it seems like there is a lot of traffic due to the large amount of air for the community.  In this type, most of the air projects are for their family members, the air for the community is still there, but the project has calculated and has enough money to drive prices to cycle and collect goods,... this type must combine research trends,  Technology and playing experience to predict how to play
-Ponzi-style Tokenomics
The Emission category pays high rewards to users and has been shilled by KOLs and sharks since the beginning, so there is a high possibility that it will be pushed in the early and slow stages. If there is still liquidity, push it a few more times and then let it go.
- The last type is the type that sells a lot to the initial community and also does it over and over again to raise capital.  This type is so slow it breaks the chart so it's best not to touch it.

7.Why does BTC decrease when Altcoin also decreases?
This is definitely something that everyone knows, but to explain specifically, it could be due to the following reasons:
- Bitcoin is the leader and representative of the entire crypto market
- Bitcoin is associated with many trading pairs, in the past, most of the trading pairs were alt/BTC, and altcoins were a tool for bookmakers to attract BTC.
- Bitcoin as a market sentiment indicator
In case an Altcoin goes against the Bitcoin trend, it is also because that altcoin has its own narrative such as: good news, trend, trend, price adjustment, etc.

8. Simple Ways to Identify Potential Projects Through Calling Capital
Normally a project will have the following 3 important funding rounds: Seed round, Series A, Series B There may or may not be a Public round.  In general, that's basic, but you just need to observe before issuing tokens to see who invests, how much they hold, the current circulation supply, and what it will be like in the future?  After the token is issued, who will continue to invest?  If a potential project often has additional funding rounds from a few funds, from seed rounds to series B, then it is likely a very good project. Because funds often have a team of researchers.  very high quality and their head for doing business and understanding crypto is also very great. If they see a potential project, they will not give up a piece of the cake for other funds to participate, but they will try to meet enough money for the project.  project.  On the other hand, with fewer participating funds, price coordination is better.

9. Criteria Before Entering a Wave
Making a decision to invest in a project involves many factors
- Is the project meeting the needs that the market needs?  Otherwise, you should not invest long-term
-Token usecase, what is it used for? Consider the project's tokenomics to predict price driving scenarios
-Consider the general market overview, should you be careful or should you enter quickly?
-Technical analysis, see if there is a good entry, if not, can you buy it?
- Hunt for Narrative and try to link and analyze whether there is any coin in the watchlist that will receive a big boost from that Narrative
-Find hidden lowcap gems in the ecosystem, fork ponzi products,... for short-term speculation

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