I decided to invest regularly in the cryptocurrency companies with the highest market capitalizations. Those investments vanished in 2022-2023. I received tips from friends I respect among crypto influencers. I invested in them. And they too disappeared. Since I've generally invested small amounts in these types of investments, I haven't suffered much, but other than Bitcoin buy-and-hold, I haven't had any strategies that have achieved significant success. I recently had a lucky break into Ethereum. It rose very quickly from 2600 to 4400. I made a significant profit there, but other than that, I've always been disappointed in crypto. Instances where the rug was pulled out from under me, like the Trump coin disaster, really bothered me. Why do I make these mistakes, and maybe you do too? This needs to be discussed.

One of the most important reasons is that I'm very methodical when researching stocks. I know exactly where to look. I'm well-versed in fundamental analysis, technical analysis, and global analysis. I know how to understand companies' technologies. I analyze their executives. So, I'm doing a lot of things right there. Of course, while it's not 100%, that's why I'm seeing a significant amount of success. But when it comes to altcoins, for example, I don't have a solid method. I've realized this. I suspect many of you are in a similar situation. We'll figure this out in the coming days, and I'll introduce you to some tools I've started learning and using myself.

What should you do when you hear about a new token with a rocket symbol on social media? Is it a dangerous coin, or does it have something serious behind it, within 30 seconds? I'll introduce my first tool to help you figure it out. Our tool is called Bubble Maps. Many investors lose money because they're uneducated about crypto. I'm one of them. That's why I'm on a learning journey. You know, what was the biggest promise of blockchains to us? Decentralization. These are decentralized structures. But if the ownership of that cryptocurrency is centralized, concentrated in the hands of a very small number of people, or even in some cases, a single person, a single institution, then you're in trouble. Especially if that institution or person has malicious intent, it can be a big problem. Therefore, who holds a cryptocurrency, what kind of institutions hold it, and which wallets it's stored in are incredibly important. There are many ways to research these, but perhaps the easiest way is through visuals. This is where bubble maps come in.

This is a completely free product. It's currently in V2 beta. If you're wondering what Bubble Maps does, it gives you a very quick overview of who owns that cryptocurrency and whether they have good intentions or bad ones. Let me give you an example. Let's take Shiba, for example. It's a cryptocurrency we all know. Bubbles appear. We need to do some more editing here. I recommend clicking on both boxes in the right column. This is because clicking on these two boxes creates a more powerful visual. Each bubble represents a large wallet. You can also see who owns those wallets. For example, in the Shiba example, the largest wallet is Null Oxdea. Which wallet is Null Oxdea? The wallet where the burned shibs are sent. If I'm not mistaken, Ethereum's CEO, Vitalik, conducted the first burn and transferred it to this wallet. This famous wallet says that 41% of the total shib issued so far has been burned and transferred to this wallet.

You can also see other wallets, like Upbit, Robin Hood, and Binance. Well, these are large markets. It seems normal for it to be spreading in these places. So, what do these lines mean? These lines show the relationship density between various wallets. What do these smaller bubbles indicate? They indicate smaller investors. It's preferable for the center to have fewer large bubbles. If a bubble is very large, it's a significant bubble. For example, in Shiba, the center bubble is very large, but it's the bubble where the burned shib accumulates. Therefore, it's actually positive. If the number of a cryptocurrency is reduced by burning, that cryptocurrency will benefit.

However, you might find the graph difficult to interpret. You can also utilize any artificial intelligence tool like Chat GPT. All you need to do is take a screenshot and then add it to Chat GPT. Then, explain and comment. It's that simple, really. The AI ​​quickly starts working on your behalf and performs some analysis. Chat GPT says the largest wallet here is the burning wallet. This is the topic I mentioned earlier. He says this is a good thing, because the more they reduce the number, the better. He says there won't be any problems.

Shib's ownership is spread across many crypto markets, like Upbit, Robin Hood, Binance, and Crypto.com. He says this is a good thing. He says Shib has ample liquidity behind it, meaning it can be easily bought and sold, and that the product is accepted by all markets. This is very important. If you can buy and sell your crypto in multiple markets, it's highly liquid, easily tradable, and shows the market has some confidence in that crypto asset. There's another important point here. There's one very large wallet, but that's a burn wallet. The wallets outside of that are generally quite small, he says. This indicates a wide distribution. In other words, it shows that it's spread across many wallets, which is what we want. Focusing on a single central wallet is what makes us fearful.

For example, if all transactions are going back and forth between two giant bubbles, or if there's a central bubble surrounded by four or five smaller bubbles, this could indicate transaction fraud. In other words, it could indicate that fake transactions are buying and selling among their own wallets, and you might be concerned about this. When he comments on the total, he says, "This is good," and there's nothing wrong with it. It's widely distributed among small investors. It's traded in many markets. That's also good. The largest wallet was a burn wallet. That's fine. So, if you ask what the risk is, a large portion of Shib is concentrated in these markets. He says it might be a bit risky. There are also a few large whale clusters, or groups. Bubble maps that have generally liked Shibi. It's nice, it's quite simple. We've seen everything visually. For example, how much is in Robin Hood, how much is in Binance? You can see all of these.

You might have a specific token in mind, or you could look at the list he provided. Cat tokens seem to be a bit popular these days. Let's take a look at Cat. Simon's Cat token. Even in the first image, we see a very significant cluster forming. That doesn't seem very pleasant. Here, the largest wallet appears to belong to Binance. There's a burn wallet concentrated in a single market. 10.2% of the total cryptocurrency has been burned. Simon Cats' treasury holds 3.65% of the cryptocurrency. You see other major wallets. Well, our minds may not be very smart. Let's get some help from AI.

We immediately take a photo of the chart image, and then I use GPT chat, but other AIs can also be used. We go to GPT chat. We add a photo or file and explain, comment, and compare with Shiba. This way, we learn which of the two cryptocurrencies is stronger from this bubble perspective. First, we look at the concentration; Binance says it holds 22.33%. The burn wallet holds 10.2%. The five largest wallets are Binance, Null (burn), Uniswap, Vesting, and Treasury. They hold 52% of this crypto. This might be a bit dangerous, but it says the distribution is good. One of them is a market, namely Binance. One is the burn zone, or burn zone. One provides liquidity, Uniswap. It provides liquidity there so you can easily buy and sell crypto. One is vesting, the other is treasury. So, yes, there are five wallets, but these wallets have different characteristics, and overall, they actually support this cryptocurrency well.

The second part examines the connections between the wallets. Now, in this cluster, there are many pink bubbles connected to each other. These are most likely connections between team members, wallets, vesting contracts, and early investors. There are also many connections with large markets. This indicates that it's traded in many places, which is reassuring. There's also a healthy sign here: they've provided liquidity. In other words, Uniswap provides liquidity here. So, even if there's no market demand when you want to sell your crypto that day, Uniswap buys it from you or sells it to you. Providing liquidity is important. You can ensure the health of this cryptocurrency.

So, what are its strengths? First of all, all the major markets are here. Binance, OKX, KuCoin are all involved. 10% of it has been burned, which is healthy; we want it to be burned. There's liquidity, which is strong, and there are both vesting and treasury wallets, and they're very clear and transparent. He says this increases trust. He sees 22% of the holdings as a risk. He says there's some centralization here, which you should be concerned about. He says this should be dispersed further. Team/Vesting wallets dominate 12% of the total. This, he says, indicates that insiders, the issuers of that cryptocurrency, still have significant control. He also says the large number of pink clusters indicates a strong relationship between insiders. See? We understand it quite simply.

So, what does it look like when compared to Shiba? First of all, Shipa's burn rate was higher. He says it's more advantageous. Shiba had more markets, and each of them held at most 1%-5% of the cryptocurrency, which he says is more positive. He says the distribution was much wider. There were thousands of small investors there. Still, it's heavily concentrated in the crypto markets. But if we compare it to Cats, it's better. Because in Cats, a single market, Binance, holds 22% of the cryptocurrency. Well, the general impression is that the comparison says Cats is a newer cryptocurrency, so there are a bit more insiders. It's a bit too concentrated in the crypto markets, but I found it quite transparent and liked it. On the other hand, of course, Shiba is a more mature cryptocurrency, with much wider adoption and a much larger portion being burned. He says it has a significant community. How? Isn't that a good comparison?

Now, let's move on to a slightly worse cryptocurrency: the Official Trump meme coin. Trump holds 80% of the cryptocurrency. Now, if I'd known this, I probably wouldn't have invested; I wouldn't have been wrong. So, 80% of the total supply is still in a single wallet. What does this mean? Trump can sell them whenever he wants and destroy the cryptocurrency. And indeed, he did. We'll look at it later. He recently launched another cryptocurrency. There's a similar structure there. Your risk increases here. So, that doesn't mean you can't make money from this cryptocurrency. If you get in from a lucky spot, you can ride the rise. If you join from the initial public offering, you'll profit from it. All of this is possible, but the concentration risk seems really high here.

We take the picture immediately. We go to Chat GPT and say explain, comment, compare. You don't even need to tell them what to expect. They understand your problem. We make the comparison right away. First, he says 80% is held by a single person, and he puts an exclamation point next to it. Nearly 800 million tokens are concentrated here. It's also present in the crypto markets. For example, Binance Hot Wallet holds 3.65% of it. Robin Hood seems to hold 1.82% of its holdings, but this is a cryptocurrency largely controlled by a single person or organization. You need to be very careful. Then he points out this: You see a lot of transactions between the main wallet and the wallets in its phase. This is also disturbing. He says this indicates that the central treasury owns many sub-wallets and trades between them. So, the transaction volume is probably unrealistic, so don't just view this cryptocurrency's concentration as such. These are likely its sub-wallets, and they're highly concentrated there, which is what the Trump coin image tells us. He says there's liquidity as a positive aspect. Because it's traded in many crypto markets, its visibility is high. There's significant hype behind it, but it's also heavily centralized. If this central wallet decides to sell or distribute it, it could destroy the cryptocurrency. So, you have to be more careful when you see something like this, right? It's quite simple.

Let's turn to the recently released WLFI. It works on different blockchains. For example, let's look at BNB. If a cryptocurrency is on multiple blockchains, you may need to conduct separate analyses. For example, 66.79% of it is concentrated on PancakeSwap. 14.29% is concentrated on a Hot Wallet on Binance. So, if you stack them, 80% is concentrated in two wallets. They're very busy trading with a small number of wallets around them. Let's see how our AI interprets this. It's a very simple analysis. Two exclamation points are added together. This means that 66.8% of this cryptocurrency is held by a single wallet. Within this Pancakeswap v3 pool, Binance holds 14.3%, and 81% is controlled by two wallets. This indicates an abnormally high centralization level, so be careful. It also indicates a large cluster. There are very few wallets on the outer perimeter. This means there could be some shady dealings going on between them. Some of the transactions may not be genuine. They may be spread across multiple wallets. In other words, they have many tools at their disposal to manipulate the price.

The positive aspect is its abundant liquidity. Pancakeswap is currently providing liquidity. He says that aspect is strong. It's also traded on strong markets like Binance, but it's extremely focused on Pancakeswap, which accounts for 67% of its market capitalization. He says if liquidity decreases there, this token will collapse entirely. Binance already holds the remaining 14%. There's also a risk of centralization there. There's very little decentralization involved. Small wallets are very, very small, indeed. In fact, they can be considered completely meaningless. How? Isn't it a great tool? Of course, you can't make a decision about a cryptocurrency based solely on this. Much more analysis is needed. But it visually shows us our risk. What did you think? I hope it was helpful.

The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.