Recently, there hasn't been much market activity on-chain. Sitting all day has made my hands and feet numb. I've smoked two packs of cigarettes and drank cup after cup of tea. The whole room is filled with fog.
In a down market, emotions run high. When the market is at an unclear edge, everyone's hormones decrease significantly, making it difficult to stimulate trading desires. This leads to many trades occurring without good targets. Thus, those who can't resist the temptation will trade recklessly, which often becomes the source of losses. As soon as you act, you lose. Why is that?
Calm down, someone is setting a trap for you. This is what's called a scam market. Everything is under the control of the issuer. They watch your moves: if you don't buy, they pull back; if you buy, they wash it out. They won't let you make a profit. At this moment, you may doubt your skills and feel inadequate. Don’t doubt yourself, brother; this has nothing to do with your trading skills. It’s just that your resolve is weak, and your itchy hands led you into a trap set by others. In this trap, no matter how you struggle, it’s useless. You can only be a slaughtered lamb. The best approach is not to act when there is no market. If you don't act, they can't cut you.
Friends who have been burned know that one in ten thousand tokens will go to zero. So how do we identify and find those few that can bring good returns with relatively low risk? What common characteristics do those tokens that can support market value and not die have? Let's explore this below.
(Project Coin) A meme coin officially released by a certain organization. This type of coin comes with official endorsement and may even have an official operator behind it. Such coins will have market cap management; of course, it's challenging to acquire low-priced chips early on. Once the contract is released, it quickly controls the market cap to a position where you can get in. This position is often the first and best one we can participate in, but many people won't jump in. It requires a deep understanding to quickly judge the narrative of the coin in a very short time. Once there is a narrative, it also tests your ability to manage position adjustments. How much to invest is crucial. Once you get in, it’s when your judgment is tested. The market always trusts sellers first before trusting buyers. Getting in early has many advantages. Such coins often experience severe washouts, which is key to missing out on profits. After entering, we need to dig deep into official information and market interpretations to understand what kind of story this is about. It's crucial to hold on firmly without constantly staring at K-lines and profits. Let the market make choices instead of making choices yourself. Follow market trends to make stop-loss and take-profit decisions. Remember to preserve some profits to avoid being in a passive state; this way, you can maintain a calm and composed mindset.
(Meme Coin) A meme coin brought by a certain big figure. Here, the big figure refers to a highly influential person in sales, such as Elon Musk or a prominent industry leader. Such coins can easily see a thousandfold or ten-thousandfold increase in value, with significant volatility and high transaction volume. They are always popular on social media, providing retail investors an opportunity to take off together with large holders, like Dogecoin, Shitcoin, and Trump Coin. The best strategy when encountering such coins is to get in and chase the rise. When you see it, the market cap might already be high, but don't be afraid to jump in. The first time you learn about this coin is your best opportunity to buy; you might sell for a profit three times, and that would be the peak. Why three times? Because when you first bought in, the market cap was still relatively low compared to the peak. After a few times of selling, you might feel like you've made the right decision, but it’s actually just the beginning. Until the big figure shouts again, the K-line may show a large upward movement accompanied by explosive trading volume, and you suddenly realize you've missed out on a tenfold increase. You might share your trading charts in the WeChat group, and your friends will show off their profits or complain about missing the opportunity, thinking it was too high at that moment. At this time, social media is filled with bullish sentiment, and analysis and predictions are everywhere. You can't help but get back in for the second time, telling yourself to be cautious, but since it just rose tenfold, everyone jumps back in, temporarily consuming the buying momentum and causing the price to drop. You feel instantly disappointed and get trapped again. This stage is the most painful because you might not be able to make a profit for a while, and the price hovers below your second buying position, leading to self-doubt. After a long time, you lose patience and no longer want to be cautious, just thinking about breaking even and getting out. Good news, buddy, congratulations! You're about to break even because with the passage of time, new buying momentum will come again. But you don’t know that the third phase is coming; the price begins to rise, and you finally break even and even make a profit. Your mind starts racing, thinking that this time you’re going for the big win. As more people break even, selling pressure increases, and the K-line shows red candles continuously, your profits shrink. Others are still shouting, but you just got out, and you see your profits dwindling. This time, you start feeling anxious, closely watching the K-line, taking a sip of water, smoking a cigarette, with your peripheral vision always on your position. Suddenly, a red candle drops, and you panic, hurriedly hitting the sell button. Congratulations, brother, you’ve exited. After getting out, you feel relieved and no longer need to watch it; you might even check other coins to ease the tension from earlier. Well, you might not pay much attention to this coin for a couple of days, feeling disconnected from it. Until a certain moment when Binance or a major platform officially announces support for this coin and the price skyrockets, group messages explode, and you exclaim, 'Damn, why did I sell? I could have held on for 500 times!' If only you had held on, you’d have been set. Alright, congratulations, brother, you’re back in! I must congratulate you again because you’re back for the third time. At this point, the price is almost the highest it has ever been since the contract was issued. Brother, you’re back in.
(Similar Community Coin) A meme coin that unexpectedly emerged. This coin generally starts with a very low market cap, and hardly anyone notices it, with only a few people participating in PVP. Social media also has almost no news about it, and there are no major influencers promoting it. Such coins often see many retail investors with small funds getting involved early on. There are almost no large holders; everyone participates with a 'let's give it a try' attitude, and inadvertently, a community channel may form, accumulating a group of dreamers supporting it. This is also the most primitive support capital. With the first batch of followers, the coin price will stabilize at a certain level that is neither high nor low. Everyone can't make much money or lose much, but the discussion increases. Some people are optimistic while others think it's garbage. Gradually, more and more people learn about it, and this is when the coin price begins to rise, attracting the first batch of investors with capital. This group primarily enters because the coin's price is relatively stable and has popular support. When they enter, conditions will change; often large holders bring their own traffic and will promote the coin to support their positions. Due to the extensive resources and connections of large holders, more people will be influenced to join, entering a period of rapid development. At this time, early small investors may choose to take profits and exit, completing a round of chip exchange. With the exchange of chips, the price will rise further, attracting more participants. This coin will gain fame. Participating in such coins generally does not lead to significant losses, as there are different levels of participation among investors, which stabilizes the price. This kind of coin is actually most suitable for retail investors, as the risk of loss is low, making it easier to hold on and achieve good returns.
(Short-term Event Token) This coin is a phenomenon driven by short-term events, a token that emerges under specific circumstances at a particular time. This type of coin has a short lifecycle but incredible explosive potential; due to the catalytic effect of the event, everyone rushes to participate, causing the coin's price to skyrocket and massive profits to be made. When participating in this coin, one should not harbor fantasies; it’s essentially about capturing emotional premiums. Looking at such tokens, once the event fades, the likelihood of going to zero is high. This type of token also has the most similar coins, with many developers rushing to ride the wave. Therefore, it is essential to choose wisely and try not to join flow coins just to take a bite and become someone else's meal.
The above are several common types of meme coins, and these coins are also the easiest to make money from. Participation in positions and timing should be based on your actual situation. For meme coins, the advice is to take profits when they are good and wait for the next suitable opportunity.
Newcomers must use small positions when participating in meme games. In simple terms, it's a game of small bets for big gains. Zero-sum coins like Pi Xiu coin, I believe all friends who have participated have bought in. There’s no need to be overly concerned; just prepare for the next opportunity. As Sun Yuchen said, in the crypto industry, you can lose ten thousand times, but as long as you win once, it's enough.
Purely manual typing, hard work in creation and sharing. Brothers and sisters, please take good care of it. Thank you all. If you find it useful, give a free like and follow! 🫰👍
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