Practical Experience: Key Techniques for Trading Altcoins
In the world of encryption, emotions drive everything, human psychology remains unchanged, and market patterns always repeat themselves.
Author: ardizor, cryptocurrency Researcher
Translation: Felix, PANews
Cryptocurrency researcher ardizor saw his assets grow from $4,700 to $2.1 million in just one 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 is based on the following key factors:
- Understanding cryptocurrency market psychology
- Tracking internal wallets
- Identifying undervalued projects
- Understanding cryptocurrency security principles
Understanding cryptocurrency market psychology is crucial
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 blood is flowing in the streets"
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 is a recent example: a wallet bought HAMMY at $1,500 immediately upon launch and then liquidated at $177,000.
How can we be sure this is an insider's wallet and not a random trader?
Consider this: why could this person buy in before the sudden surge when there was no positive news about the project in the market?
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 addresses
- 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 can you discover potential coins before others?"
- Visit: CoinMarketCap / Coingecko
- Choose 10-30 tokens of interest from your favorite sectors
- Visit: https://dropstab.com/
- On this site, you can view important information such as project investors, Twitter followers, and funding data.
Where to check token economics
Visit Token Unlocks or VestLab to check:
- Tokens allocated to the community
- Investor lock-up status
- Investor cost versus 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 common validators may be useful:
Related Reading: Mastering the Art of Selling High - How to Sell at Peaks
Disclaimer: everything in the article represents the author's point of view and has nothing to do with this platform. This article is not intended to be used as a reference for making investment decisions.
