World emotions drive everything, human psychology remains unchanged, and market patterns are constantly repeating.
Author: ardizor, Cryptocurrency Researcher
Translation: Felix, Cryptocurrency Researcher
In the span of one year, cryptocurrency researcher ardizor saw their assets increase from $4,700 to $2.1 million, and it wasn’t achieved through BTC, ETH, MATIC, AVAX, or MODE. This article aims to share their techniques for trading altcoins.
Trading altcoins does not require complex strategies; it is based on the following key factors:
Understanding cryptocurrency market psychology
Tracking insider wallets
Identifying undervalued projects
Understanding cryptocurrency security principles
Understanding cryptocurrency market psychology is crucial. In the world of cryptocurrency, emotions drive everything. Human psychology remains unchanged, and market patterns are constantly repeating.
The image below provides a rough visualization of market psychology patterns:
“The best time to buy is when the market is in a bloodbath.”
Although many people are aware of this, they often sell when fear dominates the market and only buy back when greed takes over. This simple rule can potentially generate huge 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 at a price of $1,500 immediately after the launch of HAMMY and then sold at $177,000.
How can we determine that this is an insider wallet and not just a random trader?
Consider this: how was this person able to buy before the unexpected surge when there was no positive news about the project in the market?
The answer is insider information.
How to find these hidden insider wallets?
Visit:
https://dexscreener.com/
Search for popular tokens in the past 6 or 24 hours
Click on the traders’ header
Search for early trades
Copy the 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 higher.
“How can we discover potential coins before others?”
Visit: CoinMarketCap / Coingecko
Select 10-30 tokens from your preferred field
Visit:
https://dropstab.com/
On this website, you can find important information such as project investors, Twitter followers, and funding data.
Where to check token economics?
Visit Token Unlocks or VestLab to see the following points:
Tokens allocated to the community
Investor lock-up status
Investor cost and current price
Lastly, verifying the security of token contracts is crucial. This habit will protect you from potential scams, rugs, and honeypots. The following two commonly used verifiers may be useful:
SOL:
https://rugcheck.xyz/
EVM:
https://www.coinscan.com/
Tags:
2023 market trends
AVAX
Matic
Mode
SOL
Trading
Ethereum
Cryptocurrency
Altcoins
Bitcoin
Source Link:
https://www.panewslab.com/zh/articledetails/eatwh8s8.html
Disclaimer: The views expressed in this article by the author do not constitute investment advice.
Original Article Link:
https://www.bitpush.news/articles/6713568
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