What coins to fish in the muddy water

in #coin5 years ago

24n2vpgovx.pngHow to catch fish in the muddy water? Use hand, scoop it, do it all over again. Someone may not agree with me, because how can we choose the best fish when all look the same. Use common sense. Yes, it is. Take self-discipline and practice over time:

1st discipline: Take the big one first. This is also a common thing, generally, people look at the big fish first. Extra work is done later on to find out more to know what's the name, is it poisonous, tasty, the last thing is whether it is nutritious.

2nd discipline: Use a little bit of own experience, recognizing the shape of the fishes and what could they worth. Marlin, Barracuda, or Tuna have a distinct shape to notice.

The reason behind choosing the thing that most likely people will like is because of the liquidity. What's the use of collecting fishes that will end up in the rubbish bin?

The second reason to recognize the shape is basically adding extra risk management from the action we took. Knowing a few varieties of fishes would protect us from severe damage. We may be wrong in picking up the fish but still can afford the losses because there is still demand these fishes.

Now, let's replicate this in selecting the crypto coins:

1st lesson: The bigger the names, the more people will come for adoption.

, , ,

and similar big projects can become the candidates for our picks. During the bear market, these coins are generally becoming affordable. Needless to say, BTC too will become cheaper, but still, cost good amount of money to acquire. Even if we fail to predict the value increase in a short time, there is plenty of time to wait. So when the summer comes, these coins can worth more than we expected.

2nd lesson: Use a little bit of our knowledge, study the projects then take the decision. Some people always apply DYOR (do your own research) rigorously, but for most of us having a little bit of free time can just peek and scan coins from sources, such as Messari, and Coingecko, or even Bitcointalk. Knowing the shape of coins can be through Market cap, circulation supply, historical price, and developments. What to act, upon retrieving all this info?

Good rules of thumb: (1) More supply less demand, the price will go down. (2) High Market cap means more people valuing the project --- exercise this part with caution*. (3) Data is gold, knowing the history makes a better judgment. (4) Developments; recently (Litecoin) internal chat was leaked talking about the inactive repositories that have decreased the community adoption. Because people are more interested in active projects, go with the coins that have more engagements.
Information source click here read more

Sort:  

All right, we reblogged your post to thousand followers.. Thank you to approve @puncakbukit as your witness.

Yay!
Your post has been boosted with ESTM. Keep up the good work! Install Android, iOS Mobile app or Windows, Mac, Linux Surfer app!
Learn more: https://esteem.app
Join our discord: https://discord.gg/8eHupPq