Experience on investing in the Ethereum "Second Layer Scaling" project

In yesterday’s article, I wrote that in the IEO wave of 2019, I remembered two second-layer expansion projects Celer and Matic. But at that time, due to various reasons, I did not buy these two projects immediately.

After surviving the bear market of 2019, we are in 2020. During this period, I will occasionally look at these two projects again, but every time I see them, I always feel that the progress is not very great-in fact, this is not only a problem with these two projects, but the entire market The problem. In a bear market, all projects are suffering, and everyone's first priority is to survive.

During this period of time, compared with other projects, these two projects still have no special features; in addition, I am still not sure whether they can survive the bear market; Seriously, so I still haven't bought them.

But after June 2020, DeFi rose at an astonishing rate, Ethereum quickly became overcrowded, and transaction fees rose rapidly. At this time, I immediately realized that the opportunity for the second layer of expansion may come, and there are voices in the market to speculate on the hot spots that may appear next: one is NFT, and the other is the second layer of expansion.

I don't think I can wait any longer. If the public in the market realizes this hot spot, it will be too late to make a plan, so I started to make plans in these two areas. Regarding NFT investment, I wrote about it in the article in March. Regarding the investment in the expansion of the second layer, I immediately thought of the two projects Celer and Matic that I have been paying attention to, as well as other halo projects in this track, so I took these two projects out again, and paid special attention to the progress of these two projects .

After comparison, I found that Matic seems to be more extensive than Celer in terms of project cooperation, and its activities are more active, so Matic feels better to me. The two projects seem to have a slight increase in currency prices, but the increase is almost negligible compared with the popular DeFi projects at the time. But overall, the difference between Matic and Celer was not that big at the time.

In the end, after repeated weighing, I voted for Matic and not Celer among the two projects. When making this decision at the time, there was not much data to support it, and intuition played a bigger role.

After buying Matic, in fact, it was still tepid for a long time, and it will be March 2021 that Matic will really become popular. At this time, it has been more than half a year since I bought it. During the period before Matic became popular, although there were many voices in the market who were optimistic about the second-level expansion, among all the second-level expansion projects, only Loopring was more eye-catching, and the other projects were silent.

Therefore, Matic is almost forgotten by me, and it is only when I occasionally review the project that I realize that I also bought Matic. But every time I see Matic, its price is hovering low.

Seeing that the price of Matic is so low, I didn't think about selling it immediately, because the signs of a bull market had already appeared at that time. I believe that at the peak of the bull market, all projects will go to heaven. At that time, although the fundamentals of Matic did not improve significantly, they did not deteriorate significantly either. What is gratifying is that the project party is still silently updating and looking for new projects to cooperate with. So I decided to hold it until the peak of the bull market and see how it plays out.

Readers often ask at the end of the article: I bought xx at xx price, why has it not risen? Can I continue to hold it? Do you want to change positions?

I suggest that when you have such questions, ask yourself why you bought this coin in the first place, and whether you are still optimistic about this coin. If so, you can get the answer yourself.

Around March 2021, Matic began to skyrocket, and then it started to hang all the way. This performance is completely beyond my expectation. To this day, I still hold Matic and haven't sold one, and it has increased hundreds of times so far. Because I believe that there is still a second half of the bull market, I will continue to hold it and go to the second half of the bull market to see how it will perform in the end.

Looking back on this experience now, I think it was faith that made me believe that the second-layer expansion has a future, so I have been keeping an eye on this field; it is the mastery of the basic knowledge of the blockchain that made me choose Celer and Celer from many projects. The two projects of Matic; closely following the market rhythm made me think of these two projects at the first time when the application scenario showed signs of being beneficial to the project.

Today, the increase of Matic is much higher than that of Celer, so judging from the results, my decision was correct. But I think luck favored me in the end when I voted for Matic. Because as I wrote earlier, the overall difference between Celer and Matic was not that big at the time, and it was almost the same for both. It is entirely possible that my thoughts were biased towards Celer and I invested in Celer instead of Matic.

But luck does not always patronize a person. If I am given such an opportunity in the future, when two similar projects are placed in front of me, and they are both close to each other, I will no longer just vote for one of them based on intuition, but I will vote for both just to be on the safe side.

This should be the biggest lesson this experience taught me.

Although the increase of Celer is far less than that of Matic, whether it is Celer or Matic, their current prices are much higher than before, so I will not buy them at this time. Of course, because I believe that there is still a second half of the bull market, it is very likely that they will rise in the future, but it is hard to judge how much they can rise.

So I wrote this experience not to ask everyone to buy them at this time, but to hope that everyone can learn from my experience and lessons from this experience.