How to find the Alpha in the encrypted world?
Written by: The DEFI Educator
Compile: TechFLow intern
In a short period of time, making maximum profits and changing the lives of small investors, that's what finding low market cap altcoins is all about. So how do you consistently find these 10-100x low market cap gems? This article tells you how to become a qualified Alpha hunter.
A lot of people come to cryptocurrency to get rich quick, to succeed in a bull market. There are a lot of success stories in this field, but there is also a survivor bias, which means that you only hear these success stories.
For every success story, there may be 5 sad stories. Finding gems is fun, but risk management is key, here are some common mistakes gem hunters make:
Too aggressive and not hedging their portfolios with stablecoins or blue chips
If BTC Drops 30%, Your Altcoin Portfolio Could Drop 80%
Know where you are in the big cycle before jumping into high-risk high-reward low-cap altcoins
- Don't rely on others and take heavy positions blindly.
- Develop your own intuition, your edge is built by becoming an expert
- improve your cognition
- Don't be afraid of losing money, gem hunters need to learn
- You will encounter items that run away.
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1. Adapt to DEX
Tokens listed on centralized exchanges (Binance, FTX, Kraken, Coinbase) usually already have a fairly high market cap (MC). You know, if Bitcoin's market cap is 1 trillion, then it needs to grow by 99 trillion to reach 100 times.
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2. Watch the Whale Wallet
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3. Make good use of your Twitter
- Advanced search on Twitter is your best friend
- You can search for your favorite (recent) altcoins, eg: hyped coin $XYZ
- Select a date range: around the first month of the token launch
- Sort search results in chronological order
- You'll find out who's the first to talk about it on Twitter.
- Follow them for future Alpha releases and whitelists.
- Follow enough people and you basically become part of the inner circle.
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4. Go to Discord
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5. Make the most of your focus
You have limited time, energy and attention each day, don't rely 100% on yourself to find gems. Let your network know you're looking for the new alpha.
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6. The time machine effect
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7. Understand good investment institutions
In the early stage of a project, there will be earlier seed round investors. Some"good"Original link
