Old Cui says about coins: In a downtrend in the cryptocurrency market, what coins should one buy?

CN
14 hours ago

The world is bustling, all for profit; the world is bustling, all for profit to go! Hello everyone, I am your friend Lao Cui, focusing on digital currency market analysis, striving to convey the most valuable market information to the vast number of coin friends. I welcome everyone's attention and likes, and refuse any market smoke screens!

After the market downturn, many friends are considering spot trading. Currently, spot trading is worth buying, but it varies by coin type. Most friends are considering the currently popular coins, with BNB being the first choice. Lao Cui has indeed thought for a long time; coins like BNB have always been treated as indicators, making it hard for Lao Cui to make a firm decision to buy. After all, Lao Cui has previously bought BNB at around 500, and at this stage, it's difficult for Lao Cui to take the plunge again at historically high levels, which is not just a personal reason; it can be said that since the Hong Kong license began, BNB's trend has completely exceeded personal understanding. Therefore, Lao Cui will not choose to take over such coins. If you want to hold them, you still need to be cautious. Popular coins usually have significant increases, but they are a double-edged sword. Once the bull market starts to reverse, these types of coins are often the first to crash, and they won't give everyone a chance to exit, especially during the bubble phase of a bull market. The leading coins will definitely be the ones with the biggest bubbles, and Lao Cui is also afraid that everyone will have their hearts broken when they incur losses.

In the past two days, upon returning, most of the spot users I encountered are primarily from the primary market. Many friends may not have followed Lao Cui for long, so today I will reiterate that coins from the primary market have become extremely difficult to list since the Trump strategy. Whether it's launching ETFs or exchanges, the current trend is like this; Lao Cui has already mentioned this conclusion. 99% of coins from the primary market cannot be listed on exchanges, and 99% of these coins are scams. Some coins may not even have a complete public chain. This review mechanism can be referenced; most coins that have not entered the Binance chain will not be listed on Binance. Secondly, regarding chain selection, most small coins currently will primarily use the SOL chain due to low costs and high efficiency. If the unissued coins in your hands are primarily based on the Ethereum chain and lack support from major players, then such coins are scams, created solely for the primary market.

There isn't much to elaborate on regarding coins from the primary market, as there is no conflict of interest for Lao Cui. At most, it is to remind everyone to stop losses in a timely manner and not to invest too much. Coins that can be listed on platforms in the future will not require your fundraising, and the primary market coins you can access will not be good coins. Returning to our market, the spot users in Lao Cui's hands are primarily heavily invested in SOL, followed by Ethereum, and lastly OKB. These three coins do not require you to worry too much; at least they are currently in a small profit. Long-term holding can lead to a lack of confidence, which is human nature. Everyone should not fall into the cycle of believing that growth equals confidence; there is no need to worry too much. The downward state is precisely the opportunity for you to buy; the form of SOL is not too problematic. However, the growth of BNB will have a certain impact on SOL, and the MEME series on both chains will form competition.

In the short term, BNB's strength will definitely attract many investors to buy, while SOL's positive news is not weaker than BNB. The capital behind BNB is indeed strong, and this competition is not something we should consider; it is the responsibility of SOL's issuer. One is backed by the world's largest platform, while the other belongs to the technical faction. In the long run, if you firmly believe that BNB can reach the 2000 mark this year, then you can buy BNB, but Lao Cui does not have this confidence. The difficulty for BNB to double is far greater than that of SOL. Every year, BNB has a fixed amount of coins destroyed, but the market circulation will ultimately stop at 100 million coins. Estimating based on 100 million, to double, it would require 100 billion in capital inflow. This amount of capital is not much for Binance, but compared to SOL, even though SOL has nearly 605 million circulating coins, 71% are in staking. This means that the final circulating amount is not much different from the current BNB, around 17 million. Currently, BNB's circulation remains between 15-18 million.

So, in comparison, the funds needed for SOL to double are basically half of BNB's, which means the pressure is much smaller. You can also see that in the short term, SOL's positive news is not weaker than BNB's. More and more large institutions are buying in, and recently some banks have started purchasing, including capital that has recently completed a storage of 250,000 SOL. This includes Trump, whose choice of listed coins is also on the SOL chain. It can be said that in terms of application scenarios, SOL is not weaker than BNB. Currently, the largest application in the market belongs to the Ethereum chain, followed by SOL and BNB chains. These two chains are vast and do not belong to the category of altcoins. Whether viewed from an investment perspective or a speculative perspective, these two coins will not disappear in the long river of history. Both are worth choosing, but from a profit perspective, Lao Cui prefers SOL, as this year's SOL has not yet started a bull market.

It is precisely because of the issue of starting a bull market that leads everyone to distrust SOL, always feeling that Bitcoin has reached a new high, Ethereum is the same, and BNB has also set a new high, while SOL has not changed at all. This traps everyone in a thinking trap. On January 19 of this year, SOL reached a new high of 295, which Lao Cui remembers vividly, driven by Trump coins, allowing SOL to break out independently while all other coins were in a downward state, SOL, however, reached a historical high. This is the advantage of small coins; the initiation of a market may only take a day or two to complete a doubling trend because the gap in funds is not large. Therefore, the current dormancy is not in vain. Regarding the current trend of SOL, Lao Cui is more willing to believe that this is a repair of the previous high point, not a downward state. As long as it moves towards the 300 high again, it may not just stop at 300. The current purchase feels very much like the dormancy before the bull market.

Lao Cui summarizes: For spot users, there is no need to pay special attention to short-term trends. Do not be blinded by a single leaf, and do not chase hot coins. For coins like Binance Coin, if you did not buy before the bull market started, do not think about holding them in spot trading. Such improper operations may leave you unable to exit for years, which is not worth such investment. This financial intuition is a quality you need to cultivate. Just like last year when Lao Cui saw Bitcoin's rapid initiation, Lao Cui's choice was to invest in Ethereum, waiting for the right time. This year, after gradually reducing Ethereum, Lao Cui will choose to continue investing in SOL. This is the kind of business intuition that should be present, not just buying Bitcoin when it starts. You can also compare; if you bought Bitcoin at around 100,000, even at the highest, you would only profit 30%, while if you chose Ethereum, you would have doubled your profit. These small coins have already completed the doubling option, so do not chase hot coins. Learning to draw inferences from one instance is the key to profit. For Lao Cui, after SOL starts, it will be about the upper limit of OKB. Once everything is completed, Lao Cui's bull market can also be declared over. The correct approach for spot trading is to remain dormant for the long term, exchanging for a line of income. What you need to do is to maintain your original intention after the downward state and, in CZ's words, verify your own views. Currently, the risk of buying BNB is far greater than the profit; perhaps you can consider SOL!

Original article created by WeChat public account: Lao Cui Talks About Coins. For assistance, please contact directly.

Lao Cui's message: Investing is like playing chess; a master can see five, seven, or even more than ten moves ahead, while a novice can only see two or three moves. The master considers the overall situation and the big trend, not focusing on a single piece or territory, aiming for the final victory. The novice, however, fights for every inch of land, frequently switching between long and short positions, only competing for short-term gains, and often finds themselves trapped.

This material is for learning reference only and does not constitute trading advice. Trading based on this is at your own risk!

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