Practical Experience: Key Tips for Trading Altcoins

2024.05.13

Practical Experience: Key Tips for Trading Altcoins

In the world of crypto, emotions drive everything. Human psychology remains unchanged, and market patterns keep repeating themselves.

2024.05.13 - 03:14:51

Navigating Web3 tides with focused insights

In the world of crypto, emotions drive everything. Human psychology remains unchanged, and market patterns keep repeating themselves.

Author: ardizor, Crypto Researcher

Translation: Felix, PANews

Crypto researcher ardizor grew his assets from $4,700 to $2.1 million within one year—not through BTC, ETH, MATIC, AVAX, or MODE. This article shares his techniques for trading altcoins.

Trading altcoins doesn't require complex strategies. Instead, success can be based on a few key factors:

Understanding crypto market psychology
Tracking insider wallets
Identifying undervalued projects
Understanding crypto security principles

Understanding Crypto Market Psychology Is Most Important

In the crypto world, emotions drive everything. Human psychology remains constant, and market patterns repeat themselves over time.

The image below provides a rough visualization of the market psychology cycle:

"The best time to buy is when there's blood in the streets"

While many people are aware of this principle, they often sell when fear dominates the market and only buy back in when greed takes over. Following this simple rule—going against the crowd—can generate massive profits.

Recognize this pattern—and then act contrarily.

Fear/Greed Index:

https://alternative.me/crypto/fear-and-greed-index/

Understanding Insider Trading

Here’s a recent example: a wallet purchased HAMMY immediately after launch for $1,500 and later sold out for $177,000.

How can we be sure this was an insider wallet rather than a random trader?

Consider this: why would someone buy into this project right before an unexpected surge, when there were no public positive developments at the time?

The answer is clearly insider information.

How to Find These Hidden Insider Wallets?

Visit: https://dexscreener.com/
Look for trending tokens over the past 6 or 24 hours
Click on top traders
Search for early trades
Copy the wallet address
Go to: https://alphatrace.co/
For better results, filter for wallets with over $500K in profit and a win rate above 60%

"How to Discover Promising Coins Before Others?"

Visit: CoinMarketCap / Coingecko
Select 10–30 tokens of interest from your preferred sectors
Visit: https://dropstab.com/
This site shows key data such as project investors, Twitter followers, and funding details.

Where to Check Tokenomics

Use Token Unlocks or VestLab to examine the following:

Tokens allocated to the community
Investor lock-up status
Investor cost basis vs. current price

Finally, verifying token contract security is crucial. This habit will protect you from potential scams, rugs, and honeypots. The two tools below are commonly used and helpful:

SOL: https://rugcheck.xyz/

EVM: https://www.coinscan.com/