Discussing Crypto Assets Market Strategies with an Experienced Trader

The Crypto Assets market is constantly changing; how can one succeed in this field filled with opportunities and risks? Recently, I had the privilege of having an in-depth conversation with an experienced trader, who shared his experiences and insights in this industry.

This trader first came into contact with Bitcoin as early as 2018, but at that time he only made some asset allocations. It wasn't until 2020 that he saw the rise of Decentralized Finance ( DeFi ) and was attracted by its potential to change the world of finance, so he dedicated himself to the Crypto Assets industry full-time by the end of the year.

He initially worked at a listed mining company, responsible for DeFi and Staking related operations. His strategy mainly focused on purchasing mainstream coins such as Bitcoin and Ethereum, and conducting market-neutral trading, such as arbitrage and market reset strategies using stablecoins and DeFi.

As the market warms up in 2024, he began to work full-time in trading and investing. Having gone through the transition from MEME coins to ETFs, and then to the small bull market in March, this trader has accumulated a wealth of experience.

Currently, he is using the "barbell strategy":

• 90% of the funds are invested in conservative assets with higher certainty, such as Bitcoin.
• 10% of the funds are allocated to high-risk assets, mainly MEME coins, to seek super high returns.

He explained that the reason for this strategy is that the performance of value coins was not as expected earlier this year, and the overall macro environment is unfavorable for value coins. Compared to the previous cycle, it is difficult to make everyone profit through a single coin.

Regarding "assets that are not fully priced by the market", this trader has his own unique insights. He cited an example where, during a certain political event, he analyzed the political situation in the United States and positioned himself in advance with two related MEME coins. When the news was announced, these coins experienced significant price increases, bringing him considerable profits.

He emphasized the importance of being able to identify certainties in the market and to plan ahead. At the same time, he will assess market trends and adjust trading strategies based on on-chain transaction data, community activity, and other indicators.

In MEME coin trading, this trader has a complete process:

1. Understand the project background
2. Observe the chip structure
3. Develop a trading plan
4. Set stop-loss levels and trading patterns
5. Adopt multiple profit-taking methods
6. Real-time tracking of popular coins

He particularly emphasized the importance of taking profits and proposed three methods for taking profits:

1. Partial withdrawal during "upward pinning"
2. Exit in a timely manner when the event has been digested by the market.
3. Decisively take profits when the expected valuation is reached.

In addition to trading, this trader also enjoys reading some lengthy analytical articles, including market analyses from well-known bloggers. He believes these articles can provide valuable market insights.

For newcomers, his advice is to learn to take profits in batches and not to miss good exit opportunities due to emotional reasons.

Finally, he shared a little tip: by monitoring the popular coins in real-time for 24 and 48 hours, one can catch some sudden launch opportunities, allowing for timely chasing of increases or taking profits.

During the conversation, we also discussed the perspectives of the project parties and the dealers. Interestingly, there are also differences among the dealers; some are smart, while others lack experience. Sometimes dealers can also lose money, which mainly depends on changes in capital and market sentiment.

For project parties and sponsors, they focus more on the annualized return rather than just the multiple. Certainty and the ability to sell enough tokens when there is sufficient liquidity are their primary concerns.

This also explains why many retail investors now feel that buying certain tokens lacks meaning, as their price movements are often unrelated to the fundamentals. In contrast, tracking addresses on-chain may be more valuable, which is one of the reasons why MEME coins are popular - at least they do not mislead investors with packaged stories.