Enter 100,000 U. Five traders teach you how to achieve the "small goal of 100 million"

ETF is approved, the Federal Reserve is about to cut interest rates, BTC is about to be halved, and the U.S. election is approaching; coupled with the rise of Solana, the Ethereum Cancun upgrade will be completed, and Ethereum spot ETFs are possible Approved. Various signs indicate that the potential of the encryption industry in 2024 is far from being realized.

The bull market is coming. Both practitioners and investors are looking forward to gaining something in this bull market. Where is the wealth password? How to invest? The sooner we understand these two issues, the sooner we can be prepared to deal with the changing market.

Bailu Living Room Recommended reading today: Followin Annual X Space, inviting 5 researchers: Zhang Xiaoyu, a well-known hedge fund manager; Jason Chen Jian; former Amber Research Institute Haotian; Nakamoto Garlic; BTCdayu, summarize and share practical investment experience.

Q1: What is the most satisfying investment in the cryptocurrency industry in 2023?

Zhang Xiaoyu:A relatively successful investment in 2023 is ORDI. Prices ranged from 3-6U when initially entering.

When talking about ORDI, on the one hand it is about making money, on the other hand I think it is a breakthrough in my investment style and method.

I would not invest in a particularly early-stage project in the currency circle at the beginning, because I couldn’t tell whether it was really reliable and could succeed. In the currency circle, the project does not have a particularly strong product concept and is supported by strong cash flow expectations.

Using the interpretation of the traditional financial world, several U of ORDI are still in Pre-A rounds and angel rounds. It's hard to tell at this point if it will last? Does the trend hold? Can the traffic continue?

The reason why I invested is that the risk appetite in 2023 is indeed higher. In addition, I believeCrypto still needs to dare to invest in relatively early projects, especially when new assets, new tracks, and new trends emerge.

It’s not just about daring to vote, there’s also a matter of degree. Watching it rise higher and higher and become more valuable, I made additional investments. After rising in the middle, I sold part of it when it fell to 46 US dollars, and then added it back when it rose back to more than 50 US dollars. All in all, I did a lot of things I wouldn't have done before. There are some breakthroughs at the psychological and mental levels.

Haotian:I am more satisfied with Solana on the public chain track, so I picked the bottom.

Why buy the bottom? In the last round of public chain competition, everyone said they would kill Ethereum. This round of narrative is about who will become a supplement to Ethereum, achieve performance that Ethereum cannot achieve, and attract the Ethereum ecosystem.

Looking at this logic, we can see that Solana has a chance. At that time, Solana showed various inadequacies due to SBF and chain downtime, but after research, it was found that at the bottom of the technology, because it supports high concurrency, its performance is actually superior, close to the capabilities of Web2, and it can provide infrastructure services for the Crypto industry. It holds various hackathons every year, its developers are active, and its founders have various backgrounds. The price is low. So I think there's a bit of a chance.

There is also Metis. At that time, I thought that the ecosystem of the four kings of Layer 2 was in a mess, and there was no technological progress and it was stagnant, especially the decentralized sorter. I found that it’s not that the technology is not good, but that they are unwilling to do it. They rely on the sequencer to reach the peak of their power and are unwilling to let it go. At this point, I think there are definitely projects that will challenge them on this. Metias is eye-catching, and he is very serious about his skills. Successfully grabbed the bottom.

So, I invest from the perspectives of narrative, business, and ecological status.

Nakamoto Garlic: I will talk about my logic of placing heavy positions in SATS and RATS.

Often in a bull market, the rise of a currency will be exaggerated. For a currency with a strong explosive potential, the multiple will not be just a little bit. It’s good to buy at a very early stage of a coin. But if you realize it later, don’t feel sorry for it when it swells up. You can eat the middle and rear parts of it. You need to consider:

(i) A very popular track; (ii) It must be a white horse; (iii) Wait for a technical surface A better time to enter; (iv) Take advantage of the next wave of gains.

This is not the point, I want to express a point. For many newcomers, what they hear the most are stories of sudden wealth and huge gains from an investment. They think that this is how money is made in the cryptocurrency industry. This is wrong. Getting rich by speculating in currencies is not determined by a single hugely profitable transaction, but by the combination of countless transactions. Some contract players will definitely have their bright moments, but in the end they may not make much money. I suggest:

(i) Many retail investors are very concerned about whether a certain currency makes a profit or a loss, and how much it makes and how much it loses. I pay more attention to the management of the overall capital curve. It's like fighting a war, not caring about the gains and losses of a city or a pool.

(ii) When you focus too much on whether a certain currency will make you rich, the risk will be difficult to control, and the entire investment return curve will go up and down on a roller coaster. Others may remember you because of one of your successful transactions, but you must understand that long-term profit in the currency circle lies in not suffering fatal losses. This is the most important thing.

My most satisfying investment in 2023 was that I did not make any move for 5 months and did not lose money. From May to October 23, my position was very small, 5%-10%. News about the BTC ETF came in October. I thought the entire trend was reversing and I started to invest heavily in it.

When the market is rubbish, there is no money-making effect. The more you make troubles, the more you will lose your principal. The most important thing is to stay still.

BTCdayu:Teacher Zhang talks about the changes in his investment style. One thing I learned – iterate. The currency circle is a circle that changes and develops very quickly, and its most important ability may be iteration. Haotian is a technical person who seizes opportunities from a technical perspective and earns dozens of times from heavy positions, which is very scary. I agree with Nakamoto Garlic. It seems that it is very easy to lose big money after making a lot of money. He said that the most satisfying investment was one that had not been made for several months, which was very philosophical.

Let me talk about TIA investment in 23 years, which is also an evolution for me.

Not long after TIA was launched, VC asked me to buy it, but I didn’t. My characteristic is that I do my own research before buying. I also have a prejudice against it in my heart. I think there are hundreds or thousands of public chains and they are so expensive. What is there to buy? Next, V God wrote two consecutive articles talking about the legitimacy of Rollup. After researching, I found that DA is the main business of Ethereum, which means that the core technology of Ethereum is being robbed by others. I'm a narrative player, and when I see a project that even V God feels threatened by, I think it's awesome and I buy it. It is going very well in the future, and it is a promising project in the long term. It is better in the modular and DA narrative.

Chen Jian: Let me talk about Solana. When I was 18U, I wrote an article about why I should buy it. I didn't expect it to be so popular. Half of the 34 were sold, but later I found that the momentum couldn't be stopped. It rose back to 34 and then came back. Shipments will begin in 60-70.

I prefer to do research and enjoy analyzing a large number of signals and dismantling fundamentals to find a potential target to buy. No matter how much you earn. The sense of accomplishment in this way is very strong.

Q2: Quickly summarize the investment system in 5 minutes?

Zhang Xiaoyu: Rather than a system, I think it is an investment principle. Two points:

(i)Investment strategy. Think about the asymmetry of "downward risk" and "upward space" in investment targets. Find a target with limited downside risk and unlimited upside potential. The currency circle often has too much space up and down, the speed is very fast, and the emotions come and go faster than various markets. Be sure to pay attention to this logic.

I am experimenting with small market capitalization targets. Through screening, I find assets that are not so easy to return to zero, and get involved relatively early and relatively cheaply. Of course, this strategy must also be coordinated with the selling strategy, including stop loss methods.

(ii)In currency circle investment, I attach great importance to building a good input information system and interpersonal network, which may be better than a specific investment strategy.

This network plays a great role in the bull market. The first is to capture, filter, and analyze information. The second is to make up for your own weaknesses.

Haotian:I am not very keen on speculating in currencies and spend most of my time on investment research. I tend to analyze and select targets from the perspectives of politics, technology, and business ecology.

(i) Politics: Crypto is all about politics. Behind the adoption of ETF is the United States' attempt to consolidate the hegemony of the US dollar, and Wall Street took the opportunity to penetrate the Crypto industry. Observing projects with heavy participation of American capital, I think there are opportunities. The Chinese speculate on the inscriptions, and the foreigners play with the MEME on Solana, which is also politics. TIA's development of DA is also a political opposition to Ethereum. Buterin has repeatedly written articles calling for the protection of Ethereum’s DA capabilities.

(ii) Technology: Why are cutting-edge public chains so popular? This is partly because Ethereum’s implementation fell short of expectations. Many Ethereum projects are solving its technical flaws, account abstraction, etc., which is a patching behavior. Therefore, there will definitely be Ethereum disruptors. Solana, it has high concurrency. SUI, which has security based on the MOVE language. Including doing parallel EVM. All have opportunities.

(iii) Strategic card position:I have been paying attention to two directions, DA and interoperability. DA is the core capability of Ethereum. If a new chain wants to compete with Ethereum for resources, it first thinks of doing DA to block Ethereum's neck and create a short narrative to gain market recognition. Pay attention to celestia. Celestia wants to take away the Ethereum ecosystem, and Eigenlayer wants to help Ethereum keep the ecosystem and compete with third-party DA. It is also quite interesting.

In addition, Altlayer is also very interesting. It allows those small and beautiful Layer 2 to be developed in a very lightweight and modular way using the components it provides. A Very good business model. It actually taps into the trend of modularization and lightweighting.

In short, you can first look for trends, then look for projects, and look at its performance in the secondary market. If you feel that the value is undervalued, consider whether to invest.

Nakamoto Garlic: When investing in the currency circle, what is the first goal you should consider achieving? My goal: often make small profits and small losses, occasionally make big profits, and never suffer big losses.

There are four points to achieve the three goals: Stake the least amount of money, place the heaviest position, quickly reduce the cost of holding positions, and use The grid is happy to do long-term.

How to make the fewest moves? A:Only take action when the opportunity presents itself.

I have been in the currency circle for seven or eight years, and I have been particularly confused for a long time. I was very busy and tired, but in the end I didn’t make much money. I want to "improve my technology", conduct deeper research on the target, seize better technical entry opportunities, and control positions. In short, it is "more extreme".

Finally, I found that they were all dead ends! What to do in the end? Don't do addition, do subtraction. Never take action unless there is a particularly good opportunity. What constitutes a great opportunity? First, you need to understand what a junk opportunity is. I sum up the "Five No Orders".

(i) Do not place an order if the market conditions are not good. Be sure to wait patiently for market trends. Many times we are afraid of missing the password to wealth and are anxious to increase our positions. In fact, every round of bull market BTC has at least 3-5 corrections of more than 20%. You can definitely wait for this opportunity for a major correction.

(ii) Do not place orders without thorough research. Many big guys will tell you that this coin is very powerful, but if you don’t study it yourself, you won’t be able to hold it, and you don’t deserve to make this money.

(iii) Do not place an order if the technical form is not good. This is to break out of the information cocoon. The more you research a certain coin, the more optimistic you will become. Apart from the fundamentals, you cannot see some things that play a decisive role, such as the chip structure and the position of key players. My experience is supported by technical aspects. When there is a fight between fundamental research and technical information, I will definitely listen to the technical side.

(iv) Do not place an order if the profit-loss ratio is not ideal. Like the asymmetric opportunities mentioned by Teacher Zhang, look for opportunities with a particularly ideal profit-loss ratio.

(v) Do not place an order if the condition is not good. After a large loss, you will be eager to get back your capital, and you will not place an order after a large loss. Don't place an order after making a large profit. You will not value the money and your risk appetite will become extremely high. Whether it is profit or principal, it is still money, there is no difference.

What is the heaviest position? Answer:The more you research in depth, the more important positions you take.

Some people use this self-defense today and that self-defense tomorrow. Are you here to speculate in coins, or are you here to be a security captain?

What is the rapid reduction of holding costs? Answer:Build positions in batches and reduce positions based on profits.

Many times, the reason why you can't hold it is because the cost of holding a position is not advantageous. The cost is low and it is easy to hold.

How to reduce the cost of holding positions when the currency that enters rises? I think we should build positions in batches, don't be anxious, and reduce positions appropriately after making profits. The other extreme is the so-called "zero-cost position", which I think is unnecessary. Your ultimate goal is to hold as many positions as possible, safely and comfortably.

What is grid trading? Answer:Be happy in the long term.

To make big money, you must do it in the long term. I have never seen anyone make a lot of money by rushing around all day. The long-term challenge is that the fluctuations will be very violent, and you may not be able to hold on to big profits, or you may die and return to zero. You will be very confused. Grid trading is about making money from volatile market conditions.

Chen Jian:Two investment experiences.

First, do everything possible to get first-hand information and avoid "second-hand smoke". I spend maybe 5 hours a day in various forums, DC, and blogs, looking for information. Twitter will be less so.

Second, strengthen the ability to retrieve and process information, and put aside signal noise to find effective information. The specific disassembly is very complicated. I have written two articles to summarize it more comprehensively. You can go to my Twitter to read it, I won’t waste too much of your time here.

BTCdayu:My investment system is just four words: "Targeting + Heavy Positioning".

How to spot it: At first I focused on fundamentals, but later on I was best at narrative. Narrative is to judge how many people recognize it in the end. The higher the attention, of course the more it will rise. For example, TIA is something that even Buterin is afraid of, and its narrative is amazing.

In addition to public information, it is best to have more high-quality information sources and consider issues from the perspectives of institutions, funds, market makers, and project parties.

How to place a heavy position:At 1U, I only bought 1 million yuan in ORDI. Is this called a heavy position? The position was not enough for my capital chain at that time. But at that time, I thought it was a very suitable position. At that time, I usually invested ten Ethereums for Tugo, which was a little better than Tugo, so it seemed OK to buy 1 million yuan. But now I no longer think so. Similar to what Nakamoto Garlic mentioned, I will reduce the chance of taking action. If it is really good, I will try my best to take heavy positions in terms of economy, emotions, state and other aspects as much as I can bear it.

The premise of heavy positioning is that you really understand it. Very understanding but there are pitfalls. You may be missing a fatal piece of information. You will lose a lot.

Finally, let’s talk about the “selling strategy”: I often say “only valuation but not prediction of valuation”, which means that I judge It's not cheap now.

At that time, I thought ORDI had a market capitalization of US$21 million. At that time, a meme coin could be 200 million, 1 billion, and Dogecoin was 60 billion. The first coin meme on the Bitcoin chain

Is 20 million expensive? I think it's okay and cheap. I estimate, but I don’t predict. I can’t predict. I don’t know when it will rise or how much it will rise.

Q3: Where will the investment opportunities be in 2024?

Zhang Xiaoyu:I have an experience that talking about prospects at the end of the year is nonsense.

Now you will see many opinions, such as Bitcoin L2, Depin, Solana Ecology, Ethereum Restaking, etc.

My attitude is not to predict, only to respond. I'm very focused on building information and networking, that's for this stuff.

Nakamoto Garlic:I think that as long as you pay a little attention to some of the main narratives in the currency circle, you won’t be too It may be completely empty.

I personally think there are three tracks with more opportunities: Solana ecology, AI, and Depin.

But this conclusion may be overturned at any time later. Always interpret new tracks and new opportunities with a thirst for knowledge.

Haotian:First: Layer1 cutting-edge public chain. For example, the MOVE system supports high concurrency, is relatively safe, and has great advantages over other development languages.

Second: Integrate interoperability. We have many chains today, the liquidity is very fragmented, and the user experience is very poor. This type of project connects various chains and lowers the user threshold. The concept is great. For example, ZETA, you can pay attention to it. There is also Particle network, which unites more than 50 chains to engage in the inscription movement. It is relatively popular and has strong integration capabilities.

Third: Modularization. VCs are optimistic about it, they have a lot of room for imagination, they can integrate various resources in the industry in a short period of time, and the market is prone to FOMO. TIA’s performance is obvious to all.

Fourth: Layer2. Although there are OP, ARB, etc., some disruptors are outstanding, such as Metis and Blast. Once the ecology of these disruptors improves, their future is limitless. I don’t think Blast is Layer 2 at all, but it has definitely changed the industry’s imagination of this track. It is likely to bring market FOMO, which is worth anticipating.

Chen Jian:First, the game track. Look at the chain first, then look at the specific game. Here, I think XAI still has great opportunities.

Second: modularization and chain abstraction, I won’t go into details.

BTCdayu:First: modularity. TIA is a good thing, but the difficulty is that it may be difficult to get started now.

Second: chain abstraction. For example, ZETA is listed on OK but not on Binance, so the liquidity is relatively poor, and there is also a bit of information deficiency. It doesn’t fit into Binance’s narrative, and I’m not sure OK will use it to compete with Binance, which has recently listed several very popular coins with modular concepts.

Third: Oracle. LINK I really can't do it. There is a PYTH recently, OK has it, but Binance has not listed it yet. It's a bad thing and a good thing. Its market value is also quite high, currently about 0.4.

Fourth: Solana may have a meme with a market value of 10 billion. Solana and a bunch of old OGs keep making all kinds of memes. The logic behind it is that they found that memes brought a lot of vitality, and their entire ecological meme culture was taking shape.

Q4: With only 100,000 U, which coins can help you return to the top and achieve the "small goal of 100 million"?

Zhang Xiaoyu: Putting aside these 100,000 U, if you have no money now, or very little, what can you do?

First, airdrop, arbitrage, and innovation. Make big profits with small costs.

Second, part of it can be to observe cheaper things in the main narrative, projects with low market value and high multiple potential. But it requires information mining and early entry.

Third, the other part is allocating some mainstream currencies to gain some market beta gains.

Fourth: Don’t play with contracts.

Haotian: 20,000 U will be used as a consultant by Teacher Zhang, and 80,000 U will be used by Teacher Dayu as a trader. (laughing)

Just kidding, many of what I talk about are biased and trendy views, and there may be some lag when it comes to investment. Where the trend is, it takes time and even chance to take off. But when the trend picks up, what are you waiting for? Focus on layout.

If you want to gain wealth and freedom with 100,000 U, you must look for trending opportunities.

Nakamoto Garlic:I recommend three wealth passwords: Solana, RNDR, and Mobile.

Solana: I vaguely saw the elegance of Ethereum back then.

RNDR: Spanning multiple tracks such as AI and Solana ecology, it is also a VR partner of Apple. Pay attention to the dynamics of Apple's subsequent VR devices, and the market will react with momentum. .

Mobile: A bit high-risk, potentially high-yield. It tells the story of America Mobile.

Chen Jian:You must set a goal first. Find targets based on expectations.

If you want to grow three to five times, look for a long-term, deterministic track. Games, AI, etc. For higher multiples, look for coins with low market capitalization that are not even listed on exchanges, or are listed on small exchanges.

BTCdayu: If there are only 100,000 U. (i) Go see a variety of things every day and take in as much as possible. (ii) Brushing hair. (iii) Look for opportunities in areas that you are familiar with.

I think of Angle as a 24-year-old opportunity. (i) Meme Coin. Be sure to hit it accurately. (ii) NFT. NFT is very cold now and has poor liquidity. At this time, I discovered that good targets can make a lot of money. Some game NFTs can not only increase in value, but can also airdrop tokens and airdrop props, which is very cool. (iii) Buy popular narrative coins. If the amount of funds is larger, I will look at TIA, for example. Although the price is very high, I will see its upper limit in the bull market. (iv) Buy popular links. For example, SOL, I think it may become a chain that rivals Ethereum.

Disclaimer: The market is risky, so investment needs to be cautious. This article only represents the views of the interviewees and does not constitute investment advice. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.