The J-Curve Law of Crypto Investing: Maximizing Gains When Enthusiasm Fades

Original title: "The Crypto J-Curve"

The Cryptocurrency J-Curve, perhaps this is the most important method that we market traders need to learn one.

If you are not an experienced sniper, like to buy cryptocurrencies only when it is safe to do so, or are just an emotional trader trying to clear your head, then this short article is for you of.

First Phase

The main players are snipers with technical advantages, insiders/presellers with unfair advantages, and quantity-heavy Fundamental-light speculators.

In most cases, the average trader fails here, and when speculators move on to the new shiny thing, it goes down just as fast as it goes up.

Second Phase

Enthusiasm fades, speculators are out, trading volume shrinks, average uPNL for holders is below profit, Indians pass marketing advice Raid TG, Kols cheater slowly fades out of TL.

This is the most important stage because it brings the greatest opportunities.

The second phase is the “cat turns into tiger” phase, and to achieve this, it is necessary to evaluate whether the project is dead, or whether the sacred J-curve is loading.

Important Metrics to Watch

Team Wallet:

• Bundling?
• Are top wallets on sale?
• Are taxes (if any) transferred to Cex or retained/used on-chain?

Social Image:

• Is Weibo/Tg handled with care and consistency?
• Are social indicators increasing or decreasing?

Roadmap Execution:

• Have the commitments mentioned by the team in the first phase been implemented?

New buyers:

• Do you want to buy from a well-known wallet?
• Do you want to buy a new wallet?
• Do you want to buy a dormant wallet?

There are many more indicators, but I think these are the most important ones when looking at the risk/reward of a potential second-stage purchase.

In the past few months, there have been countless examples of J-curves. Here are some examples I have collected lazily;

The third phase

The product has achieved initial results. In terms of practicality-the actual use of the technology has generated real income, and in terms of memes-the admirers are huge and KOLs are promoting it. wait.

This is where you sell because the risk is high, profits should be secured, and the focus should be on the second stage of the J-curve.

In summary, studying the J-curve will bring opportunities to those who don’t have any advantages (most of my buys in phase 2 were done through Uniswap with lower gas).

Phase 2 hunting can help us combat fomo and prevent us from becoming snipers and takers when big players sell off.

Hope you learned something new, bye.

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