Market Trends and Investment Strategies

Everything is looking quite positive today, with NEAR up by about 20%. That’s one of my investments, and it’s great to see such a rise after a long time. If the market is indeed rebounding, although I’m not claiming it is, what should you consider buying first? It might not be what you expect. Typically, the order of investment starts with top coins like Bitcoin, followed by Ethereum, large caps like Solana, and then the top 20, 25, or 50 coins. After that, more speculative altcoins with lower market caps come into play, followed by meme coins and micro caps under 100 million. These smaller coins often experience significant pumps because they were hit hardest and lack liquidity. A few big purchases can cause them to bounce back quickly, but they can also crash just as easily.

In late 2023 and early 2024, I noticed that when the market turned positive, tiny micro caps were pumping like crazy before anything else. Gaming coins, in particular, were skyrocketing. For instance, I invested in Space Falcon, which made a significant move despite its initial appearance on the graph. Meme coins like Pepe also took off in early 2024. These are just two examples, but many small gaming coins went wild. It wasn’t the big names like Bitcoin or Ethereum leading the charge; it was the smaller coins. I realized that next time the market turns bullish, I might need to focus on these smaller coins instead of just the big ones. It’s wise to stock up on the big ones during a bear market, but when the market seems to be turning, perhaps it’s time to consider the smaller ones.

Understanding Market Comebacks

There’s an explanation for why this might happen. There are two types of market comebacks: a structural bull market return and a violent relief rally or speculative bounce. In a stable market return, you’ll see the usual order: Bitcoin, Ethereum, Solana, and big altcoins, followed by micro caps and meme coins. However, in a short-term rebound, meme coins and micro caps can jump right up, along with other speculative assets. This pattern was evident not just at the end of 2023 and the beginning of 2024, but also during several green days in recent months. Meme coins would pop up, and I thought I should risk holding a bit of money in these low caps or meme coins because they really bounce when the market turns green.

Additional Resources and Courses

That’s my insight for the day. I hope you have a great evening, enjoy your time with family, and have a wonderful night. I’ll see you tomorrow. Also, I have a couple of free crypto courses for beginners available on my website. These courses explain everything you need to know about how crypto works, using wallets, buying, selling, trading, and investing in small coins. Visit my website for more information. See you tomorrow. Bye.