Participation in Bull Markets

Forward the Original Title ‘牛市期间可以做什么？普通人参与一级市场的主要方式有哪些？’

TL;DR

The previous article on the topic of “what should I buy” attracted quite a few readers, indicating that most people still prefer such direct topics. I also received some messages, with some suggesting if I could be even more direct, like directly recommending specific coins to buy.

Those who ask such questions are generally new followers of the channel, as they may not yet be familiar with the content style. Let me put it this way, besides Bitcoin and Ethereum, I did previously recommend regular investment in other coins, but I almost never make any direct recommendations based on trading perspectives (buying and selling). As I’ve said before, I can only provide you with “fishing methods,” but I won’t directly feed you the “fish” because there are considerable risks involved.

If I were to force-feed you some pieces of fish meat into your mouth, leaving aside whether you could digest it yourself, even if you got a fish bone stuck in your throat, what benefit would that be for me? Although many people say, “It’s okay, feed me, it’s my responsibility if I get sick,” those signal providers may not care about your life or death as long as you pay them; they will feed you whatever you want to eat. But personally, I won’t do that.

As for why I persistently refrain from doing certain things or earning money that seems easy for me, I can’t really explain it myself. I just feel like there’s a voice constantly reminding me which things to do and which things not to do (things I can do but shouldn’t). Additionally, it may also be related to my previous work experience. As a former employee of an education institution in China (though I don’t know the famous Li teacher who claims to have 100,000 bitcoins, and he came before me), I may have been influenced by the behaviors of certain bigwigs in the company at that time, so I tend to view things in a more “positive” way sometimes. This also makes me have a basic sense of discretion before making any decisions or actions publicly.

Coincidentally, yesterday when the group members were exchanging information, I saw a few messages, and it seems that some members were curious about what I used to do before. I didn’t reply at the time because, for me, I prefer everyone to focus on the content of the channel rather than on me personally. Moreover, I really don’t like being in the spotlight now, as I mentioned in the preface of the e-book “Advanced Thinking in Blockchain”: Since deciding to leave the workplace in 2019, I gradually gave up almost all external social activities.

And, over the past period, perhaps as the audience of Hualihualwai has become broader, many people have started inviting me to participate in offline events or dinners, all of which I have personally declined. Of course, it’s not because I’m standoffish or have social anxiety, but simply because I’ve grown accustomed to my current simple lifestyle.

Let’s get back to the point. Some say that the bear market is the best time for learning and accumulating, while in the bull market, some previously meaningful activities may no longer seem as significant. The mindset during a bear market is to open up one’s mind and focus on enhancing knowledge and cognition as much as possible. During a bull market, one just needs to remain calm and patient, avoiding unnecessary actions. There are many temptations and traps during a bull market, and in a large cycle, grabbing just 1-2 opportunities is actually sufficient. Don’t try to seize every opportunity.

If you’re relatively new to this field, or if you’ve been following it for a while but haven’t actually done anything practical, then you need to seriously think about one question: What can I do next?

We’re now in the mid-term of the bull market, so if you still can’t figure out this question, then this bull market may not be for you. In fact, there’s a vast amount of information in this field, and there are also many things you can do. For example, I’ve been consistently organizing and sharing some content in this field, but even after such a long time and with an accumulated output of nearly 2 million words, it still feels like just scratching the surface. There’s still an endless stream of new information every day and things that can be done but lack the time and energy to do them. So, if you feel like you don’t have anything to do or don’t know what you can do, it’s mainly because you haven’t “started doing” yet.

Next, we’ll continue to organize a few things for you to consider doing or think about at this stage:

1. Create a watchlist

Use platforms like CoinMarketCap to filter out projects that have performed well in the past period (e.g., the last 30 days), and then create your own watchlist. As the bull market progresses, these projects are likely to continue rising in value. Depending on your time, energy, and patience, you can select several projects you believe in and buy them when the price dips. In other words, don’t just observe without taking action; you need to get involved because only by investing money will you truly appreciate the importance. Otherwise, it’s hard to stay committed to what might seem like a tedious task.

1. Avoid excessive greed

When trading low-cap altcoins, my advice is to plan your goals carefully and avoid excessive greed. If a newly purchased altcoin has already doubled in profit, I suggest selling off 50% to recoup your initial investment. You can then treat the remaining 50% as a “dream” and hold onto it with a relaxed mindset. Whether it multiplies several times, tens of times, or returns to zero afterward depends on your personal risk tolerance.

1. Focus on narrative exploration

We’ve mentioned this in previous articles several times. In essence, you need to pay attention to alpha information or opportunities and effectively cross-reference this information with your watchlist to discover potential catalysts for future growth.

In addition to using tools like coinmarketcal to keep track of the latest crypto market calendars, here’s a simple strategy: you can search for projects with the highest percentage gains in the last 30 days, such as $SOL (note the tags), and then follow crypto accounts with a few thousand followers. Check their posts daily to see what they’re discussing. Compared to KOLs with tens of thousands or hundreds of thousands of followers, these crypto accounts often help you discover very new alpha opportunities. Plus, it’s better than constantly reading sponsored articles (articles paid for by projects) on media platforms.

1. Track fund flows

Many people focus on specific projects but overlook the most fundamental aspect: the flow of funds. Monitoring this aspect of data can greatly help you grasp the overall market trend or discover narratives.

For example, pay attention to chains that continuously receive inflows of funds, or protocols with rapidly growing Total Value Locked (TVL). Alternatively, monitor the inflow and outflow of funds in spot Bitcoin ETFs or the balance of Bitcoin wallets on exchanges. There are currently many monitoring tools available for such data, making it easy for you to obtain the relevant information you need.

1. Portfolio Diversification

If it is during a bear market, it is not recommended to buy too many combinations of currencies except for fixed investment in pie or ether. But the bull market is different. If you enter the market late, you can actually try to improve the diversity of your investment portfolio.

Because during the bull market, different sectors and narratives will rotate. The diversity of the investment portfolio can improve your chances to a certain extent, but this does not mean that you can buy dozens of currencies at once. Investment ≠ gambling ≠ drawing lots. , you should plan reasonably according to your own position situation, and only buy those tracks that you are most optimistic about. My personal advice is to try not to exceed 10 bids.

At the same time, we should remind you that the diversity mentioned here mainly refers to the diversity of narratives. For example, you can buy projects under narratives such as AI, RWA, and GameFi respectively, instead of buying multiple projects under one narrative, RWA.

In addition, when selecting a specific project, in addition to its ability to conform to popular narratives, you should also pay more attention to the possibility of the project itself, such as whether the project can generate actual income and whether these incomes can in turn be rewarded to token holders. This forms a relatively good catalyst, etc. In short, it is necessary to thoroughly investigate the underlying logic of this project, rather than just looking at the market value or price and deciding to buy it.

This needs to be combined with the attention list we mentioned in item 1 above. That list is not just a list of items. You need to keep updating and iterating, adding necessary data items or description items to it, and Focus on the new projects in the table that have not experienced the bull market. Therefore, it is also recommended that you use tools such as Excel or Notion to make your watch list. Don’t find it troublesome. Lazy people basically cannot make much money.

1. Focus on first-level opportunities

If it’s during a bear market, besides dollar-cost averaging into Bitcoin or Ethereum, it’s generally not advisable to buy too many diverse coins. However, the situation is different during a bull market. If you enter the market relatively late, it’s actually a good idea to diversify your investment portfolio.

During a bull market, different sectors and narratives undergo rotation, and diversifying your investment portfolio can increase your opportunities to a certain extent. However, this doesn’t mean you should buy dozens of coins all at once. Investing is not gambling or a lottery. You should plan reasonably based on your position size and only invest in the sectors you are most bullish on. My personal recommendation is to try not to exceed 10 assets.

Furthermore, when selecting specific projects, besides aligning with popular narratives, you should also focus on the potential of the projects themselves. For example, consider whether a project can generate actual revenue and whether this revenue can be rewarded to token holders, thereby forming a positive catalyst, among other factors. In essence, you need to thoroughly investigate the underlying logic of the project, rather than just relying on market capitalization or price to make decisions.

This requires combining the watchlist mentioned in the previous point. The watchlist isn’t just a simple list of projects; you need to keep updating and iterating it, adding necessary data or descriptions, and focus on those projects in the list that have not yet experienced a bull market. Therefore, I also recommend using tools like Excel or Notion to create your watchlist. Don’t be lazy, as lazy people rarely make big money.

1. Focus on primary opportunities

Currently, there are mainly two ways for ordinary people to participate in the primary market: airdrops (zero-click airdrops, staking airdrops, etc.) and IDOs (including ICOs, IEOs, etc.).

We’ve already discussed airdrops in some detail in previous articles, so I won’t go into detail today. Instead, let’s focus on IDOs.

IDO (Initial Digital Assets Offering) is similar to the concept of IPO in traditional stock markets. It’s also one of the main ways for ordinary users to participate in the primary market. Mentioning the primary market may lead to another question, which is the secondary market. In simple terms, for a specific project, if its tokens are publicly listed on exchanges (CEX, DEX), we can consider it a secondary market project. The main feature of the secondary market is that anyone can freely trade (buy/sell).

With the development of this field, various play styles have emerged in the primary market, such as STO (Security Token Offering), IICO (Interactive Initial Coin Offering), DAICO (DAO + ICO), ITO (Initial Twitter Offering), IGO (Initial Game Offering), INO (Initial NFT Offering), etc.

Here, we’ll only list a few play styles that may be relatively easy for everyone to understand, such as:

• Seed Round, Angel Round, and other funding rounds for institutions (VC).

• LBP (Liquidity Bootstrapping Pool) activities based on some DEX platforms. LBP is similar to a Dutch auction, with the price gradually decreasing from a high starting point.

• Launchpad activities based on some DEX or CEX platforms. This is probably the most familiar to everyone, such as Binance Launchpad or OKX Jumpstart, which many people are currently participating in.

Currently, there are at least 100 platforms related to IDOs, such as Fjord Foundry, Bounce, DAO Maker, APETerminal, etc.

CEX platforms that offer Launchpad activities currently number in the dozens (these can also be referred to as IEOs, or Initial Exchange Offerings), as shown in the image below.

We won’t discuss CEX Launchpad today. Instead, we’ll focus on introducing several IDO platforms through the perspective of some of the latest IDO projects.

The 1st project is eesee (ESE)

Eesee is a gamified NFTFi and SocialFi platform deployed on the Blast network, offering sellers an all-in-one NFT liquidity solution. Through this platform, sellers can maximize their income and accelerate sales, while buyers can purchase entire digital assets with a fraction of their value.

The project raised $2.85 million in funding in January of this year and its mainnet went live on April 1st. It is currently undergoing an IDO on the APETerminal platform at a price of $0.018 per token, with 39,148 participants involved. See the figure below.

The second project is Sharpe AI (SAI)

Sharpe AI is a Web3 DePIN storage solution primarily supported by W3S technology for Web3 DePIN storage solutions. The W3S technology efficiently stores and manages large datasets, including structured and unstructured Web3 data, providing convenience and efficiency for data storage and management.

The project is currently undergoing an IDO on the APETerminal platform at a price of $0.02 per token, with 112,056 participants involved. See the figure below.

The APETerminal platform has successfully launched 18 projects through IDO, with an average return rate of 17.88x and an all-time high (ATH) average return rate of 35.96x. See the figure below.

The third project is Private AI (PGPT)

PrivateAI is a peer-to-peer Data-as-a-Service (P2P DaaS) network that enables data owners and producers, such as AI engineers, data analysts, and research institutions, to securely upload, showcase, and monetize their datasets for profit.

The project is currently undergoing an Initial DEX Offering (IDO) on the DAO Maker platform, with an issuance price of $0.333. See the figure below.

The DAO Maker platform has successfully conducted IDOs for 150 projects, with an average current return rate of 2.51x and an all-time high (ATH) average return rate of 30.27x. See the figure below.

The 4th item is trex20 (TX20)

TreX20 is a GameFi project built on Bitcoin, featuring various games, NFTFi markets, and lottery games.

The project is currently undergoing an IDO on the Finceptor platform, with an issuance price of $0.042. See the figure below.

The Finceptor platform has successfully conducted IDOs for 11 projects, with the current average return rate at 3.37x and the ATH average return rate at 9.47x. See the figure below.

The 5th project is Arcade (ARC)

The Arcade platform is a GameFi platform that offers the community opportunities to earn meaningful rewards from various Play-and-Earn metaverse games without the need to play the games directly or own in-game NFTs. Anyone approved by Arcade can become a task pool operator, including gaming guilds.

The project is currently undergoing an IDO on the Seedify platform, with an issuance price of $0.12. See the figure below.

The Seedify platform has successfully launched 84 IDO projects, with an average current return rate of 2.3 times and an average all-time high return rate of 26.2 times. See the figure below.

The 6th project is Ordify (ORFY)

Ordify is a multi-chain DeFi protocol that serves BRC20, STACKS, RSK, all EVM chains, and Solana, offering services such as cross-chain bridges and non-custodial wallets.

The project is currently undergoing an Initial DEX Offering (IDO) on the Decubate platform at $0.11 per token. See the figure below.

The Decubate platform has successfully completed IDOs for 11 projects, with the current average return rate standing at 10.1 times, and the all-time high (ATH) average return rate at 21.21 times. See the figure below.

The IDO projects and platforms mentioned above are just examples. Different IDO platforms may have different rules and mechanisms. If you’re interested, you can explore and learn more about them on the respective IDO platforms. Who knows, you might discover a new avenue for earning income!

Additionally, below is the TokenHunter-produced IDO calendar for this month (April), featuring some projects not mentioned above. Feel free to explore further as needed. See the image below.

Alright, that wraps up the content for this edition. This is the 438th article updated on Huoli Huawai. We’ll continue to bring you more related insights in the future. Interested readers can explore and learn more through Huoli Huawai.

Disclaimer：

1. This article is reprinted from [ 话李话外]. Forward the Original Title‘牛市期间可以做什么？普通人参与一级市场的主要方式有哪些？’. All copyrights belong to the original author [话李话外]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
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