In the cryptocurrency market, many new investors are often attracted by the myth of "small coins rapidly appreciating in value." However, this strategy is often fraught with risk. An investor who experienced the 2020 Metaverse boom shared his lesson: investing in a small coin with a market capitalization of only 30 million USD, the project suddenly withdrew its funding, resulting in the near-total evaporation of his 80,000 principal.

After 6 years of navigating the cryptocurrency space, this investor has summarized a more robust investment strategy. He has shifted his focus to cryptocurrencies with a market capitalization between 500 million and 2 billion dollars, and pays attention to sector rotation, successfully obtaining considerable returns from projects like SOL and OP.

He emphasized that successful cryptocurrency investment is not about chasing the "10x myth", but about finding projects that are "safe and have growth potential". Why choose the market capitalization range of 500 million to 2 billion USD? Cryptocurrencies below 500 million USD are easy to manipulate, while large coins over 2 billion USD, such as Bitcoin and Ethereum, are difficult to double in the short term.

The investor also mentioned the importance of observing sector correlations. He warned that the isolated rise of a single cryptocurrency is often the result of short-term speculation, while true hotspots can drive synchronized increases across the entire sector. For example, when the Layer2 sector heated up in 2023, projects like OP, ARB, and Base all saw significant increases in trading volume.

In addition, he suggested that when choosing cryptocurrencies, one should also pay attention to the continuous growth of trading volume. An increase in trading volume for three consecutive days is often a positive signal.

For novice investors, he advises against overly pursuing "10x returns". Instead, one should focus on understanding the characteristics of the $500 million to $2 billion market capitalization range and learn to identify the real market hotspots. By doing so, investors are more likely to capture stable doubling opportunities while reducing investment risks.

Overall, this investment strategy emphasizes the importance of elements such as market research, risk management, and patience in cryptocurrency investment. It offers a more pragmatic and sustainable investment approach for novice investors.