The world is bustling, all for profit; the world is bustling, all for profit to go! Hello everyone, I am your friend Lao Cui talking about coins, focusing on digital currency market analysis, striving to convey the most valuable market information to the vast number of coin friends. Welcome everyone's attention and likes, and refuse any market smoke bombs.

After discussing Bitcoin and Ethereum with everyone, many friends are also paying attention to some smaller coins. Personally, Lao Cui is quite resistant to this type of coin, but unexpectedly, most people mainly speculate on small coins. Today, I will take some time to talk about it. The overall trend is basically in line with Bitcoin; however, the decline of small coins is more significant, which is also due to the smaller market size. Especially in the crypto space, the focus is more on the fluctuations of capital levels combined with the influence of public opinion. My view on small coins is to approach them purely with a speculative mindset. The difference between investment and speculation lies in the time difference. Most coins will choose to benchmark against the overall market, rising and falling in tandem with Bitcoin, with only the amplitude differing. Therefore, the trend of small coins often lags behind BTC. For example, the trend of BTC and ETH is very similar; you can observe that the current trend of BTC is almost identical in amplitude to ETH. However, the rate of decline is different; the fluctuations are primarily initiated by BTC, with ETH experiencing a certain time delay. If you have patience, you can observe this carefully. Therefore, recently, my focus has mainly been on short positions in ETH. As long as Bitcoin declines by 1000 points, ETH will inevitably also decline.

Basically, the trend of every small coin is observed against Bitcoin, so you can ponder this time difference yourself. Earlier, I mentioned that as long as Bitcoin remains stable, it will start to pull small coins. However, so far, almost all small coins are primarily in decline, with the culprit being BTC, which has no concept of stabilizing at all, relying entirely on the overall volatility. Behind Bitcoin's rapid fluctuations, there is certainly a large amount of capital driving it. Therefore, for small coins to have significant growth, they must rely on Bitcoin's stability, and after stabilizing, they must also look to ETH for direction. While the growth may be considerable, I must remind everyone that investing in small coins should not be done with high positions, especially for those trading small coin contracts; this approach is very risky. If you lack capital, focus on ETH; small coin contracts will ultimately only lead to losses, so avoid them. The fluctuations of small coins are not something we can control. A smaller market can be said to mean a higher ceiling, but it also means a larger space for capital operations. This market is essentially a capital arena, and it will be much more difficult to win compared to the markets of Bitcoin and ETH. At least ten times more difficult. For spot trading, you can try to measure with a perspective of value and development, but for contract trading, especially with small coins, it is indeed stimulating, but you must have the ability to protect your principal.

The logic of my article yesterday was primarily based on speculating the future trend of Bitcoin, without the involvement of other coins. So everyone needs to understand that the future that Bitcoin may have is not something all coins will achieve. At least currently in the crypto space, at least sixty percent of the coins will likely die, and only the remaining coins will have a fate similar to Bitcoin. Undoubtedly, aside from Bitcoin, the current value representation is primarily based on ETH. The fate of ETH was essentially bound to the crypto space from the moment it was listed, and the reason for the slow growth can all be attributed to the operations of Vitalik Buterin. Without improving the Ethereum ecosystem and giving opportunities to other coins, the emergence of Ethereum was primarily based on high cost-effectiveness, but currently, Ethereum has almost lost this advantage. The aspect of smart contracts can establish its future foundation, so for ordinary users, the first choice must be Bitcoin and Ethereum. Secondly, regarding the recent contract situation, I have not explained much, largely because since December, the market fluctuations have become more frequent. For contracts, the entire month of December may require long-term planning for entry. For example, regarding the depth of this round of correction, I will enter according to the predetermined plan, basically starting from around 97 and continuing until the lowest point.

Currently, those looking to bottom fish must manage their positions well, entering Bitcoin with two percent or even one percent. The entry should definitely be with a medium to long-term perspective, aiming for a strategy based on high positions, targeting trends of 100,000 or even above. December is destined to be extraordinary; I mentioned this back in November. Once the market officially breaks through 100,000, it has already moved beyond my expected range. I did not expect Powell to pay such close attention to the trends in the crypto space. When Powell officially stated that Bitcoin's competitor is gold, I gradually realized that the layout of the Americans is far more complex than we imagined. Today's Microsoft meeting is likely to pass; the backers of Microsoft have long been involved in the cryptocurrency market. My bullish theme today is still based on Microsoft, which is very important. Although I mentioned the Microsoft meeting earlier, I did not predict the outcome. Now I will add that the bottom fishing work must be done decisively. Currently, we are competing with the market makers for sentiment. Although the shorts came swiftly this morning, Bitcoin also instantly lost 0.05 trillion, the overall assets have not flowed out of the market and are still waiting for signals. The sideways and downward phase is filtering for profitable long positions, and this kind of profit is hard to grasp, so everyone should keep a calm mindset.

Since we mentioned position management, I need to remind everyone that if you choose to enter at a high position, from my perspective, anything below 100,000 is considered a low position. A simple example: if you enter with a two percent or one percent position at 99,000, every time it drops by 1,000 points, you add one percent. Even if it drops to the 90,000 mark, you would only lose about thirty percent of your capital, while the average price would be pulled down to around 95,000 or even lower. Once the market reverses, the potential profits above are extremely substantial. Without discussing 120,000 or 150,000, reaching around 110,000 based on the current price and trend is relatively easy, especially with Microsoft's entry and the arrival of interest rate cuts, the price will have new breakthroughs. From a capital perspective, the capital occupation in the market is not large; it would take about a trillion to meet this requirement. Compared to small coins, a ten percent fluctuation in Bitcoin could translate to a twenty percent fluctuation in small coins. Therefore, during the downward phase, everyone must have the courage to bottom fish; do not wait for an absolute low point to enter. Often, the positions that everyone thinks are low points will bring a certain degree of surprise. After today's recovery, we will see when Microsoft's funds will be in place. Remember not to panic with long positions, especially for spot users; even small coins can be held. Spot trading should be held for years, and do not worry about the gains and losses of a single battle. I hope everyone can stabilize their mindset! In the next article, I will start with mindset to help everyone completely break free from the anchoring effect!

Original creation by WeChat Official Account: Lao Cui Talks About Coins. For assistance, please contact directly.

Lao Cui's Message: Investing is like playing chess; a master can see five, seven, or even ten steps ahead, while a novice can only see two or three steps. The master considers the overall situation and strategizes for the big picture, not focusing on individual pieces or territories, but aiming to win the game. The novice, on the other hand, fights for every inch, frequently switching between long and short positions, only competing for short-term gains, and often finds themselves trapped.

This material is for learning reference only and does not constitute trading advice. Trading based on this is at your own risk!

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