Understand what the crypto J curve is, and ordinary people can also become crypto investment experts

Followin Original Work

06-18

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@0xIT4I

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The Cryptocurrency J Curve is perhaps one of the most important methods that traders in our market need to learn.

If you are not an experienced price sniper, just like to buy coins when it is safe, or are just an emotional trader who wants to make sense of it all, this is for you:

What is the Crypto J Curve?

The encryption J curve can be divided into three stages:

Phase 1:

Snipers with technical advantages, insiders/pre-sellers with unfair advantages, and speculators playing with volume rather than fundamentals are the main players at this stage.

Most of the time the average person loses money here, and when speculators move on to something new, prices fall just as fast as they rise.

Phase 2:

Enthusiasm faded, speculators exited, trading volume dried up, average uPNL for holders was below profit, Indians were raiding TG with marketing proposals, and kols started to slowly disappear from the twitter lists.

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

Phase 2 is when the cat turns into a tiger, and to achieve this, one must assess whether the project is dead or the sacred J-curve is in the works.

Important indicators to watch:

-Team Wallet:

Are there any bundled sales?

Is the head wallet shipping?

Are taxes (if any) transferred to cex or kept/used on-chain?

- Social profile:

Is twitter/tg being handled carefully and consistently?

Are social metrics increasing or decreasing?

-Roadmap Execution:

Were the commitments the team mentioned in Phase 1 implemented?

-New Buyers:

Are well-known whale wallets buying?

Are new wallets buying in?

Are dormant wallets buying?

There are more to it, but I think these are the most important indicators to examine for risk/reward of potential Phase 2 purchases.

There have been countless examples of J-curves over the past few months, here are some I’ve collected;

Phase 3:

Product realization, for utility - actual revenue generated by actual usage of the technology, for memes - community voice, kols are mass marketers, face tattoos on timelines, etc.

This is when you sell - because the risk is high, profits should be secured and the focus should be on the 2nd stage of the J curve.

In summary, studying the J-curve provides opportunities for everyone who doesn’t have any advantage (most of my Phase 2 purchases were made via low gas Uniswap)

Phase 2 hunting helps us fight fomo and eliminates our chances of becoming a sniper and tax farmer exiting liquidity.

That being said, I hope you learned something new.

For more Alpha information, please follow Fellowin's Gem Calls Telegram group: https://t.me/followingemcalls

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.

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