Crypto Assets Investment Guide: How to Choose Potential Alts

In the current bull market, choosing the right Crypto Assets for investment has become increasingly important. With a large number of new alts flooding the market, investors need to evaluate and select potential investment targets more cautiously. This article will share some key investment strategies and considerations to help you find the most promising projects among the many options.

1. Pay attention to popular narratives and community activity

Looking back at the best-performing Crypto Assets over the past year, such as HYPE, VIRTUAL, and MeMe, we can find a common point: they all have a highly active social media following and enthusiastic supporter groups. These projects are often closely linked to current market trends:

• VIRTUAL: Rising amid the AI boom
• MeMe: Riding the meme coin boom from the end of 2024 to the beginning of 2025.

Investment advice: Pay close attention to current market hotspots and look for projects that are related and have active communities on social platforms.

2. Focus on Growth Indicators

Although attention in a bull market is often more important than fundamentals, an ideal investment target should have both. Look for projects that are not only widely recognized but also demonstrate product-market fit, especially those with key indicators showing explosive growth.

For example, the stablecoin protocol Ethena has seen a total locked value increase of 50% in the past 30 days, while discussions on social media platforms have been continuously heating up. As a result, its token ENA has risen by 154% in the past month.

Investment advice: Use tools like DeFiLlama to find projects with rapidly growing indicators (such as TVL, revenue, fees) and high social popularity.

3. Evaluate Token Economics

For medium to long-term investments, token economics is crucial. Taking TIA as an example, its price dropped by more than 90% over 17 months due to frequent token unlocks and selling pressure from early investors.

Before investing, you need to pay attention to the following points:

• Token unlocking plan: Use tools like Tokenomist to view the economics of popular tokens and upcoming unlock situations.
• Circulating supply: It should account for at least 30% of the total supply.
• Annual inflation rate: It is recommended to keep it within 20-35%.
• Recent large-scale unlock: If there is about to be an unlock equivalent to more than 20% of the current circulation, it may require careful consideration.

Token utility is also an important factor, and revenue sharing mechanisms or buyback plans are often better utility designs. However, even in the absence of obvious utility, some tokens may still perform excellently.

4. Community-Centric Philosophy

More and more investors tend to support projects that genuinely care about the community. Community-centered project characteristics include:

• Conduct large-scale airdrops
• The team makes a low-profile commitment and exceeds expectations.
• The team is active on social media platforms and frequently interacts with the community.
• Most of the token supply is allocated to the community

5. Pay Attention to Potential Catalysts

Significant catalysts that have not been fully priced by the market may also drive up token prices, such as:

• Protocol Upgrade
• Token Economics Improvement
• New product launch

Summary

While the above factors are all important, keep in mind that even high-quality assets can be a poor investment if the price is not right. Stay patient and wait for the right opportunity, avoiding impulsive decisions driven by FOMO. In the Crypto Assets market, wise investment strategies and proper risk management are always key to success.