Our Experience Trading SOL
This comprehensive guide delves into our crypto trading journey at SystemEscape.co, providing insights and strategies to help you navigate the complex world of trading on Solana. Remember, we are not financial advisors, and crypto investments carry inherent risks. Always invest responsibly and never invest more than you can afford to lose.
Our Background and Motivation
From Novice to Seasoned Traders
When we started we were frustrated by the sheer lack of coherent information or guides to follow. We kept seeing DYOR! (do your own research everywhere), valid advice but it’s difficult when it feels like anyone profiting is keeping their cards (or tokens) close to their chests.
There is hardly any reliable information about trading on Solana, with inexperienced traders often sharing uninformed opinions that gain traction due to the hype surrounding cryptocurrencies. We want to fill this gap by offering a guide based on our real-world experiences, aiming to provide valuable insights for newcomers and fellow traders.
Learning from Past Experiences
We’re not newcomers to the crypto space. We’ve participated in two previous crypto cycles, experiencing both the highs of significant returns and the lows of exchange hacks. These setbacks taught us invaluable lessons about risk management and the importance of diversifying investments.
Beyond Crypto
A Diversified Approach
Our investment portfolio extends beyond crypto. We’ve achieved notable success in real estate and the stock market, with over 2,000% returns over the past five years. This diversified approach allows us to capitalize on opportunities across different markets while mitigating risks associated with any single investment.
Embracing Shitcoin Trading on Solana
Navigating the Volatility
Many traders shy away from the volatility of shitcoins, but we’ve embraced it as a part of our strategy. We don’t rely on influencers or paid groups; we conduct our own thorough research to identify potential opportunities.
Dexscreener
Our Starting Point
Our research process begins on Dexscreener, a platform that allows us to scan for newly launched coins. We prioritize volume as a key indicator of potential, using filters to refine our search. Our typical filters include:
- Liquidity LOCKED: Minimum 10,000 SOL
- Market Cap: Between 10,000 and 2,000,000
- 5-minute Buys: Minimum 100
- 5-minute Volume: Minimum 10,000
- 5-minute Price Change: Minimum 10%
These filters help us eliminate obvious scams and rug pulls, focusing our attention on coins with promising potential.
In-Depth Coin Analysis
Beyond the Surface
Once we’ve identified potential coins, we analyse them. We check the price chart, looking for red flags like massive initial pumps followed by dumps, which often indicate bot activity or manipulation. We also examine the top traders, ensuring their profits aren’t suspiciously low, which could be a sign of fake volume generated by bot accounts.
Tools of the Trade
We utilize various tools like Rug Checker to assess the coin’s contract and liquidity. While new coins rarely have renounced ownership or locked liquidity at launch, these are positive signs if they happen quickly. We then explore the project’s website and Telegram channel, gauging the community’s engagement and the team’s responsiveness.
Blockchain Data: The Final Layer
Our analysis extends to the blockchain data, where we examine the owner’s address and transaction history for any signs of potential rug pulls. We look for disproportionately large shares of the token supply or suspicious transfers to multiple wallets, which could raise red flags.
Adapting Our Strategy as We Grew
From Quick Trades to Long-Term Holds
Initially, we focused on quick trades, aiming for 20-30% gains on many small-cap shitcoins. This approach generated consistent profits, but we soon realized that to achieve substantial gains, we needed to shift our focus towards identifying coins with significant growth potential and holding onto them for the long term.
Evaluating Long-Term Prospects
To assess a coin’s long-term prospects, we consider various factors:
- The quality of the meme or narrative surrounding the coin.
- Volume and volume growth trends.
- The level of engagement and enthusiasm within the Telegram community.
- The quality and professionalism of the project’s
- website and marketing materials.
- The experience and reputation of the development team.
- Potential partnerships or endorsements from influential figures in the crypto space.
By evaluating these factors, we can differentiate between coins that are likely to fizzle out or get rugged quickly and those with the potential for explosive growth.
Adapting to Market Dynamics
As the Solana ecosystem became more saturated with bots and rug pulls, we started exploring other chains like Base. This allowed us to discover a less crowded and potentially more profitable trading environment.
Key Lessons Learned from Our Journey
- Do Your Own Research (DYOR): Never blindly follow others’ advice or rely on paid groups. Develop your own research process and trust your judgment.
- Be Aware of Market Manipulation: The crypto market is rife with manipulation. Understand how bots, paid influencers, and insider groups operate, and factor this into your trading decisions.
- Adapt Your Strategy: What works for a small portfolio may not be optimal as you grow. Adjust your risk tolerance, position sizing, and trading frequency as your capital increases.
- Don’t Get Greedy: It’s easy to get caught up in the euphoria of a winning trade and hold on for too long. Take profits along the way and re-evaluate your positions regularly.
- Stay Informed: The crypto market moves fast. Stay up-to-date with the latest news, trends, and technologies to stay ahead of the curve.
- Manage Risk: Crypto is inherently risky. Diversify your portfolio, use stop-loss orders, and never invest more than you can afford to lose.
Our Perspective and Outlook for the Future
The Road Ahead
We believe the crypto market still holds immense potential, but we’re also realistic about the risks involved. While we anticipate further growth in Bitcoin and Solana, we’re not expecting exponential gains like those seen in previous cycles. Instead, we’re focusing on identifying high-quality projects with strong fundamentals and engaged communities, and holding onto them for the long term.
Exploring New Horizons
We’re continually exploring new chains and emerging trends, always seeking the next big opportunity. The crypto landscape is ever-evolving, and we’re committed to staying at the forefront of innovation.
Trading on Solana Disclaimer
This article is not financial advice. Please conduct your own research and invest responsibly. Crypto investments carry inherent risks, and you should never invest more than you can afford to lose. Remember, the crypto market is volatile, and past performance is not indicative of future results.
