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Essential knowledge and tools for on-chain Dogecoin mining.

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Chongtugou is essentially a game of probability.

Original Title: "Foresight Ventures: How to Take on the Big Players and Win in the Chinese Blockchain Industry?"

Original Author: Jonas, Foresight Ventures

One, what is a local dog?

On-chain "tu gou" typically refers to early projects with no project whitepaper and extremely shallow token trading depth. The decentralization and low barriers to entry of DeFi have enabled many high-quality grassroots projects to develop rapidly, but also provided a convenient harvesting environment for malicious actors. Most "tu gou" projects are short-lived, with a lifespan of 1-3 days. Only a few "tu gou" projects can achieve hundredfold or thousandfold gains and become "jin gou" by listing on major exchanges. Nevertheless, there are many people who can consistently profit a hundredfold from "tu gou" projects each year, indicating that there is a specialized skill to this profession. "Chong tu gou" is essentially a game of probability.

二、如何操作

translates to

2. How to operate

Here we take the ETH chain as an example, because after long-term observation, although the gas fee of the ETH chain is high, the wealth effect is more obvious. Other heterogeneous chains such as Solana and Avalanche have relatively weaker market sustainability.

2.1 Find Local Dogs:

Firstly, there are constantly updated trading hotlists on market websites such as dexscreener, defined, dextool, ave.ai, etc. Projects with high trading volume and price increases are ranked higher, as having trading volume is crucial for future success.

Secondly, use robots to monitor on-chain behavior. Common bots include pepeboost, alpha radar bot, nerdbot, etc., which can push real-time transaction data trends. These bot interfaces are simple and will analyze and score based on contract security, liquidity pool, smart money address count, etc. In these high-scoring projects pushed by these bots, selecting again will achieve twice the result with half the effort.

Finally, follow the smart money address. The more reliable the Shiba Inu bought by the smart money address, the higher the reliability. There are many professional smart money addresses that invest in Shiba Inu, and they can make a stable profit of 100,000 to 300,000 US dollars per month, with an average profit ratio of 30-50%. Be sure to exclude the project team's own insider trading addresses and occasional big prize-winning addresses, and focus on addresses that can buy gold Shiba Inu in the long term.

2.2 Buy Local Dogs:

First of all, controlling position is the most important. On average, out of 1000 Chinese stocks per day, only 10 are worth short-term speculation. You should treat it like a casino and place the same amount of bets multiple times during the game. For example, buy 3-5 stocks at a fixed amount every day, and each time should not exceed 5% of the total amount. For Chinese stocks with a large liquidity pool, you can adjust your position accordingly.

Secondly, improve the win rate and risk-reward ratio of trades by utilizing market laws. Chongtugou is actually a game where most of the time you lose money, similar to venture capital. For example, out of 10 Chongtugou projects, 8 of them are losing money, and the remaining 2 projects need to recover the costs of all 10 projects and make a profit. Cut losses and let profits run. Some useful rules include:

Imitation trading pattern: A successful project will attract a large number of imitations. Dragon 2 and Dragon 3 are probably profitable, and then the imitations behind them will start to run away. For example, after PEPE became popular, PEPE 2.0 also rose by a hundred times. After Harry Potter Bitcoin became popular, Harry Potter XRP also rose by a hundred times.

Time Rule: In the long term, when the market is good, on average, one hundredfold golden dog appears every week; when the market is not good, on average, one hundredfold golden dog appears every half month, and it is particularly easy to appear at the beginning and middle of the month. In the short term, most golden dogs appear between 1-3 am and 5-8 pm every day, and a few appear between 9-10 pm.

Only one or two "golden dogs" often contribute 90% of the combined profits. A good "golden dog" is often a popular event or repeatedly mentioned by big shots. For example, GROK, as Tesla's artificial intelligence product, was repeatedly mentioned by the world's richest man, Musk, on Twitter, and gained a lot of traffic. There are also good "golden dogs" that fit the culture and provide emotional value, such as BONK, which originated from a satire of SBF and united the Solana community during a low period. Golden dogs that meet the above standards can be held for a long time. Common standards include: the number of on-chain holding addresses exceeds 8,000, the daily dex trading volume exceeds 8 million US dollars, the Twitter browsing volume exceeds 8,000, and the Telegram group has more than 10,000 members.

2.3 Sell Local Dogs:

80% of the local dogs go to zero on the same day, and 99% go to zero in the long run. The reason why smart money addresses have a high success rate is not because they only buy local dogs that make money, but because they run fast. The local dog market operates at 10 times the speed, and doubling or going to zero often happens within a few minutes. Some common selling criteria include: the K-line trend is obviously bad, the 24-hour turnover rate decreases, and the number of holding addresses slows down or even decreases. Local dogs without actual projects are not recommended to be held overnight unless the market is hot.

Three, Risk Warning

3.1 Gas Fees:

The "Chongtugou" strategy is suitable for oscillating markets, but not for bull or bear markets. It is difficult to avoid gas fees with "Chongtugou". Taking the ETH chain as an example, the cost of buying and selling once is currently tens of dollars, which may significantly reduce the profit and loss ratio of the actual "Chongtugou" amount of only 100-200 US dollars. If it is a bull market, the cost of one ETH chain transaction can be hundreds of dollars, making "Chongtugou" unfeasible.

3.2 Wallet Security:

On-chain hackers are rampant. It is recommended to isolate funds from domestic dog funds and main funds, and regularly change wallet addresses.

3.3 Profit Withdrawal:

Make profits by the end, and keep it safe with your own resources. Money earned quickly from speculative investments can be lost just as quickly. It is recommended to regularly withdraw a portion of profits and keep it as capital for future opportunities.

Bruce Lee once said, "I'm not afraid of the person who has practiced 10,000 kicks once, but I'm afraid of the person who has practiced one kick 10,000 times." Finally, I wish all of you great success in the cryptocurrency industry!

【Disclaimer】The market carries risks and investments should be made with caution. This article does not constitute investment advice and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this article is at your own risk.