If we see a possible crash/strong correction, what should we buy? What should we focus on?
The buying opportunity is the same as the discussion I mentioned in the article I wrote before: price or perception. Something approved by data and perception is a buying opportunity, friends.
In a possible confirmed buying opportunity (whether you call it a crash or a dip makes no difference), the first thing we will do is manage our cash on the side well.
Yesterday I talked about my own management, I keep at least 40% cash no matter what.
Then we look at the projects' technical trends before the decline (were they stronger compared to others)
Project's code architecture and foundation, github developer activities
Tokenomics, Mcap/FDV ratio
These are the things to look at at the first stage. The reason is: if there is a vulnerability, you will have problems being hacked in its architecture. So focusing on those that have not experienced a serious hack so far is a bit more logical.
The Mcap/FDV ratio is also a point you should look at to protect yourself from inflation. For example, despite TIA dropping 90% from its peak, seed investors still have a profit of more than 15x. Even if a crash comes, those people sell the assets at profit without hesitation. Therefore, you need to ensure the Mcap/FDV ratio is as closed as possible.
After meeting these, you need to do sector analysis.
RWA
DeFi (Stablecoin yield, borrowing-lending)
Perp DEX/Spot DEX
AI and AI agent
GPU, DePin
These are the main sectors we all know. By filtering projects that meet the initial criteria among these sectors, you will already obtain a list of projects that can be considered solid.
In those projects, the first point to pay attention to is that supply control should be as evenly distributed as possible, or the team should be holding tokens for a purpose.
Second, does the project make money? If it does, what does it earn from? Does it distribute its earnings?
If it does all these, congratulations, you have found the most solid project you can find.
Now, is there a guarantee that the most solid project will rise? No, that's where crypto gets challenging. Even giants like LINK can stay flat while a project like BANANAS31 can rise.
A solid project = not guaranteed profit or rise.
Therefore, when allocating your portfolio, my advice is to keep some cash at a certain level and split the altcoin balances you allocate into Solid projects and Risky, shit, meme projects.
A part of the amount you invest should be in solid projects, the other part you should chase high risk so you don't miss out on asymmetric returns.
My personal view is that in the future projects working on RWA and DeFi (especially lending, collateralization, borrowing) will be in the "solid" category. I have given examples in my previous articles.
These are my own ideas, friends, not any investment advice etc.