Lieutenant Dan said there’s two rules to tradin’ crypto: never lose your private keys, and always have a backup plan.
Now, I may not be a smart man, but I’ve learned that there’s this basic equation to figure out the price of one of them digital coins, kinda like how Bubba knew all about shrimp. It goes like this: price = market cap / circulating supply. You got to know that circulating supply is the number of coins out there right now, while max supply is how many coins there’ll be when the whole thing is done and over with, like when Lieutenant Dan got his new legs.
Let’s say you got a coin with a supply of a million, but in five years, that supply’s gonna be 5 million. That means the market cap has to go up by 4 million more to keep the same price it had when the supply was just a million, just like how I ran and ran until I was running like the wind.
To make a good guess about the circulating supply of a project, you gotta understand its tokenomics, like how mama always said, “Life is like a box of chocolates. You never know what you’re gonna get.” To predict the price, you gotta think about how many coins will be out there when the next all-time high comes, which some folks think will be between September and November 2025, ’cause of the way Bitcoin works, just like how I played table tennis back and forth.
But, like mama always said, “You can’t always get what you want.” Predictin’ the price is one thing, but making it happen is a whole ‘nother story, like when I was in Greenbow, Alabama, just tryin’ to live my life. You gotta be ready to change your plans if the market starts acting all funny, just like when I decided to stop running and go home to see my Jenny.
When you’re tradin’, you should have your short-term trades and your long-term trades separate, like how Bubba and me had different dreams. For the short ones, you need a clear plan to get out, like making a 5% gain. For the long ones, you gotta think about how much you want the price to go up before you take your profits, like when I invested in that fruit company and didn’t have to worry about money no more.
Now, when you’re looking at a digital coin, don’t just stare at one chart. You gotta look at other things too, like how mama said, “You’ve got to put the past behind you before you can move on.” Look at the total chart, which shows the market cap of all them cryptocurrencies together, the Total2 chart that leaves out Bitcoin, and the Total3 chart that leaves out Bitcoin and Ethereum. These charts tell you how much money is in crypto and how much could be invested in one project, just like when I had all those ping pong balls to practice with.
Also, there’s this thing called the Bitcoin dominance chart, like the time I met the President and he asked me if I was the one who started the whole running craze. It shows how much Bitcoin makes up the whole market cap of crypto. If Bitcoin’s got a high dominance, it’s running the show. If it’s low, then the other coins are getting stronger, like when I helped Lieutenant Dan find his peace.
And then there’s the DXY chart, which tells you how strong the dollar is, kinda like how strong my mama was. If it goes up, crypto usually goes down, and if it goes down, crypto usually goes up. The ES1 chart is another one to watch, like when I watched Jenny sing on stage. It shows the E-mini futures stock market, and crypto likes to follow the stock market sometimes, just like how I followed Lieutenant Dan to New York City.
To make a good guess about the price, you gotta think about supply, market cap, how useful the coin is, how many folks are interested, any partnerships, and how people feel about it. Look at lots of charts and factors to get the whole picture, just like how mama always told me, “There’s an awful lot you can tell about a person by their shoes.”
Lastly, think about how useful the coin is and how much people care, like how Bubba cared about shrimp and I cared about Jenny. Are folks talkin’ about it on social media? Are there any important partnerships out there in the real world? These things can make a difference in the price, like when I was on that talk show and the people just couldn’t believe I’d run all that way.
So, to sum it all up, predictin’ the price of a cryptocurrency ain’t easy, like when I tried to teach Elvis how to dance. You gotta know a lot about how it works and what makes it go up and down, like how I knew runnin’ was just a part of who I was. Look at lots of different charts and stay informed about what’s goin’ on, like how mama read me Curious George books to help me learn.
But always remember, investin’ in cryptocurrencies is risky, and no prediction is foolproof, like how mama said, “Stupid is as stupid does.” It’s important to do your own research, have a clear investment strategy, and never invest more than you can afford to lose, just like how I only spent what I needed and gave the rest away to help people.