Alexander LorenzoCoinPicks, CoinPicks · Founder & Chief Investment Officer CoinPicks Capital 👇🏾This strategy made me 8 million dollars

We Buy Coins Knowing Some Of Them Will Rug Pull Us

30 Sept 2026 · 1 min

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1:13

In this solo monologue, Alexander Lorenzo argues that deliberately experiencing small rug pulls—by allocating tiny amounts like $10—serves as a valuable learning process for navigating low‑liquidity cryptocurrency markets. He emphasizes that the act of connecting a wallet, executing a trade, and witnessing a rug pull teaches more than the monetary loss itself. Lorenzo acknowledges that many of the short‑term swing trades they execute are likely to be rug pulls, and there is no definitive technical strategy for these assets because they lack reliable price data and liquidity. Consequently, he advocates a mindset of non‑greed, acceptance of volatility, and readiness to cut losses quickly, either by taking a loss or exiting on a brief pump. The core message is that doing nothing with a low‑liquidity coin is worse than accepting a loss; proactive, experience‑driven trading builds intuition for future decisions.

Chapters

I think some of you need to go buy a rug pull. Go put $10 into a rug pull and see what happens. And what about the dinners you spent money on that you didn't even care— that you don't even remember right now? Isn't that worse than a rug pull? The learning process of you connecting your wallet, going through the whole process, understanding what a rug pull is, is more valuable than $150 all day. So we buy so many short-term swings that we know that some of them are going to be pure rug pulls. We know before we buy that there's a very high chance that some of them are rug pulls. So to be honest, there's no definitive strategy. If you got rugged, you could wait for a pump and exit, or, um, you could just take the loss. Like, we put like one of the sell calls, we just took the loss and then moved on. So when it comes to low liquidity coins, people ask us all the time, how do I take profit? How do I cut losses? Like, when do I sell? The problem with low liquidity is that there is no way to know. There's no technical analysis you can do. There's no percentages. We don't know. It's impossible because it's so volatile and so small. So volatile and so small. So we actually adopt the mindset of just not being greedy and being okay with cutting losses. So the— what we don't want to do with low liquidity coins is just do nothing.