Here are 17 truths about Crypto🧵
1. The Market doesn’t repeat itself, but it often rhymes Old narratives die, new ones come up. Stop chasing the old ones & start looking for the new ones.
2. Retail Investors are at the bottom of the food chain • Builders • VCs • Influencers • You It’s the wild west & people are looking to slaughter you. Learn to play with this information asymmetry
3. No one knows what’s to come There’s no point in relying on people to buy & sell rn. Develop your own views & play accordingly If not, you won’t survive.
4. There’s no playbook for crypto. We’ve a tendency to deeply trust indicators & valuation models. They can help if used correctly, but crypto is its own world.
5. Memes are everything. Community bands together behind memes. We’ve seen it many times before • Doge • @goblintownwtf BTC was considered a meme by normies Don't fade the memes.
6. Regulation is inevitable Regulation is def coming & it can be good. We need to make sure it’s good.
7. The illusion of alpha. People spend a lot of time searching for alpha. And often, in the wrong places. Don’t overcomplicate it. https://twitter.com/AltcoinPsycho/status/1508549216410681344
8. Crypto is too big for one person. There’s a lot going on. Trying to be everywhere is impossible Form groups with others. Specialize.
9. Nothing is risk free. There’s always a risk. In crypto, it’s quite big. Most projects aren’t gonna make it. Understand where the value comes from. Is it sustainable? Set up an evaluation process.
10. Crypto moves together. Alts move with BTC & ETH. Overdiversifying isn’t a good idea. There are only going to be a couple of winners in each space.
11. There are a lot of tools to help you Tools like Nansen, Dune, Tokensniffer, Debank & Etherscan provide immense value if you know how to use them. Learn to use them.
12. It’s also about how others react to the market. People spend a lot of time trying to figure out what the market is saying. But not enough time is spent figuring out how other investors will react to the market.
13. Investors are neither good nor bad. Investors dump on people. But they also fuel growth. There’s no point in blaming them for everything. Instead, pay attention to unlocks & learn to react to what they’re doing.
14. Halo effect is real Investors, influencers & OGs can be wrong too. Don’t blindly trust them. A lot of them are just regular people, you can get there too.
15. We’re early. Crypto is still tiny. Most people still think we’re playing with imaginary money The bear market cleared out half the noise. But you’re still here, you’ll have tons of opportunities.
16. The tech works The bear market showed us that most of the underlying tech works just fine. Improvements & optimizations will come. Crypto works.
17. There’s more to crypto than CT It’s easy to think that crypto is purely on crypto twitter. But communities exist on youtube, reddit, etc. They’re not always good or smart (neither are we tbf) But it’s a good idea to key an eye on what others are thinking.
And that's it. I hope you found this useful • Give this a retweet! • Follow me @Cov_duk for daily crypto actionables & insights • Follow my substack for detailed thoughts https://covduk.substack.com/