17 truths about crypto & DeFi
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/THREAD
1.
If history repeats itself, 95% of the coins that made ATH in 2021-2022 will never hit a new ATH again.
Your job is to find the ones that will.
If history repeats itself, 95% of the coins that made ATH in 2021-2022 will never hit a new ATH again.
Your job is to find the ones that will.
2.
Let’s be honest.
Most DeFi protocols don’t really need their own token.
Let’s be honest.
Most DeFi protocols don’t really need their own token.
3.
Whenever you see a DeFi protocol that gives you a higher yield if you lock your coins for one year or more, you should 9 out of 10 times run the other way.
You risk locking money in a token that will become valueless at the point you’re able to unlock it.
Whenever you see a DeFi protocol that gives you a higher yield if you lock your coins for one year or more, you should 9 out of 10 times run the other way.
You risk locking money in a token that will become valueless at the point you’re able to unlock it.
4.
Spend enough time in echo chambers on Twitter and you will find yourself believing everything they say.
Seek information from other sources too, preferably from people who disagree with you (to avoid confirmation bias).
But most importantly, make up your own opinion.
Spend enough time in echo chambers on Twitter and you will find yourself believing everything they say.
Seek information from other sources too, preferably from people who disagree with you (to avoid confirmation bias).
But most importantly, make up your own opinion.
5.
Crypto is an inefficient market compared to traditional markets.
Alpha (return compared to the overall market, eg. $BTC) can be found by being early
Being early = good network + a nose for seeing trends + spending a lot of time online
Crypto is an inefficient market compared to traditional markets.
Alpha (return compared to the overall market, eg. $BTC) can be found by being early
Being early = good network + a nose for seeing trends + spending a lot of time online
6.
The day crypto goes mainstream, 90% of the people won’t even know that they’re using crypto.
Bridges, fees, UX, security, etc. will improve 10x before we’re there.
It will be seamless.
The day crypto goes mainstream, 90% of the people won’t even know that they’re using crypto.
Bridges, fees, UX, security, etc. will improve 10x before we’re there.
It will be seamless.
7.
Play-2-earn games like STEPN are fun and addictive
But it’s not sustainable
It may work very well for several months, but eventually, the music will stop
How?
Too many sneakers minted: supply > demand =floor price collapse
Too many high end sneakers: $GST hyperinflation
Play-2-earn games like STEPN are fun and addictive
But it’s not sustainable
It may work very well for several months, but eventually, the music will stop
How?
Too many sneakers minted: supply > demand =floor price collapse
Too many high end sneakers: $GST hyperinflation
8.
If most of your net worth is in illiquid NFTs, consider cashing some of it out.
Most of them will go to zero one day, but you wouldn’t believe it.
If most of your net worth is in illiquid NFTs, consider cashing some of it out.
Most of them will go to zero one day, but you wouldn’t believe it.
9.
If you make it in crypto, you won't relate financially to most of your friends anymore.
You’ll probably lose some of them, but maybe they weren’t your friends after all.
The saying: “Birds of a feather flock together” is true after all.
If you make it in crypto, you won't relate financially to most of your friends anymore.
You’ll probably lose some of them, but maybe they weren’t your friends after all.
The saying: “Birds of a feather flock together” is true after all.
10.
If someone tells you that you can make 1% per day risk-free in DeFi, there is a catch.
Remember, if you can’t explain where the yield is coming from, the yield is in 99% of the cases coming from you.
If someone tells you that you can make 1% per day risk-free in DeFi, there is a catch.
Remember, if you can’t explain where the yield is coming from, the yield is in 99% of the cases coming from you.
11.
When you start bragging to your friends about how easy it is to make money in crypto, it’s probably about time to start taking profits.
When you start bragging to your friends about how easy it is to make money in crypto, it’s probably about time to start taking profits.
12.
The best alpha on CT is coming from the small accounts.
They are writing in a way that most people won’t understand which lets them be undiscovered by the masses.
Check out @chad_follows and @iwatchanons to see good examples.
The best alpha on CT is coming from the small accounts.
They are writing in a way that most people won’t understand which lets them be undiscovered by the masses.
Check out @chad_follows and @iwatchanons to see good examples.
13.
There is no point in being too diversified in crypto.
$BTC, $ETH, a stablecoin, and 1-3 high conviction altcoin-plays should be more than enough.
Having 20 altcoins is unnecessary as they're mostlty highly correlated.
There is no point in being too diversified in crypto.
$BTC, $ETH, a stablecoin, and 1-3 high conviction altcoin-plays should be more than enough.
Having 20 altcoins is unnecessary as they're mostlty highly correlated.
14.
Your risk level should seem insane to the average person, yet still "conservative" to yourself
That's how you know you’ve hit the sweet spot.
Your risk level should seem insane to the average person, yet still "conservative" to yourself
That's how you know you’ve hit the sweet spot.
15.
Learning how to use Etherscan, Nansen, Dune, TokenSniffer, Debank, Ape Board, Zapper, rarity.tools, icy.tools and Moby can help you earn more money.
But because it requires time, most people won’t bother.
Learning how to use Etherscan, Nansen, Dune, TokenSniffer, Debank, Ape Board, Zapper, rarity.tools, icy.tools and Moby can help you earn more money.
But because it requires time, most people won’t bother.
16.
The easiest way to make it:
Watch what everyone is doing with their money.
Then do the opposite.
The easiest way to make it:
Watch what everyone is doing with their money.
Then do the opposite.
17.
The most successful people in crypto are the people you rarely hear anything about.
They want it that way.
The most successful people in crypto are the people you rarely hear anything about.
They want it that way.
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That's it!
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