#ALPHA #defi #blockchain What is Alpha? 🤔
Core Concept:
Alpha = Information Asymmetry + Time Difference 🔍⏳
Sources of Alpha: Internal messages from project parties 📢, on-chain smart capital flows 🔗, signals from micro-communities 💬
The Role of Alpha: To obtain more and more valuable information ahead of others, allowing you to gain an edge in the market 🚀💡
Why is it important? In the crypto space, information asymmetry is very severe 📉. Those who can capture Alpha can lead the market; while others are still chasing the rise, you have already bought low 💰; while others are losing money, you have already retreated 🏃♂️💨.
However, it's important to note that Alpha is also hierarchical:
Level 1 Alpha 🔥:
Messages leaked directly from internal tests of project parties, investment institutions, or founding teams 📊🔒. This type of information is the most valuable, but difficult to obtain, usually only accessible to a few.
Level 2 Alpha 🧠:
Opportunities discovered by smart hunters through on-chain data 📈, social signals 💬, and trend analysis 🔍. This type of Alpha is relatively easier to obtain but requires strong analytical skills and tool support.
Level 3 Alpha 🔍:
Messages circulating in small circles, crypto communities 👥, or Twitter alt accounts 🐦. This type of information has the lowest entry barrier but also lower credibility, requiring stronger judgment.
Summary:
The further up the Alpha, the greater the value 💎, but the difficulty of obtaining it is also high, with mixed information about its authenticity 🤔. Therefore, obtaining Alpha also requires strong discernment and analytical skills 💡.
