Crypto PM
--
Here're 5 Things That Big Players Hide From You, But You Need To Know To Make Money In Crypto
Only 1% actually makes money in crypto, while the rest lose money to whales and VCs.
Just a few principles distinguish winners from losers.
Here're 5 things that big players hide from u, but u need to know to make money in crypto ๐งต๐
Before I begin, I have a favor to ask...
I spent a lot of time writing this thread, trying to make it genuinely useful for you, so if it's not too much trouble, please SAVE it, REPOST, leave a comment, or simply hit like ๐ค
โฎ Crypto is far from a fair game, and 99% of crypto investors/traders will just become exit liquidity for leading major players/whales
How to avoid it? Study the crypto market principals
Here are 5 principles that whales/insiders don't want you to know:
1/โฎ DeFi protocols don't need a token
โง Most projects have the following token model: facilitates governance division or boosts liquidity and supports the development of a 2ndry market
โง Ideally, this is the case, but in reality, many projects end up creating a token just so the team can profit from it.
So how to avoid such projects?
โฎ Here are a few things you should make sure of before buying a project's token:
1. Price increase corresponds with user growth
2. Addresses a market demand
3. Edge over similar protocols
4. Serves a purpose beyond profits for holders
This is what a good project should have
2/โฎ Many projects are nothing
โง In crypto, there are thousands of projects, and obviously, not all of them are truly useful.
โง Many have a beautiful cover with incredible plans/roadmaps that will never happen.
So, how do you distinguish a facade from a truly good project?
โฎ Here are a few things you should ask urself before buying a project's token:
1. Is the team real and who are these people, what experience do they have?
2. Who backed the project?
3. Is their valuation reasonable and what problems does the project solve?
3/โฎ VCs make money by investing in private sale rounds
โง Always keep in mind that VCs make their money by investing early in token seed and private sale rounds.
โง You might think u're entering at a low price, but VCs entered at price 20x lower
Let me explain ๐
โฎ Private and seed rounds are an integral part of any project that helps it get off the ground and start developing its product
โง What's bad? This can create large selling zones when investors begin to dump their bags & most will become exit liquidity.
So how to avoid this?
โฎ Here are a few things you should check before buying a project's token:
1. Unlocking Events
2. Tokens allocations
3. Vesting Schedule
Always monitor the unlock dates before investing
4/โฎ Whales do opposite of the market
โง Everyone has heard "Buy the fear and sell the greed", but few manage to do so
โง This is what whales do; they build their positions while everyone is selling in panic and fear, and accordingly, they take profits when greed sets in.
โฎ Thanks to such a rule, whales manage to accumulate positions during the dip and sell at the ATH.
โง They simply understand the basic people psychology that governs the market.
Here's the rough pattern:
5/โฎ APR is designed to boost liquidity
โง Let's take the real world as an example, where companies offer various types of promotions at launch to incentivize people to spend money and get accustomed to their products.
โง Something like: 40% off for the first 100 users, etc.
โฎ In crypto, it works similarly:
โง But instead of discounts, there is the token emissions to boost liquidity of the token at an early stage.
โง This model generally shows success initially, but the subsequent path of the token often ends with a significant drop.
โฎ A good example might be the case with $LUNA, where unclear tokenomics and emission led to over-dilution
โง Holders should get profits through fees, not emissions
โง As it turned out, the start of the project was promising, but it all ended in a collapse
How to avoid this?
โฎ Here are a few key points, the presence of which would make such a scenario impossible:
1. High fees through emissions
2. Real users + big volumes
3. Strong token
4. The true usefulness of token
This way, you won't be holding a token that is being printed like a dollars
โฎ Liked this ARTICLE? I write educational CONTENT daily, so don't forget to:
โง Follow me @Crypto PM
#WhaleAlert
#Whale.Alert
#PEPEATH
#BinanceLaunchpool
#Memecoins
Just a few principles distinguish winners from losers.
Here're 5 things that big players hide from u, but u need to know to make money in crypto ๐งต๐
Before I begin, I have a favor to ask...
I spent a lot of time writing this thread, trying to make it genuinely useful for you, so if it's not too much trouble, please SAVE it, REPOST, leave a comment, or simply hit like ๐ค
โฎ Crypto is far from a fair game, and 99% of crypto investors/traders will just become exit liquidity for leading major players/whales
How to avoid it? Study the crypto market principals
Here are 5 principles that whales/insiders don't want you to know:
1/โฎ DeFi protocols don't need a token
โง Most projects have the following token model: facilitates governance division or boosts liquidity and supports the development of a 2ndry market
โง Ideally, this is the case, but in reality, many projects end up creating a token just so the team can profit from it.
So how to avoid such projects?
โฎ Here are a few things you should make sure of before buying a project's token:
1. Price increase corresponds with user growth
2. Addresses a market demand
3. Edge over similar protocols
4. Serves a purpose beyond profits for holders
This is what a good project should have
2/โฎ Many projects are nothing
โง In crypto, there are thousands of projects, and obviously, not all of them are truly useful.
โง Many have a beautiful cover with incredible plans/roadmaps that will never happen.
So, how do you distinguish a facade from a truly good project?
โฎ Here are a few things you should ask urself before buying a project's token:
1. Is the team real and who are these people, what experience do they have?
2. Who backed the project?
3. Is their valuation reasonable and what problems does the project solve?
3/โฎ VCs make money by investing in private sale rounds
โง Always keep in mind that VCs make their money by investing early in token seed and private sale rounds.
โง You might think u're entering at a low price, but VCs entered at price 20x lower
Let me explain ๐
โฎ Private and seed rounds are an integral part of any project that helps it get off the ground and start developing its product
โง What's bad? This can create large selling zones when investors begin to dump their bags & most will become exit liquidity.
So how to avoid this?
โฎ Here are a few things you should check before buying a project's token:
1. Unlocking Events
2. Tokens allocations
3. Vesting Schedule
Always monitor the unlock dates before investing
4/โฎ Whales do opposite of the market
โง Everyone has heard "Buy the fear and sell the greed", but few manage to do so
โง This is what whales do; they build their positions while everyone is selling in panic and fear, and accordingly, they take profits when greed sets in.
โฎ Thanks to such a rule, whales manage to accumulate positions during the dip and sell at the ATH.
โง They simply understand the basic people psychology that governs the market.
Here's the rough pattern:
5/โฎ APR is designed to boost liquidity
โง Let's take the real world as an example, where companies offer various types of promotions at launch to incentivize people to spend money and get accustomed to their products.
โง Something like: 40% off for the first 100 users, etc.
โฎ In crypto, it works similarly:
โง But instead of discounts, there is the token emissions to boost liquidity of the token at an early stage.
โง This model generally shows success initially, but the subsequent path of the token often ends with a significant drop.
โฎ A good example might be the case with $LUNA, where unclear tokenomics and emission led to over-dilution
โง Holders should get profits through fees, not emissions
โง As it turned out, the start of the project was promising, but it all ended in a collapse
How to avoid this?
โฎ Here are a few key points, the presence of which would make such a scenario impossible:
1. High fees through emissions
2. Real users + big volumes
3. Strong token
4. The true usefulness of token
This way, you won't be holding a token that is being printed like a dollars
โฎ Liked this ARTICLE? I write educational CONTENT daily, so don't forget to:
โง Follow me @Crypto PM
#WhaleAlert
#Whale.Alert
#PEPEATH
#BinanceLaunchpool
#Memecoins
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.ย See T&Cs.
