As Ice Frog said, the elimination round of Binance alpha has already begun, and those without 1wu in their accounts basically shouldn't play. But 1wu is not a small amount for small players either.
Back to the topic of #原始资本积累 aside from working off-exchange, how can novices in the crypto world accumulate initial capital? Old players might casually mention airdrops, memes, and new token launches.
But the airdrop blue ocean has ended, and Binance alpha is out of reach. How to play?
Let me share my views and new opportunities for novices to make money.
The wealth creation effect of the airdrop track is visibly diminishing.
Looking back at the airdrop blue ocean period, the first thing I did every day when I opened my computer was to interact a few times on major public chains like Optimism, Arbitrum, Zksync, etc., and later these projects generally had single-number airdrops of 1wu or more.
Many profit-seeking studios have also caught on, but as the valuations of VC projects decline and studios endlessly compete for higher numbers in tech, the phenomenon of real users being counter-swindled often occurs, and profit-seeking has lost its original purity and joy.
New token launches also face similar situations.
In the early days, I got A7 returns by participating in new token launches on Coinlist. Now, Binance alpha has increased from an initial monthly income of a thousand dollars to a much higher threshold for points, and the efficiency of new token launches has significantly decreased, with thresholds even rising to 223 points and above.
The cake is only this big, but the number of people squeezing in to share it is ever-increasing.
Meme frequently gives rise to wealth creation myths.
$slerf During that time, there were a lot of KOLs sharing their returns on Twitter. At that time, by tracking smart money addresses, I preemptively hit a wave of $slerf before the KOLs, causing them to shout out for my bag, haha. But meme trading requires a lot of time to monitor, and the survivor effect often makes new users think that buying immediately means a8, but honestly, when there are a lot of posts on Twitter, it's highly likely that they are calling you in to take over.
Once a novice makes a mistake, it's easy to lose everything in a short period. For newcomers unfamiliar with K-lines and secondary trading, it’s better to steadily accumulate initial wealth through airdrops and new token launches. Although it's slow, it's practical.
So aside from the aspects mentioned above, the most critical point, I believe even novices who just entered the circle can easily discover – arbitrage.
Stablecoin annualized returns are much higher than those of banks, even exceeding some promotional loan rates offered by banks. So can arbitrage occur across industries? There are various arbitrage models in the crypto world, and here are a few simple ones introduced.
1️⃣ Arbitrage between different exchanges: Price discrepancies can occur for the same asset across different exchanges. At this time, you can buy on the exchange with the lower price and then transport it to the exchange with the higher price to sell. The risk is that the opportunity window is relatively short, and you need to be familiar with the operational processes.
2️⃣ Funding rate arbitrage: In a bull market, you can steadily earn funding rates. When the funding rate is positive, longs will borrow USDT from the airdrop to leverage their positions, thus your short positions will earn funding rate returns.
3️⃣ Lending platform arbitrage: Mortgaging $BTC on exchanges to borrow $USDT generally requires paying 10-20% interest, but depositing $USDT into some #DeFi protocols can yield over 40% returns.
I found two systematic articles on arbitrage that are easy to understand and suitable for novices.
taresky @taresky (No-risk annualized return of 360%? Crypto arbitrage that novices can understand). Mainly aimed at beginners, it compared borrowing on exchanges and funding rate arbitrage.
Jemima Conlon (Cryptocurrency Arbitrage: A Complete Guide)
From basic cross-market arbitrage to advanced flash loan arbitrage, from underlying logic to operational guidelines, everything is covered in this article.
After reading, do you feel like you've opened the door to a new world of arbitrage? If there are any friends who don't understand, feel free to comment. Formal articles may not help much with your practical arbitrage operations, and Big OK is also very willing to produce a special YouTube episode on arbitrage teaching for everyone later. If you are in need, please reply with 1.
I wish everyone can earn early.
