So we all know that Crypto is taking over the world and bla bla bla but how do you really swim in that ocean full of hope and promises for a better tomorrow?
I’m a full time trader & investor mostly with a focus on global tech stocks and regional value stocks, real estate and tech start up’s. Yeah, a lot a tech. And i can’t get my head around Crypto even if i wanted to either.
Tbh, i didn’t like crypto for a long time. ‘Hey, there’s nothing you can do with that, it’s just fake internet money’. ‘There’s no intrinsic value in them’. ‘There’s no cash flow’
And the market cap’s kept on rising. A billion…another billion…ten billions and before you know it it’s a fcking trillion dollar world.
I now hold about 25% of my portfolio in Coins and NFTs. Yeah, both.
Let’s start with COINS.
I hold about 90% in blue chip’s and 10% in ‘shit’s’. Whether you are a beginner or a long time investor you always want to hold the top names in the market. I learned this the hard way. If something is attractive chances are it’ll get more attractive. The idea that something is ‘rationally overvalued’ is pure BS. People follow success, people follow fame. If there’s someone or something that is successful, i want to be part of that success. You all know that i’m talking about BTC and ETH. There isn’t really a need to go any more complicated than that because the rest top coins are just followers of those two where at some point one outperforms the other and vice versa. You’re not going to find a consistent alfa trading all of them.
There are couple of exeptions though. AVAX, LUNA and MATIC have been the ones to gain a lot of traction in recent months so having a portion in them would make sense IMO. I know i’m keeping an eye one them.
One more coin which is just my personal preference is Loopring. We all know that gas fees are a problem right. I do think with their Layer 2 logic Loopring has the potential to permanently fix that problem and significantly reduce the idiodic ETH gas fees to a non-existing levels. That’s an inefficiency existing in the crypto space. It WILL get solved. Question is, who’s gonna solve it the best and the fastest.
The Shits that i own are actually TOKENS. Some of them include DERC (gaming) and Polkamarkets. I won’t get any more into them cause i’m not advertising.
A TOKEN OF APPRECIATION FOR ADVERTISERS.
This becomes a little more complicated because there are different tokens out there for every taste. Most of them are SCAMS. Not intentionally tho but simply because everyone hops on the hype train and issues their own token to ‘solve’ some problem. But the problem in most cases is the team itself. 99% of TOKEN suppliers don’t have the knowledge, experience and/or resources to solve a given problem. What they do is, they put all their eggs on advertising and website and pump & dump groups to get a short term virality boost just to die after. This is were most investors get sucked into and that’s pretty crazy. The whole ideology of tokens are that if i’m in it early i can easily gain 3x, 5x, 10x or 100x gains with this. And because of all the pump’s out there you keep on thinking that you are missing out so you throw a hundred or a thousand just to see the token now slowly but surely deteriorate in value.
Since i too, get sucked into the flashy brain wash style advertisement game, what i do is, i join the groups and start talking to members but most importantly i try to reach out directly to founders. It’s all a poker from here. You listen how they talk, how they write, what they write. You ask about their skills and the team and whether they have social media profiles.
You would be surprised how similar results you’ll get. The ‘team’ is usually a bunch of middlemen. They have coders ‘around the world’. There’s ‘dozens’ of them in the team to look serious but you’ll never get a profile out of them. And them you observe the chat. If the main thing you see them focusing on is to get to top charts on completely random TOKEN&NFT websites then you’ll just know…
SO WHAT TO DO?
Active reasearch is priority one. But you can’t get a solid reasearch just from googling. You have to know the players. Who are the top influencers and in which platform? Youtube, Twitter? How many followers? When you find one, is he being followed by OTHER top incluencers?
You have to get inside. Yes, inside private groups, private chats to get private information. And this is where NFT’s come in play.
So, NFT’s and TOKENS actually go under the same category for me. ONLY participate in this game if u intend to spend tons of hours researching. But NFT’s have one particular benefit. It ‘BUYS’ you information. And information is what you desperately need when you want to participate in TOKEN launches, up coming NFT launches, Whitelists and MOST MOST importantly you get to hook with people who ALSO have done their DD’s about other projects. You save SOOO much time when you work together.
What are the TOP NFT’s or the blue chip NFTs? Well obviously Bored Ape YC, Crypto Punks but those have a high tag on them. VOX collectibles, Mirandus are popular ones and RTFKT, JRNY and SIPHER are definitely the communities where serious and ACTIVE NFT players lurk around. You want to be in the club? You gotta pay up. Good thing is, you can always sell, liquidity is there so it’s not a money waste.
Maybe you noticed that a lot of the NFT’s mentioned have a Gaming niche. That’s what i look into. I want the NFT to have utility. If you can use your NFT in games and if those games become popular you’ll be holding an NFT which will only gain in value due to the scarcity of that collection.
NFT’s are in baby age right now. Most people don’t even know about them. That’s why the criticism: ‘hey, it’s just jpeg’s’ ‘right click, save and it’s mine’. LOL, no it’s not. Verifications systems out there require you to verify WHERE you bought your NFT. If it’s a copy, the system will know. THAT’s the beauty of blockchain. We can copy Picasso too if we wanted to but we WILL KNOW too.
If you’re passive guy with money laying around just focus on blue chips. Surprise surprise, right? But have BOTH, coins & NFT’s.
WHATEVER YOU DO STOP SPECULATING OR TRADING IN AND OUT!
You won’t win this game by squiggling in and out, you win by holding. Again, learned this the hard way. Bots are taking over everything, so unless you’re a fcked up awesome algo guy you’ll be too slow for this.
Decentralized world have this raw market mechanic character. Noone is out there to protect you. Markets can flash crash 50%+ and you won’t even know what happened.
STOP using STOP LOSS orders and LEVERAGE. Cause leverage IS a STOP ORDER. It’ll get taken out. Whales and what not always want bargain prices. The only way to get it is through STOPS.
2) If you’re an active young guy with no fear of losing some hair over all of this (make no mistake you will) Then start with blue chip NFT’s, get into communities and start interacting with people there. The more expensive the community the better information you’ll get. My niche is Gaming cause that’s what the METAVERSE is all about – ENTERTAINMENT.
Sorry for the long post,
here’s an imaginary potato.