Author: Route 2 FI
Compiled by: TechFlow
Some advice for those who are underfunded and just entering the cryptocurrency space
The current market is booming, and with Bitcoin reaching all-time highs, it’s easy for people to take on more risk than usual due to the fear of missing out (FOMO).
First, ask yourself what you are good at. In this industry, perhaps the most important skill is persistence. Even if you are not particularly smart, but are willing to put in 12-14 hours a day, I think you have an advantage. Therefore, for those who are underfunded, time is your most important asset. Be willing to learn and improve yourself. So, what areas should you focus on? Writing content, trading on centralized exchanges (CEX), research, Memecoin trading, NFT (non-fungible tokens), YouTube, newsletters, Telegram, podcasts, etc. The options are many.
If you like writing, consider publishing on Twitter, newsletters, or Telegram. If you prefer verbal communication, YouTube or podcasts may be more suitable for you. Good with numbers and like to observe the market? Then focus on improving your trading skills and connect with the best traders you admire on Twitter. You may be surprised to find that there are many good traders on Twitter with only 500 to 2000 followers. They are not necessarily big names like Hsaka, ENAS or Nachi.
Once you’ve identified your strengths, ask yourself, “Are my skills good enough for me to be paid?”
If not → then look for an internship. This could be at a crypto company, startup, VC firm or family office, or it could be assisting a KOL with various matters, or helping a trader you admire with tasks (if you perform well, they may share some inside information with you). Internships are usually not well paid, so the focus should be on gaining experience and wisdom that may be useful in the future.
If yes → Do you choose to realize profitability on your own, or apply for a job at a crypto company?
Becoming profitable on your own can be a difficult and long road that requires a great deal of commitment and dedication, but if you have confidence in your abilities and think the long-term benefits could far exceed those of a regular job, I recommend trying this path.
Applying for a job at a crypto company is a safer option, as you can get a fixed salary (usually higher than a traditional 9-to-5 job). Besides, who says you can't focus on your own projects outside of work? Although you may not have enough time to go all out, a fixed salary allows you to focus on your side hustle with peace of mind. Here's a little advice: Many people may think: "The bull market is coming, I need to focus on trading and have no time to find a job." In fact, it is easier to find a job in a bull market, and if you have almost no capital, why should you focus on trading?
If the price of Ethereum quadruples, your current $1000 will become $4000. You can easily make this amount of money with an entry-level job in a week or two. Most people will not be the kind of meme coin winner who can turn $1k into $1m. If you really have this ability, you don’t have to think about finding a job.
If you are applying for a job, choose a company you respect and want to be compensated with equity or tokens. If you can afford it, ask for as much of your salary as possible to be paid in tokens (assuming you believe in the company). If the company is successful, you may be rewarded handsomely. Think of the 16-year-old boy (@gajesh) at EigenLayer, who is a great example.
Twitter account: The best way to reach the best people in this industry is to be visible on Twitter. Write about topics that interest you, things you want to learn more about, make light posts, and interact with people you admire. Tweet every day, even if it's just to say "good morning (gm)". PM people advice without expecting anything in return. This is how you build friendships, and who knows, maybe you'll work together in the future. Just be kind, helpful, and engaged every day.
In crypto, Twitter is like your resume. You don’t need LinkedIn, if you’re applying for a job, your best resume is the content you create on Twitter. Not only that, recruiters often look for those who are influential on Twitter and offer various opportunities. This may include collaborations, paid projects, referral links, funded trading accounts, and even angel investment and opinion leader (KOL) rounds when you are influential enough. Regarding collaborations or paid content: As long as you disclose the relevant information, I think it is acceptable. During this cycle, we saw some behaviors being accepted (although I found it strange): someone just shared a contract address (CA) for Meme Coin and said it was a must-buy bargain. Don’t do this. It’s better to only share these contract addresses with friends in group chats.
For traders or aspiring traders: This can be the most challenging path, but it is also the most profitable if you have the skills and unique edge. You need to find your own way of trading. You can’t just blindly follow traditional trading rules and expect to outperform others. You have to find a unique and effective way to do something that others are not doing. One of the top traders on Crypto Twitter (CT) once said that he has never used Tradingview. I share this because many people rely on too many indicators and imaginary trend lines, which is not really necessary.
There are many inefficiencies in the cryptocurrency market that you can exploit. For example, when Andre Cronje announced on Twitter in March 2022 that he would shift his focus to areas outside of DeFi, the market was slow to react and tokens like FTM and YFI did not begin to fall for at least 10-15 minutes. Looking back, this was probably one of the easiest short trades I have ever made on Fantom. It was just a short trade for me, but given how badly the market performed later, I should have held on longer. My point is that the cryptocurrency market is not as efficient as the stock market. When there is news in the stock market, the price is reflected almost within seconds.
Cryptocurrency has attracted a lot of retail investors, and frankly, a lot of them are not professional. I mean people who buy Dogecoin randomly and expect it to go up. There is a clear difference between the smart people on Crypto Twitter (CT) and those who rely on TikTok influencers or BitBoy for investment advice. By the way, I don’t consider myself one of the smart people. I mean GCR, Cobie, Light, etc., and probably 50 more.
This is indeed an advantage for those who actively track cryptocurrencies and seek excess returns. As the cryptocurrency market matures, I expect the market to become more efficient and trading will be more difficult in the future. It is important to have probabilistic thinking, common sense, self-awareness, resilience, patience, and the ability to delay gratification. In addition, having an obsessive-compulsive personality or mild autistic traits may be an advantage. Also remember that the market is cyclical. It is very important that the market is trending only 20% of the time and fluctuating in a range 80% of the time, because these two situations require completely different strategies.
Oh, and if you think you've got a head start on trading, I have bad news for you, friend. You're probably still just getting started.
If you want to advance to stage E, check out this list and read this article.
In trading, don't expect someone to guide you all the way. We often talk about making profits, but in reality, you are taking money from others. When you are long on BTC and making a profit, it means that another trader who is short $BTC is losing money. Therefore, trading is essentially a player-versus-player (PvP) competition.
You may get a lot of advice on platforms such as Twitter, Discord, Telegram, etc. But sometimes you need to reflect on their motivation for sharing information. Do they have good intentions, or do they hope that you will become their buyer due to fear of missing out (FOMO)? For coins with smaller market capitalization, you should be more cautious about the advice you get from others because their prices are prone to volatility.
That being said, you should learn from better traders.
good luck.
