Opportunities for individual investors in cryptocurrency markets

I once wrote in the article that some projects that Dafeng Investment did not like or care about may grow into unicorns in some subdivided fields through the rapid rise and explosion of the community.

Because Dafeng Investment doesn’t care about these projects, it gives retail investors the opportunity to seize these projects, and also gives retail investors the opportunity to obtain rich returns in the crypto world.

But for ordinary retail investors, how can we quickly seize these projects and seize the opportunity of their rise?

I once talked about this question in the previous Q&A, but I didn’t go deep enough, so this question was mentioned again by the audience. After the exchange, I recalled some of my experiences and feelings again, and thought that there might be two things we can do to sum up.

The first is to look at a large number of projects. The so-called “looking at a large number of projects” is not a cursory view, but to understand the basic logic, basic principles, and application scenarios of a project, and to find out where the value of the project is, and why people want to buy it.

Among these elements, the basic logic and basic principle are basic, and the application scenario and project value are extension. This is hard work. I think we should use this method to look at a large number of projects. If we take any project and look at it carefully, we can at least immediately see its basic logic and principle

If this project is different from other projects in terms of basic logic and basic principles, it may basically have potential value, which is worth our attention.

Uniswap is typical. Its main idea comes from Bancor, but it has improved the transaction mechanism compared with Bancor, removing project tokens as intermediaries, and giving liquidity providers greater freedom.

However, many people did not realize this improvement in the early years, so for a long time, Uniswap was ignored except for a few fans. However, for more projects, especially application projects, I’m afraid that there is no innovation in basic logic and basic principles, but innovation in application scenarios and even special project value.

But here is one thing to pay special attention to: there are also two kinds of so-called application scenario innovation: one is the innovation that everyone can understand and understand. If we can enter this type of innovation before the big wind investment is discovered, it is certainly better. But often more valuable innovations are not understood. Typical projects are NFT, such as cryptopunk and boring ape.

For example, in retrospect, when I first saw Cryptopunk, my first impression was: Isn’t this the contract on Ethereum anchoring a series of pictures? It seems that no one has ever made this kind of thing, but what’s the use of it?

So we still need to look at enough projects to find the differences, although we may not be able to digest and understand the differences at the first time. The second is to look at the emotions of the community.

In the crypto world, Twitter and Discord are the best indicators of community sentiment in my opinion. I mainly watch Twitter myself. This is also hard work.

Only by paying close attention to the changes on Twitter for a long time and in a high density, can we quickly capture the subtle changes in the community atmosphere at the first time. In the encryption world, relatively speaking, I think the understanding of application scenario innovation is far more difficult than the understanding of the basic principles and basic logic of the project.

Bitcoin, Ethereum, Cryptopunk, and Boring Ape are all projects that are difficult to understand at the beginning, not the basic principles and logic, but the application scenarios.

For example, Bitcoin and Ethereum, in fact, most people did not care about its basic principles and basic logic at the early stage, and even if many engineers understood their basic principles and even looked at their original code to understand their operating logic, they thought they were worthless.

And encryption punk and boring ape, not to mention, their basic principles and basic logic can be understood by ordinary people, but what people do not understand is their application scenarios.

Often, such incomprehensible application scenarios may be especially created for the crypto world, and such scenarios may be inspired and stimulated by certain activities of the community.

To observe the stimulation and stimulation of this community, we can only get first-hand information from social media reflecting the community, such as Twitter. The boring ape is typical in this respect. Shortly after its debut, Twitter suddenly burst out with a large number of concerns and comments about it. It was these comments and concerns that made me reflect on and recall the project, and then gradually corrected my previous stubborn way of thinking in this community atmosphere.

Therefore, on the whole, if we want to seize the opportunity of big wind investors’ oversight, we have to work hard to find clues from the massive information.