Thread by @Trim_Bot

If you're new to crypto, the majority of your investment should be in #Bitcoin & #Ethereum.

BUT, if you're experienced in crypto and want to make 10x, 20x, or even 100x, you should be trading alts.

But you can't just HODL random shit coins.

🧵Want to 100x? Read below🧵
👇👇

First, understand how market cycles work in crypto.

When #Bitcoin pumps, money flows into altcoins. This is when it’s easy to 10x.

When BTC dumps, that money flows out of altcoins. This is when it’s hard to 10x.

Ask yourself, are we in "hard mode" or "easy mode" right now?

Bitcoin’s market cap is nearly $1 TRILLION. That means BTC needs to add another TRILLION dollars just to 2x.

On the other hand, a coin with a $5M MC can easily do a 5x when BTC is pumping, because it doesn’t require a lot of money.

So key #1: patience until we're in "easy mode"

The most important step is to narrow your focus and pick 1 or 2 areas to specialize in.

You can pick a vertical (I.e. Gaming) or a horizontal (I.e. EOSIO)…But just make sure you’re an expert on that topic.

Be a specialist, not a generalist, so opportunities seem obvious.

Why do you want to be a specialist instead of a generalist?

By being a specialist, you’ll exclusively be making bets made on information asymmetry…That means you know something that other people don’t know and will develop an intuition about which projects will be successful.

When you’re a specialist, the opportunities will seem super obvious to you.

But you need to get in EARLY when no one is talking about the project.

If lots of influencers are talking about the project, you're probably not going to get a 10x or 100x opportunity.

Early is KEY.

Let’s give an example. If you specialized in $EOS, you knew about @ChintaiNetwork/ $CHEX.

Getting into CHEX now is still insanely early, but if you bought in the first month, you’ve already benefitted from a 10x.

It was an obvious opportunity for the specialists.

Early is 🔑

When you find the altcoin you believe in, unless you have some major alpha, it’s unlikely this is the “best buying opportunity” you'll ever have.

More often than not, dollar-cost averaging into a position is better than just making a lump-sum investment.

DCA into alt’s

Okay, so now we have the basics:

(1) Understand market cycles – 100x happens during “easy mode”, not "hard mode"

(2) Pick a sector & be a specialist – opportunities will be obvious because you have the alpha

(3) Get in as early as possible & DCA

Now, let's talk narratives...

The single most important thing in crypto is narratives.

Crypto is an attention economy, and there are always dominant narratives.

Narratives can exist within a sector, or more broadly across crypto.

Evolving & emerging narratives are witnessed firsthand by the specialists

I’ve talked about $EOS lots, because I believe there’s a great risk/reward opportunity, and it’s obvious to me that the narrative around #EOS is about to change.

Once the narrative flips, I expect EOS to pump. When EOS pumps, EOSIO alts with low MC's will pump even harder.

The 100x opportunity isn’t going to come from holding EOS. That’s where the 5x opportunity may come.

But when EOS EVM launches and EOS becomes the fastest growing chain by TVL, I’ll know which eco-alts to buy EARLIER than the investors discovering EOS.

https://twitter.com/Trim_Bot/status/1508168324181544971?s=20&t=osQKdHv1fxVt3dNc9K44tg

As I said, you’ll develop an intuition from specializing, that will help you form an investment thesis (aka “the bull case”).

I've outlined my "bull case" for EOS above.

How do you evaluate altcoins? Focus on:
-Narratives
-Catalysts
-Team
-Tokenomics & Liquidity

I've talked about narratives & catalysts quite a bit. When you have alpha, you have information asymmetry, so you can predict narratives and you're aware of catalysts before most people.

But how do you evaluate the team, tokenomics, or liquidity?

It's easy to fall in love with the vision for a project - "this is the next X" - but have you considered if the team can execute its vision?

Does the team care more about the price or the project?

If you're not asking these questions, you're ngmi.

thedefiedge.com/execution/

Tokenomics can make or break a project.

A mediocre project with good tokenomics can moon. A great project with bad tokenomics can fail.

Make sure you know all about: supply, vesting schedules for locked tokens & special mechanics for token utility.

Are VC's about to dump?

Lastly, make sure you're cognizant of your cognitive bias.

Everyone suffers from these cognitive biases. You're not special.

If you're aware of your cognitive biases, you can use that as a competitive advantage.

Crypto is PvP. Never forget that...

If you found this thread helpful, consider liking/ retweeting the thread. This thread is "high level", because I would rather teach you how to think than what to think.

I am available for consulting calls, but I'm expensive. Feel free to shoot me a DM.

https://twitter.com/Trim_Bot/status/1519009536681594881?s=20&t=MqBBzOPv9zKIPrpUnxuS-A