Here's a breakdown of 17 different styles of crypto investing:
Today I'll be covering:

• Various Crypto investing styles
• How to find what works for you
• What I recommend for most people
• My personal style

Here's your edge 🗡️
/1 Maxis

They're "all in" on a single project, with the most common being either BTC or ETH.

Life and taxes are simple.

This gives them the time and energy to spend all day preaching on Twitter about how superior their way is.
/2 Seed Round Investors

They have access to projects at the early stages - from being a part of a VC firm, well connected, or being an influencer.

They get to purchase at rock bottom prices before being released to the public.
/3 ICOs / IDOs Investors

Early-stage investing for retail investors.

Instead of VCs, some protocols prefer to fundraise through the community.

Some Sites:
@impossiblefi
@CoinList
• Ecosystem launchpads

They may be restricted in some countries.
@impossiblefi @CoinList /4 Microcap Hunter

What's going to be the next 100x play?

You can hunt for the small caps that have potential.

Microcap hunters use different tools and signals to try and find these gems.

@impossiblefi @CoinList /5 Narrative / Meta Traders

In any sport or game, there tends to be a dominant strategy at any given time.

The Warriors are dominant in the NBA because they started the 3-point shooting meta.

There's profit potential from identifying and investing in narratives early.
@impossiblefi @CoinList 2021 Narratives Included:

• The Ethereum Killers: Solunavax
• The Rise of Frog Nation
• OHM Fork Season

Some Metas can go wrong, such as Solidly earlier this year.

Make sure you read @Cobie's article "Trading the Metagame"
@impossiblefi @CoinList @cobie /6 The Fork Hunter

(1) Find a successful Dapp
(2) Find an upcoming Layer 1 or Layer 2
(3) Find a great team that's trying to fork the proven Dapp on the "new hot Layer 1"

Ex. Balancer did well on ETH.

Beets brought Balancer to FTM, and it did well.
@impossiblefi @CoinList @cobie It's kinda like investing in a new town.

So you identify a new up-and-coming town (Alt Layer 1).

You know they're going to NEED specific infrastructures.

• DEX
• Lending / Borrowing
• Balancer Fork
• The Stablecoin plays (Abracadabra / or Curve)

So you invest in those.
@impossiblefi @CoinList @cobie /7 On-Chain / Whale Wallet Watchers

You're using tools like @nansen_ai, @etherscan, @debankdefi, and other tools to analyze on-chain activities.

You're not looking for the guy that bought Ethereum at $15 and held it for years.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi You're looking for people who are better traders than you.

Maybe the whales have inside information, or they're better analysts.

You're "reverse engineering" to see who's successful and copy trading some of their moves.

h/t @OnChainWizard
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard /8 New Listing Traders

Projects tend to get a price bump whenever they're listed on a large exchange such as Coinbase or Binance.

You buy the rumor and sell the news.

This isn't as popular as it used to be during the 2017 bull run.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard /9 AirDrop Hunters

Protocols give out AirDrops (free tokens) to reward their community and bootstrap growth.

Some airdrops have been lucrative, like @ensdomains and those in @cosmos.

Hunters try to predict who will give out airdrops, and what behaviors are needed.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos /10 Arbitrage Traders

You take advantage of the difference in prices.

(1) Exchange arbitrage. You need tons of cash, bots, and good algorithms.

(2) Seniorage. Some coins have a seniorage model (especially algo-stables). They encourage arbitraging to maintain a peg.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos Fun Fact:

@SBF_FTX made his bones from arbitrage trading via the "Kimchi Premium."

There used to be a massive price discrepancy between Bitcoin in USA and Japan.

And he'd arbitraging the difference daily.

In January 2018, he was doing $25m a day.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /11 DeFi Yield Farmers

You provide liquidity to a protocol and typically get inflationary tokens as a reward.

Rarely does the "300% APY" translate to a 300%+ return USD after a year.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX Watch Out For:

• APY's dropping as more people enter the farms.

• Tokenomics: Particularly around emissions / fully diluted value

• Token prices drop - the inflationary nature of tokens, people rotating to new farms or market cycles.

@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /12 NFT Flippers

"Buy low, sell high"

You mint new NFT pieces or buy NFT pieces you believe have potential.

You're looking:
• founding team
• community
• roadmap
• the art
• utility
• story
• hype

I don't do NFTs - how's the framework I made up?
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /13 Passive DCA'er

In TradFi, buying index funds is popular.

Instead of picking individual stocks, you buy the whole market like the S&P500.

For now, the closest equivalent in Crypto would be a 50% BTC / 50% ETH portfolio.

Index fund approaches are coming.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /14 Value Investor aka the Warren Buffet

You're trying to buy tokens trading at significant discounts relative to their intrinsic value.

One way could be to measure through revenue fees or p/e ratios.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /15 Evil Influencers / Venture Capitalists

Some people have built a large enough following to start moving markets.

And they can use that to profit unethically.

a) Pump & Dump.

Influencer buys X coin. Hypes it up and the prices go up. Sells X token at a profit.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX b) The Dump & Pump.

Spread FUD about a solid coin to lower its prices. Buy at a discount. 😈

c) Undisclosed shilling.

Influencer hypes up a coin and makes it feel like an organic recommendation.

Doesn't disclose they received compensation to do so.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /16 Technical Analysis

They analyze charts and indicators and look for patterns.

• RSI
• Moving Averages
• Candlesticks

Some people swear by them - others think they're the Crypto version of horoscopes.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX /17 Day Traders

• Swing traders
• Scalpers
• Position traders
• etc.

There are so many types of day trading styles out there.

It's a deep rabbit hole, and I want to focus on more Crypto / DeFi-specific styles.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX Advice on Finding Your Style

You might be wondering which style is the best?

You'll hear different people preach their styles. Remember, if all you have is a hammer, everything looks like a nail.

I believe in understanding your own psychology and risk tolerance.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX First, how much TIME do you have?

If you have a full-time job and two kids, it will be hard to keep up with everything.

Daytrading wouldn't work well, and neither would trading the meta.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX I recommend for most people:

1. 50% BTC / 50% ETH

2. Focus on increasing income

3. Dollar-cost average with fiat every month

4. Feel free to play around with 5-10% of your portfolio to scratch that itch.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX Second, what season are we in?

We're in a bear market now:

• I'm buying ETH
• Looking for value plays
• I'm doing some safe stablecoin yield farming.

I'm NOT trading the meta.
I'm NOT fork hunting.

The optimal strategies change during market cycles.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX What Are Your Strengths?

Every style makes money, but it has to be aligned with YOUR strengths and capabilities.

I like numbers.
I'm not strong in analyzing "Culture."

I prefer DeFi over NFTs.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX By the way, you don't have to use a SINGLE style.

Think of yourself as Aang from Avatar.

There are all these styles - You can blend them together to create your own.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX "Ser, what is your style?"

• Meta / Narrative
• The Fork Hunter
• Value investor
• Yield farmer

Protocols are starting to invite me to a few seed rounds, but I haven't found any that excite me.

I do zero technical analysis, day trading, NFTs, etc.
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX Action Steps:

1) How would you describe your investing style now?

2) Which other styles seem interesting to you and you'd like to learn?

3) Write down your favorite influencers. What styles are they?

4) For the styles you want to learn, who are the best people to follow?
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX If you enjoyed this content, please follow me @thedefiedge for more in the future.

Like/Retweet the first tweet below if you can:
@impossiblefi @CoinList @cobie @nansen_ai @etherscan @DeBankDeFi @OnChainWizard @ensdomains @cosmos @SBF_FTX Also, I write a free weekly newsletter where I share exclusive content.

Subscribe if you haven't at TheDeFiEdge.com

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More from @thedefiedge

Jun 6
What if there was a Stablecoin that:

• Pays ~9.62% APY (1-year lock-up)
• It's risk-free and guaranteed

It is real.

It's the iBond by the U.S. government.

(Only for Americans)

Here are the details:
What is an i Bond?

The U.S. Government created i bonds to help you protect your money against inflation.

There's a fixed rate PLUS a variable rate based on the official inflation rate.

Inflation's officially at 8.3% now.

i Bonds pay 9.62% APY now.
The rate changes every 6 months.

• If inflation increases, then expect the APY to increase.

• If inflation decreases, then expect the APY to lower.

We'll probably be in a high inflation environment for a while, so it makes sense to park some money here.
Read 8 tweets
Jun 4
Some tokens might go to $0.

Others might break all-time highs in the next cycle.

How can you know which one is which?

Here's a framework for evaluating possible bear market winners & losers:
Today I'll be covering:

• My framework for evaluating tokens
• Projects I'm looking at
• Buying best practices

Here's your Edge 🗡️
It's time for a portfolio cleanse.

(If you haven't done one already)

Even though some of your tokens are down, they can go down even further because of the macro environment.

Use this framework to figure out if your tokens are worth keeping or dumping.
Read 27 tweets
May 24
20 Tips to Survive the Crypto Bear Market:
Last week, I asked OGs for advice on how to survive the bear market.

I curated my favorites (out of 1300+)

Some of the pieces of advice contradict each other.

I want to show you different perspectives to help you build your own investment theses.

/1 Develop a Skill

@Darrenlautf recommends learning to code.

He runs a job board and sees that 90% of the demand is for developers.

Learn and Build - don't just sit around waiting for the next few years

It's 2022, and you can learn for free online

Read 24 tweets
May 19
Stablecoins are NOT created equal.

Here's a breakdown of how different stablecoins work:

(+my rankings and recommendations)
Here's What We'll Cover:

• What are Stablecoins
• Why use Stablecoins?
• The types of Stablecoins
• The risks involved
• My recommendations

Here's your edge 🗡️
What are Stablecoins?

They are a type of token whose value is designed to be pegged (tied) to another asset.

Most stable coins are pegged to the USD.

Typically, 1 stable coin = $1 USD.

They are the bridge between the fiat world and the crypto world.
Read 35 tweets
May 12
My Lessons From the Terra Luna Collapse:
First, this isn't an "I told you so" thread.

• I had 5% of my portfolio in Luna.
• I had 15% of my portfolio in $UST.

I exited last night at a loss.

I'm sharing how I'm updating my Crypto investment thesis based on the events of the past few days.
Avoid the Cult of Personalities

These leaders become popular through charisma, strength, and meme mastery.

Skyrocketing token prices and solid partnerships give them even more authority.

The problem?

When then success leads to narcissism and egomania.
Read 21 tweets
May 5
Masterminds are a superpower in Crypto

(and you're at a disadvantage if you're not in any).

Here's a step-by-step guide to creating your own:
What's a Mastermind?

It's a group of people who give each other advice and support around a specific topic.

I think of forming a mastermind like picking people to join my Avengers.

You're turning Crypto from a single-player game to a team-based game.
Crypto's too big for any single person to stay on top of everything.

And we all have biases.

Having a mastermind means it's easier to spot flaws in your thinking and investment ideas.

"If you want to fast, go alone. If you want to go far, go together" - African Proverb
Read 23 tweets

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