Taking profits either makes or breaks you
PLUS: How to evaluate crypto projects & Why aren't you involved in a DAO yet?
New to crypto? Cryptocurrency Basics is a 9 minute video that serves as a great intro to the world of crypto. It’s part of my Crypto and Web3 for Absolute Beginners course.
It doesn't matter how much money you invest. What matters is that you're taking steps to improve your future (and, more importantly, owning a piece of something valuable such as BTC or ETH).
In this issue:
NITRO! (3 can’t-miss things)
Taking profits either makes or breaks you
How to evaluate crypto projects
Why aren’t you involved in a DAO yet?
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NITRO!
Taking profits either makes or breaks you
Paper gains aren’t gains. In fact, gains aren’t really gains until they’re locked in (taken out).
It’s great when you see some green in your charts. It’s better when you see some stables in your wallet and know they are real, true, actual profit.
Sasha coming through with the reminder we all need to hear:
Until you take some profits… it’s all just theory.
How to evaluate crypto projects
If you’re a crypto beginner: stick to Bitcoin and Ethereum. If you want to dig deeper then here’s a high-level overview of how this angel investor assesses crypto projects before investing (ofc I covered doing your own research in my Crypto and Web3 for Absolute Beginners Course but I love seeing someone else’s process):
Founder/team references: ask yourself if you would work with this person (if yes, that’s bullish)
Opportunity size: think about the market size today and theorize how big it could become
Use the product: using the product will crystallize the use case, value prop and product offering
Customer calls: talk to users and leverage Discord asking how people heard about the product, how it compares to alternatives, etc?
Traction analysis: a lot of web3 project data is available on-chain and accessible via products like Dune Analytics
Ask, “Why now?”: Timing is key and many projects have been tried before… what’s different now?
Community review: what does the community sentiment look like?
Tokens and value accrual: take time to understand the high-level token mechanics
Competitive landscaping: who are the top competitors and how is this project different?
Returns analysis: make sure the math makes sense
Be willing the skip the above steps: be smart with your time and prioritize since some decisions need to be made faster than you’d like
Why aren’t you involved in a DAO yet?
This week I’ve started getting more involved in a DAO. I’ve started investing a bit of my (very limited) time. I’ve literally just barely dipped my toes in and I’m finding it exhilarating.
From my (non-core team) experience with ConstitutionDAO I learned that DAOs can dream (and do) big things. From closer interaction with core members of a DAO currently dreaming something very big indeed (maybe I’ll share more details in the future) I can say:
It’s a great way to meet interesting, like-minded people
It truly is amazing to see what a group of people can do when they’re unleashed and properly incentivized
I thrive on creativity and this DAO landscape… it’s a hotbed for creativity (solving new kinds of problems and bringing completely new things to life)
It’s fun
How did I get involved? I saw this thing fire up in the news, I went to the website and I reached out. A few days later someone got in touch and boom. I’m making friends and making history all at the same time.
If you see a DAO out there that resonates with you I’d encourage you to reach out and try to get involved. They’ll be happy for your help and I think it could definitely change your life for the better.
Remember: you don’t need anyone’s permission (but your own). Just reach out! I’m positive that the benefits will be there for you as long as you find something you enjoy being a part of.
See you next time (and don’t forget to check out Jasper — if you like it (I love it!) and signup using my link it helps support this podcast since, ya know, we don’t shove sponsors in your face like other newsletters)!