The 5 stages of crypto
Plus finding the next blue-chip NFT project and what really matters in web3
New here? Cryptocurrency Basics is a 9 minute video that serves as a great intro to the world of crypto.
As we roll along into our third issue I only hope that you haven’t become a crypto magician (a pro at making your investments disappear). Here are 3 things from the land of crypto that don’t deserve to be flying under the radar.
In this issue:
The 5 stages of crypto
Finding the next blue-chip NFT project
What really matters in web3
The 5 stages of crypto
Markets like to go up and markets have cycles. Both are true. Until now the reference I always gave people who were trying to understand market cycles for the first time was to look up the Wall Street Cheat Sheet Psychology of a Market Cycle PDF (which is worth a Google search if you’ve never encountered it before because it maps to crypto nicely).
Today I ran into a simple framework that’s a bit easier to grasp right out of gate… the idea that the crypto market has the following 5 stages:
Accumulation
Greed (aka Bullish Cycle)
Distribution
Fear (aka Bearish Cycle)
Repeat
It pairs nicely with Warren Buffets quote which states that the way to get rich is to be fearful when others are greedy and greedy when others are fearful.
h/t @fluentinfinance
Finding the next blue-chip NFT project
Imitation may be the sincerest form of flattery but it sure isn’t worth much in the NFT space (hence LooksRare). Originality, on the other hand, is everything and I’ve been seeing the same sentiment getting passed along from multiple people lately talking about how to spot the next big NFT investment. Two examples:
Investing in NFTs, like investing in tokens, should not be a purely emotional decision based on FOMO. There’s a big difference in owning a BAYC and a PHAYC. The next blue-chip NFT will push the boundaries somehow… not retrace them. Something to keep in mind.
What really matters in web3
I’ve really come to love reading Packy McCormick’s Not Boring newsletter. They can be very wordy (which is why this newsletter exists — to help you find the needles in the crypto haystack) but thought provoking to say the least. Buried deep within the most recent issue on web3 was this gem which comes in response to “web3” criticisms from Jack Dorsey, Moxie and Professor Galloway among others:
“It’s not about whether any particular platform is centralized, or who owns how much of what. It’s about the fact that the data is open, that builders and users have choice, and that they’ll choose the platforms that extract less and give them more ownership.”
Remember this the next time you run into the centralization vs decentralization argument put forth by the anti-web3 coalition.
That’s it for today. Comments are open so drop your thoughts using the button below!
See you tomorrow. Can’t wait!
By the way: if you haven’t signed up for our crypto course yet there’s a free preview right here.