The crypto market is a stock market.

The principle of selecting tokens for the portfolio is exactly the same as the principle of selecting company stocks.

There are stocks of Apple, Starbucks, Netflix, Pepsi, and there are stocks of conditional enthusiast companies like Tesla, SpaceX, etc. At the same time, there are stocks of unknowns that are just breaking through, and there is no understanding of whether the company will close tomorrow or attract investments and soar.

In the crypto market, the same is happening; there are XRP, BTC, ETH, what we are used to calling fundamentals, and there are APT, SUI, ARB, companies that have technology, a development team, and investors behind them. Young and potentially interesting for investments.

And there is what I referred to as the stock market's 'unknowns'; we simply call them 'shitcoins'

In the stock market, there is the S&P 500 index; this is for those who don’t know, a selection of the 500 best companies selected by certain metrics and brought together. An investor who does not want to understand the intricacies of the market and analyze individual companies can simply buy the index for financial preservation and a small profit and sleep peacefully (as much as that is possible). In the crypto market, there is also a conditional index analogous to the S&P 500; this is the top 10 coins by market capitalization. By purchasing them in a bear market stage and selling in a bull market, a person can also relatively peacefully sleep (the volatility is naturally higher than in the stock market).

And just as if a person is willing to delve into the topic, they become interested in obtaining greater profit in the long run, but greater profit means higher risks and more complex analytics.

Analytics in the crypto market is no different from analytics in the stock market; we also select projects, use the same metrics, and ask ourselves the same questions as when choosing stocks.

1 what does this project do

2 how can it make users' lives easier

3 why should it be purchased

4 who is the development team

5 who are the early investors

6 how serious is the approach to the project by the team

7 how well is the economy structured within the project

8 what is the roadmap and plans for the future

9 will the points specified in the roadmap be fulfilled

10 is the team engaged in marketing

And so on.

Based on this, we make a decision to purchase a particular project (coin)

And weighing the risks and expected profits, we buy, expect growth, and sell.

To succeed in any financial market, it is first necessary to understand what diversification, money management, and risk management are. Understanding these fundamentals allows us to correctly build our portfolio without fearing local drawdowns and not losing everything on the first pump (I have written many posts about analytics - read them)

The dumbest thing any investor can do is to put all their eggs in one basket, or as we say, 'go all in on one project'; by doing so, we immediately stop being investors and become gamblers (casino players).

Starting your activities in crypto or any financial market, it is important to realize what I wrote above and add to this the understanding that there are no panaceas and 100% probabilities; there is not a single project in any financial market that will definitely succeed - this is important to understand!!

Next about 'if Bitcoin scams, the market will scam' - no, it doesn't work that way. To assert this means to claim that if Coca-Cola scams tomorrow, all soda producers will scam along with it 😀

The scam of Bitcoin will only lead to a local drawdown; yes, it will be a bigger drawdown than during the FTX crash, but it will only be a drawdown. Only the hamsters and participants who did not build their portfolios in accordance with the rules will survive in the market. For everyone else, it will be an opportunity to increase their position and gain new benefits. This will also benefit other projects (of course, we are not talking about shitcoins) since the death of a giant after the panic always leads to increased competition and a battle to take the giant's place. Crypto will no longer become a scam as a phenomenon; we just have to accept this. The world has shown a new way of moving finances, a new way of interacting with money, and a new financial market; it has already taken its place among ordinary users, investors, funds, and even states; the crypto market has long ceased to be just Bitcoin.