Author: Route 2 FI
Compiled by: Deep Tide TechFlow
Some advice for those with insufficient funds who are just entering the cryptocurrency field.
The current market is booming, and with Bitcoin hitting all-time highs, it’s easy for people to take risks beyond normal levels due to fear of missing out (FOMO).
First, ask yourself what you are good at. In this industry, perhaps the most important skill is perseverance. Even if you are not particularly smart but are willing to put in 12 to 14 hours a day, I think you have an advantage. Therefore, for those with insufficient funds, time is your most important asset. Be willing to learn and improve yourself. So, what areas should you focus on? Content writing, trading on centralized exchanges (CEX), research, Memecoin trading, NFTs (non-fungible tokens), YouTube, newsletters, Telegram, podcasts, etc. There are many options.
If you enjoy writing, consider publishing content on Twitter, newsletters, or Telegram. If you prefer verbal expression, YouTube or podcasts might be more suitable for you. Good with numbers and enjoy observing market dynamics? Then focus on improving your trading skills and connect with those talented traders you admire on Twitter. You might be surprised to find that many excellent traders on Twitter have only 500 to 2000 followers; they are not necessarily big names like Hsaka, ENAS, or Nachi.
After finding your strengths, ask yourself: 'Are my skills enough to get me paid?'
If not → Then go look for internship opportunities. This could be at a crypto company, startup, venture capital firm, or family office, or assisting KOLs with various tasks, or helping traders you admire complete tasks (if you perform well, they might share some insider information with you). Internships usually pay little, so focus on gaining experience and wisdom that could be useful in the future.
If so → Are you choosing to achieve profits yourself, or applying for a job at a crypto company?
Achieving profits on your own can be a difficult and long road that requires significant investment and dedication. But if you are confident in your abilities and believe that long-term gains could far exceed a regular job, I recommend trying this path.
Applying for a job at a crypto company is a relatively safe choice, as you can get a fixed salary (usually higher than traditional 9-to-5 jobs). Additionally, who says you can't focus on your own projects outside of work? Although you may not have enough time to go all in, a steady paycheck can allow you to focus on side projects with peace of mind. Here's a little advice: Many people might think, 'The bull market is here; I need to focus on trading and have no time to find a job.' In fact, it is easier to find a job during a bull market, and if you have almost no capital, why should you spend your energy on trading?
If Ethereum's price quadruples, then your current $1000 will become $4000. You can easily earn such an amount through a week or two of entry-level work. Most people will not become the kind of winners who can turn $1k into $1m with Meme coins. If you truly have that ability, you wouldn’t even need to consider looking for a job.
If you are applying for a job, you should choose a company you respect and hope to receive equity or token compensation from. If your financial situation allows, you can request as much of your salary as possible to be paid in tokens (provided you have confidence in the company). If the company succeeds, you might reap substantial rewards. Think of that 16-year-old from EigenLayer (@gajesh), who is a great example.
Twitter account: In this industry, the best way to connect with top people is to increase your exposure on Twitter. Write down topics you're interested in, content you want to delve into, post some light-hearted and humorous posts, and interact more with those you admire. Tweet every day, even if it’s just to say 'Good morning (gm)'. Send people some advice through DMs without expecting anything in return. This is a way to build friendships, and who knows, maybe there will be opportunities for collaboration in the future. Just stay friendly, helpful, and actively engaged every day.
In the crypto industry, Twitter is like your resume. You don't need LinkedIn; if you're applying for a job, your best resume is the content you create on Twitter. Not only that, recruiters often look for influential people on Twitter and offer various opportunities. This could include collaborations, paid projects, referral links, funded trading accounts, and even opportunities for angel investments and KOL rounds when your influence becomes significant enough. Regarding collaborations or paid content: as long as you disclose relevant information, I think it's acceptable. In this cycle, we've seen some behaviors accepted (though I find it strange): someone just shared a contract address (CA) for a Memecoin and said it's a must-buy bargain. Don't do that. It's better to share these contract addresses with friends in group chats.
For traders or those aspiring to be traders: This may be the most challenging path, but if you have the capability and unique advantages, it can also be the most profitable. You need to find your own trading style. You cannot blindly follow traditional trading rules and expect to outperform others. You must find a unique and effective way to do what others have not done. A top trader on Crypto Twitter (CT) once said he had never used Tradingview. I share this because many people rely on excessive indicators and fictitious trendlines, which are actually unnecessary.
The cryptocurrency market has many inefficiencies that you can take advantage of. For example, when Andre Cronje announced on Twitter in March 2022 that he would shift his focus away from DeFi, the market reacted slowly, with tokens like FTM and YFI starting to drop at least 10-15 minutes later. In hindsight, this was one of the easiest short trades I’ve ever made on Fantom. For me, it was just a short-term play, but given the market's poor performance afterward, I should have held longer. My point is that the cryptocurrency market is not as efficient as the stock market. When news breaks in the stock market, prices often reflect it within seconds.
Cryptocurrency has attracted a large number of retail investors, and frankly, many of them are not professionals. I mean those who casually buy Dogecoin and expect it to skyrocket. There is a clear distinction between the smart people on Crypto Twitter (CT) and those who rely on TikTok influencers or BitBoy for investment advice. By the way, I don't consider myself one of the smart ones. I'm talking about people like GCR, Cobie, Light, and so on; I could probably name over 50.
For those actively tracking cryptocurrency trends and seeking excess returns, this is indeed an advantage. As the cryptocurrency market matures, I expect it to become more efficient, making trading more difficult in the future. It’s essential to have probabilistic thinking, common sense, self-awareness, resilience, patience, and the ability to delay gratification. Additionally, having a compulsive personality or mild autism traits may actually be advantageous. Also remember, the market is cyclical. The market trends only 20% of the time and oscillates in a range 80% of the time, which is crucial because these two situations require completely different strategies.
Oh, if you think you're getting an edge in trading, I have bad news for you, my friend. You might still be in the early stages.
If you want to level up to Stage E, you can check this list and read this article.
In trading, don't expect someone to guide you throughout the process. We often talk about profits, but in reality, you are taking funds from others. When you go long on BTC and make a profit, it means another trader shorting $BTC is losing money. Therefore, trading is essentially a player versus player (PvP) competition.
You may receive a lot of advice on platforms like Twitter, Discord, Telegram, etc. But sometimes it's necessary to reflect on their motives for sharing information. Are they doing it out of goodwill, or do they want you to become their bag holder due to fear of missing out (FOMO)? For lower market cap coins, you should be even more cautious about advice from others, as their prices can be volatile.
That said, you should learn from more accomplished traders.
Good luck.
