RESEARCH SKILLS IN CRYPTO

RESEARCH SKILLS IN CRYPTO P1

I. PREPARATION

The crypto space is very large and it is difficult for one person to cover every niche and every change every day. Therefore, before starting research, you should determine for yourself that:

a) Find projects and identify research projects: Search according to trends, according to information, according to new market narratives,...

b) Which field is the project about to research: DeFi, GameFi, Bridge, Layer0, Layer1, Layer2, Lending & Borrowing, NFTs...

c) What is the development stage of the project?

 No products yet

 Testnet

 There is a product but no token yet

 Already have a product and issued tokens

...

Then, depending on each stage and area in which the project develops, apply the following research skills and go deeper into analysis.

1. RESEARCH SKILLS TRAINING DISTRIBUTION FRAMEWORK

We will break down the research training process into 4 different parts:

 Understand market structure

 Crypto Research skills

 Profit evaluation skills

 Understand the factors affecting Crypto (Macro/microeconomics; Financial history; News; War;...)

A) UNDERSTANDING MARKET STRUCTURE

Here, understanding the market structure means understanding the technical layers of crypto, how this market is created and how it operates.

We must first learn to understand what we are investing in. Once you understand it, you can see where its value lies, and then, depending on your experience, you can grasp and evaluate the opportunities for yourself. Depending on each level, you need to prepare the following knowledge:

A.1: For newbies

• Terminology in Crypto

• Basic applications of Crypto • How Bitcoin works

• Distinguish between hot wallets and cold wallets

• How Etherem was born and operates • Distinguish: PoS and PoW

• Notes on security in crypto • Distinguishing CEX from DEX

• Practical use: Hot wallet (Non-custodial wallet like Metamask); CEX exchange (Like Binance; OKX); DEX (Such as Slingshot, Matcha, Uniswap)

A.2: Intermediate knowledge

• Learn about Yield Farming

• Basic tokenomics

• Layer 0 / Layer 1 / Layer 2

• Deep understanding of popular Layer1: Ethereum, Solana, Avalanche, NEAR, Atom...

• What is Impermanence Loss? • What is EVM?

• What is Slippage?

• What is staking?

• Infrastructure: Bridge; Oracle; DeFi; GameFi...

• What is NFT?

A.3: Advanced knowledge

• What is MEV (Maximum Extracted Value) and how does MEV work? • Advanced Tokenomics

• What is DAO? DAO structure and applications?

• Different programming languages: Solidity, Rust, Move,...

• Understand the operating structure of the market maker (MM - Market Maker) • What is Ethereum Merge?

• Web3 vs Web2

• Updated daily according to market changes

Please read this knowledge first to understand the market structure. Along with the process of reading knowledge, you should practice using products in the market to understand deeply and understand the true nature.

The best practical way to learn is to participate in retroactive activities, bounty, feedback... because they both bring the opportunity to experience and also bring the opportunity to make money for you.

B) RESEARCH CRYPTO SKILLS

Specific research skills apply specifically to the crypto market that you need to practice after being equipped with knowledge of market structure. Basically, we divide research skills in crypto into 3 main categories:

 FA (Fundamental Analysis) - Fundamental analysis: Analysis based on the fundamentals of a project such as use cases, adoption & growth process, revenue, tokenomics, supply and demand, team developers, partners, communities, investors, etc.

 TA (Technical Analysis) - Technical Analysis: Analysis based on looking at chart patterns, technical indicators, support and resistance levels, moving averages, rsi index, etc.

 On-chain Analysis - On-chain analysis: Data in the crypto market is stored on-chain and completely public for everyone. Knowing how to analyze on-chain can give you a huge advantage over the rest. For example, checking capitalization, checking whale wallets, monitoring market makers, monitoring liquidity, abnormal trading volume of a token, looking carefully to know who is buying, at what stage (seed, private,...), how much to buy, signs of discharge or collection, etc. From there, deduce the meaning of each on-chain behavior that affects the price appreciation potential of a token.

However, to expand further, you need to have the following factors to upgrade your research skills:

 Experience and actual combat experience: The more you experience, the more experience you have? At a certain level, you will be able to "feel" the market.

 Be sensitive to stories that lead the market: Narrative - stories that create trends → GameFi, DeFi, Web3,... are examples of narratives. If we want to be sharp, it also depends on whether our experience with the market is long enough and mature enough or not. Depending on the niche you operate in, very few people are ""good" at this skill.

 Know how to use supporting tools: Using the right supporting tools helps save time, increase market coverage and greatly increase your research efficiency. There are many useful free and paid tools.

 Having connections with many people in the industry: You can call it a skill or an advantage, this part goes without saying, "the best relationship", guys. Expand your connections with other people in the field, even better if you go to work for a crypto company.

C) PROFIT EVALUATION SKILLS

Not every good project will bring you profit. You must know the project's valuation to determine the project's profitability. Basically, we will need to practice the following skills to upgrade our ability to evaluate and profit from a project or token:

 Know how to read tokenomics parameters: Market Cap; Fully Dilluted Value (FDV); Circulating Supply; Total Supply; Vesting...Compare with leading projects in the same segment to evaluate pricing standards. From there, determine the profit taking point.

 Learn about trading psychology & emotional management (this is just calling it dangerous): Eliminate fomo in your thinking to have a less "maxi" view of the project, then when planning The price is also not "illusory".

 Build a reasonable investment portfolio for easy tracking: Creating lists to track potential projects will help you save time when looking back later. The list can be divided into segments and by project stage

Projects or divided by market cap,... New projects that don't have tokens yet, observe the development team, community,... If you already have tokens, observe performance, how MM drives prices,...

 Risk management strategy: Prepare risk scenarios for each project segment, it helps you have a more comprehensive view of an investment portfolio. In general, always identify risks & rewards from there to have a reasonable investment allocation to help manage risks more effectively.

D) UNDERSTAND THE FACTORS AFFECTING CRYPTO

This is clear, the more deeply and broadly we understand many different fields, the more perspectives we will have and the more objective our judgments will be. But how can we know everything, right? So we will select factors that are relevant and have an impact on the crypto market:

 Can learn more about economics (macro/micro)

 History and financial operations

 Marketing/Branding/Business Model

 Political news, finance, economic indicators,...

 Learn how FUD works: FUD is not necessarily bad news but it is an effective price-making tool for market makers. Sometimes FUD is real to collapse, sometimes FUD is fake to get rid of goods -> collect cheap prices,...