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Crypto Trading

Trading narratives vs momentum.

Crypto tends to be driven by memes over fundamentals and hard work.

danger

Not advice of any kind

Attachments​

Context​

Analysis​

Qualitative Analysis​

Qualitative analysis is the process of evaluating a company's business model, management team, and competitive position. It involves assessing the company's strengths and weaknesses, as well as the opportunities and threats it faces in the market.

Quantitative Analysis​

Quantitative analysis involves evaluating a company's financial performance and valuation metrics. It involves analyzing the company's financial statements, such as its income statement, balance sheet, and cash flow statement, as well as calculating key financial ratios.

What do the key metrics indicate?

  • Discounted Cashflow
  • Developer Ecosystem

Technical Analysis​

Technical analysis involves analyzing a company's stock price and trading volume to identify patterns and trends that can help predict future price movements. It involves using charts and technical indicators to identify potential buy and sell signals.

Does the timing seem right?

  • Analysing charts
  • Trends

Memetics and Flows​

Memetics and flows play a crucial role in crypto trading due to the unique nature of the cryptocurrency market. Why Memetics and Flows Matter:

  1. Market sentiment: Memes and flows can provide insights into investor psychology.
  2. Price prediction: Understanding flows can help anticipate price movements.
  3. Risk management: Awareness of meme-driven volatility aids in risk assessment.
  4. Opportunity identification: Recognizing emerging memes early can lead to profitable trades.

Memetics​

Memetics refers to the spread of ideas and cultural phenomena through social networks. In crypto, memes often drive market sentiment and can significantly impact prices. Meme coins like Dogecoin and Shiba Inu are prime examples of how internet culture can influence crypto markets.

Key aspects of memetics in crypto:

  1. Viral marketing: Memes spread rapidly on social media, attracting new investors.
  2. Community building: Memes foster a sense of belonging among crypto enthusiasts.
  3. Price volatility: Meme-driven hype can cause dramatic price swings.

Flows​

Flows refer to the movement of money in and out of cryptocurrencies. This includes exchange inflows/outflows, whale movements, and institutional investments.

Important flow metrics:

  1. Exchange net flows: Indicates whether investors are buying (outflows) or selling (inflows).
  2. Whale transactions: Large movements can signal upcoming market shifts.
  3. Institutional flows: Indicates professional investor sentiment.

What is the most important question you could ask yourself to make progress?