Lecture Notes: Crypto Investment Strategies

Introduction

• Focus of the presentation: methods to find and invest in microcap coins with potential for high returns.
• Warning about the speculative nature and high risk involved in such investments.
• Mention of Trump’s influence on the crypto market and general market conditions.

Key Concepts

Microcap Coins and Market Movements

• Microcap coins have the potential to offer high returns (5x, 10x, 20x gains) but come with significant risk.
• Understanding the market cycle:
  • Bitcoin typically moves first, followed by Ethereum and other large altcoins, and finally microcaps.
• Narratives drive the market: Current hot narratives include AI, gaming, meme coins, and RWA (real-world assets).

Investment Strategy

• Timing and Research:
  • Be ahead of the herd by predicting future popular narratives and coins.
  • Utilize research methods such as following market trends, social media indicators, and understanding past market cycles.
• Little Brother Trades:
  • Invest in infrastructure or related sectors or coins that typically follow the success of a major coin or narrative.
• Market Caps and FDV:
  • Look for coins with good market cap to FDV (Fully Diluted Valuation) ratios to avoid being dumped on.

Risk Management

• Take Profits Regularly:
  • Always secure initial investment and part of the profits regularly to avoid catastrophic losses.
• Understand Risks:
  • Majority of crypto investors lose money, especially new entrants.
  • Invest only money you can afford to lose.

Finding Coins

• Use Social Media and Networks:
  • Follow influencers (especially smaller ones) to catch trends early.
  • Participate in niche groups or communities for early alerts.
• Launchpads: Use platforms like Cetify to find and invest in new projects.

Selling Strategy

• Avoid FOMO Buying:
  • Don't buy coins immediately after they launch without observing market behavior.
• Profit Taking:
  • Gradually take out profits and reinvest a portion into new opportunities.

Closing Thoughts

• The market is speculative and akin to a Ponzi scheme; understand this when trading.
• Stay informed via social media to anticipate where the market is heading.
• Despite the speculative nature, crypto offers opportunities for substantial returns if approached wisely.