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Crypto researcher CovDuk: Ten Commandments to Become a Top Alpha Hunter

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Crypto researcher CovDuk: Ten Commandments to Become a Top Alpha Hunter

Cryptocurrency researcher CovDuk posted a tutorial on Twitter titled "How to Become a Top Alpha Hunter," claiming to have incorporated years of accumulated experience into the article, detailing the steps to become a professional investor.

Original post link: https://twitter.com/Cov_duk/status/1510501765166166019

1. Please Read the Whitepaper

CovDuk emphasizes, "Knowledge is king." Investors must read the whitepaper, which is not always as daunting as it seems. The whitepaper is the most accurate source of information, directly from the project founders' minds.

Many people do not read whitepapers, leading to a lack of or receiving incorrect project information. Reading the whitepaper will give you an advantage.

2. Observe VC Investment Lists

Because venture capitalists have information asymmetry advantages and receive information earlier, companies like Dragonfly, A16z, Multicoin, among others, have successful experiences. Observe what they have invested in.

3. Check Job Openings

A project that is ready to rise and well-funded may be actively hiring. A sudden influx of job openings is usually a good sign.

4. Evaluate the Project

The crypto space is filled with hype, so it is essential to assess whether the team can execute. CovDuk recommends the research article "Assessing Protocol Feasibility! How to Evaluate Whether the Protocol Vision Can Be Achieved? A Detailed Review of the Wonderland Scandal" by researcher The DeFi Edge.

5. Data

Understand metrics such as TVL, trading volume, development activities, the number of unique wallets, daily activities, etc. These data points signify a project's success or failure.

6. Learn Etherscan

CovDuk emphasizes the need to become a proficient user of Etherscan because almost everything in the crypto space happens on the chain. Etherscan allows you to look up wallet addresses, transaction records, smart contracts, etc.

He recommends the Binance Academy article "What is Etherscan and How to Use It?"

7. GitHub

Crypto projects typically have open-source code. Investors can check development activities and update frequencies on GitHub to identify scams, rug pulls, and bad projects.

A sudden drop in activity and update frequency indicates a potential rug pull. Additionally, sometimes you can find a project's latest announcements and updates on GitHub.

8. Useful Tools

  • Token Terminal: Check key indicators such as project revenue, market ratios, TVL, etc.
  • CypherHunter: Look up project information, team members, VCs, investment portfolios, etc., which is very useful for finding new projects, identifying investors, and tracking smart money.
  • Dune Analytics: Users can build and share visual charts to track key data. For example, this is a chart tracking Azuki data.
  • Nansen: Offers a wide range of functions, including real-time analysis and strategy updates, providing precise and practical data.
  • Discord: It's essential to navigate through the Discord trenches.

CovDuk emphasizes:

This is a community hub for obtaining and updating information. You can observe a lot of project information through official communications and the power of the community. For example, will the official team promptly address challenging issues? Is the community active? When you spend a lot of time on Discord, you can quickly assess the above aspects.

9. Write Something

CovDuk continues to stress the importance of writing. The connection between writing and gaining Alpha lies in:

Writing extensively also entails extensive reading, where reading is key to obtaining Alpha. When you publish many articles, you naturally build connections with many people. The best way to gain Alpha is to know other smart individuals. Additionally, some projects may ask you to write articles. While many of these may be junk, it can also expose you to some reliable projects.

10. Manage Your Twitter Follow List

CovDuk urges the effective use of Twitter's list management feature to avoid meaningless noise and carefully select who to follow. Follow news aggregation platforms like The Milk Road, Bankless, etc.

He concludes:

Effort equals reward. Sharing Alpha information casually will increase your credibility, making it easier for you to access Alpha information and creating a positive cycle. All you need to do next is research, allocate the correct asset proportions, and build your portfolio.

CovDuk also recommends many top crypto individuals he believes in and has organized his past tutorial articles on Notion for those interested to view.