There isn't that much Alpha in the market: 17 truths about the cryptocurrency market

Here are 17 truths about the cryptocurrency market that you should know, which can help you better understand the market and find Alpha.

This article is authorized to be reprinted from DeepTech TechFlow, written by Covduk, translated by TechFlow intern, original article here.

1. Markets don't repeat but they do rhyme.

The old narrative is gone, the new narrative is here, stop chasing the old, start looking for the new.

2. Retail investors are at the bottom of the food chain:

• Project teams
• Venture capitalists
• Key opinion leaders
• You

Cryptocurrency is like the Wild West, people are out hunting, learn how to find and exploit this information asymmetry.

3. No one knows what the future holds

Relying on guru teachers to make you money is a fairy tale. You should develop your own system and trade accordingly; otherwise, surviving in a bear market will be tough.

4. Cryptocurrencies have no script

We tend to trust in-depth indicators and valuation models, which can be helpful if used correctly, but they don't determine the future of cryptocurrencies.

5. Meme is everything

We've seen too many cases where communities like Doge, Goblintownwtf, etc., gather around memes; do not underestimate this culture.

6. Regulation is inevitable

Regulation is coming, and it might be a good thing for cryptocurrencies.

7. The illusion of Alpha

People spend a lot of time chasing Alpha; the more you do, the more wrong you become, as the market doesn't offer that much Alpha waiting to be discovered.

8. Cryptocurrencies are too broad for one person

There's a lot to do and learn. Trying to master all the knowledge is impossible, so team up with others and focus on what you excel at.

9. Nothing is risk-free

The risk in cryptocurrencies is significant. Most projects won't succeed, understand where the value comes from, and conduct proper risk assessments before investing.

10. Cryptocurrencies are highly correlated

Altcoins, ETH, and BTC mostly move in the same direction, with BTC usually leading, so when choosing altcoins, it's good to keep an eye on BTC.

11. There are many tools to assist you

Learn how to use them. If you know how to use tools like Nansen, Dune, Tokensniffer, Debank, and Etherscan, they can provide tremendous value.

12. Pay attention to how others react to the market

People spend a lot of time trying to figure out what the market is saying but overlook how investors perceive the market.

13. There are no good or bad investors/VCs

They both accelerate market collapses and drive market growth. Blaming them for everything is meaningless.

14. Don't blindly trust the views of VCs, KOLs, and OGs

They can also be wrong; don't be blinded by their aura, they are ordinary people too, and you can also become one of them.

15. We are still early participants in this market

Cryptocurrencies are still small, and most people still think we're playing with virtual currencies. The bear market removes half the noise, but you're still here; you'll have many opportunities.

16. The bear market shows that most underlying technologies are functioning well

Technology comes first, improvements and optimizations are coming.

17. Cryptocurrency promotion channels are not limited to Twitter

Many believe that cryptocurrencies are hottest on Twitter, but communities also exist on platforms like YouTube, Reddit, etc.; no one is the smartest, remember to pay attention to others' ideas.