Establishing advanced knowledge of the crypto industry: Demystifying secondary funds and reducing KOL screening

Original author: ZTZZ ฿ (X: @ZTZZBTC)

Secondary Fund

1. The vast majority of secondary funds only make money in a bull market, and it is considered good if they do not lose all their money in a bear market;

2. Please do not invest in any secondary funds of traders who are not native to the cryptocurrency circle . Do not invest in any A-share, Hong Kong-share, and US-share futures traders who come to the cryptocurrency circle to set up secondary funds;

3. Based on my personal experience, a good secondary fund’s trading team should not exceed 3 people;

4. I personally do not recommend retail investors to invest in secondary funds, because it is difficult for you to find a good one;

5. If you must invest, please remember that the yields of secondary funds can be made up, and the actual trading can be fake. Talk less with marketers and more with traders. The essence of your investment in secondary funds is to invest in the trading team.

KOL

1. Please understand that people who are mainly KOLs basically don’t need to read it. People who have their own jobs in the cryptocurrency circle and are willing to share and become KOLs can read it. KOLs who are at the top of the cryptocurrency industry and output methodology should be read carefully;

2. Do subtraction, not addition, for KOLs. Gradually screen the KOLs you follow and figure out how they make money. The more they can make money from more ecological positions, the more valuable they will be, and the less likely they will cut you off easily.

3. There is a kind of KOL who specializes in a certain track, such as NFT, DEFI, inscriptions, and Lumao. Please pay attention to KOLs who have made a lot of money in these tracks, have their own methodology and have been outputting. This type of KOL is generally the leader among retail investors, but because of strong path dependence, they are not good at other tracks. If you can feel the rotation of sectors, you can make good use of the methodology and information provided by these KOLs;

4. For secondary trading KOLs, you only need to know three or five of them. It is recommended to maintain a friendly relationship with one or two of them offline. When you have a certain trading ability, your one or two trader friends know you very well, and they will be honest with you and remind you at critical moments.

5. Don’t trust those KOLs who shout and yell at you on Twitter and call you their buddy! Don’t trust those KOLs who brag about being rich or having a good family background! Don’t believe the earnings screenshots or insider information of these KOLs!

Exchanges

1. The ecosystems of leading exchanges and small exchanges are completely different;

2. The primary goal of an exchange is to increase user growth, followed by making money;

3. I always recommend newcomers to the cryptocurrency world to learn from large exchanges;

4. Large exchanges and VCs that incubate their own projects are the Whampoa Military Academy for cryptocurrency talent;

5. Never think that big exchanges will not run away or do evil.

VC

1. Top VCs and small VCs are two completely different creatures. You can ignore any VC that has not experienced a complete bull and bear market. In every bull market, many new VCs are established, and then they become very powerful, and then lose their pants. They don’t even have a complete investment logic, but they generally think they have it.

2. VC’s ability to make money mainly comes from primary investment, but the profit margin of primary investment in the cryptocurrency circle has gradually declined with the bull market cycle. Most VCs have not made money this year;

3. If you have the opportunity to chat with VCs, it will be more helpful to listen to them talk about the junk projects they failed to invest in;

4. Drinking and chatting with VC bosses more often will help you grow in the industry the most;

5. The correct way to learn about VCs is: 1. Join them. 2. Never read their research reports and shout orders, but systematically look at what a VC is investing in, what the logic is, how the project is promoted, and the online performance, to judge whether the VC makes money and whether the project is successful. You need to track the entire chain and think independently.

technology

1. The technology of most projects is shit, including some technology projects that retail investors hype up. If you want to understand the technology of a certain project in the cryptocurrency circle, you need to spend a lot of time learning the basics and then hang out with the geeks in the cryptocurrency circle;

2. Technology itself can also be marketed;

3. Technology is not that important in a project, but it determines the upper limit of the project;

4. Don’t listen to the Internet technicians talking about the technology of the cryptocurrency circle. The blockchain technology circle is completely separated from them. Most of these people are very inexperienced and think highly of themselves.

5. Never deify the cryptocurrency geeks, and don’t follow them to buy coins randomly, but please respect them!

marketing

1. Project parties that do not understand marketing will definitely fail;

2. If the operation director of a project comes from a traditional large enterprise or the Internet, and has no experience in the cryptocurrency circle, the project is likely to fail. On the contrary, if the operation director of a project used to be involved in pyramid schemes, you should pay special attention to it;

3. Most project owners’ marketing is terrible. A complete project operation network includes: operation framework, brand building, community operation, crisis public relations, new media operation, and channel maintenance;

4. A good operations director will have a lot of operational resources in the circle. He will update his marketing network every bull market to ensure that his investment channels are effective and that his marketing methods keep up with the times. The earlier a good operations director enters a project, the more powerful he can bring to the project. For example, the project party often comes to me and says: Our operations director screwed up. He spent a lot of money on KOLs, but it didnt bring any volume. Mr. Z, please help. Please dont come to me for this matter next time. Also, you know how many KOLs make money;

5. Talk to awesome operation directors more often, and you will find that they are generally a type of people with the same characteristics, and these people are very awesome when they start their own businesses, and they deserve special attention. For example, the boss of a second-tier top exchange was an operation director.

BD

1. I don’t recommend newcomers to do BD, because after you quickly connect with many people, you will become anxious and confused, and you won’t be able to sort out how to make money;

2. BD is not necessary for great projects, but it is useless for novice projects.

3. The essence of BD is to make a living by social skills, but social skills are one of the basic abilities that everyone has. Unless you have this skill very well, the ecological niche of doing BD work is fragile;

4.BD should learn some other skills to enhance their competitiveness among their peers

I didn’t originally plan to talk about BD, mainly because retail investors don’t have access to it, but since I’ve written it anyway, I’ll just treat it as an employment guide for you.

Project Party

1. Top projects have resources far beyond what retail investors can imagine. They are often jointly incubated by industry leaders. You must embrace top projects.

2. The direct profits of common cryptocurrency projects can be simply summarized into two aspects: the money raised by the project and the money in the secondary market. High-quality projects will bring VCs and many retail investors to make money from the leeks, ordinary projects will bring VCs to make money from retail investors, and projects that don’t want to mix will make money from VCs. Stupid project parties not only don’t make money, but also lose money inexplicably;

3. Projects are divided into different sections with different characteristics. In fact, narratives are divided into different levels. The top narrative guides revolution, the secondary narrative guides funds, the third-level narrative has a wealth-creating effect, and the fourth-level narrative is nothing. I have fabricated a full set of narratives for many project parties before. The narrative level determines the upper limit of the project ;

4. Investing in a project is investing in people. This is actually a summary of experience, and it also applies to the cryptocurrency world. If you are lucky enough to know the founder of a project, be sure to talk to him more and observe him carefully;

5. I always encourage retail investors to try to work on projects, even the smallest local dog projects, because this can help you quickly increase your awareness. In the cryptocurrency circle, the project side is the center of everything;

There is too much that can be said about the project here. The focus on retail investors and practitioners is completely different, so let’s talk about it separately later.

Retail Investors

1. Don’t become a leek waiting to be slaughtered in original sin, but forge ahead and dance with the sickle;

2. You will never make money beyond your cognition unless you rely on luck, but the money you make by luck will often be lost by strength - BY: Wealth Flow;

3. The cryptocurrency circle is a compensation for personality and cognition, not a reward for hard work. Unless you change your personality, the people you associate with, or the books you read, and break your original cognition, otherwise, five years later will be exactly the same as now. Choice is more important than hard work. When opportunities come, you must dare to hold a large position and hold it firmly. You must have a good guiding ideology, a good circle, and good logic. In the end, money will flow from people who are impatient to people who are calm. ——BY: Shenyu;

4. You are here to make money, so don’t hold long-term hostility and contempt for anything, such as VC coins, pyramid schemes, MEME, or stupid KOLs. Arrogance is the biggest enemy of discovering ALPHA in the cryptocurrency world.

You will find that in my 5 tips for retail investors, I did not talk about any execution experience, but rather some principles. That is because retail investors have actually seen too many KOLs telling them all kinds of success stories. Those who are capable have long stopped being retail investors. Those who can break away from retail investors only need to be motivated or point out some key points, and pull them a hand. Most people are only suitable to be retail investors for their entire lives. Not becoming a leek is their best outcome. For them, the essence of investment is:

Leek, choose a sickle.

Let me end this article with a conversation between Trump and Trump:

Mr Trump, youve done great things in your life, and I just wonder how do I as an average person begin?

Well, first of all never think of yourself as average. You started off with the wrong question, because youre not average. Youve got a lot going. I see youre smart, I see youre very beautiful, and youre right against there.

The girl asked Trump: Mr. Trump, you have done a lot of great things in your life. I just want to know, as an ordinary person, how do I get started?

Trump answered her seriously: First of all, never think that you are an ordinary person. You asked the wrong question at the beginning. Because you are not ordinary, you have a lot of things to do. I know you, very smart, very beautiful, and you are there.

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