Author: Route 2 FI

Compiled by: Deep Tide TechFlow

Some Advice for Those with Limited Funds Just Entering the Cryptocurrency Space

The current market is booming, and with Bitcoin reaching all-time highs, it's easy for people to take on risks beyond their usual limits due to fear of missing out (FOMO).

First, ask yourself what you are good at. Perhaps the most important skill in this industry is perseverance. Even if you are not particularly smart, if you are willing to put in 12 to 14 hours a day, I believe you have an advantage. Therefore, for those with limited funds, time is your most important asset. Be willing to learn and improve yourself. So, what areas should you focus on? Content writing, trading on centralized exchanges (CEX), research, Memecoin trading, NFTs (non-fungible tokens), YouTube, newsletters, Telegram, podcasts, and more—there are many options.

If you enjoy writing, consider publishing content on Twitter, newsletters, or Telegram. If you prefer verbal expression, YouTube or podcasts might be more suitable for you. Are you good with numbers and enjoy observing market dynamics? Then focus on improving your trading skills and connect with those excellent traders on Twitter whom you admire. You might be surprised to find that many great traders on Twitter have only 500 to 2000 followers; they are not necessarily big names like Hsaka, ENAS, or Nachi.

Once you find your strengths, ask yourself: "Are my skills sufficient to earn a reward?"

If not → Then seek internship opportunities. This could be at a crypto company, startup, venture capital firm, or family office, or assisting KOLs with various tasks, or helping traders you admire complete tasks (if you perform well, they might share some insider information with you). Internships often pay little, so focus on gaining experience and wisdom that may be useful in the future.

If yes → Do you choose to profit on your own, or apply for a job at a crypto company?

Profiting on your own can be a difficult and long road that requires significant investment and dedication. But if you are confident in your abilities and believe that long-term gains may far exceed those of a regular job, I suggest trying this route.

Applying for a job at a crypto company is a safer choice, as you can receive a fixed salary (usually higher than traditional 9-to-5 jobs). Moreover, who says you can't focus on your own projects outside of work? While you may not have enough time to go all in, a fixed salary allows you to focus on your side projects with peace of mind. Here’s a little advice: many people might think, "The bull market is here, I need to focus on trading, I don't have time to look for a job." In fact, it’s easier to find a job during a bull market, and if you have almost no capital, why spend your energy on trading?

If Ethereum's price quadruples, then your current $1000 would become $4000. You could easily earn that amount through one or two weeks of entry-level work. Most people will not become the type who can turn $1k into $1m with Memecoins. If you truly have that ability, you actually don’t need to consider looking for a job.

If you are applying for a job, you should choose a company you respect and hope to receive equity or token compensation from. If your financial situation allows, you can request as much of your salary as possible to be paid in tokens (provided you have confidence in the company). If the company succeeds, you might reap substantial rewards. Think of that 16-year-old from EigenLayer (@gajesh), who is a great example.

Twitter Account: In this industry, the best way to connect with top individuals is to increase your exposure on Twitter. Write about topics you are interested in, things you want to learn more about, post some light-hearted and humorous posts, and interact more with those you admire. Tweet every day, even if it’s just to say "Good morning (gm)." DM people with some advice, expecting nothing in return. This is a way to build friendships; who knows, maybe you will have opportunities to collaborate in the future. Just keep being friendly, helpful, and actively engaged every day.

In the crypto industry, Twitter is like your resume. You don’t need LinkedIn; if you are applying for a job, your best resume is the content you create on Twitter. Moreover, recruiters often look for influential people on Twitter and offer various opportunities. This may include collaborations, paid projects, referral links, funded trading accounts, and even opportunities for angel investments and KOL rounds when your influence is significant enough. Regarding collaborations or paid content: as long as you disclose relevant information, I think it’s acceptable. In this cycle, we have seen some behaviors accepted (though I find it strange): some people simply share a contract address (CA) for a Memecoin and say it’s a must-buy bargain. Don’t do that. It’s better to share these contract addresses only in group chats with friends.

For traders or aspiring traders: this may be the most challenging path, but if you have the ability and unique advantages, it can also be the most profitable. You need to find your own trading style. You cannot blindly follow traditional trading rules and expect to outperform others. You must find a unique and effective way to do what others have not done. A top trader on Crypto Twitter (CT) once said he had never used TradingView. I share this because many people rely on too many indicators and fictitious trend lines, which is actually unnecessary.

The cryptocurrency market has many inefficiencies that you can take advantage of. For example, when Andre Cronje announced on Twitter in March 2022 that he would shift his focus away from DeFi, the market reacted slowly, and tokens like FTM and YFI only started to drop at least 10-15 minutes later. In hindsight, this was one of the easiest short trades I made on Fantom. For me, it was just a short-term operation, but given the market's poor performance later, I should have held longer. My point is that the cryptocurrency market is not as efficient as the stock market. When news breaks in the stock market, prices almost reflect it within seconds.

Cryptocurrency has attracted a large number of retail investors, and frankly, many of them are not professionals. I mean those who casually buy Dogecoin and expect it to skyrocket. There is a clear distinction between the smart people on Crypto Twitter (CT) and those who rely on TikTok influencers or BitBoy for investment advice. By the way, I don’t consider myself one of the smart ones. I mean GCR, Cobie, Light, and so on; I could probably name over 50 more.

For those actively tracking cryptocurrency dynamics and seeking excess returns, this is indeed an advantage. As the cryptocurrency market matures, I expect it to become more efficient, making future trading more difficult. It is important to have probabilistic thinking, common sense, self-awareness, resilience, patience, and the ability to delay gratification. Additionally, having a compulsive personality or mild autistic traits may actually be an advantage. Also, remember that the market is cyclical. The market trends only 20% of the time and fluctuates in a range 80% of the time, which is very important because these two situations require completely different strategies.

Oh, if you think you have an edge in trading, I have some bad news for you, my friend. You might still be at the starting stage.

If you want to elevate to Stage E, you can check this list and read this article.

In trading, do not expect someone to guide you through the entire process. We often talk about profits, but in reality, you are taking money from others. When you go long on BTC and make a profit, it means another trader who is shorting $BTC is losing. Therefore, trading is essentially a player versus player (PvP) competition.

You may receive a lot of advice on platforms like Twitter, Discord, Telegram, etc. But sometimes, it’s necessary to reflect on their motives for sharing information. Are they doing it out of goodwill, or do they want you to become their bag holder due to fear of missing out (FOMO)? For smaller market cap coins, be more cautious with advice from others, as their prices can be volatile.

That said, you should learn from better traders.

Good luck.

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