Welcome to Barmy’s Education Session
The common psychology of many people when participating in the market is to “immerse” in the feeling of sublimation when the coin pumps and “bitterly swallow” every time an asset is divided.
There are many people who take the market’s ups and downs for granted, the reason behind could be the coordination of whales, sharks, or price teams, and the news coming out to rationalize them. So how to capture the trend and rhythm of the market?
In this Education Session, let us – Barmy decrypt all 5 ways for traders to follow the market in order to have an effective investing scheme.
Why is it necessary to “follow” the Crypto market?
Following the market here is observing the parameters, on-chain, and other data in the market such as liquidation rate, percent volatility of coins, and tokens during the day. If traders are interested in crypto and they want to invest in certain projects, monitoring the market will help them know the following factors:
- Trend: A general trend or behavior that a group or part enthusiastically responds to. Here we have a trend in 2021 which is meme coin, NFT, DeFi, Web 3.0, and especially GameFi and now the trend of other newly developed ecosystems (Cosmos, Starknet, ZKSync,…).
- Market Sentiment: Expressing the general attitude of investors about the market, this term is used extensively for many types of financial markets. Some other comments say that an increase in price indicates an increase in market sentiment (investors) and vice versa.
- Money Flow: Calculated by averaging high and low prices (close and open) multiplied by daily volume. Positive cash flow means positive and vice versa.
5 Ways to Follow the Crypto Market
1. Following Crypto forums
If you were a newcomer to the market, what would you look for first?
The vast majority of people will go with a trend or a project that is appreciated. So how do we evaluate that project without having to follow other people’s judgments? It’s all based on learning about the project in detail and following all the official media pages from the project you’re interested in.
What benefits will traders get by following those channels? The benefits they get here are real insights from the project, new plans (roadmap), and opportunities (airdrop, incentive, retroactive) from there. Rather, a long-term benefit.
There are some kinds of information sources you should follow:
- Social channels: Telegram, Twitter, Medium, Facebook, Discord.
- News update website: Coindesk, Medium, Bloomberg, Forbes, The Block, etc.
- Other on-chain aggregators: Coingecko, Coinmarketcap, Cryptoquant, Coinglass, Coin98 Markets, Debank, DefiLlama, DeFi Dashboard, etc.
2. Following the footprints of “Whales” (Investment Fund)
Following fish footprints of “Whales” is a specialized term for many traders in the community, representing the investment tracking of the “big names”. The big names are investment funds, investment institutions, and other retail investors.
Every day, there will be many projects raising funds with many common purposes and goals is to develop the platform, most of the fundraising projects are usually new projects or in the process of construction, and of course these projects will have a lot of potential for investors.
However, new projects will need a lot of funds during the formation process, so they often open funding rounds from many different funds, to keep track of how much those projects have raised, and what funds stand. Then you need to keep track of infographics, articles about them, track on-chains, etc.
So how to track Investment Funds?
Barmy Team has a specific series called “Top Fund Raising” – weekly overview updates of the fundraising market with projects divided into different categories.
In addition, to actively monitor other activities in the market, you can follow more data statistics websites such as Dovemetrics, Chainbroker, and Crunchbase.
You should note that the fundraising information for us to classify the group of projects is not a decisive factor for investment selection.
3. Following the activities of the KOLs
The term KOL stands for “Key Opinion Leader”. They are who have influence in a certain field. Usually, what KOLs share, the comments from them will have more or less impact on the decisions, behavior, or views of followers.
In other words, KOLs will have a certain influence on the community (specifically their area of expertise). There will be 3 main groups of KOLs such as:
- Celebrity: People who are famous as artists.
- Influencers: People who inspire by sharing information.
- Mass Seeder: People with influence in a smaller range than the above two groups.
In the crypto field, there will be a certain influential group/person, and for the most part, their words and actions will have a more or less impact on the market, more specifically the value of the coin/ project. Some of the famous characters I would like to mention are as follows:
Changpeng Zhao (CZ) – founder and CEO of Binance, the world’s largest cryptocurrency exchange by trading volume.
Sam Bankman-Fried, the founder of the FTX exchange, sleeps 4 hours a day, works on 6 computer screens at the same time, and became a cryptocurrency billionaire when he just turned 30 this year.
In addition, you can follow other billionaires via their Twitter, Barmy have suggestions below, for your reference:
- Roham Gharegozlou – CEO of Dapper Labs.
- Jack Mallers – Founder and CEO of Strike.
- Andre Cronje – Founder of Yearn Finance.
- Elon Musk – Entrepreneur, executive founder of many famous brands such as PayPal, Tesla, SpaceX, and also a pioneer in favor of Dogecoin.
- Nguyen Thanh Trung – CEO of Play-to-Earn Axie Infinity gaming.
- Le Thanh – Founder of Coin98.
4. Update the ecosystem overview
After you follow projects and voice actors in crypto, to follow up and go deeper, monitoring ecosystem updates is a must. Usually, the information coming from new puzzle pieces on the system, the integration with partner projects, etc will all be updated.
First, you need to determine the ecosystem to monitor, so as not to miss information and opportunities, create your own overview management sheet to observe.
- Solana Ecosystem (SOL) with Solanians.
- Near Ecosystem (NEAR) with Nearians.
- Dfinity Ecosystem (ICP) with Dfinians.
- Cardano Ecosystem (ADA) with Cardians.
- Avalanche Ecosystem (AVAX) with Avaxians.
- Fantom Ecosystem (FTM) with Fantomians.
- Fantom Ecosystem (BNB Chain) with World of Binancians.
5. Analysing On-chain metrics
On-chain data is data located on the blockchain and it reflects block data (time, fees, miners, etc) as well as smart contract interactions (add liquidity) in the blockchain.
Since the transactions that take place will be verified by the Nodes and updated to the network, and the blockchain is a Decentralized (decentralized) network, operations will be based on many Nodes, like Bitcoin which has up to 11,558 nodes, Ethereum has more than 8,000 nodes, and data is shared widely, so no one can manipulate and modify this data source.
Advantages of On-chain data analysis:
- Get the most accurate information going on in the market.
- Monitor the market behavior at that time.
- Help forecast and make investment decisions.
Disadvantages of On-chain data analysis:
- Since this is an intensive tool, it requires users to have knowledge as well as judgment when updating data.
- It is necessary to compare information and data from many different On-chain sources before making final results/assessments.
- As for the data from the project’s website, sometimes the numbers will not be completely accurate, you can check it on the blockchain’s explorer before consulting.
- Update information regularly, because the market will change constantly, so please update regularly by reloading the page or comparing data with other on-chain tools.
With the 5 ways to “follow” the market traders could determine what to do when participating in crypto. However, when investing in any project, there are many other factors that investors should pay attention to, the most important is the psychology of the investor.
All of the above information is NOT financial advice. Please do your own research before you invest in anything.