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Top 5 ways to “Follow” the Crypto market for effective investment (2022)

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:

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:

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:

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:

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.

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:

Disadvantages of On-chain data analysis:

Some on-chain data sources investors could follow CryptoQuant, Glassnode, Coinglass, DoveMetrics, etc.

Conclusion

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.

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