Discovering the T-shape crypto-investor profile!
From my personal experience, crypto can be very addictive.
Once you start to understand most of the use cases, get your first ROI (return on investment) & start to see the potential that could be unleashed, you might spend a lot of time studying the subject.
But here is the point: Don’t get too tunnel-visioned into studying crypto all day! There are many areas outside crypto that could help you become a better analyst.
Try to see the big picture and the connection between crypto-projects and real-world usage.
Become a T-shaped profile!
A T-shaped person is someone who has specialized knowledge and skills in a particular area, as well as the desire and ability to make connections across different disciplines.
Let’s deep dive into this T-shaped crypto analyst profile below.
We already analyzed specifics crypto skills & knowledge that are needed to take your own decision as a crypto investor. If you’re keen for a reminder, follow this link: https://robin-quinones.medium.com/do-your-own-research-in-crypto-from-beginner-to-advanced-a-list-of-topics-to-master-b44d052fc392
Let’s now focus on the different cross-discipline expertise correlated to the crypto world, deeply influencing crypto market fluctuations and blockchain adoption.
Finance
Whether you like it or not, Finance (defined as the management of money including activities such as investing, borrowing, lending, budgeting, saving, and forecasting) is pretty much controlling our world, and crypto is not (yet) ready to take the lead!
While DeFi is booming (DeFi is a form of finance that does not require traditional intermediaries such as banks, brokerages, or exchanges. All the work that would normally be handled by these institutions is instead performed by technological solutions, including smart contracts and blockchain), the total crypto market cap is only $1,300 billion while the global financial services market is worth $23,319.52 billion.
To better understand and evaluate crypto and blockchain financial opportunities, you need to have a minimum understanding of traditional finance.
Economics
Economics is a complex subject filled with a lot of confusing terms and details, nevertheless, there is no doubt that it affects our everyday lives. I like to define economics as the study of how people and groups of people use their resources.
In our field, it’s interesting to study economics related to money and the markets. What are people willing to pay for something? Is one industry doing better than another? What is the economic future? These are important questions that could be examined to better understand disruptive web3 use cases such as NFTs, Play to Earn, or DeFi.
Also, having some knowledge about the mechanism of supply and demand might help to understand finance & the financial markets.
Business
Some people define Business as an art as well as a science. I prefer the approach saying that business is a state of mind that needs to be cultivated.
Having business knowledge and experience might help you to:
- Develop specific skills (sales, networking, communication, emotional intelligence, analytical, financial)
- Develop practical thinking, allowing you to decide intelligently while being calculated
- Quickly identify and understand brilliant business strategies as investment opportunities
Marketing
Marketing attracts community members, builds trust, and makes a brand unique. Effective marketing strategy in the crypto sphere can make a difference, just like a poor strategy can break a project.
Being able to quickly identify a great and innovative marketing strategy might help you to choose the right project to invest in.
As well, social media comes with marketing, and your experience in this field should warn you to fall into a scam project or to rely on influencers.
Onchain analysis
The vast majority of cryptocurrencies available on the market today use public blockchains to verify and record data. Because of this, the data is available “on-chain” for everyone to see, at any time and from anywhere in the world.
On-chain analysis refers to the method of using information from a blockchain ledger to determine market sentiment. More specifically, it involves looking at transaction data and crypto wallet balances, two things that are useful when trying to decide whether to make an investment or not. For example, if a token isn’t being traded by anyone and a vast majority of its circulating supply is controlled by a few large holders (whales), then it’s probably not a good idea to invest in it.
Politics
Since its introduction in a 2008 whitepaper, Bitcoin drives the crypto-economy, and meanwhile, governments around the world are looking for a “balanced regulation”, others like El Salvador, have adopted it as currency. Politics & Governments can influence the price of crypto in many ways. For example, they can engage in creating strict regulations that could inevitably lead to an increase in cost. Geopolitics situations, such as a war or a pandemic lockdown, will also have a significant impact on crypto.
Keeping an eye on politics across the world, especially in the upcoming months/years with the surge of government stablecoin, will be smart.
Psychology
The crypto market is open 24 hours every day, 365 days per year! You’ll need a strong mindset to stay out of downward slides such as FOMO (fear of missing an opportunity), extreme volatility or fear, and greed feelings.
If you’re sometimes easily influenced, you might want to study some trading psychology in order to understand better the psychological challenges occurred in crypto-investment.
In a future article, I’ll focus on six specific criteria that you should look at in order to evaluate a crypto-project. This evaluation might be helpful if you’re planning to join the web3 ecosystem as a workforce. Not all projects are structured and managed the same way, especially in the crypto-ecosystem!
Sources: https://www.highspeedtraining.co.uk/hub/t-shaped-employee https://corporatefinanceinstitute.com/resources/careers/soft-skills/t-shaped-skills/
https://www.coindesk.com/learn/what-is-crypto-on-chain-analysis-and-how-do-you-use-it/
https://www.makeuseof.com/trading-psychology-and-its-effect-crypto-trading/
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