For some market participants, simply following the crypto trend or the changing metagame in the crypto is good enough. Especially for those that are able to control their euphoria or are natural skeptics. I’ve seen plenty of people able to spot a trend, jump in, jump out with decent profits and move on without turning their trade into a church.
Why stay ahead of the trend? Simply because you will have the best position and the possibility of profit will be extremely high. Even if you miss the swing at the wrong time, the opportunity to return to shore will still be when the trend comes.
How to follow the market and catch the upcoming potential trends?
What are the crypto trends?
Crypto trend, or the Meta Game in crypto, in fact, appear when there has been a significant growth of a specific coins/NFTs belonged to a specific sector within the crypto market. In 2021 we have seen the rise of several Ethereum competitors such as Solana and Avalanche as well as the taking-off of layer two solutions like Polygon and Arbitrum, which enable scalability of the Ethereum ecosystem. Next to technical innovations, 2021 has also been a breakthrough year for non-fungible-tokens (NFTs). NFTs’ record prices made headlines around the world and forced many investors to rethink their investment principles and strategies.
How the market can start a new trend?
Technically, all of the crypto trend all start from one or several significant crypto projects. Thesse project have a “novelty” idea and model, which solves a demand problem in the market.
The novelty factor will be the main point to attract non-crypto users to the market. Therefore, with enough resources backed by VCs, they may succeed in gradually attracting initial users. When the project is good and it help people makes more money, the users will talk about it on social media (word of mouth marketing) -> Prices are pushed higher due to FOMO – > FOMO community of similar projects -> more projects that imitate similar models -> saturation and decline.
One thing I noticed is that every time the crypto trend comes (DeFi, Play to Earn, Metaverse, Move to Earn,…). There will be a whole new number of users entering the market. THAT’S what the whale of the market wants. They need whole bunch of new people without much financial and crypto knowledge to enter the market.
Because if these ideas, or marketing methods only attract users to play in crypto, it will be difficult for the sharks to notice and push strongly. Those trends will be short-lived (because anyone who stays long in crypto will have experience -> less FOMO)
=> So if you want to know what the next trend is, ask these below questions:
- What is the missing piece that the market needs to increase liquidity and move towards MASS ADOPTION
- Is there an idea, can this model attract non-crypto users?
- When in the market would be the right time for these pieces? A few months or a few years?
- Are these ideas backed by the big boys? (Because the big guys will be the ones who can realize the idea)
But of course most of us don’t have much knowledge and resources to be able to predict the future trends of the market, unless they are project developers or have extensive knowledge of technology for new economic operations, so what retail investors like us need to do is:
- Follow the influential “Sharks” in crypto
The “shark” here in my opinion will include large investment funds, major exchanges in the crypto market, you should follow these CEOs, founders of these large organizations, for example:
- Elon Musk – the boss behind manipulating the market, or blowing up shitcoins
- CZ – CEO of Binance – the largest crypto exchange, a tycoon creating a trend
- Vitalik – Founder of Ethereum
- Sam Curly (SBF) – CEO of FTX exchange and founder of Alameda Research fund
The common characteristic of these people is that they have a large sphere of influence by owning the successful products and organizations that have become a part of this crypto market. More or less what they do and say will have great influence in the market.
And what specifically do you need to do when following these people? Follow their every move, from articles, tweets, replies, small moves on social networks. Following both the projects they are working on or mentioning certain ideas, normally these successful KOLs builders will not openly but quietly provoke a trend, or mention it in a certain way
A case study is that in the past, CZ has already tell all of us that SocialFi and GameFi will be the main drivers in 2022 through his article on Forbes.
Those who are willing to learn and “remember” what CZ said, will surely partly guess and eat a market trend lead like Move-to-Earn GMT (Move to Earn is also a form of GameFi), and some fan tokens have been listed by Binance Launchpad.
So I encourage you to follow CZ a lot to predict which segments and projects Binance is behind and has the potential to push the price. Add some big floor CEOs like Sam Curly from FTX, or Jay from OKX, maybe they will do new price push games.
Next, you should also monitor the activities of the projects and funds they are operating, for example, big exchanges like Binance, FTX, or big funds like a16z, Paradigm…
Personally, I often follow exchanges because most users will come to crypto through traditional exchanges. Therefore, exchanges will also have a great influence on the market, they will collect goods and push. token and create better fomo.
Investment funds are those who directly invest, contribute capital and accompany development projects. From there, you will have an overview, which investment fund investors are very bullish on in the future. If you know which segment, then read carefully and research carefully!!
This is also the time when you should follow these potential project founders invested by large funds or large exchanges to know more about their many “new ideas”, visions and judgments in the future.
- Follow longtime investors in the market
Follow retail investors with long-term investment experience in the market. But make sure that you follow and read carefully what knowledge or projects they share, their personal judgments so that you can learn, consult and make your own judgments about upcoming trends.
One extremely important thing that you need to remember when following KOLs – NEVER TRUST ANYONE – YOU DECIDE WHAT TO DO WITH YOUR MONEY
What if I missed a crypto trend? How can I get back in?
Ask yourself these below questions if you just recently heard of a trend
- Which projects lead the trend? Has it pumped hard yet? Usually I notice that projects that lead a big trend can have a market capitalization of billions of dollars.
- Are there any similar projects? Pumped yet? ff it is confirmed that it is the same and there is no pump, you can allocate some to shovel because there will be FOMO waves anyway
- If the pump is too high, then wait for the correction to enter
- What was the market like at that time, the macro situation as well as bitcoin? Is the market just starting to recover or is it already the end of the rally?
If you can answer the above questions, I believe you can still make money even though you can’t predict the trend of the market.
Actively follow KOLs, influencers, on social networks (Twitter), follow the movements of big KOLs, large investment funds and those who have succeeded in building projects. A project that has a model idea with the necessary solution, is marketed at the right time, has the right team, is supported by the big guys, sooner or later will be a potential gem to create trends in the future. Wishing you success!