Reading Pen Farming｜Special Notes: VAF ╳ AMA・Breaking through the currency circle with a "gambling" mindset

I participated in the AMA lecture held by Fanggezi on the same day. The speaker is the blockchain columnist @James Chiu . He talked about writing and the currency circle, and wrote some notes and thoughts.

■ About the writing topic: currency circle

• The currency circle is a world of " dancing demons ". But also because of this, many low-level things need someone to study / clarify / popularize, and there is no shortage of materials to write.
• This is an " inter-dimensional " industry. After writing for a long time, the scope of coverage has become wider and wider, such as: financial commodities, economy, regulations, society...
• Discovered that this was a writing journey that would " destroy one's own beliefs ." The deeper the dig, the more deeply held beliefs have been turned over and slapped in the face.

💡 think:
The above three points can be condensed into "keeping an open mind" and exploring the currency circle without prejudice (or the courage to revise your own prejudice).

■ How to write in vernacular?

1. Analogy: first offer an example to assist readers to enter the context, such as using Apple Pay to compare cryptocurrency (hot) wallets.
2. Make good use of annotations: If difficult things are not too important, you can consider moving them to the annotation area.
3. Figure: Schematic diagram, a good thing to help understand.

💡 think:
It is quite hard for a single-handed text creator to do the drawing alone. But this thoughtfulness for the readers to "reduce complexity and outline the structure" is really important. I will write with that in mind.

■ How to avoid the listening/writing minefield?

• The interpretation of "good vs bad" has a lot to do with the stage in which one's " learning process " has progressed.
• James leverages his background as a journalist and has a wide network of contacts. If you come across a concept that you don’t understand (and you don’t need to understand all of it), just ask your friends who have expertise in a “ snippet ” to ask about the logic of how things work.

💡 think:
I am quite impressed with the "learning process". I still remember that when I first started writing, my understanding of "what is a good article" at that time (I asked myself) was very different from now.

■ Looking back on recent years, how do you view the progress of the currency circle?

• Many seemingly innovative tracks are, to put it bluntly, the same as what traditional finance was doing a hundred years ago. They are essentially the packaging of " old wine and new bottle ".
• At this stage, because the intervention of " regulations " is not in place, the currency circle looks like a group of barbarians doing barbaric (financial) cultivation, but the tools they hold are quite advanced.
• Compared with the traditional financial circle, the currency circle is a small pond , and water (liquidity) can easily be poured in/drawn away in large quantities.

💡 think:
Not long ago, because LUNA triggered a series of subsequent explosions, it just mirrored the Lehman Brothers incident (2008) in the physical world. Therefore, being familiar with the operation of the traditional financial circle is of positive help to settling down in the currency circle.

■ How to live longer in the currency circle?

• The line graph is secondary, don't look at it.
• What is really important is to grasp the trends, hot spots, and whether funds are pouring into the currency circle?

Strengthen the understanding of the overall economy and understand the central bank's monetary policy.

Stay sharp. From news, groups (Telegram), Twitter bosses... See what topics everyone is talking about, and the tracks that everyone is most interested in.

• be a graceful savage

Please look at this savage game with a " gambling " mentality. The DCA method in traditional finance (long hold will earn) may not work for most currencies; if you make money and make a certain profit, you must be in time Take Profit to clear a portion ; don't assume that a project will live for a long time.

• Asset allocation

Only take a small amount of money to try, echoing the "gambling" mentality just mentioned.

💡 think:
The "gambling" here does not refer to blind guessing, but to convey the "opposite of long-term investment" thinking. But it does not refer to technical analysis, it is more like the "information side" of the four major aspects of the stock.

■ I can't bet too much effort, how to manage money in the currency circle?

• People who have no time at all, don't get involved in the currency circle.
• Your operation strategy (logic) may be completely opposite to another person's, but it is possible to make money.
• Spend at least half an hour every day, swiping the (information) channels just mentioned; cultivate acumen and know what hotspots and trends are popular now. Then you can find high-quality projects, and then you can invest a little money in "gambling".
• Stablecoins are also a way to simply lend.

💡 think:
Can you imagine the cultivation of "acuity"? What does it feel like? For example, a person who is very thoughtful about reading must usually have his own set of related information ingestion channels. And you can simply browse the introduction/table of contents of a book to judge whether the book has the potential to be worth the investment (time).

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