The 3 useful types of assets, crypto skills to learn, and the 4 ways crypto investors need to analyze cryptoassets.
3 useful types of assets:
- Yield. Ex) rental income from real estate, dividend from a stock.
- Store of value. Ex) gold, Bitcoin, real estate.
- Transformable/consumable. Ex) gas for car, wheat for eating.
- Ethereum is the first asset that is all 3. This is why it is called the triple point asset.
Crypto skills to learn:
- Hold: Hold bitcoin on a cold storage wallet.
- Lend: Celsius or Aave/Compound.
- Borrow: Celsius or Aave/Compound.
- Stake: Earn yield on your crypto (Phantom wallet for Solana).
- Invest: Buy crypto, buy NFTs.
- Spend: Find a way to pay for something using the Bitcoin lightning network (Strike app).
- Earn: Coinbase earn, airdrops, signup bonuses.
- Trade: Swap on Uniswap, Pancake Swap, Raydium.
- Bet: Find a DeFi way to bet on presidential elections, sports games, etc.
- Security: Find the best storage solutions to stay safe. Wallet types/custody/security level.
- Taxes: Know how to minimize how much you pay in taxes.
- Study: Banks and protocols, wallets, and the history of money.
4 ways crypto investors need to analyze crypto:
- Financial: Practice some kind of valuation modeling. Do technical analysis. Do on-chain analysis. Figure out these questions: Is the blockchain profitable right now (protocol revenue)? How can it become profitable?
- Technical analysis: Analyze the code, read white papers, understand new proposals, understand web 3 stack, analyze layer 2s/apps/stack.
- Test the user experience: (1) Put some bitcoin onto a hardware wallet and loan some on Celsius. (2) Put some Ethereum in a MetaMask wallet and play around with DeFi apps. (3) Put some Solana in Phantom wallet, stake (earn yield), and try some Solana DeFi apps.
- Culture: Join a DAO, buy an NFT, join a crypto Discord.
Based on videos and articles from Bankless.