Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Doing your own research is Crypto’s greatest strength. But most people are not good at research. Here’s my crypto research framework to make it easy: (so you don’t have to rely on KOLs).

Research Framework

Studying encryption is not easy, and even where to start is a question. My approach is to break it down into 4 broad areas:

  • technical understanding
  • Profitable Skills
  • encryption skills
  • beyond encryption

Let’s dive into it!

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Domain 1: Understanding Technology

You have to know what you are investing in. If you don’t know what ZK-Rollups are, you don’t see the value of Starknet.Know your experience level and realize that each level has corresponding skills. It’s kind of like a skill tree in an RPG.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Novice Skill Tree :

  • encryption security
  • Web 3 use cases
  • How Bitcoin Works
  • Hot wallet vs cold wallet
  • How Ethereum Works
  • What is an ETH merger?
  • Learn about yield farming
  • PoS Proof vs PoW Proof

Intermediate Skill Tree:

  • DEX and CEX
  • Liquidity mining
  • Pool 1 and Pool 2
  • Basic Token Economics
  • L0/L1/L2
  • Learn about the main Layer 1
  • Impermanent loss vs slippage vs staking

Expert Skill Tree:

  • MEV
  • options
  • Advanced Token Economics • Governance Proposal
  • Technical Differences Between L2 Roll-Ups These are not meant to be complete.

(No one wants to see 100+ tandems) I will expand the skill tree in the future/w recommend resources.

Where to study? I always recommend learning straight from the source first. Suppose you want to learn about The Merge.Try to visit the Ethereum official website first. Afterwards, watch YouTube videos or read threads from trusted sources.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Domain 2: Profitability Skills

There are plenty of brains that know technical details, but they don’t make money. Why? Because learning how to make money is a separate set of skills in itself. (This is why having some poker skills is an advantage in cryptocurrency)

Profitable skills include:

  • make a decision
  • cognitive bias
  • Trading Psychology
  • Portfolio Construction
  • profit strategy
  • risk management strategy

Domain 3:

Encryption Skill A skill unique to Crypto. Learning these will give you an advantage.

  • Learn about Metaverse games and new narratives
  • Discover new agreements
  • Dig the whale wallet
  • On-chain analysis, wait, let me give a few examples

Discover new protocols/potentials

  • Your connections and friends
  • Search by DeFiLlama
  • Watch on-chain data/whale wallet
  • Research what VCs are investing in (DoveMetrics)

Use the right tools

Tools are leverage – the right tools can save you valuable time. I shared a topic with my favorite person last week.

track whale wallet

Whales are wallet addresses that hold large amounts of cryptocurrency. In theory they have an “advantage” and we can see them in action.

  • You can use Nansen’s “Smart Money” feature.
  • Debank has a list
  • Create your own list.
Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Create your own list (basic) 

  • Look for a coin that you think has a lot of smart money in it. I use GMX.
  • Go to blockchain browsers (Etherscan, Arbiscan)
  • View the top holders of tokens
  • Copy and paste wallets in Zapper FI
  • observe what they hold
Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Domain 4: Research Beyond Crypto

Don’t study cryptocurrencies all day. Besides encryption, there are other areas where you can gain an advantage. You want to be T-shaped:

  • Broad understanding of multiple disciplines
  • go deep into an area
Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Field of study: You won’t be 10/10 in everything. That’s not the point – learn enough so it doesn’t hold you back.

  • Find a reliable book on the subject
  • There are some “go-to” people in each area of ​​focus.

what i choose to study 

Cryptocurrencies have grown to the point where I can’t keep up. So, how do I prioritize my research?

At a high level, limiting my scope to DeFi.

  • I can’t keep up with NFTs.
  • I can’t keep up with individual stocks (index funds only).

Focus on DeFi I focus on ecosystems with a lot of DeFi activity – I don’t focus on Cardano, Elrond or Algorand (for now).Most of my current research is based on: 1. New protocols 2. New technologies 3. Real world adoption

Speaking of the new deal…

Do an in-depth study of the protocol

You are feeling the “buzz” of some kind of token. But you are smart enough not to blindly trust someone. Time to do your own in-depth research before investing. This is what I’m looking for.

Learn from the source

It’s tempting to want to watch a YouTube video or read a topic. Start with the protocol’s whitepaper, Medium and GITHUB. Before learning from others, you want to form your own opinion. You don’t want their biases to cloud your thinking.

5 areas I created a framework for myself to evaluate the protocol.

  1. strategy
  2. implement
  3. people
  4. funds
  5. Token Economics (or Token Design) By the way, this is not a complete list. This is to get your brain spinning.

Strategy :

  • How is it different from the competition?
  • What’s the problem?
  • What moat?
  • How are users acquired?
  • What’s on the roadmap?

implement

  • Has the team reached a milestone?
  • How is the UX/UI of the protocol?
  • What audits has it passed? By whom?
  • How is the marketing?
  • Developer activity

people

  • What kind of influencers are pitching?
  • Founder and team background
  • Check sentiment on social media
  • Check the community atmosphere
  • VC and initial seed round
  • Partnerships

funds

  • How do founders and teams get paid?
  • What does its funding include?
  • How much revenue does it generate?
  • What is its runway and burn rate?
  • How much money did it raise?

Token Economics

  • How Tokens Increase in Value
  • What is the supply/max supply?
  • How were the tokens initially distributed?
  • What is the use case for the token?
  • How does the agreement reduce selling pressure?

Seek FUD

It’s easy to feel FOMO and get caught up in the confirmation bias of why the protocol is so good. I’m always looking for the reason for the bad agreement. That’s where Twitter comes in handy. Find out why the protocol failed and think.

study advice

The following sections are about how to best organize your studies. Most are technologies from my college days that I’ve adapted for the fast-moving crypto world.

Create a “reading” system

I saw Lido’s proposal for a new treasury, but I couldn’t read it at the time. So I use the Chrome app “Notion Web Clipper” and save it in a database called “To Read”. I make time in my calendar each week to go through my to-read list.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

In-depth study

I do my research in the morning because that’s when I’m most focused. It’s not about how long you study, it’s about how intense it is. Work done = time x intensity. It’s kind of like a gym. 25 minutes high intensity workout > 2 hours lazy workout.

fully focused

I was not distracted while researching. I blocked social media and put my phone in another room. Consider using the Pomodoro Technique. I studied for 50 minutes and rested for 10 minutes.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Use the Feynman technique

Richard Feynman is a Nobel Prize-winning physicist. his secret? After you learn it, try to explain it simply so that a 12 year old can learn it too. I encourage you to tweet and write articles. Explaining things will help understand gaps in your knowledge.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

Plan the flow of content

If you eat rubbish, then your body becomes rubbish. Be careful who you choose to learn from. Instead of following hundreds of people, learn from a few quality accounts. Consistently manage Twitter accounts, newsletters and podcasts.

Creating a note-taking system for taking notes can improve your comprehension and memory. The right systems and software can help you connect. I use Zettelkasten (method) + Obsidian (software). Read “Building a Second Brain” by Tiago Forte.

Web3 dry goods: Can you judge the quality of a Web3 project through these points?

proper rest

I do core research for up to 4 hours a day. You need to rest to maximize what you’re absorbing. Take a break, get a good night’s sleep, and go for a walk. The body needs a break from the gym to build muscle. The brain needs rest to remember information.

healthy brain

Make sure you have a solid foundation – a healthy brain. • Exercise regularly • Stay hydrated • Enjoy nature time • Brain foods (fatty fish, vegetables, berries) • Find healthy ways to deal with stress • Limit social media (sarcasm, I know)

Probabilistic thinking

“All of this research is being traded by YOLO people who are trading meme coins”

“So much research doesn’t stop an exploit from killing your earnings.”

See, cryptocurrencies have no guarantees. Your research can increase your odds of success.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/web3-dry-goods-can-you-judge-the-quality-of-a-web3-project-through-these-points/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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