This is alpha:
The alpha is telling you what alpha is.
In this thread I will break down what alpha is, where to find it, how to use it, and what differentiates a good "alpha group" from a not-so-good one 👇
In this thread I will break down what alpha is, where to find it, how to use it, and what differentiates a good "alpha group" from a not-so-good one 👇
1/ 🔮
What is Alpha?
Alpha is effectively knowledge. Generally, it's knowledge that you have that other people don't have.
Good alpha is knowledge that gives you insight into how the price of an asset is likely to move.
Great alpha is the same knowledge, just acquired sooner.
What is Alpha?
Alpha is effectively knowledge. Generally, it's knowledge that you have that other people don't have.
Good alpha is knowledge that gives you insight into how the price of an asset is likely to move.
Great alpha is the same knowledge, just acquired sooner.
2/ 🔮
Where do you find Alpha?
Anywhere. We are drowning in information. Actually, the biggest problem, is information overload. Alpha overload.
There is alpha ALL around us. Twitter is flooded with it. The problem is, how can you differentiate the signal from the noise?
Where do you find Alpha?
Anywhere. We are drowning in information. Actually, the biggest problem, is information overload. Alpha overload.
There is alpha ALL around us. Twitter is flooded with it. The problem is, how can you differentiate the signal from the noise?
3/ 🔮
This is where "points of influence" come into the equation.
If a random on Twitter says "catfrogkingz" is a buy, that's a single point.
If your best and most trusted friend says "catfrogkingz' is actually an awesome buy", that's a million points.
This is where "points of influence" come into the equation.
If a random on Twitter says "catfrogkingz" is a buy, that's a single point.
If your best and most trusted friend says "catfrogkingz' is actually an awesome buy", that's a million points.
4/ 🔮
It's never black and white, or objective. There are infinity points going around at all times, some positive, some negative.
If Steve Aioki buys, that's negative points (i'm kidding.. kinda).
The idea is to accumulate as many points as possible, from trusted sources.
It's never black and white, or objective. There are infinity points going around at all times, some positive, some negative.
If Steve Aioki buys, that's negative points (i'm kidding.. kinda).
The idea is to accumulate as many points as possible, from trusted sources.
5/ 🔮
Trusted sources is the key. SO many people in this space have their own interests in mind, above all else.
That can be fine. They can make money and you can make money too by following them. Sometimes, though, you're gonna get burned.
Trusted sources is the key. SO many people in this space have their own interests in mind, above all else.
That can be fine. They can make money and you can make money too by following them. Sometimes, though, you're gonna get burned.
6/ 🔮
How do you use alpha?
Remember, alpha is knowledge. You want to use this knowledge to make good decisions.
If you find a lot of positive points of influence, you can feel reasonably comfortable in making a decision, and trusting that it will be at least "decent".
How do you use alpha?
Remember, alpha is knowledge. You want to use this knowledge to make good decisions.
If you find a lot of positive points of influence, you can feel reasonably comfortable in making a decision, and trusting that it will be at least "decent".
7/ 🔮
The best alpha is alpha that you can self-corroborate.
"oh wow, project xyz just announced they're partnering with Disney"
(checks announcements) -- you're right! I'm gonna buy!
Wait.
The best alpha is alpha that you can self-corroborate.
"oh wow, project xyz just announced they're partnering with Disney"
(checks announcements) -- you're right! I'm gonna buy!
Wait.
8/ 🔮
It is true that it's fantastic that you can corroborate it, but remember what I said at the top?
Good alpha is knowledge; great alpha is knowledge acquired sooner.
If you're buying after checking an announcement, have 1000 other people already done the same?
It is true that it's fantastic that you can corroborate it, but remember what I said at the top?
Good alpha is knowledge; great alpha is knowledge acquired sooner.
If you're buying after checking an announcement, have 1000 other people already done the same?
9/ 🔮
This is where the crux of excellent alpha comes from: The Informational Totem Pole.
You must ALWAYS consider where you are in the hierarchy.
If you hear news an hour after it's announced publicly, you're very late.
If you hear it 20 minutes after, you're late.
This is where the crux of excellent alpha comes from: The Informational Totem Pole.
You must ALWAYS consider where you are in the hierarchy.
If you hear news an hour after it's announced publicly, you're very late.
If you hear it 20 minutes after, you're late.
10/ 🔮
If you hear it AS it's being announced on a live stream, well, you're probably still late. Huh?
Consider that many people WILL have known before you.
Sometimes a big announcement is leaked by a team member -- insider trading, effectively.
If you hear it AS it's being announced on a live stream, well, you're probably still late. Huh?
Consider that many people WILL have known before you.
Sometimes a big announcement is leaked by a team member -- insider trading, effectively.
11/ 🔮
That sucks, but it happens all the time. Not a tonne you can do about it, sadly.
What you can do, though, is try and pick up the bits and pieces of Alpha that are dropped well in advance of a public announcement, and try and predict it.
That sucks, but it happens all the time. Not a tonne you can do about it, sadly.
What you can do, though, is try and pick up the bits and pieces of Alpha that are dropped well in advance of a public announcement, and try and predict it.
12/ 🔮
Maybe this project announced in a town hall a while back they had an exciting partner in the works.
Maybe one of the team members said in Discord that it's a top 5 company in the world.
Maybe this, and that, and you piece bits and pieces together.
Maybe this project announced in a town hall a while back they had an exciting partner in the works.
Maybe one of the team members said in Discord that it's a top 5 company in the world.
Maybe this, and that, and you piece bits and pieces together.
13/ 🔮
This is great alpha.
A good alpha group, will have many people working together, sharing information, and trying to come to sensible conclusions to predict what might happen in the future, and/or sharing opportunities that are present right now.
This is great alpha.
A good alpha group, will have many people working together, sharing information, and trying to come to sensible conclusions to predict what might happen in the future, and/or sharing opportunities that are present right now.
14/ 🔮
There are many other forms of alpha. It doesn't have to be about a big upcoming announcement.
It could be about a stealth mint. It could be about a potential upcoming airdrop, and how to prepare for it.
It could be to use lending protocols to make money.
There are many other forms of alpha. It doesn't have to be about a big upcoming announcement.
It could be about a stealth mint. It could be about a potential upcoming airdrop, and how to prepare for it.
It could be to use lending protocols to make money.
15/ 🔮
The list goes on.
An "alpha group" is literally just 2 or more people who, at least ostensibly, share information with the mutually beneficial goal of thriving together.
The better the information, the faster, the more open, and trusted, the better the group.
The list goes on.
An "alpha group" is literally just 2 or more people who, at least ostensibly, share information with the mutually beneficial goal of thriving together.
The better the information, the faster, the more open, and trusted, the better the group.
16/ 🔮
It could literally be a group chat with some friends on WhatsApp (I have this).
It could be a private Discord that is gated by a token (I am in many of these).
It could be a group DM on Twitter.
Alpha groups come in many shapes and sizes.
It could literally be a group chat with some friends on WhatsApp (I have this).
It could be a private Discord that is gated by a token (I am in many of these).
It could be a group DM on Twitter.
Alpha groups come in many shapes and sizes.
17/ 🔮
You don't need an alpha group. You can go it solo. But, I wouldn't recommend it.
Not only are you at a disadvantage to multitudes of people working together, it's also.. lonely.
There are benefits, though. You don't run the risk of being fed fake alpha.
You don't need an alpha group. You can go it solo. But, I wouldn't recommend it.
Not only are you at a disadvantage to multitudes of people working together, it's also.. lonely.
There are benefits, though. You don't run the risk of being fed fake alpha.
18/ 🔮
Fake alpha is generally when someone with a bag says something designed to pump their bag, and not because it's any sort of real alpha.
Sometimes it's literally a lie, ie "psst, I heard Yuga is going to be acquiring xxx soon!"
This is why trust is important.
Fake alpha is generally when someone with a bag says something designed to pump their bag, and not because it's any sort of real alpha.
Sometimes it's literally a lie, ie "psst, I heard Yuga is going to be acquiring xxx soon!"
This is why trust is important.
19/ 🔮
There's nothing wrong with alpha groups, but there's lots wrong with predatory ones. How do you know whether a group is a good one?
Ah. You gotta find the alpha for that.
Seriously. Ask around. Gather points of influence. What do people you trust think about x, y or z?
There's nothing wrong with alpha groups, but there's lots wrong with predatory ones. How do you know whether a group is a good one?
Ah. You gotta find the alpha for that.
Seriously. Ask around. Gather points of influence. What do people you trust think about x, y or z?
This thread became way longer than intended. I've been thinking about this stuff for a while though, and once i started typing, it just kept coming out 🤷
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