I’ve recently had conversations with individuals who, like me, feel frustrated by the overwhelming number of opportunities available. It’s undoubtedly a good problem to have, but if you try to seize every opportunity, you might end up risking a significant portion of your bankroll.
Once again, I find myself reflecting on a week filled with tumultuous events that involve me dabbling in the murky waters of shitcoining; this time on Solana. It was a week where, once again, much was learned, not least of all that I should stick to my niche! The last time this occurred, it was documented in this article: “Memecoin Trading Survival: 5 Key Rules.”
How Do I find my Niche?
Finding your niche in crypto begins with a deep dive into your interests and skills. Consider your background, expertise, and passions. For example, crypto tokens may interest you, but NFTs speak to you on a whole different level. NFTs are deeply rooted in culture, and understanding the sentiment around them is crucial—for instance, whether the art “slaps” or not. Some people have a gift for recognizing this just at a glance, whereas some believe they do but get it very wrong.
There’s no such indicator with crypto tokens, but the closest comparison might be reading and analyzing a tokenomics report to determine its sound integration. Again, not everyone has the skill (and patience) to recognize this, or whether it’s a token that will engage the masses and be easy enough to understand for the casual crypto investor. This is the thinking man/woman’s version of questioning whether the art will slap or not. Two very different beasts, and while there are many who can do both, it’s better to concentrate your time on one if you’re in the process of finding your feet.
How Does temperament play into it?
Finding your niche also depends on your temperament and investment approach. For instance, someone who thrives off doing deep research and making calculated long-term plays, whether that be on tokens or NFTs, probably isn’t going to do too well in the murky waters of shitcoinery, where if you hold longer than 40 seconds, you run the risk of being rug pulled or dumped on.
Likewise, the degen with an attention span of a goldfish, but very skilled at getting in and out with a profit quickly, cannot even fathom what a 6 month hold looks or feels like.. Even if they did try and hold something with conviction, they often panic sell at the first sign of a dip, undercutting the floor close to zero until it’s sold. In 99% of cases, this method is just as sound as treating a shitcoin like it has any utility; both will evaporate your bankroll with haste.
Choose Your chain
The next factor in determining your niche lies in choosing the blockchain to focus on. Unless you possess exceptional time management skills and can maintain focus across various platforms, it’s advisable to start by selecting a preferred place to call home.
Familiarize yourself with the most popular tools, dapps, top NFT collections, and tokens within that ecosystem. Spend time in the Discord servers of communities embodying the ethos of that chain. Immersing yourself in the culture of your chosen chain helps develop a sixth sense for distinguishing between good and bad opportunities. Moreover, by concentrating your attention on one place, you’re more likely to be among the first to seize new opportunities as they arise, as your focus isn’t divided and there’s minimal noise to cut through.
Final Thoughts
While these aren’t the only paths to discovering your niche, they provide a solid starting point. Using these as a base will likely help you cultivate new parameters to further hone in on your chosen area of expertise.
Unless you can be at all places at once, becoming great at just one area of Web3 will reap more dividends than trying to be in several all at once. It’s crystal clear that chasing the latest trendy meta and hopping from one to the next is the least advisable approach; that is unless you’re early to them all, in which case you don’t need this article as you’re already part of the cabal!
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