Adopting Responsible Business Practices (Opinion)
Crypto is a place of unprecedented equality, transparency and opportunity. A country where every wallet is treated equally, where race, gender and orientation do not matter. Crypto is fertile ground with a level playing field for a game where everyone is invited to play.
But it also has a darker side; Because where there is money, there are equal opportunities and opportunists. It may be impossible to completely eliminate the latter, but that doesn’t mean crypto can’t be made safer, fairer and ultimately more profitable for everyone. For this to happen, industry figures from exchanges to KOLs need to embrace more. Responsible practices in 2024.
Stop Promising the World
Crypto rises and falls with hyperbole. From YouTubers’ breathtaking proclamations promising “the next 100x” to blockchains promising to “transform the layer1 landscape,” the hype machine never stops. This enthusiasm is contagious, but also tiring. Instead of focusing on the basics, influencers encourage users to jump from one token and chain to another, buying and selling wildly to find the gem that will make them rich.
It is understandable to focus so much on price in an industry based on money. Infrastructure improvements, by comparison, are even harder to visualize and sell; DVT may be valuable, but it’s unlikely to excite anyone other than Ethereum validators. This is why liquid staking tokens are attracting more attention than liquid staking technology, and why meme coins are attracting more volume than tokens with real utility.
How can we fix this? Fundamental analysis should no longer be a dirty word in crypto, and investors should have access to educational tools and guides to help them learn how to read between the lines of project roadmaps, whitepapers, and marketing.
Fortunately, there can be traditional-style ways to value companies using rates in crypto. For example, Daily Active Users/Market Cap is a ratio that shows how much “value” each user has on the blockchain. In some cases, each user is worth hundreds of millions of dollars in market cap.
This information alone empowers people to question the marketing narrative and ask: Is this project attracting the users it needs to be successful? We’ve collected 20 such metrics in our Crypto Analysis Toolkit, available free with a handy guide.
Don’t Risk Everything
It is up to each individual to take personal responsibility for their digital assets; That’s what crypto is all about, after all: self-sovereignty, self-custody, and self-sufficiency. In practice, this means doing better investment analysis, making personal decisions, and not falling into the trap of FOMO.
Using these free tools allows users to develop frameworks and “walk the talk” and develop crucial empirical knowledge. My point is, there is no harder lesson in risk management than seeing a bad investment go to zero.
So, use the toolkit to make cool-headed decisions; This means not blindly copying altcoins recommended by influencers or trade setups shared by crypto OGs. For some people, copy trading works and can get you far in crypto, but learning using your judgment will hone your skills and allow you to build a solid portfolio, which will make you more comfortable trading with a small fraction of the time. your net worth.
Get Rich Slowly
As Warren Buffett puts it, the stock market is a tool that transfers money from the impatient to the patient. The surest way to achieve your financial goals is to stay in the game as long as possible. You don’t have to do it all in one transaction. You don’t need to get rich overnight. Bitcoin isn’t going anywhere. Crypto isn’t going anywhere.
As long as you have skin in the game, you can continue playing the game. By 2024, the entire industry needs to adopt more responsible business practices. For those in positions of influence, doing so will increase credibility and build trust, while for those just starting out, taking less risk is key to portfolio growth.
Bitcoin whales made money by researching a technology that was ignored by the majority and then showing patience for years. There are times when it is necessary to act quickly in crypto to take advantage of opportunities. But often there is more money to be made by watching, waiting, and letting market forces do their thing.
Author biography:
Hao Yang is Bybit‘s global head of derivatives and financial products. He is responsible for creating one of the most advanced options platforms in the industry, designed to provide users with a seamless trading experience. Today, he heads a team of passionate builders working with the latest trading technologies, from AI bots and structured products to the development of Unified trading accounts and new innovations in crypto-specific derivatives. Hao is passionate about building a new, decentralized financial system.
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