Must-know fundamentals (Crypto knowledge) ---- Nan Ge (Master of Finance)
There is no theoretical knowledge system for cryptocurrency in finance, here Nan Ge will use stocks for analogy.
Making money from stocks can be divided into four types: (here will be compared to the crypto circle)
1: Trading money, buy low sell high -- technical analysis (Candlestick chart is a summary of data, the stock market and the crypto circle are the same, different paths lead to the same goal)
2: Performance growth --- fundamental research (stock market)
The stock market corresponds to companies, the performance growth of a company, net profit growth, directly affects the stock price.
(Here it differs greatly from the crypto circle!!!)
Crypto Circle: Here it is more complex.
(1) For example, technologies like ETH correspond to technology, more related to on-chain activity, gas, etc.
(2) Platform tokens like BNB are more similar to stocks here. There is a deflationary mechanism (buyback mechanism in stocks). The price of tokens is closely related to the development of the platform. But there are also differences; Bianca's financial reports, assets, etc., do not directly affect the price.
(3) MEME tokens, pure consensus, somewhat like the penny stocks in the Hong Kong stock market. (There is not much fundamental, purely based on popularity)
(So for different types of tokens in the crypto circle, fundamental research needs to have specific focuses)
3: Dividend money --- company profit distribution
In the stock market, companies distribute profits to shareholders.
The evolution in the crypto circle surpasses the stock market here.
(Staking dividends, TVL. Staking can reduce circulating chips, stabilize prices, and POS can ensure network security, plus staking can earn airdrops, etc.)
(Here, the future is a huge market, on-chain financial products and derivatives)
4: Valuation growth money --- (money from easing, storytelling)
Good news for the company, changes in strategic planning will affect the company's valuation.
Additional knowledge point (A criticism of the crypto circle is the lack of valuation anchors; the valuation of tokens is not anchored to a company's revenue, financial reports, or assets. But it has also shaped the highly volatile market of the crypto circle)
Because the anchoring effect in the crypto circle is very weak, both easing and storytelling can bring short-term high volatility.
Mastering the underlying architecture can bring stable happiness!
There is no theoretical knowledge system for cryptocurrency in finance, here Nan Ge will use stocks for analogy.
Making money from stocks can be divided into four types: (here will be compared to the crypto circle)
1: Trading money, buy low sell high -- technical analysis (Candlestick chart is a summary of data, the stock market and the crypto circle are the same, different paths lead to the same goal)
2: Performance growth --- fundamental research (stock market)
The stock market corresponds to companies, the performance growth of a company, net profit growth, directly affects the stock price.
(Here it differs greatly from the crypto circle!!!)
Crypto Circle: Here it is more complex.
(1) For example, technologies like ETH correspond to technology, more related to on-chain activity, gas, etc.
(2) Platform tokens like BNB are more similar to stocks here. There is a deflationary mechanism (buyback mechanism in stocks). The price of tokens is closely related to the development of the platform. But there are also differences; Bianca's financial reports, assets, etc., do not directly affect the price.
(3) MEME tokens, pure consensus, somewhat like the penny stocks in the Hong Kong stock market. (There is not much fundamental, purely based on popularity)
(So for different types of tokens in the crypto circle, fundamental research needs to have specific focuses)
3: Dividend money --- company profit distribution
In the stock market, companies distribute profits to shareholders.
The evolution in the crypto circle surpasses the stock market here.
(Staking dividends, TVL. Staking can reduce circulating chips, stabilize prices, and POS can ensure network security, plus staking can earn airdrops, etc.)
(Here, the future is a huge market, on-chain financial products and derivatives)
4: Valuation growth money --- (money from easing, storytelling)
Good news for the company, changes in strategic planning will affect the company's valuation.
Additional knowledge point (A criticism of the crypto circle is the lack of valuation anchors; the valuation of tokens is not anchored to a company's revenue, financial reports, or assets. But it has also shaped the highly volatile market of the crypto circle)
Because the anchoring effect in the crypto circle is very weak, both easing and storytelling can bring short-term high volatility.
Mastering the underlying architecture can bring stable happiness!
