Hey welcome again!
Today I want to show you little things that matter a lot in the crypto industry that most (& would be) investors often ignore while making their choice of which crypto assets to invest in.
Most, especially newbies make investment decisions based on hype they get about an asset on social media, without adequate fundamental and technical analyses. This is because they do not have the patience to undergo through the series of studies required to gather as much information that are needed to make (the right) decision.
This can be grouped into
1. Pre-trade and
2. Post trade.
Pre-trade includes understanding how the following works
a. Development & back testing of cryptoasset algorithmic /programmatic trading strategies
b. Identification of arbitrage opportunities
c. Development and backtesting of liquidity provider and market making models
d. Development of original research on digital assets.
Post trade is basically managing your position effectively, you need to put into consideration
a. Risk management; valuation, modeling, trading cost, settlement, liquidity etc
b. Compliance
This is what forms your basis for judgement before you invest. They should be treated with all cautions and not overlooked.
Thank you. Hope you had a nice read...