Media outlet Quartz have recently published an article in which they discuss the secret to Crypto investment. Quartz believe that the key and the true secret in becoming a successful investor, is to not keep secrets. The article by writer John Detrixhe can be found, here. The justifications behind this claim come from an idea that liquidity is the true key to success as a cryptocurrency investor, this comes from a number of external research pieces within academia that suggest liquidity really is the key. According to Quartz:
“Another measure of a token’s success is liquidity (a ready market for buying and selling a particular asset). This measurement can help demonstrate sustained interest and potential customers for a particular venture and its digital coin, according to a National Bureau of Economic Research working paper that compiled data on more than 400 ICOs.”
Furthermore, the article goes on to discuss some of the findings to this research. In essence, liquidity is only truly possible when people work together, in a transparent fashion (no secrets, basically).According to Quartz, research has found that liquidity is most viable when projects focus on the following:Disclosure, Community Engagement, Commitment, Leadership, Quality and a Clear Plan. Disclosure refers to projects that are totally transparent with their project. Things like a whitepaper and source code on Github can go a long way in ensuring this. If this sort of information is available then as an investor, you should see this as a viable project.Community engagement is also vital too, ultimately it is the community that will deem if a project is a success or not. Therefore as an investor, you need to look at how many people are a part of the community. If it’s big and if it’s thriving, the chances are you’ve got a good investment opportunity. A clear plan is a great way to summarise this. If a project is keeping their plan a secret, there’s obviously something going on that they don’t want you to know about. Quartz put this point very nicely:
“Projects that have tokens with a clear utility value are more successful, as are those that intend to create a new blockchain protocol. New software protocols can be the foundation for an ecosystem of new applications and so have much more upside for creating value (though they are riskier).”
There we have it, now you know the secret to becoming a successful crypto-investor. Transparency is the thing that drives this industry. Share knowledge, share findings and share thoughts as every little input can contribute to a wider vision and the wider community. By sharing our own advice with each other, we can all become successful in this, that’s what we all want after all, success.