You Don't Need to Understand Crypto to Make Money in It

Making money in crypto doesn't have to be complicated.

You see, most investors don't know what a blockchain is and feel that at this stage it's too embarrassing to ask.

Well, let me tell you:

You don't need to understand what any of this jargon means.

You don't need to understand blockchains, DeFi, or decentralisation.

You only need to know how to ask three questions. And it requires you to forget everything you know about crypto.

Don't treat these investments like digital assets, treat them like roads.

The first question: is the road designed well?

Is it full of potholes or is it a well-constructed multi-lane highway?

In answering this question, you understand the technology.

Does this technology have a need to exist? Is it solving a real-world problem or does it just read like a combination of buzzwords?

In looking for well-designed roads, I go to the website and pretend like I know nothing. Just like when watching a film, it's the writer's job to explain the concept to you in an intuitive way.

If they do a poor job and throw jargon at you at every chance, it's probably an idea they're not confident in, and they're trying to hide it under the guise of being smart.

The second question: are there cars using that road?

Just because a road is well designed doesn't mean it's necessary. If the world's best road was in Antarctica, no one would use it.

Not because it wasn't designed well, but because it was likely solving a problem that didn't exist, or it struggled against established roads.

So in answering this question, you can understand whether there is adoption.

Most crypto projects fail here spectacularly and it's really easy to check.

See how many people actually use the network or application, monitor its revenue, or go onto the application/network itself.

The third question: is there a toll booth on the road?

If I was investing in a road, I would need a way to get a return on my money.

Many of these crypto technologies have lots of traffic but don't have a way to monetize it and then pay the investor.

So if you can answer this question, you can understand whether there is value capture.

99% of the crypto market fails to meet all three of these conditions.

But there's a tiny minority that have solved a genuine problem, have real users, and a way to make their investors rich.

Yet, investors barely distinguish between the two.

They paint with so broad a brush that the barely functional roads and the bustling ones with established toll booths all fall under the same dismissive label of "crypto."

And that, to me, is shaping up to be the biggest story in the coming years in crypto that no one is paying nearly enough attention to.

It's what will drive the biggest investment opportunities this space has ever seen.

So when it comes to evaluating crypto, forget all this nonsense that people try to sell you on.

And only ask: is it a well built road?

Cheers,

Louis Sykes
Senior Crypto Analyst, All Star Charts