Strategy in Cryptocurrency Markets: What is it, How Should It Be?
For me, strategy is an art. An art where knowledge is transformed into value, unity into growth, trust into gain, energy into synergy, power into strength, and proactive perspective into vision…
Cryptocurrencies are attracting more and more people’s attention every day. This interest; it’s more than just crypto being interesting. Cryptocurrency based on privacy and trust; it turns into value as it is used in real life.
I think that cryptocurrencies are just at the beginning of the road, in other words, they are in their infancy. I think we still have a long way to go in the Yesterday-Today-Tomorrow trilogy. This; it is a process that I think will be successful for those who transfer their experiences from yesterday to tomorrow with today’s balance. In other words, it is a way to win for those who develop strategies with a proactive perspective.
Investment instruments, by their very nature, contain risk and gain. It is normal to have losses as well as gains. It is not a very realistic situation for every institution or person to foresee every event and accordingly always be profitable in every investment! But I would say that mostly the winners definitely have a strategy. Especially small investors can increase their investments as long as they can read the minds of whales and develop strategies in this context.
To make a relative % gain in an investment instrument, it’s not real profit. Carrying cost and inflation should not be neglected in this gain. After these costs are subtracted, a real profit can be mentioned. In case of loss, after these costs are added, the real size of the loss can be seen.
What Strategy Should Teams of Coins/Tokens in the Market Follow?
Every day, new coins or tokens are released into the crypto money market. While some of them want to be beneficial to humanity by doing really good works, unfortunately some of them are put on the market for scam purposes. I can say that most of the investors invest in cryptocurrencies without doing any research. Few investors really study any cryptocurrency’s roadmap, whitepaper, and team. However, investing without these researches is not much different from gambling.
In my opinion, the tokens to be released must have a strategy! In this strategy document, its purpose, vision, mission, SWOT analysis, TOWS matrix, its contributions to the crypto money market and the innovations it will bring, how to solve the problems in a way that does not allow them to turn into a crisis, how to follow in a possible crisis (red-yellow-green situations), possible Questions such as what to do in case of chaos, how to proceed in the light of cyclical developments, what to do in the context of technological-economic-political and cultural developments should be answered.
There must be a cost-income-expenditure analysis when setting out and trading in the markets. This analysis; strategy documents should be included in the whitepaper as an indispensable part. Questions such as what works will be done to generate income, where and how these incomes will be spent, which items will be included in the quarterly and annual financial statements, and how the expenses will be coordinated should be answered.
These are situations that apply not only to cryptocurrencies, but also to centralized or decentralized cryptocurrency exchanges. Exchanges should also have a strategy that includes answers to the questions I wrote in the paragraph above. This is essential for the future of cryptocurrency markets and their respective actors. There is a discussion going on recently. This discussion is making people nervous. Discussions about Binance, the largest exchange in terms of trading volume of the cryptocurrency market. States’ attitudes towards Binance and recent developments. There is no guarantee that this will not happen for other exchanges in the future! (Huobi Global, FTX, Kraken, KuCoin, Bithumb, Bitfinex, Gate io, Bitstamp, Poloniex, bitFlyer, Coinone, Gemini and others.)
So, what kind of strategy will the coin, token or cryptocurrency exchange follow in such a case? Do they have a strategy?If so, why don’t they share some of it as a public document? Whereas, in every investment instrument, trust, sincerity, transparency, winning together and the value given to the investor are indispensable. These are issues that require more attention due to their nature in the cryptocurrency market.