To the Moon: Understanding and Investing in Crypto
Thanks to everyone who was able to join our IG Live! In case you missed it, here are our key takeaways:
Crypto is a paradigm where we can have more ownership and transparency over our digital assets. In an increasingly more digital world, Crypto is aiming to replace the centralized servers that allow companies to control our data with shared servers that everyone can control (aka Blockchain!).
Despite the bear market, the Crypto is still in its early building phase. Historically, Crypto has gone through some of its most innovative periods after entering a bear winter. Here are some of the latest consumer trends that are starting to become more mainstream:
DeFi (Decentralized Finance): DeFi is breaking down barriers of how we are able to send, share, and raise money around the world. Instead of going through traditional finance institutions, DeFi eliminates the need for an institutional intermediary and allows people to conduct transactions on a peer-to-peer network. For example, if you didn’t have a bank account and wanted to avoid the fees that a typical bank would charge, you could use DeFi applications that would facilitate this transaction directly between two parties.
Gaming: Significant resources are going towards building out games that run on blockchain and tokenizing elements like skins, avatars, and other in-game assets.
Art, Music and Collectibles: NFTs are becoming an increasingly more popular alternative to monetize your fan base. Instead of needing millions of streams on Spotify, you can generate a similar amount of money with a much smaller ‘core’ fan base through minting NFTs of songs, collectibles, experiences and many more aspects of artists’ work. Big companies like Instagram, Facebook, TikTok and Reddit have already or are in the process of incorporating NFTs into their platform.
Be cautious of where you get your Crypto information! Social investing allows for a lot of information sharing — both good and bad. Curate a list or group of people to follow that you trust for information on Crypto to avoid the traps of social and emotional investing.
The FTX fallout is likely going to lead to a cultural shift back to accountability and the original ethos of Crypto. Long term, this hopefully will refocus the space on building truly decentralized products — and it looks like regulators are already putting in the effort to be educated about the space and where it is evolving.
One of the biggest lessons Natalie has learned on her Crypto journey is that life and investing are about the same skill sets: risks, relationships, diligence, integrity, etc. Managing your own psychology will benefit you in investing as much as it will in life.
If you’re looking to start your Crypto journey, check out some of Natalie’s top resources:
Natalie’s Twitter: @EclecticCapital
Make sure to check out our instagram @AceWomensCollective for a replay and other key takeaways!
