Cody Hurst Official

Why Invest in Crypto?

Cryptocurrency presents a unique opportunity to achieve personal financial freedom, offering the potential for life-changing returns, unlike traditional financial systems. Traditional finance, with its reliance on fractional reserve banking, has grown outdated. While cryptocurrency exchanges may face scrutiny, they provide decentralized financial autonomy, free from the control of major hedge funds or Wall Street. True crypto investing calls for self-responsibility and education, empowering you to secure and grow your assets on your terms.

For those with disabilities, like blindness, cryptocurrency presents an alternative to traditional employment paths. Vocational rehab agencies often promote conventional careers, but many individuals face barriers in these roles. Cryptocurrencies offer a way to achieve financial independence without needing to rely on such agencies, which often impose constraints on technology access and career progression. I've personally experienced the transformative power of crypto and aim to help others unlock their potential, just as I have.

Cryptocurrency investing can be challenging due to the lack of accessible tools for technical analysis, particularly for those with disabilities. This is why I've dedicated time to developing a fully accessible charting solution, allowing everyone to participate in the financial revolution. Although crypto investing requires determination and education, the rewards can be immense for those willing to forge their path.

Where Do I Start?

With thousands of cryptocurrencies and numerous blockchains available, knowing where to begin can be overwhelming. Like many newcomers, I initially followed popular influencers, only to realize that selecting strong projects requires deeper insight. Below, I've outlined key factors to consider when assessing a project for your portfolio:

• When was the project released (before, during, or after a bull run)?
• Is the team publicly known (doxed)?
• What are the project's tokenomics? Was it fairly launched?
• Is the project based on Proof of Work or Proof of Stake?
• Is it listed on reputable exchanges?
• What narrative does the project fall under?
• What are the current macro economic conditions in the global liquidity cycle? Are interest rates being raised or cut?

Project Release Date

The timing of a project's release is crucial. Projects launched during a bull run often experience inflated values followed by sharp declines in bear markets. Look for projects with steady growth through bear markets to assess long-term viability. Avoid projects with extreme spikes and crashes, often visualized as “circus tent” charts, which could indicate pump-and-dump schemes.

Is the Team Doxed?

It's essential to research the team behind a project. Anonymous teams, outside of meme coins, are a red flag. Opt for projects with well-known, credible founders who engage publicly. Public teams are more accountable and less likely to abandon projects, protecting investors from rug pulls.

The Importance of Tokenomics

Tokenomics can reveal crucial insights into a project's structure. Pay close attention to token distribution—fairly launched projects give equal opportunity to all investors, minimizing the risk of price manipulation by early holders. Projects with high token concentration in founders' hands, like XRP, may struggle to achieve new highs due to frequent sell-offs.

Proof of Work vs Proof of Stake

Cryptocurrencies operate on different consensus mechanisms—Proof of Work (PoW) and Proof of Stake (PoS) are the most common. PoW coins, like Bitcoin and Kaspa, are mined using physical resources, adding intrinsic value to the asset. PoS tokens are generated through staking, and while they are scalable and environmentally friendly, they lack the same physical resource backing, which can impact their perceived value. However, advancements in PoW technologies are blurring the line between these two mechanisms.

Exchange Listings (CEX vs. DEX)

When assessing a project, note its exchange listings. Projects typically begin on decentralized exchanges (DEXs) or smaller centralized exchanges. As they mature, gaining listings on tier-one exchanges like Coinbase or Binance can significantly boost their market value. This is often the time when substantial price movements occur, driven by the need for exchanges to purchase tokens at market price.

Narrative Matters

A project's narrative can determine its success. At present, Layer 1 and Layer 2 solutions dominate the crypto narrative, with artificial intelligence and real-world asset integration also gaining traction. Understanding where a project fits within these narratives can help you identify opportunities for growth.

Global Liquidity and Monetary Policy

The broader crypto market is influenced by global liquidity and monetary policy, particularly through the bond markets and decisions made by the Federal Open Market Committee (FOMC). As the FOMC lowers interest rates, major investors begin moving capital from stable assets, like bonds, into risk-on assets like cryptocurrency. This shift can ignite bull markets, driving up asset prices. Following the run-up, profits are typically redistributed into emerging narratives, such as AI and gaming, causing an even larger market expansion before the eventual sell-off phase, as monetary policy shifts again.

Ready to build your wealth strategy?

Learn more about integrating cryptocurrency into your broader wealth-building approach by visiting the Finance Page.