Weekly Editors Picks is a functional column of Odaily Planet Daily. In addition to covering a large amount of real-time information every week, Planet Daily also publishes a lot of high-quality in-depth analysis content, but they may be hidden in the information flow and hot news, and pass you by.
Therefore, every Saturday, our editorial department will select some high-quality articles that are worth spending time reading and collecting from the content published in the past 7 days, and bring new inspiration to you in the crypto world from the perspectives of data analysis, industry judgment, and opinion output.
Now, come and read with us:
Investment and Entrepreneurship
The most important thing to make money in a bull market is to build your own trading system
A trading system is a complete set of signal rules regarding entry, exit, stop loss and take profit in buying and selling.
When evaluating a trading system, you only need to focus on one key indicator, which is the profit-loss ratio. The so-called profit-loss ratio refers to the average amount of profit divided by the average amount of loss.
A complete operating system should include the following seven elements: cycle judgment, operational thinking, currency selection, timing, buying and selling rules, capital management, and risk control.
For example, Granvilles Eight Methods of Operation is to use the moving average to judge the price trend, which should generally follow the following rules: when the moving average rises, it is a buying opportunity, and when it falls, it is a selling opportunity; when the moving average turns from falling to rising, and the stock price breaks through the moving average from below, it is the best time to buy; when the moving average turns from rising to falling, and the stock price breaks through the moving average from above, it is an important selling opportunity.
Dialogue with trader Benson: How do those who use data-driven trading make money?
In volatile markets, Benson will find a position with a higher safety margin based on indicators to participate in the market; at the same time, he pays attention to indicators such as BTC inflow and exchange CVD to judge market trends.
Benson has given most of his positions (more than half) to quantitative strategies for currency-based appreciation, mainly hoarding and holding coins; about 40% of his positions are mainly stablecoins, which are used for guerrilla warfare, participating in on-chain transactions or first-order contract transactions.
Bensons trading strategy does not seek explosive growth, but rather focuses on stability. His goal is to outperform the market, with a year-to-date performance of about 2 to 3 times.
Different targets have different operation methods. For targets that may become market hot spots, Benson will hold them until the market pays attention or the bull market ends; for tokens with larger market capitalization, he will use technical analysis or fundamental analysis to determine the possible price trend.
The unknown dark side: Uncovering market manipulation in Web3.0
Common manipulation methods in the Web3.0 market include wash trading, spoofing, bear raiding, FUD, sell wall manipulation, and pump and dump.
To prevent market manipulation, you need to investigate the background of the token, choose an exchange with high transparency, remain vigilant and conduct careful analysis.
Although regulatory frameworks and technologies are constantly improving and advancing, participants in the Web3.0 field still need to remain vigilant.
Web3 allows some market participants to earn high returns relatively quickly without requiring projects to achieve product-market fit (PMF) or demonstrate actual utility, as liquidity is much easier to acquire. Token generation events (TGEs) in Web3 can be conducted at any time without requiring projects to reach specific milestones. This weak correlation between success and exit in Web3 has led to significant incentive misalignment issues, with many market participants pursuing short-term returns without long-term success. At the same time, the lack of transparency and regulation in the cryptocurrency space has made predatory behavior not only profitable, but often unpunished.
The beneficiaries of incentive misalignment are teams and founders, VCs, CEXs, market makers, and KOLs; the victims are retail investors and long-term participants.
Possible solutions to promote incentive alignment include regulatory intervention, inaction (waiting for the market to self-correct), encouraging self-discipline (transparency and accountability), and improving token vesting design (avoiding too low circulation during TGE, getting rid of the fixed token supply model, designing convex profit distribution for insiders, and introducing a target-based unlocking mechanism).
For the industry, there are immediate steps that can be taken to address incentive misalignment: acknowledge the problem, promote transparency, hold bad actors accountable, and call for innovative token vesting designs.
Airdrop Opportunities and Interaction Guide
Must-attend this week: Pump.fun trading, Morph mainnet new mission, Space and Time galaxy mission
Interactive Guide: Nillion, the Worlds Blind Computer Re-Raised $25 Million
Q4 Airdrop Guide: 76 projects to interact with first
Meme
The hottest meme concepts: AI, artists, zoos and Minecraft
Meme Training Manual: Rebirth: I Want to Be a Diamond Hand (Part 3) | Produced by Nanzhi
The portrait of the copycat should be:
Low drawdown ranks first - find out the investment ratio when the loss is the largest, and how many consecutive losses will result in a golden dog;
Can make money - in addition to the total profit and loss, the details of the input cost must be calculated. It is not desirable to use a large bet on a small address, and the proportion of high FOMO in the loss is calculated;
Dont bet big on small, but also be able to enter the bottom - count the proportion of low-level entry in making money;
The transaction frequency is not high - the number of purchases is not high;
Holding it for a long time - you can also count it in the statistics of point 4, and it also does not cut people.
Also recommended: Increase your PVP winning rate, keep this advanced guide to Memecoin tools and Is the Meme section starting to play art? Banana concept angle appreciation .
Ethereum
Rethinking the development and challenges of ETH: What caused ETH to lose its vitality?
The author believes that there is no problem with the long-term trend of ETH, because there is actually no direct competitor in the market. In Ethereums narrative, the key point in the positioning of decentralized execution environment is decentralization rather than execution environment, and this basic foundation has not changed.
There are two core reasons for the current bottleneck of ETH development. The first is that the Restaking track has caused a vampire attack on Layer 2 of the mainstream technology development path, diverting a large number of ETH ecological resources. However, due to the core mechanism of Restaking, it will not create incremental demand for ETH, which directly leads to the inability of the application side to obtain sufficient development resources and user attention, and the promotion and user education have stagnated; the second is that the key opinion leaders of the Ethereum ecosystem are becoming aristocratic and forming a benefit class, which has solidified the class mobility, the developer ecosystem lacks sufficient incentives, and innovation is naturally weak.
Interpretation of on-chain data: Why is ETH performing poorly and when will it rebound?
There are two criteria to determine whether ETH is being watched by funds: the proportion of ETH traffic on exchanges and the overall activity on the chain. Taking BTC as a reference, by observing the proportion of ETH traffic relative to BTC, we can clearly see the changes in fund preferences.
From the perspective of historical induction, it can be concluded that if Ethereum continues to maintain the status quo (including internal and external), then even with the support of ETFs, it will be difficult to obtain more than 50% or more of the BTC exchange traffic. Because after this round of fomo sentiment in March this year, the market has already rehearsed it.
To determine when to invest in ETH, focus on:
ETH’s exchange traffic to BTC reaches 50% or more (currently 35%);
Maybe after 50%, the price of ETH will have gone up, but it will definitely not be the highest. For me, I need to confirm the trend first and then execute the strategy;
The number of active addresses on the chain reflects the prosperity of the ETH ecosystem to a certain extent, and it is going to continue to rise;
The number of transfers and transaction amounts should be magnified simultaneously, especially the transaction amount, which is an important basis for measuring whether large funds are involved.
A new perspective on digital commodities, will the value of ETH recover?
This article explores the difference between digital commodities (such as L1 tokens) and equity-like tokens, and proposes a new framework for evaluating digital assets, especially for the value of ETH. The author believes that ETH should be regarded as a sovereign commodity rather than an equity-like token because commodities cannot generate cash flow or dividends. At the same time, it points out how to eliminate the vague definition of ETH assets, reiterates the importance of commodity premiums, and points out possible value assessment errors in the future.
In the next part of this series, the author will explain how and why certain technical steps, such as a defined gas token, sovereignty of supply, and consensus, are necessary to establish a social contract for commodity premiums.
Multi-ecology
Deep Dive into Liquidity Pool Quality: Has Solana Really Surpassed EVM Chains?
We delve into the quality of liquidity pools on top blockchains to determine if Solana outperforms all EVM chains in terms of transaction volume, using three criteria: established transaction history, high liquidity, and sustained transaction volume.
Solana has a decent amount of volume in the top 150 pools without considering TVL, but it’s not close to surpassing all EVM chains, or even Ethereum (although it’s very close). Most of Solana’s volume comes from pools with poor liquidity, with a fair amount coming from Pump Fun. Ethereum is still the king of DeFi, but Base is unexpectedly becoming a strong challenger as it has the pool with the highest volume.
CeFi DeFi
BitMEX Research: Uncovering the bond structure of MicroStrategy, when will it be liquidated?
MicroStrategy has $4.25 billion in debt, calculated based on its borrowed principal. Meanwhile, the company’s stock is currently valued at $43 billion, and its Bitcoin holdings are worth $17 billion. This shows that bonds do not account for a large proportion of MicroStrategy’s capital structure.
However, if the price of Bitcoin falls sharply, for example to around $15,000 per coin, and MicroStrategy is unable to raise further debt, analysts may need to take into account the forced liquidation of Bitcoin. However, the timing of this potential forced liquidation will be concentrated on the expiration dates and option exercise dates mentioned in this article, which are scattered between 2027 and 2031, and the timing is very clear. Therefore, even if Bitcoin does fall to around $15,000, the probability that MicroStrategy is forced to sell Bitcoin to repay bonds is still low.
Behind the Meme craze, Perp DEX has become a beneficiary of on-chain liquidity aggregation
Since the end of last year and the beginning of this year, Perp DEX protocols such as Hyperliquid, Drift, Surf, and Orderly have emerged one after another, and the old leader dYdX has become active again. With the rapid rise of the meme track, the power of on-chain liquidity has further opened up a new situation for the Perp DEX market.
Hyperliquid has already had a strong wealth-creating effect, but the scope of discussion is still concentrated in the English circle. According to the ranking of Hyperliquids spot changes, it can be found that under the premise of catching up with the CEX trading experience, the token increase of more than 100% has already provided an experience that is not inferior to CEX. Instead of playing contracts on CEX, it is better to play spot on DEX.
Hot Topics of the Week
In the past week, on October 30, BTC rose to 73,650 USDT and then fell back, only 130 USDT away from the historical high ( institutional market forecast ), and briefly fell below 69,000 USD on November 1; CZ made his first appearance after being released from prison : he will focus on education in the future and will not be involved in the issuance of new tokens in the short term; Canary Capital submitted an application for SOL ETF to the US SEC;
In addition, in terms of policy and macro markets, the Washington Post will not endorse a presidential campaign for the first time since the 1980s; Morgan Stanley: The US presidential election may trigger serious market fluctuations , and investors are advised to focus on long-term strategies; Trump posted a message to celebrate the 16th anniversary of the Bitcoin white paper to canvass votes; Trump-related stocks soared; Immutable received a Wells notice from the US SEC and was accused of suspected violations of securities laws; Russia issued new encryption regulations to expand the scope of supervision of mining and related infrastructure; Russia lifted the ban on Bitcoin mining , which may encourage other countries to mine Bitcoin; Hong Kong Stock Exchange will launch a series of virtual asset indexes ; The Hong Kong Securities and Futures Commission expects to issue the first batch of formal licenses to applicants for virtual asset trading platforms that are deemed to have been licensed before the end of the year;
In terms of opinions and voices, Coinbase CEO: The next SEC chairman should withdraw all meaningless cases and apologize to the American people; Willy Woo: Altcoins are an insiders game , and the current cycle is dominated by Meme coins; Arthur Hayes: Come on Bitcoin, huge liquidity is on the way ; Matrixport: Bitcoin demand has surged due to the increase in Trumps chances of winning the election and ETF purchases; HashKey Livio: Hong Kong Web3 has entered the second stage , from a single point to a full ecosystem; Vitalik published an article discussing the future development of the Ethereum protocol, The Purge , with goals including reducing storage requirements and the complexity of the Ethereum protocol;
In terms of institutions, large companies and leading projects, Microsofts major shareholders BlackRock and Vanguard Group will vote on their proposal to study whether to buy BTC ; Trump familys crypto project WLFI plans to launch a stablecoin, and the team is developing major project components; OKX announced that Standard Chartered Bank is a third-party institutional custody partner; Magic Eden opens testME airdrop applications; Grass airdrop applications are open; CAT 721s first official NFT series starts casting;
In terms of data, Deribit CEO: The number of Bitcoin call options expiring on November 8 is twice that of put options; on October 30, TradingView data showed that BTCs market share exceeded 60% ; Tether Q3 financial report : net profit of US$2.5 billion, US Treasury holdings of US$105 billion, and stablecoin circulation of US$120 billion;
In terms of security, Ordinals founder: ord 0.21.2 version has fixed the error that may cause rune loss , it is recommended to upgrade as soon as possible; Truth Terminal founder X was stolen in a series of thefts;... Well, its another week of ups and downs.
Attached is a portal to the “Weekly Editor’s Picks” series.
See you next time~
