Bogdan Myshko
@pimpbod9com
Which Crypto Assets Are Best for Investing? You've probably heard or seen many famous quotes about the benefits of investing over active trading. Here's one: "The stock market is a vehicle for moving money from the impatient to the patient." - Warren Buffett. And in fact, if you ask active traders if they can simply "beat" the growth of $BTC, the vast majority will answer no. So why doesn't everyone just buy Bitcoin? Of course, the point is that you and I often want higher returns. The problem is that in pursuit of them, we risk getting a lower return, due to proportionally increasing risks. This is what it means to "climb the risk-reward curve". But how do you find instruments that (in a favorable market phase for investing) have a potential return that is asymmetrically higher than the risk? Our small study answers this question as follows: you need to find "primary" assets.
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Bogdan Myshko
@pimpbod9com
What are Primary Assets? Primary assets are those assets that are recognized by the market consciousness as pioneering projects in a given category. In more modern terms, these are assets that create some new "narrative". It is important to emphasize the importance of the concept of market consciousness right away. Market consciousness does not engage in digital archeology and does not really care that the first AMM was actually Bancor. From the point of view of market consciousness, the first AMM is Uniswap, because it is the first successful AMM. Beyond Uniswap, there are plenty of examples where it’s the pioneering projects that are recognized by the market that are firmly in the lead in their category in terms of market cap (the list goes on):
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