Hello there!
You've probably heard the stories: someone bought PEPE early and was up 10,000%, another person was early to FARTCOIN and was up 15,000%, another person held DOGE all the way through and was up 100,000%.
You might be thinking to yourself, "How the hell are they finding these coins so early? Is it just blind luck, or is there a method to the madness?"
While there is a big element of luck, there are some strategies you can put in place to keep you ahead of the curve.
In this article, we will show you how to transition from being the person listening to the stories to being the one about whom the stories can be written. You can be the one to tell your friends about the next 100x coin.
So let's get straight into it?
A narrative is essentially the selling point, the 'why'. It's the story behind a sector/product that will sell the vision to people and make them more likely to invest.
If a story is easy to understand, relatable, and sells well, it is likely to get a lot of people on board, which means it's worth paying attention to.
Meta is a term that all gamers will be familiar with.
Although the terms "meta" and "narrative" are often used interchangeably in the crypto world, "metas" frequently refer to a more short-term trend that's dominating the headlines.
For example, imagine if memecoins are the dominant narrative for an entire quarter. That's where all the attention and money are flowing. Within this narrative, there may be multiple metas.
For a couple of weeks, it may be animal coins, then for the next few weeks it may be coins of presidents, then it may be coins of anime characters.
You can think of it as a hot ball of money that keeps moving from one place to another. People's money and attention keep moving from one popping meta to the next one, leaving the previous meta burned.
Yes, conducting fundamental research on a token is essential, but it is often not everything when it comes to trading, especially in the crypto space.
There are coins with absolutely no 'fundamentals' that have become more valuable than full-fledged companies. DOGE is a great example of this.
This is because crypto is a truly internet-native market. In the age of the internet, we are living in an attention economy. In an attention economy, whatever attracts the most eyeballs wins.
This is why hype, marketing, narratives, and metas are so important.
Additionally, understanding narrative cycles is also important. It's all well and good to get in early, but it means nothing if you do not exit at the correct time.
Narratives fade. It starts with money following the story, then there's a hype phase, followed by the rising tide lifting all boats, where all coins remotely related to the narrative start pumping. Then it reaches a point where anyone and everyone is talking about it. That is usually where the narrative begins to fade.
Identifying this is not an exact science; it's something that takes experience. However, once you fully grasp narrative cycles, you should see your crypto trading portfolio skyrocket.
So, how do we spot these narratives?
The crypto market is unique; at times, it feels like the market is just one big group chat. You can interact with traders from all over the world on X. Traders often share their thoughts publicly, and the transparency of blockchains allows you to see what everyone is trading.
The fomo app leverages the public nature of the blockchain to make it really easy for you to build out your own radar.
It's simple, just leverage your social feed.
Just like that, you have now built a high-signal social feed on your fomo app, constantly feeding you new coins. From there, you can do your own research and determine whether it's worth following the trade or not.
Beyond the fomo app, it's also good to leverage Telegram channels, Discord group chats, and certain X accounts.
Develop a comprehensive arsenal of research and news accounts. Having these accounts on notification can help you stay ahead of the curve most of the time.
It's difficult to stay on top of everything in crypto by yourself, but if you have a well-curated list of accounts, you essentially get information from every corner of the industry aggregated to you at all times. Then you have to put in the work to sift through it to make your trade decisions.
Another good source of information for finding new narratives is developer forums or developer communities.
If you find the correct circles, there is often a lot of talk amongst developers building innovative products. Keeping an eye on these super early-stage products should give you a significant edge in staying ahead of the herd if you can correctly identify a potential winning narrative.
With all of these elements set up, you should have a really solid radar that's constantly feeding you high signal information. Make sure to add the fomo discord to your radar to give you that extra edge over the rest.
From there, all you have to do is use the fomo app for execution.
Data platforms should go hand-in-hand with your radar.
Curate a list of data platforms like DefiLlama or look through different Dune dashboards.
Keep checking into these platforms because even if you get all the information in the world, you never know what you can trust. Men lie, women lie, numbers don't.
You can use these platforms to track various types of data related to onchain activity. The numbers will give you the clearest picture of whether a narrative is genuinely gaining momentum or if it's just social media hype.
Let's run through a hypothetical:
Let's say there's a narrative picking up momentum behind the scenes. Many big-money players are acquiring certain coins, pushing fresh inflows into a new chain, and driving up volumes on lesser-known coins.
Instantly, alarm bells should be ringing.
Despite so much money being allocated to this category, why is there no discussion about it on social media, no news coverage, and nothing from your go-to information sources?
This is when you could be on to a winner.
You've silently tracked the money behind the scenes and decided to follow them and buy into this narrative. Then all of a sudden, there's a major push for this narrative on social media, news channels report massive VC involvement in the sector, and there's a bunch of research pieces being published about it.
Now, all of a sudden, everyone is rushing to buy in.
Having tracked the data beforehand, you have successfully stayed ahead of the curve. Now you can sit back and watch your portfolio grow as more people rush to buy, adding fuel to the fire.
Tracking multiple data sources should be a daily activity; you never know what you can find in the numbers.
After you use your information radar and data tracking to find a narrative you believe has legs, there's still a lot more left to do.
You have to first make a list of all the different projects within this narrative. Once you have that, use the "watchlist" on the fomo app to keep track of all of them. When you click on the token, click on the "star icon" at the top of your screen.
Now you have all the projects in one place.
After that, start studying them one by one. Click on the coin, and go to the "About" section. This is where you begin your research into the coin. All relevant links, including the website and social media channels, should be accessible within the app.
Then begin your research. For a better understanding of how to evaluate projects, check out this guide.
After you've done your research and separated the good from the bad, you can now decide how you want to invest in the sector.
Do you want to go all in on one coin, or do you want to spread your bets across multiple? Do you want to allocate a significant amount to one coin, while also making a smaller allocation to other coins in the sector?
The choice here is entirely up to you. How you play this will vary on a case-by-case basis.
Typically, it's always better to pick the top coin within the narrative and be in that coin. The smaller coins that follow the largest coins are known as "betas". History suggests that betas rarely outperform the main coin of a particular narrative.
Still, if you just want to be on the safe side, you can put small bets on the betas just in case one of them turns out to hit the nail on the head and take the #1 spot.
You should now have a better understanding of the practices to implement to stay ahead of the curve and identify narratives before everyone else.
All that's left to do is to get back to the fomo app and start executing.
To stay up to date with all the latest updates from fomo, be sure to follow us on X and join the Discord. To learn more about fomo, be sure to check out the website.
