A crypto analyst who bought Solana for under $2 and sold for over $230 shares his framework for early detection of strong projects and 6 altcoin projects he is currently betting on. According to CoinGecko ranking, we have compiled the posts of Derek Lim, head of crypto insights at Bybit, the third largest crypto derivatives exchange by open interest and trading volume, for Somanews readers.
Derek Lim’s introduction to the crypto world
As Bitcoin soared to $20,000 in the fourth quarter of 2020, Derek Lim, then a full-time teacher in Singapore, made his high-risk career transition to crypto full-time. As a newbie in the kaleidoscopic space, he has tinkered with what he calls ‘social trading’, a glorified phrase that describes crypto trading based on social media chats and word-of-mouth advice from friends.
Derek Lim said in an interview, “I didn’t really know what I was doing. I didn’t really care about on-chain metrics or technical analysis,” he says. In a raging bull market, everything was in sight and everything had nowhere to go but to go up. As Derek Lim dived deeper into the wild west of crypto, he began to pay attention to the fundamentals and look for frameworks that could help him identify promising projects early on.
Bought Solana for under $2 and sold for over $230
One of the concepts he clicked early on is the Blockchain trilogy. The phrase, coined by Ethereum co-founder Vitalik Buterin, refers to three issues that often impact Blockchain layers: decentralization, security, and scalability. While a perfect Blockchain network could theoretically be decentralized, secure and capable of supporting an enormous amount of transactions, balancing the three proved difficult, as evidenced by Ethereum’s high gas fees and network congestion.
However, Ethereum’s scalability issues have been a boon for rival layer one protocols trying to solve the triad. This is how Derek Lim started buying Solana (SOL) for $1,474 to $1,944 in the last three months of 2020. On behalf of a team of friends, he invested five figures in the SOL token, which was quite obscure at the time. The famous Stock Exchange Manager says: