# crypto > Bitcoin Ethereum Large Mid-Cap Small Cap Memecoins (BTC) (ETH) Alts Alts Alts & New Projects │ │ │ │ │ │ │ │ │ │ │ │ ▼ ▼ ▼ ▼ ▼ ▼ Established Proven Known Emerging Unproven Gambling track record platform projects projects tech - Author: samsungaren - Repository: samsungaren/claude-code-skills-library - Version: 20260127183256 - Stars: 0 - Forks: 0 - Last Updated: 2026-02-07 - Source: https://github.com/samsungaren/claude-code-skills-library - Web: https://mule.run/skillshub/@@samsungaren/claude-code-skills-library~crypto:20260127183256 --- # Skill: Cryptocurrency ## Purpose Understand crypto assets, blockchain technology, and navigate this volatile market. Separate signal from noise in the crypto space. ## When to Activate - Evaluating crypto investments - Understanding blockchain technology - Analyzing DeFi protocols - Assessing crypto risks - User asks about "crypto", "Bitcoin", "blockchain", "DeFi", "NFT" ## Core Principles ### 1. What Is Cryptocurrency? ``` ┌─────────────────────────────────────────────────────────────────┐ │ CRYPTOCURRENCY BASICS │ │ │ │ TRADITIONAL MONEY CRYPTOCURRENCY │ │ │ │ Central bank controls No central authority │ │ supply (decentralized) │ │ │ │ │ │ Banks process Network validates │ │ transactions transactions │ │ │ │ │ │ Trust in institutions Trust in cryptography │ │ │ │ │ │ Can be inflated Fixed or predictable │ │ at will supply rules │ │ │ │ BLOCKCHAIN = Distributed ledger that records all │ │ transactions, secured by cryptography, maintained by │ │ network of computers (nodes) │ └─────────────────────────────────────────────────────────────────┘ ``` ### 2. Crypto Asset Categories ``` ┌─────────────────────────────────────────────────────────────────┐ │ CRYPTO TAXONOMY │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ LAYER 1 (Base Blockchains) │ │ ├── Bitcoin (BTC) - Digital gold, store of value │ │ ├── Ethereum (ETH) - Smart contract platform │ │ ├── Solana (SOL) - High-speed transactions │ │ └── Others: Cardano, Avalanche, Polkadot... │ │ │ │ LAYER 2 (Scaling Solutions) │ │ ├── Lightning Network (Bitcoin) │ │ ├── Arbitrum, Optimism (Ethereum) │ │ └── Purpose: Faster, cheaper transactions │ │ │ │ DEFI TOKENS │ │ ├── DEX: Uniswap (UNI), SushiSwap │ │ ├── Lending: Aave (AAVE), Compound │ │ └── Derivatives: dYdX, GMX │ │ │ │ STABLECOINS │ │ ├── Fiat-backed: USDC, USDT │ │ ├── Crypto-backed: DAI │ │ └── Algorithmic: (High risk, many have failed) │ │ │ │ OTHER │ │ ├── Memecoins: DOGE, SHIB (Highly speculative) │ │ ├── NFTs: Digital ownership tokens │ │ └── Utility tokens: Various use cases │ │ │ └─────────────────────────────────────────────────────────────────┘ ``` ### 3. Risk Spectrum ``` LOWER RISK ──────────────────────────────────────────► HIGHER RISK Bitcoin Ethereum Large Mid-Cap Small Cap Memecoins (BTC) (ETH) Alts Alts Alts & New Projects │ │ │ │ │ │ │ │ │ │ │ │ ▼ ▼ ▼ ▼ ▼ ▼ Established Proven Known Emerging Unproven Gambling track record platform projects projects tech IMPORTANT: Even Bitcoin is HIGH RISK compared to traditional assets Expect 50-80% drawdowns as normal in crypto ``` ### 4. The Crypto Cycle ``` MARKET CYCLE PSYCHOLOGY ╱╲ Euphoria ╱ ╲ "This time is different!" ╱ ╲ Optimism ╱ ╲ Denial ╱ ╲ ╱ ╲ Fear Hope ╱ ╲ ╲ ╱ ╲ Capitulation ╲ ╱ ╲╱ Despair ╲ "Crypto is dead" Depression │ ▼ Disbelief → New cycle begins TIMING IN CYCLE: • Bear market = Opportunity to accumulate • Bull market = Opportunity to take profits • Extreme fear = Often best time to buy • Extreme greed = Often best time to sell ``` ## Crypto Analysis Framework ### Fundamental Analysis ```markdown ## Token Analysis Template ### Project Overview - **Name/Ticker:** - **Category:** (L1, DeFi, etc.) - **Website:** - **Whitepaper read:** [ ] Yes [ ] No ### Problem & Solution - **Problem solved:** - **How it solves it:** - **Why blockchain needed:** ### Tokenomics | Metric | Value | |--------|-------| | Total Supply | | | Circulating Supply | | | Inflation Rate | | | Token Utility | | | Distribution | | ### Key Questions - [ ] Is the token necessary for the protocol? - [ ] How does holding benefit you? - [ ] What drives demand for the token? - [ ] Is supply inflationary or deflationary? ### Team & Development - **Team:** (Anonymous? Doxxed? Track record?) - **Funding:** (VCs? Community?) - **GitHub activity:** (Active development?) - **Roadmap delivery:** (Do they ship?) ### Competitive Position - **Competitors:** - **Differentiation:** - **Market share:** ### Risks 1. [Technical risk] 2. [Regulatory risk] 3. [Competition risk] 4. [Team risk] ### Valuation - **Market Cap:** - **Fully Diluted Value:** - **Comparable projects:** - **Assessment:** Undervalued / Fair / Overvalued ``` ### On-Chain Analysis ``` KEY ON-CHAIN METRICS ┌─────────────────────────────────────────────────────────────────┐ │ METRIC │ WHAT IT SHOWS │ ├─────────────────────────┼───────────────────────────────────────┤ │ Active Addresses │ Network usage/adoption │ │ Transaction Volume │ Economic activity │ │ Exchange Inflows │ Selling pressure incoming │ │ Exchange Outflows │ Accumulation (bullish) │ │ Whale Wallets │ What big players are doing │ │ MVRV Ratio │ Over/undervaluation vs cost basis │ │ NVT Ratio │ Network value vs transactions │ │ Staking Ratio │ Supply locked up (less sell pressure)│ │ TVL (DeFi) │ Total value locked in protocols │ └─────────────────────────┴───────────────────────────────────────┘ TOOLS: - Glassnode, CryptoQuant (on-chain data) - DeFiLlama (DeFi TVL) - Etherscan, Blockchain explorers - Dune Analytics (custom queries) ``` ## DeFi Concepts ### Core DeFi Primitives ``` ┌─────────────────────────────────────────────────────────────────┐ │ DEFI BUILDING BLOCKS │ │ │ │ DEX (Decentralized Exchange) │ │ ├── Swap tokens without intermediary │ │ ├── Liquidity provided by users (LPs) │ │ └── Examples: Uniswap, Curve, SushiSwap │ │ │ │ LENDING/BORROWING │ │ ├── Deposit assets, earn interest │ │ ├── Borrow against collateral │ │ └── Examples: Aave, Compound │ │ │ │ YIELD FARMING │ │ ├── Provide liquidity, earn rewards │ │ ├── Often paid in protocol tokens │ │ └── Risk: Impermanent loss, smart contract risk │ │ │ │ STAKING │ │ ├── Lock tokens to secure network │ │ ├── Earn staking rewards │ │ └── May have unlock periods │ │ │ └─────────────────────────────────────────────────────────────────┘ ``` ### DeFi Risks | Risk | Description | Mitigation | |------|-------------|------------| | **Smart Contract** | Code bugs, exploits | Use audited protocols, start small | | **Impermanent Loss** | LP value vs holding | Understand before providing liquidity | | **Rug Pull** | Team drains funds | Stick to established protocols | | **Oracle Failure** | Price feed manipulation | Use protocols with robust oracles | | **Liquidation** | Collateral falls below threshold | Monitor positions, don't over-leverage | ## Security Best Practices ``` CRYPTO SECURITY CHECKLIST WALLET SECURITY ├── [ ] Use hardware wallet for significant holdings ├── [ ] Never share seed phrase (NEVER) ├── [ ] Store seed phrase offline (metal backup) ├── [ ] Use separate wallets for different purposes └── [ ] Test with small amounts first OPERATIONAL SECURITY ├── [ ] Verify contract addresses before interacting ├── [ ] Don't click links in DMs (scams) ├── [ ] Revoke unused token approvals ├── [ ] Use unique email for crypto └── [ ] Enable 2FA on all exchanges (hardware key best) TRANSACTION SAFETY ├── [ ] Double-check recipient address ├── [ ] Test with small transaction first ├── [ ] Verify on correct network (ETH vs BSC etc) └── [ ] Understand gas fees before confirming COMMON SCAMS TO AVOID ├── "Send 1 ETH, get 2 back" (Always a scam) ├── Fake airdrops requiring wallet connection ├── Support DMs (real support never DMs first) ├── Phishing sites (always check URL) └── Too-good-to-be-true yields ``` ## Portfolio Strategy ``` CRYPTO ALLOCATION APPROACHES CONSERVATIVE: ┌────────────────────────────────────┐ │ BTC: 60% │ │ ETH: 30% │ │ Stablecoins: 10% │ └────────────────────────────────────┘ BALANCED: ┌────────────────────────────────────┐ │ BTC: 40% │ │ ETH: 30% │ │ Large Alts: 20% │ │ Stablecoins: 10% │ └────────────────────────────────────┘ AGGRESSIVE: ┌────────────────────────────────────┐ │ BTC: 25% │ │ ETH: 25% │ │ Large Alts: 25% │ │ Small Alts: 20% │ │ Stablecoins: 5% │ └────────────────────────────────────┘ RULES: 1. Only invest what you can afford to lose 100% 2. DCA (Dollar Cost Average) > Lump sum for most 3. Have stablecoins ready for opportunities 4. Take profits on the way up 5. Rebalance periodically ``` ## Crypto Anti-Patterns | Anti-Pattern | Why It Fails | Better Approach | |--------------|--------------|-----------------| | FOMO buying pumps | Buy high, sell low | DCA, buy fear | | All-in on one coin | One failure = total loss | Diversify | | Trading with leverage | Liquidation wipes you out | Spot only for most | | Ignoring security | One hack = everything gone | Hardware wallet, op-sec | | Chasing 100x | 99% go to zero | Focus on quality | | No exit strategy | Hold through crashes | Take profits incrementally | | Trusting influencers | Often paid promotions | DYOR (Do Your Own Research) | ## Related Files - DEFI_PROTOCOLS.md - Protocol guides ## Related Skills - For basics → 01-personal-finance - For stocks → 02-stock-analysis - For risk → 04-risk-management ## Status - [x] Core concepts covered - [x] DeFi basics added - [ ] Protocol deep dives