Bitcoin: How To Trade It For Serious Profit (Book Review
Bitcoin: How To Trade It For Serious Profit (Book Review
How to Trade Bitcoin Seriously for Profit?
Bitcoin Profit Review 2020 - Is it Really a Scam? Find Out
How to Trade Bitcoin for Serious Profit? - TotLol.com
How I Trade Bitcoin for Serious Profit With Strategies
Here is how to play the altcoin game - for newbies & champs
I have been here for many previous altcoin seasons (2013,2017 etc) and wanted to share knowedle. It's a LOOONG article. The evaluation of altcoins (i.e not Bitcoin) is one of the most difficult and profitable exercises. Here I will outline my methodology and thinking but we have to take some things as a given. The first is that the whole market is going up or down with forces that we can't predict or control. Bitcoin is correlated with economic environments, money supply increases, safe havens such as Gold, hype and country regulations. This is an impossible mix to analyze and almost everyone fails at it. That's why you see people valuing Bitcoin from $100 to $500k frequently. Although I am bullish on the prospects of Bitcoin and decentralization and smart contract platforms, this is not the game I will be describing. I am talking about a game where you try to maximize your BTC holdings by investing in altcoins. We win this game even if we are at a loss in fiat currency value. To put it another way:
If you are not bullish in general on cryptocurrencies you have no place in investing or trading cryptocurrencies since it's always a losing proposition to trade in bubbles, a scientifically proven fact. If on the other hand you are then your goal is to grow your portfolio more than you would if holding BTC/ETH for example.
Bitcoin is the big boy
How the market works is not easily identifiable if you haven't graduated from the 2017 crypto university. When there is a bull market everything seems amazingly profitable and things keep going up outgrowing Bitcoin by orders of magnitude and you are a genius. The problem with this is that it only works while Bitcoin is going up a little bit or trades sideways. When it decides to move big then altcoins lose value both on the way up and on the way down. The second part is obvious and proven since all altcoins from 2017 are at a fraction of their BTC value (usually in the range of 80% or more down). Also, when BTC is making a big move upwards everyone exits altcoins to ride the wave. It is possible that the altcoin market behaves as an inversed leveraged ETF with leakage where in a certain period while Bitcoin starts at 10k and ends at 10k for example, altcoins have lost a lot of value because of the above things happening.
We are doing it anyway champ!
OK so we understand the risks and just wanna gambol with our money right? I get it. Why do that? Because finding the ideal scenario and period can be extremely profitable. In 2017 several altcoins went up 40x more than BTC. But again, if you don't chose wisely many of them have gone back to zero (the author has first hand experience in this!), they have been delisted and nobody remembers them. The actual mentality to have is very important and resembles poker and other speculative games: A certain altcoin can go up in value indefinitely but can only lose it's starting investment. Think about it. You either lose 1 metric or gain many many more. Now that sounds amazing but firstly as we said we have the goal to outperform our benchmark (BTC) and secondly that going up in value a lot means that the probability is quite low. There is this notion of Expected Value (EV) that poker players apply in these kind of situations and it goes like that. If you think that a certain coin has a probability let's say 10% to go up 10X and 90% probability it goes to zero it's an even bet. If you think that probability is 11% then it's a good bet, a profitable bet and you should take it. You get the point right? It's not that it can only go 10X or 0X, there is a whole range of probability outcomes that are too mathematical to explain here and it doesn't help so much because nobody can do such analysis with altcoins. See below on how we can approximate it.
How to evaluate altcoins
A range of different things to take into account outlined below will form our decision making. Not a single one of them should dictate 100% of our strategy.
It's all about market cap. Repeat after me. The price of a coin doesn't mean anything. Say it 10 times until you believe it. I can't remember how many times I had conversations with people that were comparing coins using their coin price instead of their market cap. To make this easy to get.
If I decide because the sky is blue to make my coin supply 100 Trillion FoolCoins with a price of $0.001 and there is another WiseCoin with a supply of 100 Million and price of $1 then FoolCoins are more expensive. - Alex Fin's Cap Law
This is done usually in the stock world and it means that each company has some fundamental value that includes it's assets, customers, growth prospects, sector prospects and leadership competence but mostly centered in financial measures such as P/E ratios etc. Valuation is a proper economic discipline by itself taught in universities. OK, now throw everything out of the window!. This kind of analysis is impossible in vague concepts and innovations that are currently cryptocurrencies. Ethereum was frequently priced at the fictional price of gas when all financial systems on earth run on the platform after decades (a bit of exaggeration here). No project is currently profitable enough to justify a valuation multiple that is usually equal to P/E in the thousands or more. As such we need to take other things into account. What I do is included in the list below:
Check Github. You need to make sure there is active development for the platform and it's a very bad sign if the project is either keeping the code closed source or even worse there is simply no development. No projects are "complete".
Check Website. If the website is written in bad English the Chinese google translate type it means that they are not serious enough to produce an unbreakable decentralized project. If you can't write English you can't change the world, period. That's a deal breaker.
Check Team's Linkedin. Numerous projects have either fake Linkedin accounts or the team is comprised mainly by unexperienced employees that are even shown to be working in other companies currently.
Check backers. Projects that have Binance, Coinbase or Silicon Valley VC funds backing them are way more legit but way more overpriced too!
One of my favorite ways to value altcoins that is based on the same principle in the stock market is to look at peers and decide what is the maximum cap it can grow to. As an example you take a second layer Ethereum solution that has an ICO and you want to decide if you will enter or not. You can take a look at other coins that are in the same business and compare their market caps. Thinking that your coin will outperform by a lot the top coins currently is overly optimistic so I usually take a lower valuation as a target price. If the initial offering is directly implying a valuation that is more than that then there is no room to grow according to my analysis and I skip it. Many times this has proven me wrong because it's a game theory problem where if many people think irrationally in a market it becomes a self-fulfilling prophecy. But since there is opportunity cost involved, in the long run, getting in initial offerings that have a lot of room to grow will pay off as a strategy.
In 2017 the sexiest sector was platforms and then coins including privacy ones. Platforms are obviously still a highly rated sector because everything is being built on them, but privacy is not as hot as it used to be. In 2018 DEXes were all they hype but still people are massively using centralized exchanges. In 2020 Defi is the hottest sector and it includes platforms, oracles and Defi projects. What I am saying is that a project gets extra points if it's a Defi one in 2020 and minus points if it's a payment system that will conquer the world as it was in 2017 because that's old news. This is closely related to the next section.
Needless to say that the crypto market is a worse FOMO type of inexperienced trigger happy yolo investors , much worse than the Robinhood crowd that drove a bankrupt company's stock 1200% after they declared bankruptcy. The result is that there are numerous projects that are basically either vaporware or just so overhyped that their valuation has no connection to reality. Should we avoid those kind of projects? No and I will explain why. There are many very good technically projects that had zero hype potential due to incompetent marketing departments that made them tank. An example (without shilling because I sold out a while back) is Quantum Resistant Ledger. This project has amazing quantum resistant blockchain, the only one running now, has a platform that people can build tokens and messaging systems and other magnificent stuff. Just check how they fared up to now and you will get the point. A project *needs* to have a hype factor because you cannot judge it as normal stocks that you can do value investing like Warren Buffet does where a company will inevitable post sales and profitability numbers and investors will get dividends. Actually the last sentence is the most important: No dividends. Even projects that give you tokens or coins as dividends are not real dividends because if the coin tanks the value of the dividend tanks. This is NOT the case with company stocks where you get dollars even if the company stock tanks. All that being said, I would advice against betting on projects that have a lot of hype but little substance (but that should be obvious!).
How to construct your portfolio
My strategy and philosophy in investing is that risk should be proportional to investment capital. That means that if you are investing 100K in the crypto market your portfolio should be very different than someone investing 1K because 10% annual gains are nothing in the latter while they are very significant in the former. Starting from this principle each individual needs to construct a portfolio according to how much risk he wants to take. I will emphasize two important concepts that play well with what I said. In the first instance of a big portfolio you should concentrate on this mantra: "Diversification is the only free meal in finance". In the case of a small portfolio then this mantra is more important: "Concentrate to create wealth, diversify to maintain wealth". Usually in a big portfolio you would want to hold some big coins such as BTC and ETH to weather the ups and downs explained in previous paragraphs while generating profits and keep progressively smaller parts of your portfolio for riskier investments. Maybe 50% of this portfolio could be big caps and 10% very risky initial offerings. Adapting risk progressively to smaller portfolios makes sense but I think it would be irrational to keep more than 30% of a portfolio no matter what tied to one coin due to the very high risk of bankruptcy.
The altseason is supposedly coming every 3 months. Truth is that nobody can predict it but altcoins can be profitable no matter what. Forget about maximalists who are stuck in their dogmas. Altcoins deliver different value propositions and it makes sense because we are very far from a situation where some project offers everything like Amazon and we wouldn't even want that in the first place since we are talking about decentralization and not a winner takes all and becomes a monster kind of scenario! Some last minute advice:
Stay out of paid telegram/discord pump groups. They are deadly for your wallet.
Avoid jumping on overhyped coins that have pumped massively during the last days without any very important news.
Don't keep coins in obscure exchanges for too long or you will get burned with certainty.
Stop thinking that your coin will 1000x and overtake Bitcoin!
P.S If you find value in reading this and want more weekly consider subscribing to my newsletterhere
Someone posted on here a few days ago asking about forex and forex trading in Kenya, I have gone through the responses and clearly, most people don’t have an idea. It is 3am in the morning and am in a good mood so let me make this post. This will be a comprehensive and lengthy post so grab a pen and paper and sit down. We’ll be here a while. FIRST OF ALL, who am I..? I am a forex trader, in Nairobi, Kenya..i have been actively involved in forex since I found out about it in Feb 2016 when I somehow ended up in a wealth creation seminar (lol) in pride inn Westlands, the one close to Mpaka Rd. Luckily for me, it was not one of those AIM global meetings or I’d be on Facebook selling God knows what those guys sell. I did not take it seriously till August of the same year and I have been active ever since. I don’t teach, mentor or sell a course or signals, I trade my own money. I am also posting from a throwaway account because I don’t want KRA on my ass. What the fuck is forex and forex trading. In simple plain English, forex is like the stock market but for currencies. Stock Market = Shares, forex = currencies. If you want more in-depth explanation, google is your friend. These currencies are pegged on specific countries, united states- dollar, UK- pound, euro zone- euro, Switzerland- Swiss franc, Kenya- Kenya shilling.. you get the point. Now, there are specific events and happenings between these economies that affect the movement and values of the currencies, driving their value (purchasing power up and down). Forex trading exploits these movements to make money. When the value is going up, we buy and vice versa (down –sell) Is forex trading illegal in Kenya? Is it a scam? Illegal, no. scam, no. All the banks in the world do it (KCB made about 4 billion from trading forex in 2019) Have there been scams involving forex in Kenya? Yes. Here is one that happened recently. This one is the most infamous one yet. Best believe that this is not the end of these type of scams because the stupidity, greed and gullibility of human beings is unfathomable. However, by the end of this post, I hope you won’t fall for such silliness. What next how do I make it work..? Am glad you asked. Generally, there are two ways to go about it. One, you teach yourself. This is the equivalent of stealing our dad’s car and hoping that the pedal you hit is the brake and not the accelerator. It is the route I took, it is the most rewarding and a huge ego boost when you finally make it on your own. Typically, this involves scouring the internet for hours upon hours going down rabbit holes, thinking you have made it telling all your friends how you will be a millionaire then losing all your money. Some people do not have the stomach for that. The second route is more practical, structured and smarter. First Learn the basics. There is a free online forex course at www.babypips.com/learn/forex this is merely an introductory course. Basically it is learning the parts of a car before they let you inside the car. Second, start building your strategy. By the time you are done with the babypips, you will have a feel of what the forex market is, what interests you, etc. Tip..Babypips has a lot of garbage. It is good for introductory purposes but not good for much else, pick whatever stick to you or jumps at you the first time. Nonsense like indicators should be ignored. The next step is now the most important. Developing the skill and building your strategy. As a beginner, you want to exhaust your naivety before jumping into the more advanced stuff. Eg can you identify a trend, what is a pair, what is position sizing, what is metatrader 4 and how to operate it, what news is good for a currency, when can I trade, what are the different trading sessions, what is technical analysis, what is market sentiment, what are bullish conditions what is emotion management, how does my psychology affect my trading (more on this later) an I a swing, scalper or day trader etc Mentors and forex courses.. you have probably seen people advertising how they can teach and mentor you on how to trade forex and charging so much money for it. Somehow it seems that these people are focused on the teaching than the trading. Weird, right..? Truth is trading is hard, teaching not quite. A common saying in the industry is “Those who can’t trade, teach” you want to avoid all these gurus on Facebook and Instagram, some are legit but most are not. Sifting the wheat from the chaff is hard but I did that for you. The info is available online on YouTube, telegram channels etc. am not saying not to spend money on a course, if you find a mentor whose style resonates with you and the course is reasonably priced, please, go ahead and buy..it will cut your learning curve in half. People are different. What worked for me might not work for you. Here are some nice YouTube channels to watch. These guys are legit..
After a short period of time, you will be able to sniff out bs teachers with relative ease. You will also discover some of your own and expand the list. Two tips, start with the oldest videos first and whichever of these resonates with you, stick with till the wheels fall off. How long will it take until things start making sense Give yourself time to grow and learn. This is all new to you and you are allowed to make mistakes, to fail and discover yourself. Realistically, depending on the effort you put in, you will not start seeing results until after 6 months. Could take longeshorter so there is no guarantee. Social media, Mentality, Psychology and Books Online, forex trading might not have the best reputation online because it takes hard work and scammers and gurus give it a bad name. However, try to not get sucked into the Instagram trader lifestyle as it is nowhere close to what the reality is. You will not make millions tomorrow or the day after, you might never even make it in this market. But that is the reality of life. Nothing is promised, nothing is guaranteed. Your mentality, beliefs and ego will be challenged in this market. You will learn things that will make you blood boil, you will ask yourself daily, how is this possible, why don’t they teach this in school..bla bla bla..it will be hard but growth is painful, if it wasn’t we’d all be billionaires. Take a break, take a walk, drink a glass of whatever you like or roll one..detox. Chill with your girl (or man) Gradually you will develop mental toughness that will set you up for life. Personally, I sorta ditched religion and picked up stoicism. Whatever works for you. Psychology, this is unfortunately one of the most neglected aspects of your personal development in this journey. Do you believe in yourself? Can you stand by your convictions when everyone is against you? Can you get up every day uncertain of the future? There will be moments where you will question yourself, am I even doing the right thing? the right way? It is normal and essential for your growth. People who played competitive sports have a natural advantage here. Remember the game is first won in your head then on the pitch. Books: ironically, books that helped me the most were the mindset books, Think and grow rich, trading for a living, 4 hour work week, the monk who sold his Ferrari..just google mindset and psychology books, most trading books are garbage. Watch and listen to people who have made it in the investing business. Ray Dalio, warren, Bill Ackman and Carl Icahn. This is turning out to be lengthier than I anticipated so I’ll try to be brief for the remaining parts. Brokers You will need to open up an account with a broker. Get a broker who is regulated. Australian ones (IC Market and Pepperstone) are both legit, reliable and regulated. Do your research. I’d avoid local ones because I’ve heard stories of wide spreads and liquidity problems. International brokers have never failed me. There are plenty brokers, there is no one size fits all recommendation. If it ain’t broke..don’t fix it. Money transfer. All brokers accept wire transfers, you might need to call your bank to authorize that, avoid Equity bank. Stanchart and Stanbic are alright. Large withdrawals $10k+ you will have to call them prior. Get Skrill and Neteller if you don’t like banks like me, set up a Bitcoin wallet for faster withdrawals, (Payoneer and Paypal are accepted by some brokers, just check with them.) How much money can I make..? I hate this question because people have perceived ceilings of income in their minds, eg 1 million ksh is too much to make per month or 10,000ksh is too little. Instead, work backwards. What % return did I make this month/ on this trade. Safaricom made 19.5% last year, if you make 20% you have outperformed them. If you reach of consistency where you can make x% per month on whatever money you have, then there are no limits to how much you can make. How much money do I need to start with..? Zero. You have all the resources above, go forth. There are brokers who provide free bonuses and withdraw-able profits. However, to make a fulltime income you will need some serious cash. Generally, 50,000 kes. You can start lower or higher but if you need say 20k to live comfortably and that is a 10% return per month, then you can do the math on how big your account should be. Of course things like compound interest come into play but that is dependent on your skill level. I have seen people do spectacular things with very little funds. Taxes..? Talk to a lawyer or an accountant. I am neither. Family? Friends? Unfortunately, people will not understand why you spend hundreds of hours watching strangers on the internet so it is best to keep it from them. Eventually you will make it work and they will come to your corner talking about how they always knew you’d make it. The journey will be lonely, make some trading buddies along the way. You’d be surprised at how easy it is when people are united by their circumstances (and stupidity) I have guys who are my bros from South Africa and Lebanon who I have never met but we came up together and are now homies. Join forums, ask questions and grow. That is the only way to learn. Ideally, a group of 5-10 friends committed to learning and growth is the best model. Pushing each other to grow and discovering together. Forex is real and you can do amazing things with it. It is not a get rich quick scheme. If you want a quick guaranteed income, get a job. And now it is 5am, fuck. This is oversimplified and leaves out many many aspects. Happy to answer any questions.
The guy is literally using a dummy account that was created 3 months ago and that only ever participated in Tarkov subreddit. His first thread was a misleading thread where he's carefully manipulating you to believe that bots aren't an issue. His new thread from today is just because with the leak of the public bots, they're now in the public light and fear that BSG might do something drastic to end them. I'll post here some of the misconception he tried to implement today in his thread. :
TL:DR-The easier fix is changing how flea market works. Sure, magically getting rid of all bots will enable you to occasionally buy 10k cheaper labs keycards. But I guarantee that those 4.1 inch rail mounts will still be 20k because that's how human greed works.
TL:DR - But at least it would be bought and sold by thousands of players physically ingame instead of a dozens of botters who don't even play this game in reality.
You might laugh, but "computational thinking" is not acquired on a single day. Regular people have a hard time just creating a cat that moves left and right in Scratch
Regular people aren't the problem here though ; you pass a lot of time making that argument that it can be long and difficult to program a bot, but the fact is that the people who program bots move from game to game. They don't wake up one morning deciding to run some bots on a random game, it's a challenge for them. When a new mmo comes out, they test it, by creating cheats and selling them, creating powerleveling services, running bots on multiple games, ect. Some of them have years of practice with certain engines.
Let's do some math. 60~120mil profit a day.
I think that you vastly underestimate how you can make a profit with automatisation when you factor in the item flipping. You use the current Flea market prices in your examples while it's already over inflated due to bots. The real money comes immediatly after a wipe ; because they can then immediatly obtain a vast ammount of money in the first days and completely control the market with it's pyramidal structure. There's just no way for any player to catch up to any bot due to, you know, having to sleep and eat. Also in your examples ; you use specific high frequence trade items, while the goal to real profit is to control as many items as you can, considering that this game contains hundreds of valuable items, which include quest items that can be sold. Again , some of them botters have 2+ years of practice (only in tarkov) by now and you mentioned how far we can get with item price records. With that alone it's very easy to know which items is profitable. They probably easily make 30-40x that amount per day on multiple accounts to spread the wealth. You also misunderstand that there a ways in these games to ''Secure'' your gains. For example in a game like GTAV, people would buy pricey cars to store them and protect their money from being wiped ; they could then resell those car to get the money back. In Tarkov, It's already known that RMT'ers are using high priced items with fixed price like LEDX, Bitcoins and keycards to secure their gains.
100mil is valued at $66 right now.
That's actually very high considering that we're playing a BETA GAME, that late in the market which is already over-inflated and that a wipe was announced in 5 months. The real money is always after a wipe ; AND when the game will be officially released. That's the moment that these guys are practicing for, when the stakes will be real and that the economy will become permanent. And like i said ; it's not like these guys just run some Tarkov bots and expect to live from that only. They are way more ressourcefull, they sell glitches, private cheats, money, on multiple games at the same time. That's how it becomes very, very profitable and moreover ; it's a passive income. You can have a job and run these as a sideline, while coding in your free time. Also you're lying here since there are multiple sites, found one where it's 50$ (CAD) for 10million. price always varies from different providers and depending on the country money current going rate.
Conclusion : Unless you're just doing it for academic curiosity/entertainment, coding bots is a total waste of time.
Off course if you never programmed in your life and just expect to be able to google how to create a bot, you might have a reality check. Again you vastly underestimate the market for cheats and ''gold selling''. Or maybe you just know too much about it and want to keep your incomes.
Even without bots, any person/group with enough capital can control the flea market and exploit the economy in the current system.
But they can't do it all day long, all week long. They have to, you know, sleep and eat. One could also expect the players to play the game here and then and to not sit 24h on 24 on the market while not using any of the gear that they could afford.
Why did BSG help the bots by removing the 60 second timer? They did not help the bots; They attacked bots.
That's not what i heard personally. What i heard is that it started a new race between botters and that some of them were already way more advanced than others and were able to perform better than before. Just like you said ; they never aim for 100% snipe, but when you reach 75% you're already swimming in serious bucks. For me the only way to aleviate bots is to render them useless in-game directly. You limit the amount of transaction per account per hour, you add in-game buy orders and priorize them in the market.
Some market bots slightly flipping the market better than no-lifer players who actually play the market on the game client with mouse and keyboard is not their priority nor it should be.
It should be one of their top priority in a full loot mmorpg with tiered gear that can be bought and sold. When the economy gets broken, it breaks the game completely. Random people can obtain vast amount of money quickly by buying it then they can roll with the best kits for 50 lives in a row if they want. It completely breaks the gameplay and the purpose of the whole game. It's been known that botters start public campaigns to divert the attention from them. I'd take a no lifer who actually play the game all day long over a ducking botter who don't even play and just ruin the whole game for thousands of players to gain personal wealth.
Market maker: who is it and what function do they perform?
Market makers have become as a key link in the financial markets. There is a misconception that market makers can influence the price of assets. In fact, this statement is far from reality. The main task of a market maker (MM) is to provide liquidity of any asset. If an asset traded on an exchange is provided with sufficient liquidity, the price and spread will be at an adequate level. If there is no liquidity — it will not be profitable to trade an asset, the price will stop at one mark and the spread will expand. So, what exactly do market makers do? Let’s analyze in more detail in this article.
Definition and responsibilities of the market maker
A market maker (MM) is a firm or individual who actively quotes two-sided markets in a security, providing bids and offers (known as asks) along with the market size of each. The profits of the market maker is made up of several aspects:
Payments from the exchange as stipulated in the cooperation agreement.
Spread from the execution of orders.
Speculations and investments.
The SEC regulator explained the functions of the market maker — willingness to buy and to sell an asset on a permanent basis, at a public quote. In other words, maintaining an adequate level of supply and demand, as well as confrontation with the market, for example, selling bitcoin in case of its rapid growth or buying in case of a fall. In addition, the market maker may act as an intermediary seller or a buyer in case of absence of one of the parties. If you decide to buy or to sell an asset on the exchange and your transaction has passed within a second, the market maker is acting as an intermediary. In this way, the liquidity providers remove unnecessary delays and difficulties in exchanging assets.
Market maker trading process
For example, there is a buyer on the exchange who is ready to buy 100 ETH and there is a seller who is ready to sell 90 ETH. The task of the market maker is to add 10 ETHs and to provide a price to a buyer, for example $200 and for a seller, for example $199. The buyer will pay $20,000 and receive 100 ETH, and the seller will receive $17,910 and give back 90 ETH. The market maker will receive $2,000 for the 10 ETHs and $10 spread, for providing liquidity. The liquidity provider makes a lot of such a trades a day, and as a result has a good profit. However to do this, you need to have an impressive stock of assets to maintain a level between supply and demand. With such not complex machinations, the market maker ensures the efficiency of financial markets, maintaining an adequate price for the asset and the minimum price divergence between exchanges. Based on the above example, we can think that the activity of a market maker is not complicated and a stable way of earning, in the presence of impressive capital. However, this is not quite true. During time when the market is very volatile, liquidity providers can suffer losses. For example, there is a buyer on the exchange who is willing to buy 100 ETH and a seller who is willing to sell 10,000 ETH. A buyer buys 100 ETHs at $20,000 (price for 1 ETH $200) and a seller gets $19,990 (price for 1 ETH $199), the market maker gets $10 as a spread. At the same time, there are 9,900 ETHs left, which the seller wants to sell, and the market maker, respectively, must buy them back. Having paid $1,970,100 for the entire offer (price for 1 ETH is $199), the liquidity provider will not be able to sell them for the same price. Even if the price drops to $198.5, the total sale price of 9,900 ETH will be $1,965,150, with a loss of $4,950. Considering that the crypto market is famous for its volatility, the price difference may not be 50 cents. A market maker cannot simply sell the ETHs they receive at a reasonable price for the following reasons:
No one will buy the asset at an unfavorable price, and a sale of 9,900 ETH is likely to have impacted the market.
The exchange’s service agreement states that the market maker cannot simply take and sell the assets, otherwise its services may be refused.
This method can be considered as market manipulation.
Therefore, in a moment of strong volatility market makers simply leave the market, otherwise — it can lead to a serious loss. During high market volatility, it is often impossible to close a position at the right price, due to the lack of liquidity on the exchange. This indicates that the market makers have withdrawn from trading. It is also possible to track the presence of a market maker on the exchange in the following way: if the spread is narrow and the price of an asset is in a sideways trend, the liquidity provider participates in trading on the exchange. If the spread is wide and the price of an asset is subject to volatility — the market maker has withdrawn from trading. In the same way, you can find out whether there is a market maker at the exchange at all, i.e. whether they resort to its services. The Market Maker performs vertical market analysis, not horizontal market analysis as ordinary traders do. For the liquidity provider, in addition for buying or selling an asset, the order glass displays pending orders, Take Profit and Stop Loss. This allows you to correctly interpret the mood of the market participants and perform your direct duties as a market maker — to maintain liquidity levels and narrow spreads, as well as to provide large volumes of orders.
Market makers on the crypto market
Market makers in the crypto market are much more in demand than the traditional market and that’s why. If we talk about crypto currencies from the top 10 list — their liquidity is enough to buy or sell a coin almost instantly. However, there are about 3,000 crypto currencies for 2020 and not all of them are liquid.
The process goes like this:
Startup is going to be carried out by IEO (Primary Exchange Offer), a modern analogue of ICO. The stock exchange considers the token and leaves it. After a week, a month, six months the amount of investment in a token is minimal. There are two reasons for this:
A skilled trader, when investing in a new coin, will rely on the order book. As the token is new, even if it is promising, but there are no records of selling and buying, so the trader will refuse to invest.
A significant player has learned about the listing of a new token and its future prospects. It was decided to open a large, long term position, but there is no liquidity, that is, if the position is opened, it will be time consuming.
To avoid such a development, the crypto market should resort to the services of market makers. Liquidity providers may buy a token and artificially “fill” the order book. In fact, this will be a twisted indicator of liquidity and is suitable only for speculative purposes. But 90% of cryptotraders came to this market because of its high volatility, i.e. to earn on price hikes. For this reason, crypto currencies need the services of market makers for the systematic establishment of the market and attraction of new, professional traders.
As a rule, market makers always resort to ATS (Automated Trading Systems) and HTF-trading (High Frequency Trading). Both systems require very advanced programming skills. In addition, it will require economy knowledge, preferably not minimal, in order to make right assessment of work and potential risks. Sell-Side strategy — automatic trading systems are used to constantly maintain optimal prices and profit from spreads. It is not rare to have a strategy of placing Buy and Sell orders simultaneously. In fact — a common risk hedging. HFT or high-frequency trading- is a type of algorithmic trading characterized by a high speed and turnover of capital, as well as short asset holding periods. To become an HFT trader you will need specialized robots and powerful computers as the main task of high-frequency trading is to conclude a lot of transactions in the shortest possible time. With the help of HFT trading market makers must set a quote or the last price and constantly update it.
Market makers are a necessary part of the economy. They do not earn on price movements, but create comfortable and loyal conditions for trading. In the end I would like to tell you about some myths that exist in the network in relation to market makers.
Market makers can affect market quotes
That’s true, however in a slightly different understanding. The task of a market maker is to create the market mood and push its participants to open orders in the right direction. Market makers cannot influence the quotes price for two reasons:
The exchange where the market maker trades, monitors all its operations. In case of intentional influence on the price of the asset, the reaction will be immediate.
This kind of activities are trade manipulations, i.e. they are prosecuted by state regulators, up to including deprivation of license to operate such activities.
Market makers cooperate with each other
At the beginning, I would like to mention that all market makers are competitors, and to disclose their plans to competitors is not a good idea. In addition, it is also punishable by law, up to deprivation of a license to conduct activities.
Most transactions on the platform are initiated by market makers
It’s not a very clear statement. The main profits of a market maker is spreads. How in this case should the liquidity provider earn, if all transactions on the site belong to him? These are the most popular myths in the network regarding market makers. In the end I would like to add that the work of the market maker — is a complex and time-consuming process, the result of which is a balanced financial market. Please don’t forget to follow us on Telegram and stay updated!YOUR CRYPTO BOSS
20 year old, working two jobs, using roboadvisors, autodeposits, and trading premiums. The goal is $900,000 in ten years. Opinions on my investment plans and goals?
Hello! I'm here more for lifestyle advice. I'm a 20 year old chef with a current hourly wage of $17 dollars that increases by $2 every 6 months. I've always been a hard worker and great at saving and budgeting, but I recently started taking it seriously as I want to go back to school before I'm 30 without loans. Scholarships are a no-go as I dropped out due to a form of Autism Spectrum Disorder, and math dyslexia that occurs from certain conditions. For this reason, I have chosen to use mostly robo-advisors, while I spend time trying to overcome my dyslexia. Robo-advisors make up 80% of my investments. These include acorns, and betterment, three accounts valued currently at 1,500 respectively. I trade options premiums with the hope of oneday having enough to own the underlying assets of what I'm buying. The goal is to trade options to increase my assets, and currently trading premiums to build experience. Options contracts represent 4% of my investments. I also sometimes use gift, and extra money, to purchase assets through E-Trade. 8% is in real estate, using another small robo-advisor like app, althouth I'm not sure how the returns will fare as I just started using it. It invests in actual real-estate and sends you a portion of the monthly rent. The last 8% is held on Coinbase in Tezos staking currency and ETH based tokens. I have a high yeild savings account that takes up 10% of my income, while my various investment accounts take up between 40% and %60 percent of my weekly income. This is all through reoccuring deposits, that I never turn off, and drive uber and doordash to meet the withdrawl amount if need be. It's about $35 a day, or $900 a month. My monthly income is around 2,000-5,000 a month depending on restaurant volume. I'm looking to eventually use investing as a second source of income, but one I only take from as emergencies, or my own ventures take me. How is the diversification of my investment plan? I plan on using the advice of others, and seeking a mentor, but I don't really want to scale down the contribution of my income, unless necessary, as I live in a state that you can survive on 2,500 a month. What else should I be saving foinvesting in? Would real estate be worth it if I don't plan on staying in my state? I pondered buying a bunch of Bitcoin atm's and taking advantage of the hype, although I'm worried it's just a fad. I plan to reach the 900,000 by trading options and slowly correctint the premiums, and reinvesting, or saving the profits. I'm worried my plan is too detailed to be successful, but this is the gist of it. Any advice welcome, thanks, Nic
Cryptocurrency scams are on a constant rise and here’s why you should be concerned
You need to know that cryptocurrency scams are on a rise on a constant basis, owing to the very fact that many people still believe that investing in them can be a great option. Now the point is that there is a lot of legit crypto exchanges but the number of fake exchanges is overpowering them every time. Hence as an investor, it is your duty to stay safe and invest your money wisely. As we discussed earlier, investing is not the only path of trading currencies. Day trading is ideal for high frequency professionals, but if you wish to make some serious profits in the cryptocurrency market you better prepare yourself to hold to your trading strategy. Trading cryptocurrency is a dangerous investment, but if you intend to invest for some time, you will considerably minimize the risks associated with it. However, you should immediately remove any prior commitments in the market if you see a sudden fall in the market due to some unforeseen reasons. Regardless of how good of the trader you are, always start with small investments at the beginning. While you will slowly increase your investment in a cryptocurrency, the desire to buy or sell often will be drastically lowered. You will need to have trust in your strategy and do not let all the negative discussions in the news headlines about cryptocurrencies reach you. Bitcoin and other cryptocurrencies will be here for long regardless of what pundits say. You will need to combine this enthusiasm with knowledge. The crypto market segments are so lively that in case you miss what appears like one amazing possibility to profit, there are around five to ten more down the road just looking forward to you. Trading as long as you're fatigued can result in stupid problems because you're considering your emotions over your logic. If you have lost any kind of money from any kind of crypto scam, then what we can say is that you need to contact a good fund recovery group in the very first place itself. There are a lot of fund recovery groups but the best among the lot is First Option Recovery. Owing to their experience and professionalism, what we can say is that they will be the best in business when it comes to recovering your funds in the shortest time possible. About First Option Recovery First Option Recovery is the top choice when it comes to recovering your money from all kinds of scams. Having recovered more than $3M from cryptocurrency scams alone, they are poised to be the best in the lot. Contact them with your query and they are going to sort out a plan to help you recover the entire amount that you lost in some fraudulent trade.
For Trading August 7th FB +6.5% on ??? Continuing Claims Lower Another New High for NASDAQ Today’s market got off to a slightly lower start on futures and the influence of the European markets but quickly turned higher after the mega-caps came roaring back to add to gains of the last several weeks. The big question of why remains unanswered. They just ran up and while there was no new news, there are plenty excuses. Mr. Z’s market cap gained $46Billion. Market internals were no better than 1:1 on the NYSE and NASDAQ was actually 6:5 down, with volume just average for the summer months. DJIA was just barely positive at 16:14 up with only one standout, AAPL adding 105 DP’s to the average. BA was the only double-digit loser and only barely -15 DP’s. There really wasn’t much news from Washington unless you count Pelosi sniping at Republicans and McConnell trying to explain away his stubbornness. Tonight’s closing comment video https://youtu.be/x3rHFMWfl80 Our Discord link is in the video description.. SECTORS: There was plenty of earnings news around with numbers for BKNG, DDOG, Z, UBER and DBX, but I want to take a moment away from that to make myself clear on the continuing Airline Bailout. I am 100% AGAINST wasting yours and my money so that an industry that absolutely squandered the advantages gained in their expansion and record profitability during the past decade. They made flying a brutally painful and expensive adventure with fees for just about everything other than the lavatories. The Boards of Directors and CEO’s repurchased shares, elevating prices, and self-enriching themselves all at the cost of rainy-day funding, right-sizing their companies and doing anything that made sense to increase their longevity. Now they want to “save 100,000 jobs” that will have to be cut. Here’s a thought, NO WAY! How about an industry that supports millions of people and families that has been beaten down, not of their own stupidity…How about Retail? How many of you know people who no longer have a job in a retail store? What did they do to cause the problem? I’m guessing nothing but stand on their feet 40 hours a week to make sure you found whatever you came in looking for. This is a bailout that should absolutely NOT HAPPEN! They don’t deserve it, and in fact it would make little difference in the scheduling and availability of flights. If you’re foolish enough to be an equity holder in this business that has so badly treated the customers, you deserve to lose your stake. And in fact, I seriously doubt that it will save them anyway! FOOD SUPPLY CHAIN was MIXED with TSN -.47, BGS -1.00, FLO +.04, CPB +.14, CAG -.11, MDLZ +.33, KHC +.37, CALM -.07, JJSF -.50, SAFM -1.40, HRL +.32, SJM -.85, PPC +.23, KR -.24, and PBJ $33.64 +.03 (.10%). BIOPHARMA was LOWER with BIIB + 1.83, ABBV -.53, REGN -3.31, ISRG -1.64, GILD -.05, MYL -.55, TEVA -.50, VRTX -1.23, BHC +.72, INCY -.37, ICPT -.86, LABU -.93, and IBB $136.08 -1.20 (.87%). CANNABIS: was LOWER with TLRY -.31, CGC -1.59, CRON -1.07, GWPH -14.94, ACB -.40, NBEV -.03, CURLF -.14, KERN +.04 and MJ $12.92 -.60 (4.44%). DEFENSE: was LOWER with LMT -4.47, GD -.05, TXT +.53, NOC -3.37, BWXT -1.66, TDY -1.08, RTX unchanged, and ITA $164.86 -.89 (.54%). RETAIL: was LOWER with M -.16, JWN -.28, KSS -.11, DDS -.35, WMT -.46, TGT -.36, TJX -.14, RL -3.62, UAA -.47, LULU -1.24, TPR +.29, CPRI -.59, and ZRT $49.67 -.53 (1.06%). FAANG and Big Cap: were HIGHER with GOOGL +26.91, AMZN +19.97, AAPL +16.28, FB +15.98 (6.41%), NFLX +5.90, NVDA +1.63, TSLA +4.73, BABA +.21, BIDU -.80, CMG +11.78, CAT -.32, MSFT +3.10, BA -2.24, DIS +3.39, and XLK $115.63 +1.77 (1.55%). PLEASE BE AWARE THAT THESE PRICES ARE LATE MARKET QUOTES AND DO NOT REPRESENT THE 4:00 CLOSES. FINANCIALS were MIXED with GS -.27, JPM +.03, BAC +.06, MS -.31, C -.34, PNC +.74, AIG -.85, TRV -1.34, AXP +.46, V +2.64, and XLF $24.33 unchanged. OIL, $41.95 -.24. Oil was lower in last night’s trading before we rallied in the morning but after we tried several times to break to the upside and ran today before running into supply and turned it back. The stocks were LOWER with XLE $37.17 -.26 (.69%). GOLD $2069.40 +20.10, was a continuation rally and a new recovery high of $2,081.80. We closed out the NEM August 65 / 70 spread on in the Gold market. The spread was put on at $1.30 and we closed it @ $3.20. BITCOIN: closed $12,040 +190. After breaking out over $10,000 we have had a “running correction” pushing prices toward $12,000, reaching a recovery high of $11980 today. We had added 350 shares of GBTC @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97, but sold 250 shares today @ $13.93. GBTC closed $14.44 +.64 today. Tomorrow is another day. CAM
Hello visitors and subscribers of scams! Here you will find a master list of common (and uncommon) scams that you may encounter online or in real life. Thank you to the many contributors who helped create this thread!
If you know of a scam that is not covered here, write a comment and it will be added to the next edition.
Caller ID spoofing It is very easy for anyone to make a phone call while having any number show up on the caller ID of the person receiving the phone call. Receiving a phone call from a certain number does not mean that the person/company who owns that number has actually called you. Email spoofing The "from" field of an email can be set by the sender, meaning that you can receive scam emails that look like they are from legitimate addresses. It's important to never click links in emails unless absolutely necessary, for example a password reset link you requested or an account activation link for an account you created. SMS spoofing SMS messages can be spoofed, so be wary of messages that seem to be from your friends or other trusted people.
The most common scams
The fake check scam (Credit to nimble2 for this part) The fake check scam arises from many different situations (for instance, you applied for a job, or you are selling something on a place like Craigslist, or someone wants to purchase goods or services from your business, or you were offered a job as a mystery shopper, you were asked to wrap your car with an advertisement, or you received a check in the mail for no reason), but the bottom line is always something like this:
The scammer sends you a very real looking, but fake, check. Sometimes they'll call it a "cashier's check", a "certified check", or a "verified check".
You deposit the check into your bank account, and within a couple of days your bank makes some or all of the funds available to you. This makes you think that the check is real and the funds have cleared. However, the money appearing in your account is not the same as the check actually clearing. The bank must make the funds available to you before they have cleared the check because that is the law.
For various and often complicated reasons, depending on the specific story line of the scam, the scammer will ask you to send someone some of the money, using services like MoneyGram, Western Union, and Walmart-2-Walmart. Sometimes the scammer will ask for you to purchase gift cards (iTunes, Amazon, Steam, etc) and give them the codes to redeem the gift cards. Some scammers may also give you instructions on how to buy and send them bitcoins.
Within a couple of weeks, though it can take as long as a month, your bank will realize that the check you deposited was fake, and your bank will remove the funds that you deposited into your account and charge you a bounced check fee. If you withdrew any of the money from the fake check, that money will be gone and you will owe that money to the bank. Some posters have even had their bank accounts closed and have been blocked from having another account for 5 years using ChexSystems.
General fraudulent funds scams If somebody is asking you to accept and send out money as a favour or as part of a job, it is a fraudulent funds scam. It does not matter how they pay you, any payment on any service can be fraudulent and will be reversed when it is discovered to be fraudulent. Phone verification code scams Someone will ask you to receive a verification text and then tell you to give them the code. Usually the code will come from Google Voice, or from Craigslist. In the Google version of the scam, your phone number will be used to verify a Google Voice account that the scammer will use to scam people with. In the Craigslist version of the scam, your phone number will be used to verify a Craigslist posting that the scammer will use to scam people. There is also an account takeover version of this scam that will involve the scammer sending a password reset token to your phone number and asking you for it. Bitcoin job scams Bitcoin job scams involve some sort of fraudulent funds transfer, usually a fake check although a fraudulent bank transfer can be used as well. The scammer will send you the fraudulent money and ask you to purchase bitcoins. This is a scam, and you will have zero recourse after you send the scammer bitcoins. Email flooding If you suddenly receive hundreds or thousands of spam emails, usually subscription confirmations, it's very likely that one of your online accounts has been taken over and is being used fraudulently. You should check any of your accounts that has a credit card linked to it, preferably from a computer other than the one you normally use. You should change all of your passwords to unique passwords and you should start using two factor authentication everywhere. Boss/CEO scam A scammer will impersonate your boss or someone who works at your company and will ask you to run an errand for them, which will usually be purchasing gift cards and sending them the code. Once the scammer has the code, you have no recourse. Employment certification scams You will receive a job offer that is dependent on you completing a course or receiving a certification from a company the scammer tells you about. The scammer operates both websites and the job does not exist. Craigslist fake payment scams Scammers will ask you about your item that you have listed for sale on a site like Craigslist, and will ask to pay you via Paypal. They are scamming you, and the payment in most cases does not actually exist, the email you received was sent by the scammers. In cases where you have received a payment, the scammer can dispute the payment or the payment may be entirely fraudulent. The scammer will then either try to get you to send money to them using the fake funds that they did not send to you, or will ask you to ship the item, usually to a re-shipping facility or a parcel mule. General fraudulent funds scams The fake check scam is not the only scam that involves accepting fraudulent/fake funds and purchasing items for scammers. If your job or opportunity involves accepting money and then using that money, it is almost certainly a frauduent funds scam. Even if the payment is through a bank transfer, Paypal, Venmo, Zelle, Interac e-Transfer, etc, it does not matter. Credit card debt scam Fraudsters will offer to pay off your bills, and will do so with fraudulent funds. Sometimes it will be your credit card bill, but it can be any bill that can be paid online. Once they pay it off, they will ask you to send them money or purchase items for them. The fraudulent transaction will be reversed in the future and you will never be able to keep the money. This scam happens on sites like Craigslist, Twitter, Instagram, and also some dating sites, including SeekingArrangement. The parcel mule scam A scammer will contact you with a job opportunity that involves accepting and reshipping packages. The packages are either stolen or fraudulently obtained items, and you will not be paid by the scammer. Here is a news article about a scam victim who fell for this scam and reshipped over 20 packages containing fraudulently acquired goods. The Skype sex scam You're on Facebook and you get a friend request from a cute girl you've never met. She wants to start sexting and trading nudes. She'll ask you to send pictures or videos or get on webcam where she can see you naked with your face in the picture. The scam: There's no girl. You've sent nudes to a guy pretending to be a girl. As soon as he has the pictures he'll demand money and threaten to send the pictures to your friends and family. Sometimes the scammer will upload the video to a porn site or Youtube to show that they are serious. What to do if you are a victim of this scam: You cannot buy silence, you can only rent it. Paying the blackmailer will show them that the information they have is valuable and they will come after you for more money. Let your friends and family know that you were scammed and tell them to ignore friend requests or messages from people they don't know. Also, make sure your privacy settings are locked down and consider deactivating your account. The underage girl scam You're on a dating site or app and you get contacted by a cute girl. She wants to start sexting and trading nudes. Eventually she stops communicating and you get a call from a pissed off guy claiming to be the girl's father, or a police officer, or a private investigator, or something else along those lines. Turns out the girl you were sexting is underage, and her parents want some money for various reasons, such as to pay for a new phone, to pay for therapy, etc. There is, of course, no girl. You were communicating with a scammer. What to do if you are a victim of this scam: Stop picking up the phone when the scammers call. Do not pay them, or they will be after you for more money. Phishing Phishing is when a scammer tries to trick you into giving information to them, such as your password or private financial information. Phishing messages will usually look very similar to official messages, and sometimes they are identical. If you are ever required to login to a different account in order to use a service, you should be incredibly cautious. The blackmail email scam The exact wording of the emails varies, but there are generally four main parts. They claim to have placed software/malware on a porn/adult video site, they claim to have a video of you masturbating or watching porn, they threaten to release the video to your friends/family/loved ones/boss/dog, and they demand that you pay them in order for them to delete the video. Rest assured that this is a very common spam campaign and there is no truth behind the email or the threats. Here are some news articles about this scam. The blackmail mail scam This is very similar to the blackmail email scam, but you will receive a letter in the mail. Rental scams Usually on local sites like Craigslist, scammers will steal photos from legitimate real estate listings and will list them for rent at or below market rate. They will generally be hesitant to tell you the address of the property for "safety reasons" and you will not be able to see the unit. They will then ask you to pay them a deposit and they claim they will ship you the keys. In reality, your money is gone and you will have no recourse. Craigslist vehicle scams A scammer will list a vehicle on Craigslist and will offer to ship you the car. In many cases they will also falsely claim to sell you the car through eBay or Amazon. If you are looking for a car on Craigslist and the seller says anything about shipping the car, having an agent, gives you a long story about why they are selling the car, or the listing price is far too low, you are talking to a scammer and you should ignore and move on. Advance-fee scam, also known as the 419 scam, or the Nigerian prince scam. You will receive a communication from someone who claims that you are entitled to a large sum of money, or you can help them obtain a large sum of money. However, they will need money from you before you receive the large sum. Man in the middle scams Man in the middle scams are very common and very hard to detect. The scammer will impersonate a company or person you are legitimately doing business with, and they will ask you to send the money to one of their own bank accounts or one controlled by a money mule. They have gained access to the legitimate persons email address, so there will be nothing suspicious about the email. To prevent this, make contact in a different way that lets you verify that the person you are talking to is the person you think you are talking to. Cam girl voting/viewer scam You will encounter a "cam girl" on a dating/messaging/social media/whatever site/app, and the scammer will ask you to go to their site and sign up with your credit card. They may offer a free show, or ask you to vote for them, or any number of other fake stories. Amateur porn recruitment scam You will encounter a "pornstar" on a dating/messaging/social media/whatever site/app, and the scammer will ask you to create an adult film with hehim, but first you need to do something. The story here is usually something to do with verifying your age, or you needing to take an STD test that involves sending money to a site operated by the scammer. Hot girl SMS spam You receive a text from a random number with a message along the lines of "Hey babe I'm here in town again if you wanted to meet up this time, are you around?" accompanied by a NSFW picture of a hot girl. It's spam, and they'll direct you to their scam website that requires a credit card. Identity verification scam You will encounter someone on a dating/messaging/social media/whatever site/app, and the scammer will ask that you verify your identity as they are worried about catfishing. The scammer operates the site, and you are not talking to whoever you think you are talking to. This type of scam teases you with something, then tries to make you sign up for something else that costs money. The company involved is often innocent, but they turn a blind eye to the practice as it helps their bottom line, even if they have to occasionally issue refunds. A common variation takes place on dating sites/dating apps, where you will match with someone who claims to be a camgirl who wants you to sign up for a site and vote for her. Another variation takes place on local sites like Craigslist, where the scammers setup fake rental scams and demand that you go through a specific service for a credit check. Once you go through with it, the scammer will stop talking to you. Another variation also takes place on local sites like Craigslist, where scammers will contact you while you are selling a car and will ask you to purchase a Carfax-like report from a specific website. Multi Level Marketing or Affiliate Marketing You apply for a vague job listing for 'sales' on craigslist. Or maybe an old friend from high school adds you on Facebook and says they have an amazing business opportunity for you. Or maybe the well dressed guy who's always interviewing people in the Starbucks that you work at asks if you really want to be slinging coffee the rest of your life. The scam: MLMs are little more than pyramid schemes. They involve buying some sort of product (usually snake oil health products like body wraps or supplements) and shilling them to your friends and family. They claim that the really money is recruiting people underneath you who give you a slice of whatever they sell. And if those people underneath you recruit more people, you get a piece of their sales. Ideally if you big enough pyramid underneath you the money will roll in without any work on your part. Failure to see any profit will be your fault for not "wanting it enough." The companies will claim that you need to buy their extra training modules or webinars to really start selling. But in reality, the vast majority of people who buy into a MLM won't see a cent. At the end of the day all you'll be doing is annoying your friends and family with your constant recruitment efforts. What to look out for: Recruiters love to be vague. They won't tell you the name of the company or what exactly the job will entail. They'll pump you up with promises of "self-generating income", "being your own boss", and "owning your own company." They might ask you to read books about success and entrepreneurs. They're hoping you buy into the dream first. If you get approached via social media, check their timelines. MLMs will often instruct their victims to pretend that they've already made it. They'll constantly post about how they're hustling and making the big bucks and linking to youtube videos about success. Again, all very vague about what their job actually entails. If you think you're being recruited: Ask them what exactly the job is. If they can't answer its probably a MLM. Just walk away.
You should generally avoid answering or engaging with random phone calls. Picking up and engaging with a scam call tells the scammers that your phone number is active, and will usually lead to more calls. Tax Call You get a call from somebody claiming to be from your countries tax agency. They say you have unpaid taxes that need to be paid immediately, and you may be arrested or have other legal action taken against you if it is not paid. This scam has caused the American IRS, Canadian CRA, British HMRC, and Australian Tax Office to issue warnings. This scam happens in a wide variety of countries all over the world. Warrant Call Very similar to the tax call. You'll get a phone call from an "agent", "officer", "sheriff", or other law enforcement officer claiming that there is a warrant out for your arrest and you will be arrested very soon. They will then offer to settle everything for a fee, usually paid in giftcards. [Legal Documents/Process Server Calls] Very similar to the warrant call. You'll get a phone call from a scammer claiming that they are going to serve you legal documents, and they will threaten you with legal consequences if you refuse to comply. They may call themselves "investigators", and will sometimes give you a fake case number. Student Loan Forgiveness Scam Scammers will call you and tell you about a student loan forgiveness program, but they are interested in obtaining private information about you or demanding money in order to join the fake program. Tech Support Call You receive a call from someone with a heavy accent claiming to be a technician Microsoft or your ISP. They inform you that your PC has a virus and your online banking and other accounts may be compromised if the virus is not removed. They'll have you type in commands and view diagnostics on your PC which shows proof of the virus. Then they'll have you install remote support software so the technician can work on your PC, remove the virus, and install security software. The cost of the labor and software can be hundreds of dollars. The scam: There's no virus. The technician isn't a technician and does not work for Microsoft or your ISP. Scammers (primarily out of India) use autodialers to cold-call everyone in the US. Any file they point out to you or command they have you run is completely benign. The software they sell you is either freeware or ineffective. What to do you if you're involved with this scam: If the scammers are remotely on your computer as you read this, turn off your PC or laptop via the power button immediately, and then if possible unplug your internet connection. Some of the more vindictive tech scammers have been known to create boot passwords on your computer if they think you've become wise to them and aren't going to pay up. Hang up on the scammers, block the number, and ignore any threats about payment. Performing a system restore on your PC is usually all that is required to remove the scammer's common remote access software. Reports of identity theft from fake tech calls are uncommon, but it would still be a good idea to change your passwords for online banking and monitor your accounts for any possible fraud. How to avoid: Ignore any calls claiming that your PC has a virus. Microsoft will never contact you. If you're unsure if a call claiming to be from your ISP is legit, hang up, and then dial the customer support number listed on a recent bill. If you have elderly relatives or family that isn't tech savvy, take the time to fill them in on this scam. Chinese government scam This scam is aimed at Chinese people living in Europe and North America, and involves a voicemail from someone claiming to be associated with the Chinese government, usually through the Chinese consulate/embassy, who is threatening legal action or making general threats. Chinese shipping scam This scam is similar to the Chinese government scam, but involves a seized/suspicious package, and the scammers will connect the victim to other scammers posing as Chinese government investigators. Social security suspension scam You will receive a call from someone claiming to work for the government regarding suspicious activity, fraud, or serious crimes connected to your social security number. You'll be asked to speak to an operator and the operator will explain the steps you need to follow in order to fix the problems. It's all a scam, and will lead to you losing money and could lead to identity theft if you give them private financial information. Utilities cutoff You get a call from someone who claims that they are from your utility company, and they claim that your utilities will be shut off unless you immediately pay. The scammer will usually ask for payment via gift cards, although they may ask for payment in other ways, such as Western Union or bitcoin. Relative in custody Scammer claims to be the police, and they have your son/daughtenephew/estranged twin in custody. You need to post bail (for some reason in iTunes gift cards or MoneyGram) immediately or the consequences will never be the same. Mexican family scam This scam comes in many different flavours, but always involves someone in your family and Mexico. Sometimes the scammer will claim that your family member has been detained, sometimes the scammer will claim that your family member has been kidnapped, and sometimes the scammer will claim that your family member is injured and needs help. General family scams Scammers will gather a large amount of information about you and target your family members using different stories with the goal of gettimg them to send money. One ring scam Scammers will call you from an international number with the goal of getting you to return their call, causing you to incur expensive calling fees.
Online shopping scams
THE GOLDEN RULE OF ONLINE SHOPPING: If it sounds too good to be true, it probably is. Dropshipping An ad on reddit or social media sites like Facebook and Instagram offers items at huge discounts or even free (sometimes requiring you to reblog or like their page). They just ask you to pay shipping. The scam: The item will turn out to be very low quality and will take weeks or even months to arrive. Sometimes the item never arrives, and the store disappears or stops responding. The seller drop-ships the item from China. The item may only cost a few dollars, and the Chinese government actually pays for the shipping. You end up paying $10-$15 dollars for a $4 item, with the scammer keeping the profit. If you find one of these scams but really have your heart set on the item, you can find it on AliExpress or another Chinese retailer. Influencer scams A user will reach out to you on a social media platform, usually Instagram, and offer you the chance to partner with them and receive a free/discounted product, as long as you pay shipping. This is a different version of the dropshipping scam, and is just a marketing technique to get you to buy their products. Triangulation fraud Triangulation fraud occurs when you make a purchase on a site like Amazon or eBay for an item at a lower than market price, and receive an item that was clearly purchased new at full price. The scammer uses a stolen credit card to order your item, while the money from the listing is almost all profit for the scammer. Instagram influencer scams Someone will message you on Instagram asking you to promote their products, and offering you a discount code. The items are Chinese junk, and the offer is made to many people at a time. Cheap Items Many websites pop up and offer expensive products, including electronics, clothes, watches, sunglasses, and shoes at very low prices. The scam: Some sites are selling cheap knock-offs. Some will just take your money and run. What to do if you think you're involved with this scam: Contact your bank or credit card and dispute the charge. How to avoid: The sites often have every brand-name shoe or fashion item (Air Jordan, Yeezy, Gucci, etc) in stock and often at a discounted price. The site will claim to be an outlet for a major brand or even a specific line or item. The site will have images at the bottom claiming to be Secured by Norton or various official payment processors but not actual links. The site will have poor grammar and a mish-mash of categories. Recently, established websites will get hacked or their domain name jacked and turned into scam stores, meaning the domain name of the store will be completely unrelated to the items they're selling. If the deal sounds too good to be true it probably is. Nobody is offering brand new iPhones or Beats or Nintendo Switches for 75% off. Cheap Amazon 3rd Party Items You're on Amazon or maybe just Googling for an item and you see it for an unbelievable price from a third-party seller. You know Amazon has your back so you order it. The scam: One of three things usually happen: 1) The seller marks the items as shipped and sends a fake tracking number. Amazon releases the funds to the seller, and the seller disappears. Amazon ultimately refunds your money. 2) The seller immediately cancels the order and instructs you to re-order the item directly from their website, usually with the guarantee that the order is still protected by Amazon. The seller takes your money and runs. Amazon informs you that they do not offer protection on items sold outside of Amazon and cannot help you. 2) The seller immediately cancels the order and instructs you to instead send payment via an unused Amazon gift card by sending the code on the back via email. Once the seller uses the code, the money on the card is gone and cannot be refunded. How to avoid: These scammers can be identified by looking at their Amazon storefronts. They'll be brand new sellers offering a wide range of items at unbelievable prices. Usually their Amazon names will be gibberish, or a variation on FIRSTNAME.LASTNAME. Occasionally however, established storefronts will be hacked. If the deal is too good to be true its most likely a scam. Scams on eBay There are scams on eBay targeting both buyers and sellers. As a seller, you should look out for people who privately message you regarding the order, especially if they ask you to ship to a different address or ask to negotiate via text/email/a messaging service. As a buyer you should look out for new accounts selling in-demand items, established accounts selling in-demand items that they have no previous connection to (you can check their feedback history for a general idea of what they bought/sold in the past), and lookout for people who ask you to go off eBay and use another service to complete the transaction. In many cases you will receive a fake tracking number and your money will be help up for up to a month. Scams on Amazon There are scams on Amazon targeting both buyers and sellers. As a seller, you should look out for people who message you about a listing. As a buyer you should look out for listings that have an email address for you to contact the person to complete the transaction, and you should look out for cheap listings of in-demand items. Scams on Reddit Reddit accounts are frequently purchased and sold by fraudsters who wish to use the high karma count + the age of the account to scam people on buy/sell subreddits. You need to take precautions and be safe whenever you are making a transaction online. Computer scams Virus scam A popup or other ad will say that you have a virus and you need to follow their advice in order to remove it. They are lying, and either want you to install malware or pay for their software.
Chinese Brushing / direct shipping If you have ever received an unsolicited small package from China, your address was used to brush. Vendors place fake orders for their own products and send out the orders so that they can increase their ratings. Money flipping Scammer claims to be a banking insider who can double/triple/bazoople any amount of money you send them, with no consequences of any kind. Obviously, the money disappears into their wallet the moment you send it.
Door to door scams
As a general rule, you should not engage with door to door salesmen. If you are interested in the product they are selling, check online first. Selling Magazines Someone or a group will come to your door and offer to sell a magazine subscription. Often the subscriptions are not for the duration or price you were told, and the magazines will often have tough or impossible cancellation policies. Energy sales Somebody will come to your door claiming to be from an energy company. They will ask to see your current energy bill so that they can see how much you pay. They will then offer you a discount if you sign up with them, and promise to handle everything with your old provider. Some of these scammers will "slam" you, by using your account number that they saw on your bill to switch you to their service without authorization, and some will scam you by charging higher prices than the ones you agreed on. Security system scams Scammers will come to your door and ask about your security system, and offer to sell you a new one. These scammers are either selling you overpriced low quality products, or are casing your home for a future burglary. They ask to enter your home While trying to sell you whatever, they suddenly need to use your bathroom, or they've been writing against the wall and ask to use your table instead. Or maybe they just moved into the neighborhood and want to see how you decorate for ideas. They're scoping out you and your place. They want to see what valuables you have, how gullible you are, if you have a security system or dogs, etc.
Begging With a Purpose "I just need a few more dollars for the bus," at the bus station, or "I just need $5 to get some gas," at a gas station. There's also a variation where you will be presented with a reward: "I just need money for a cab to get uptown, but I'll give you sports tickets/money/a date/a priceless vase." Three Card Monte, Also Known As The Shell Game Unbeatable. The people you see winning are in on the scam. Drop and Break You bump into someone and they drop their phone/glasses/fancy bottle of wine/priceless vase and demand you pay them back. In reality, it's a $2 pair of reading glasses/bottle of three-buck-chuck/tasteful but affordable vase. CD Sales You're handed a free CD so you can check out the artist's music. They then ask for your name and immediately write it on the CD. Once they've signed your name, they ask you for money, saying they can't give it to someone else now. Often they use dry erase markers, or cheap CD sleeves. Never use any type of storage device given to you by a random person, as the device can contain malware. White Van Speaker Scam You're approached and offered speakers/leather jackets/other luxury goods at a discount. The scammer will have an excuse as to why the price is so low. After you buy them, you'll discover that they are worthless. iPhone Street Sale You're approached and shown an iPhone for sale, coming in the box, but it's open and you can see the phone. If you buy the phone, you'll get an iPhone box with no iPhone, just some stones or cheap metal in it to weigh it down. Buddhist Monk Pendant A monk in traditional garb approaches you, hands you a gold trinket, and asks for a donation. He holds either a notebook with names and amounts of donation (usually everyone else has donated $5+), or a leaflet with generic info. This is fairly common in NYC, and these guys get aggressive quickly. Friendship Bracelet Scam More common in western Europe, you're approached by someone selling bracelets. They quickly wrap a loop of fabric around your finger and pull it tight, starting to quickly weave a bracelet. The only way to (easily) get it off your hand is to pay. Leftover sales This scam involves many different items, but the idea is usually the same: you are approached by someone who claims to have a large amount of excess inventory and offers to sell it to you at a great price. The scammer actually has low quality items and will lie to you about the price/origin of the items. Dent repair scams Scammers will approach you in public about a dent in your car and offer to fix it for a low price. Often they will claim that they are mechanics. They will not fix the dent in your car, but they will apply large amounts of wax or other substances to hide the dent while they claim that the substance requires time to harden. Gold ring/jewelry/valuable item scam A scammer will "find" a gold ring or other valuable item and offers to sell it to you. The item is fake and you will never see the scammer again. Distraction theft One person will approach you and distract you, while their accomplice picks your pockets. The distraction can take many forms, but if you are a tourist and are approached in public, watch closely for people getting close to you.
For Trading August 7th FB +6.5% on ??? Continuing Claims Lower Another New High for NASDAQ Today’s market got off to a slightly lower start on futures and the influence of the European markets but quickly turned higher after the mega-caps came roaring back to add to gains of the last several weeks. The big question of why remains unanswered. They just ran up and while there was no new news, there are plenty excuses. Mr. Z’s market cap gained $46Billion. Market internals were no better than 1:1 on the NYSE and NASDAQ was actually 6:5 down, with volume just average for the summer months. DJIA was just barely positive at 16:14 up with only one standout, AAPL adding 105 DP’s to the average. BA was the only double-digit loser and only barely -15 DP’s. There really wasn’t much news from Washington unless you count Pelosi sniping at Republicans and McConnell trying to explain away his stubbornness. Our “open forum” on Discord, which allows me to interact with subscribers and others to allow direct questions and chart opinions on just about any stock, continues to grow with more participants every day. It is informative and allows me to share insights as the market is open and moving. The link is: https://discord.gg/ATvC7YZ and I will be there and active from before the open and all day. It’s a great place to share ideas and gain some insights, and we’ve grown to almost 3000 members. I also did this video over the weekend on a day-trade, (actually 2) that I made in AAPL on Friday. I think it’s highly informative as a guide to under what conditions these kind of trades in expiring options make sense. The link is https://youtu.be/qIV0G-hP3aM Enjoy!! Tonight’s closing comment video https://youtu.be/x3rHFMWfl80 SECTORS: There was plenty of earnings news around with numbers for BKNG, DDOG, Z, UBER and DBX, but I want to take a moment away from that to make myself clear on the continuing Airline Bailout. I am 100% AGAINST wasting yours and my money so that an industry that absolutely squandered the advantages gained in their expansion and record profitability during the past decade. They made flying a brutally painful and expensive adventure with fees for just about everything other than the lavatories. The Boards of Directors and CEO’s repurchased shares, elevating prices, and self-enriching themselves all at the cost of rainy-day funding, right-sizing their companies and doing anything that made sense to increase their longevity. Now they want to “save 100,000 jobs” that will have to be cut. Here’s a thought, NO WAY! How about an industry that supports millions of people and families that has been beaten down, not of their own stupidity…How about Retail? How many of you know people who no longer have a job in a retail store? What did they do to cause the problem? I’m guessing nothing but stand on their feet 40 hours a week to make sure you found whatever you came in looking for. This is a bailout that should absolutely NOT HAPPEN! They don’t deserve it, and in fact it would make little difference in the scheduling and availability of flights. If you’re foolish enough to be an equity holder in this business that has so badly treated the customers, you deserve to lose your stake. And in fact, I seriously doubt that it will save them anyway! FOOD SUPPLY CHAIN was MIXED with TSN -.47, BGS -1.00, FLO +.04, CPB +.14, CAG -.11, MDLZ +.33, KHC +.37, CALM -.07, JJSF -.50, SAFM -1.40, HRL +.32, SJM -.85, PPC +.23, KR -.24, and PBJ $33.64 +.03 (.10%). BIOPHARMA was LOWER with BIIB + 1.83, ABBV -.53, REGN -3.31, ISRG -1.64, GILD -.05, MYL -.55, TEVA -.50, VRTX -1.23, BHC +.72, INCY -.37, ICPT -.86, LABU -.93, and IBB $136.08 -1.20 (.87%). CANNABIS: was LOWER with TLRY -.31, CGC -1.59, CRON -1.07, GWPH -14.94, ACB -.40, NBEV -.03, CURLF -.14, KERN +.04 and MJ $12.92 -.60 (4.44%). DEFENSE: was LOWER with LMT -4.47, GD -.05, TXT +.53, NOC -3.37, BWXT -1.66, TDY -1.08, RTX unchanged, and ITA $164.86 -.89 (.54%). RETAIL: was LOWER with M -.16, JWN -.28, KSS -.11, DDS -.35, WMT -.46, TGT -.36, TJX -.14, RL -3.62, UAA -.47, LULU -1.24, TPR +.29, CPRI -.59, and ZRT $49.67 -.53 (1.06%). FAANG and Big Cap: were HIGHER with GOOGL +26.91, AMZN +19.97, AAPL +16.28, FB +15.98 (6.41%), NFLX +5.90, NVDA +1.63, TSLA +4.73, BABA +.21, BIDU -.80, CMG +11.78, CAT -.32, MSFT +3.10, BA -2.24, DIS +3.39, and XLK $115.63 +1.77 (1.55%). PLEASE BE AWARE THAT THESE PRICES ARE LATE MARKET QUOTES AND DO NOT REPRESENT THE 4:00 CLOSES. FINANCIALS were MIXED with GS -.27, JPM +.03, BAC +.06, MS -.31, C -.34, PNC +.74, AIG -.85, TRV -1.34, AXP +.46, V +2.64, and XLF $24.33 unchanged. OIL, $41.95 -.24. Oil was lower in last night’s trading before we rallied in the morning but after we tried several times to break to the upside and ran today before running into supply and turned it back. The stocks were LOWER with XLE $37.17 -.26 (.69%). GOLD $2069.40 +20.10, was a continuation rally and a new recovery high of $2,081.80. We closed out the NEM August 65 / 70 spread on in the Gold market. The spread was put on at $1.30 and we closed it @ $3.20. BITCOIN: closed $12,040 +190. After breaking out over $10,000 we have had a “running correction” pushing prices toward $12,000, reaching a recovery high of $11980 today. We had added 350 shares of GBTC @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97, but sold 250 shares today @ $13.93. GBTC closed $14.44 +.64 today. Tomorrow is another day. CAM
LOEx Market Research Report on August 4: BTC came to the vicinity of the previous trapped market and began to adjust slightly
[Today's Hot Tips] 1.[The central parity of RMB against the U.S. dollar increased, and the USDT negative premium rate was 0.44%] The central parity of the RMB against the US dollar rose by 177 points from the previous day to 6.9803. The central parity rose to the highest level since July 22, 2020, the largest increase since July 7, 2020. The onshore renminbi is currently reported at 6.9809. The OTC offer of USDT on Boboo.com is 6.95 RMB, and the premium rate has slightly expanded to -0.44%. 2.[Vice President of Blockstream: Bitcoin full nodes may be suffering from connection slot exhaustion attacks] On the morning of August 4, Tuur Demeester, the Adamant Capital founder, tweeted that today's Bitcoin full node may be suffering from a connection slot exhaustion attack. This attack vulnerability has been known a few years ago, and there are some good suggestions to solve this problem, but the developers did not take it seriously. Maybe this attack can be a catalyst. 3.["2020 Hurun Global Unicorn List" released four blockchain companies including Coinbase on the list] According to official sources, on August 4, Hurun Report released the "2020 Hurun Global Unicorn List". After inquiries, the blockchain companies on the list include: 1. Ripple, valued at 70 billion yuan (up 35 billion yuan) ), ranked 22nd (up 28 places); 2. Coinbase, valued at 50 billion yuan, ranked 31st (down 1 place); 3. Bitmain, valued at 30 billion yuan (down 50 billion yuan), ranked 70th (down 50 places); Kraken, valued at 30 billion yuan, ranks tied for 70th. Bitmain has become one of the five unicorn companies with the largest decline in valuation. Hu Run said: "The decline in Bitmain's valuation is mainly due to the average share price performance of Canaan after its listing, and the valuation of the blockchain industry is under pressure. " [Today's market analysis] Bitcoin (BTC)BTC traded sideways near 11400 USDT in the early morning, and began to fall slightly at 5 o'clock. It fell below 11,200 USDT in the short term, and dropped to 11137.93 USDT as low as possible. At present, the overall BTC is adjusted within a narrow range near 11,200 USDT. Most mainstream currencies fell slightly after a narrow adjustment in the early morning. BTC is currently reported 11350.3 USDT on LOEx Global, with a decrease of 0.1% in 24h. In the past two days, Bitcoin has adjusted, and the entire market has adjusted accordingly, and new changes have taken place in the market. It can be felt from two points. However, some people think that the platform currency has moved and the platform section has risen. Ethereum is still so strong, and so is Ripple. The following trend will fluctuate upward. What I want to say is that there will be many declines like this, and the bull market will adjust, so we must pay attention to the rhythm. Now that the market has come to the front, there is a trapped market, and there is a profit selling pressure in the back, so the two-day adjustment is not enough. At least 10,000 points will be tested before the market is reliable. Or, in the short term, the liberation of the previous trapped market will also face adjustments near the previous high of 13,000 points. This is mainly based on how much power is enough. Operation suggestions: Support level: the first support level is 10700 points, the second support level is 11000 integers; Resistance level: the first resistance level is 11400 points, the second resistance level is 11500 points. LOEx is registered in Seychelles. It is a global one-stop digital asset service platform with business distribution nodes in 20 regions around the world. It has been exempted from Seychelles and Singapore Monetary Authority (MAS) digital currency trading services. Provide services and secure encrypted digital currency trading environment for 2 million community members in 24 hours. https://preview.redd.it/1la924blrxe51.png?width=607&format=png&auto=webp&s=e1d372986b9fce098ec629da2fc633c5061f9b46
XRP Isn’t A Security, Declares Former CFTC Chairman
https://preview.redd.it/8yehv8lzsce51.jpg?width=960&format=pjpg&auto=webp&s=69f0a6eb4973a5a9974e42d15709434719a26a81 When Chris Giancarlo was the chairman of the Commodity Futures Trading Commission he became a rock-star of sorts in certain corners of the cryptocurrency community, helping establish criteria that eventually led to bitcoin and ethereum being declared commodities, more like coffee or sugar than stock in a company. The U.S. Securities and Exchange Commission largely followed suit, eventually also declaring that bitcoin and ether, the cryptocurrency powering the ethereum blockchain weren’t securities. Now chairman emeritus Giancarlo, who was deemed “Crypto Dad” following an impassioned speech he gave to Congress where he credited bitcoin for finally getting his kids interested in finance, is at it again, having co-written a detailed argument published this morning in the International Financial Law Review for why XRP, the cryptocurrency formally known as “ripples,” was also not a security. The only problem is he’s no longer a regulator. In fact, his employer is on the payroll of Ripple, the largest single owner of XRP, whose co-founders actually created the cryptocurrency. The bombshell paper, titled, “Cryptocurrencies and U.S. Securities Laws: Beyond Bitcoin and Ether,” co-authored by commodities lawyer Conrad Bahlke of New York law firm Willkie Farr & Gallagher LLP, methodically reviews the criteria of the Howey Test, established by the SEC in 1946 to determine whether something is a security, and point-by-point argues that XRP does not qualify. Rather, the paper argues, like its name would indicate, cryptocurrency is a currency of perhaps more interest to the Federal Reserve and central banks than securities regulators. What’s at stake here to the cryptocurrency world cannot be overestimated. XRP is now the fourth largest cryptocurrency by market cap, with $5.9 billion worth of the asset in circulation according to cryptocurrency data site Messari. While Ripple was valued at $10 billion according to its most recent round of funding, the company continues to fund itself in part by selling its deep war chest of 55.6 billion XRP, coincidentally valued at the same amount as the company itself. Not only could an eventual decision by the SEC to classify—or not classify—XRP as a security impact the untold individual owners of the cryptocurrency, but other clients using Ripple services that don’t rely on the cryptocurrency, including American Express, Santander, and SBI Holdings could stand to be impacted positively or negatively depending on the decision. After all if XRP were to be rescinded it would be a huge cost to their software provider. If Giancarlo is right though, Ripple could end up being one of the most valuable startups in fintech. “Ultimately, under a fair application of the Howey test and the SEC’s presently expanding analysis, XRP should not be regulated as a security, but instead considered a currency or a medium of exchange,” Giancarlo and Bahlke argue in the paper. “The increased adoption of XRP as a medium of exchange and a form of payment in recent years, both by consumers and in the business-to-business setting, further underscores the utility of XRP as a bona fide fiat substitute.” Giancarlo was nominated to be a commissioner of the CFTC by then-President Barack Obama in 2013. In 2015, he helped lead the thinking behind the CFTC’s decision that bitcoin and other cryptocurrencies were commodities, paving the way for the SEC’s related comments that neither bitcoin nor ethereum are securities. Then, at the height of the 2017 cryptocurrency bubble President Trump nominated him to be Chairman of the CFTC, where he oversaw the creation of a number of bitcoin futures projects, including at CME Group and the short-lived effort at Cboe. While many blame the creation of bitcoin futures for popping the 2017 price bubble, which almost hit $20,000 before halving today, others have seen the works as a fundamental process of maturity, helping pave the way for more sophisticated crypto-enabled financial offerings. Giancarlo’s last day in office at the CFTC was in 2019, after which he promptly got involved helping envision the future of assets issued on a blockchain. In November he joined as an advisor to American Financial Exchange, using ethereum to create a Libor alternative. The following January he co-founded the Digital Dollar Project leading the push to use blockchain at the Federal Reserve and now it would seem he’s hoping to influence the classification of XRP as he did for bitcoin and ethereum, but from the other side of regulation. Importantly however, a footnote in the report discloses that not only is Giancarlo and Bahlke’s firm, Willkie Farr & Gallagher LLP counsel to Ripple Labs, but they “relied on certain factual information provided by Ripple in the preparation of this article.” While it’s impossible to parse what information came from the co-authors and what came from Ripple, the resulting legal argument is fascinating, even if it does leave room for doubt. The Howey test Giancarlo uses to bolster his arguments is a three-pronged definition used by the SEC, none of which he says apply to XRP. The first prong, is that an investment contract should be implied or explicitly stated between the issuer of the asset, in this case XRP and the owner, in which money exchanges hands. “The mere fact that an individual holds XRP does not create any relationship, rights or privileges with respect to Ripple any more than owning Ether would create a contract with the Ethereum Foundation, the organization that oversees the Ethereum architecture,” he writes. This does however overlook the fact that OpenCoin, credited on Ripple’s own site in 2013 for creating XRP (then tellingly described as “ripples”), was run by many of the same people that founded Ripple. The original creators of XRP then donated the vast majority of the assets to Ripple, which they also ran, creating a sense of distance, tacit though it may be. The actual data around the creation of XRP was also muddled by a glitch in the code that means unlike bitcoin and ethereum the crucial genesis data is no longer attached to the rest of the ledger. The rebranding of “ripples” as XRP further extended the sense of distance between XRP and Ripple, followed by an aggressive campaign to get media to stop describing the cryptocurrency as “Ripple’s XRP.” With so much distance between the company that actually created XRP and the company that now owns more than half of it, one would be forgiven for wondering, if there was an implied contract between OpenCoin and XRP owners, does the donation from one group of people at one company to a very similar group of people at another company sever that responsibility? In spite of the sense of distance created by Ripple between itself and the cryptocurrency its co-founders created, a number of active lawsuits alleging securities violations have been filed. In all fairness though, Giancarlo appears to recognize this prong may not be Ripple’s strongest defense and concludes the section, hedging: “Even if XRP were to satisfy one or two of the “prongs” of the Howey test, it does not satisfy all three factors such that XRP is an investment contract subject to regulation as a security.” The second prong of the Howey test stipulates that there can be no “common enterprise” between shareholders or a shareholder and the company. While refuting both relationships, Giancarlo curiously goes onto to write that “given the juxtaposition between XRP’s intended use as a liquidity tool, its more general use to transfer value and its potential as a speculative asset, XRP holders who utilize the coins for different purposes have divergent interests with respect to XRP.” Ironically, there has always been a widely held belief that owning a cryptocurrency would unify interests around a single goal: to co-create the infrastructure that lets the cryptocurrency exist and ensure it was vibrant and diverse. Meanwhile, XRP, in spite of its aggressive supporters on social media, is one of the least diverse ecosystems, with the vast majority of serious development being done within Ripple. If XRP owners aren’t expecting an increase in value from the work being done by Ripple, they certainly aren’t nearly as involved in helping build that future as are owners of bitcoin and ethereum. In a related issue, the third prong of the Howey test stipulates that “no reasonable expectation of profit should be derived from the efforts of Ripple,” according to the paper. Supporting this position, Giancarlo writes: “Though Ripple maintains a sizable stake of the XRP supply and certainly has a pecuniary interest in the value of its holdings, it is not enough to suggest that a mutual interest in the value of an asset gives rise to an expectation of profits as contemplated by Howey.” Again, this strains credulity. According to its own site, Ripple currently has access to 6.4% of all the XRP ever created. But that doesn’t count the 49.2% of the total XRP Ripple owns, but is locked in a series of escrow accounts that become periodically available to Ripple and Ripple alone. Adding those two percentages together leaves a float of only about 44% of XRP that has been distributed for public ownership. For some comparison, Facebook went public the same year XRP was created and has a 99% float, according to FactSet data, meaning almost all of its stock is in the hands of traders.While Ripple does also have more traditional stock, this distribution shows that Ripple might not be as distributed as it claims. While it’s perhaps no surprise that Giancarlo would come out on the side of his own client, there’s also plenty of other reasons to believe his argument may in fact hold water. In February 2018, the notoriously compliant exchange Coinbase added support for XRP, something it would unlikely do if it were concerned it might accidentally be selling an unlicensed security. Perhaps most tellingly though, Ripple has also been granted a difficult-to-obtain BitLicense from the New York Department of Financial Services, giving it the blessing of a respected regulator. However, while the license was granted after then-superintendent Benjamin Lawsky stepped down from the regulator, it's perhaps no coincidence that a year later he joined Ripple on its board of directors and is now active in the cryptocurrency space. Perhaps a similar fate is in store for Giancarlo. Editor’s note: This article has been updated to clarify that Ripple Labs is a client of Giancarlo’s law firm.
Thoughts On The Market Series #1 - The New Normal?
Market Outlook: What to Make of This “New Normal”
By ****\* March 16, 2020 After an incredibly volatile week – which finished with the Dow Jones Industrial Average rallying over 9% on Friday – I suppose my readers might expect me to be quite upbeat about the markets. Unfortunately, I persist in my overall pessimistic outlook for stocks, and for the economy in general. Friday’s rally essentially negated Thursday’s sell-off, but I don’t expect it to be the start of a sustained turnaround. We’re getting a taste of that this morning, with the Dow opening down around 7%. This selloff is coming on the back of an emergency interest rate cut by the Federal Reserve of 100 basis points (to 0%-0.25%) on Sunday… along with the announcement of a new quantitative easing program of $700 billion. (I will write about this further over the next several days.) As I have been writing for many weeks, the financial bubble – which the Fed created by pumping trillions of dollars into the financial system – has popped. It will take some time for the bubble to deflate to sustainable levels. Today I’ll walk you through what’s going on in the markets and the economy… what I expect going forward and why… and what it means for us as traders. (You’ll see it’s not all bad news.)
Coronavirus’ Strain on the Global Economy
To start, let’s put things in perspective: This asset deflation was coming one way or another. Covid19 (or coronavirus) has simply accelerated the process. Major retailers are closing, tourism is getting crushed, universities and schools are sending students home, conventions, sporting events, concerts, and other public gatherings have been cancelled, banks and other financial service firms are going largely virtual, and there has been a massive loss of wealth. Restaurant data suggests that consumer demand is dropping sharply, and the global travel bans will only worsen the situation. Commercial real estate is another sector that looks particularly vulnerable. We are almost certain to see a very sharp and pronounced economic slowdown here in the United States, and elsewhere. In fact, I expect a drop of at least 5% of GDP over the next two quarters, which is quite severe by any standard. Sure, when this cycle is complete, there will be tremendous amounts of pent-up demand by consumers, but for the time being, the consumer is largely on the sidelines. Of course, the problems aren’t just in the U.S. China’s numbers look awful. In fact, the government there may have to “massage” their numbers a bit to show a positive GDP in the first quarter. Europe’s numbers will also look dreadful, and South Korea’s economy has been hit badly. All around the world, borders are being shut, all non-essential businesses are being closed, and people in multiple countries are facing a lockdown of historic proportions. The coronavirus is certainly having a powerful impact, and it looks certain that its impact will persist for a while. Consider global tourism. It added almost $9 trillion to the global economy in 2018, and roughly 320 million jobs. This market is in serious trouble. Fracking in the U.S. is another business sector that is in a desperate situation. Millions of jobs and tens of billions of loans are now in jeopardy. The derivative businesses that this sector supports will be likewise devastated as companies are forced to reduce their workforces or shut down due to the collapse in oil prices. This sector’s suffering will probably force banks to book some big losses despite attempts by the government to support this industry. In a similar way, the derivative businesses that are supported by the universities and colleges across America are going to really suffer. There are nearly 20 million students in colleges across the U.S. When they go home for spring vacation and do not return, the effect on the local businesses that colleges and university populations support will be devastating. What does this “new normal” mean going forward? Let’s take a look…
The new normal may become increasingly unpleasant for us. We need to be ready to hunker down for quite some time. Beyond that, the government needs to handle this crisis far better in the future. The level of stupidity associated with the massive throngs of people trapped in major airports yesterday, for example, was almost unimaginable. Instead of facilitating the reduction of social contact and halting the further spread of the coronavirus, the management of the crowds at the airports produced a perfect breeding ground for the spread of the virus. My guess is that more draconian travel restrictions will be implemented soon, matching to some extent the measures taken across Europe. This will in turn have a further dampening effect on economic activity in the U.S., putting more and more pressure on the Fed and the government to artificially support a rapidly weakening economy. Where does this end up? It is too early to say, but a very safe bet is that we will have some months of sharply negative growth. Too many sectors of the economy are going to take a hit to expect anything else. The Fed has already driven interest rates to zero. Will that help? Unlikely. In fact, as I mentioned at the beginning of this update, the markets are voting with a resounding NO. The businesses that are most affected by the current economic situation will still suffer. Quantitative easing is hardly a cure-all. In fact, it has been one of the reasons that we have such a mess in our markets today. The markets have become addicted to the easy money, so more of the same will have little or no impact. We will need real economic demand, not an easier monetary policy. It won’t help support tourism, for example, or the other sectors getting smashed right now. The government will need to spend at least 5% of GDP, or roughly $1 trillion, to offset the weakness I see coming. Is it surprising that the Fed and the government take emergency steps to try to stabilize economic growth? Not at all. This is essentially what they have been doing for a long time, so it is completely consistent with their playbook. Next, I would anticipate the government implementing some massive public-works and infrastructure programs over the coming months. That would be very helpful, and almost certainly quite necessary. But there’s a problem with this kind of intervention from the government…
What Happens When You Eliminate the Business Cycle
The Fed’s foolish attempt to eliminate business cycles is a significant contributing factor to the volatility we are currently experiencing. Quantitative easing is nothing more than printing lots and lots of money to support a weak economy and give the appearance of growth and prosperity. In fact, it is a devaluation of the currency’s true buying power. That in turn artificially drives up the prices of other assets, such as stocks, real estate and gold – but it does not create true wealth. That only comes with non-inflationary growth of goods and services and associated increases in economic output. Inflation is the government’s way to keep people thinking they are doing better. To that point: We have seen some traditional safe-haven assets getting destroyed during this time of risk aversion. That has certainly compounded the problems of many investors. Gold is a great example. As the stock market got violently slammed, people were forced to come up with cash to support their losing positions. Gold became a short-term source of liquidity as people sold their gold holdings in somewhat dramatic fashion. It was one of the few holdings of many people that was not dramatically under water, so people sold it. The move may have seemed perverse, particularly to people who bought gold as a safe-haven asset, but in times of crisis, all assets tend to become highly correlated, at least short term. We saw a similar thing happen with long yen exposures and long Bitcoin exposures recently. The dollar had its strongest one-day rally against the yen since November 2016 as people were forced to sell huge amounts of yen to generate liquidity. Many speculators had made some nice profits recently as the dollar dropped sharply from 112 to 101.30, but they have been forced to book whatever profits they had in this position. Again, this was due to massive losses elsewhere in their portfolios. Is the yen’s sell-off complete? If it is not complete, it is probably at least close to an attractive level for Japanese investors to start buying yen against a basket of currencies. The major supplies of yen have largely been taken off the table for now. For example, the yen had been a popular funding currency for “carry” plays. People were selling yen and buying higher-yielding currencies to earn the interest rate difference between the liability currency (yen) and the funding currency (for example, the U.S. dollar). Carry plays are very unpopular in times of great uncertainty and volatility, however, so that supply of yen will be largely gone for quite some time. Plus, the yield advantage of currencies such as the U.S. dollar, Canadian dollar, and Australian dollar versus the yen is nearly gone. In addition, at the end of the Japanese fiscal year , there is usually heavy demand for yen as Japanese corporations need to bring home a portion of their overseas holdings for balance sheet window dressing. I don’t expect that pressure to be different this year. Just as the safe-haven assets of yen and gold got aggressively sold, Bitcoin also got hammered. It was driven by a similar theme – people had big losses and they needed to produce liquidity quickly. Selling Bitcoin became one of the sources of that liquidity.
Heavy Price Deflation Ahead
Overall, there is a chance that this scenario turns into something truly ugly, with sustained price deflation across many parts of the economy. We will certainly have price deflation in many sectors, at least on a temporary basis. Why does that matter over the long term? Price deflation is the most debilitating economic development in a society that is debt-laden – like the U.S. today. Prices of assets come down… and the debt becomes progressively bigger and bigger. The balance sheet of oil company Chesapeake Energy is a classic example. It’s carrying almost $10 billion worth of debt… versus a market cap of only about $600 million. Talk about leverage! When the company had a market cap of $10 billion, that debt level didn’t appear so terrifying. Although this is an extreme example for illustrative purposes, the massive debt loads of China would seem more and more frightening if we were to sink into flat or negative growth cycles for a while. The government’s resources are already being strained, and it can artificially support only so many failing companies. The U.S. has gigantic levels of debt as well, but it has the advantage of being the world’s true hegemon, and the U.S. dollar is the world’s reserve currency. This creates a tremendous amount of leverage and power in financing its debt. The U.S. has been able to impose its will on its trading partners to trade major commodities in dollars. This has created a constant demand for the dollar that offsets, to a large extent, the massive trade deficit that the U.S. runs. For example, if a German company wants to buy oil, then it needs to hold dollars. This creates a constant demand for dollar assets. In short, the dollar’s status as the true global reserve currency is far more important than most people realize. China does not hold this advantage.
What to Do Now
In terms of how to position ourselves going forward, I strongly recommend that people continue with a defensive attitude regarding stocks. There could be a lot more downside to come. Likewise, we could see some panic selling in other asset classes. The best thing right now is to be liquid and patient, ready to pounce on special opportunities when they present themselves. For sure, there will be some exceptional opportunities, but it is too early to commit ourselves to just one industry. These opportunities could come in diverse sectors such as commercial real estate, hospitality, travel and leisure, and others. As for the forex markets, the volatility in the currencies is extreme, so we are a bit cautious. I still like the yen as a safe-haven asset. I likewise still want to sell the Australian dollar, the New Zealand dollar, and the Canadian dollar as liability currencies. Why? The Bank of Canada, the Reserve Bank of Australia, and the Reserve Bank of New Zealand have all taken aggressive steps recently, slashing interest rates. These currencies are all weak, and they will get weaker. Finding an ideal entry for a trade, however, is tricky. Therefore, we are being extra careful with our trading. We always prioritize the preservation of capital over generating profits, and we will continue with this premise. At the same time, volatility in the markets is fantastic for traders. We expect many excellent opportunities to present themselves over the coming days and weeks as prices get driven to extreme levels and mispricings appear. So stay tuned.
﷽ The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people. The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets. Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.
Stock Market Crash
The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially. All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity. Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses. Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely. So, why inflate the economy so much? Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value. Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat. Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis. Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.
Economic Analysis of Bitcoin
The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero. Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology. Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value. Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block. Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer. Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed. Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin. Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public. A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved. Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely. Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.
Trading or Investing?
The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY). In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing. The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors. Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market. According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains. We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.
Technical Indicator Analysis of Bitcoin
Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.
Trend Definition Analysis of Bitcoin
Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail. Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form. A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.
Time Symmetry Analysis of Bitcoin
Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding. Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading. Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure. Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price. Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not. We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in. What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows. Therefore, we have two primary dates from our histogram. 1/1/21, 1/15/21, and 1/29/21 2:00am, 8:00am, 12:00pm, or 10:00pm In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations. The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year! Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market. Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020. The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX. Therefore, our timeline looks like:
2/14/20 – yearly high ($10372 USD)
3/12/20 – yearly low thus far ($3858 USD)
5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
Bitcoin Profit is an automatic trading software that claims to make people money by buying and selling cryptocurrency at the right time, offering a win-rate of supposedly up to 92%. Steps to trade Bitcoins seriously: Like regular stock trading, Bitcoin trading involved buying the Bitcoin when prices are low and selling Bitcoins when prices go up. But for you to start trading, it is necessary to create an account. This account must be created on a reputed cryptoexchange website and you can then deposit funds in this count. How I Trade Bitcoin for Serious Profit With The Technical Strategy. Lets’ start with the Bitcoin price on a longterm chart: From the chart above, you see how the 3 indicators were so perfect in predicting the bullish strength that drove bitcoin from less $1000 to $20,000 before the historic crash that started in February 2018. Ways to trade Bitcoin for making serious profits: To make good profits through Bitcoin trading it is imperative to learn the art of technical analysis. Since there is no centralized authority regulating the crypto coin, news of events are likely to have an impact on the prices. The price swings do not conform to traditional financial theories. If you end up making that type of trade, then consider that you can always trade again and make up for it if there’s a continual price difference. As you can see, it can get pretty complex, but with a little patience and practice, you’ll soon get the hang of how and when to exchange litecoin to bitcoin in order to see some serious profit.
How To Trade Bitcoin Cryptocurrency for Beginners - YouTube
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