Crypto Crypto News 2021

Just as I FOMO'd my first property a few weeks ago (and massively overpaid), I have FOMO'd a tiny bit into ethereum as well. Watching the prices swing 15-20% in just a couple of hours is absolutely exhilarating!

 

What date was that posted?
All the doggy coins had a big dump when it was announced that Vitalik was dumping them by donating them to charity (there was a bunch of coins assigned to him without his consent that were worth something like $10bn).

You're right that it is not a sustainable thing. It can be easy to amass huge paper gains on high risk pumps in a bull run, the hard part is taking profits out just before the rug is pulled. It happened to DOGE coin last cycle, and of course it was back to under 1c in the end. The people who buy on the way up will be the losers, when the insiders end up selling. These insiders eventually rotate those profits back to stacking sats (BTC) for long term. The news stories only report the winners but eventually enough people will get rugged and tell their friends not to invest and the game comes to a halt.

There's a lesson learnt for us old school investors too - ticktockers do not use market cap (or any fundamentals at all tbh) before jumping in... unit bias is king when the meme pump is on. Next cycle I'll try to remember to get my hands on a few coins that cost 0.00000001 of a cent early before the hype.

 

I just had my latest limit order execute on Cardano. It hit above its previous all time high overnight last night - I woke up to some extra money in the bank. Sold at $AU2.48; bought at between $1.05 to $1.10 about 3 months back. I've skimmed a bit of profits along the way each time it hit all time highs. Still continuing to skim - the next limit order is at $3.35, I anticipate it'll hit sometime in the next 6 months.

Still mining ETH with the graphics card I was lucky enough to purchase at the start of the new year (the price of GPUs have also doubled - at no stage in the history of my 30 years building computers have I ever witnessed a doubling of PC component prices ever - even with natural disasters wiping out warehouse stocks of optical storage drives, memory chip shortages leading to 60% increases in RAM prices etc.)

 

A 33-year-old Dogecoin millionaire says he has no plans to cash in his seven-figure stake - and expects the cryptocurrency to keep soaring

 

If you ever wanted to learn about Bitcoin- Read This

 

Biggest dip of the bull market today, hope you guys weren't on leverage.
Metrics still look a bit bearish in the short term, will range at best.

Going to buy some long term call options instead of futures so I can just sit them there without having to watch them. While everyone's piling into put options I reckon the calls are priced nicely, they're way cheaper than last few weeks anyway. Possible to expire worthless, but when bets on these win they're big payouts.

I had sold my previous ETH call options before the dump for 5x profit and was pretty happy getting close to the top, but stupidly rotated the profits to buy the traditionally "safe" Bitcoin lol. This time it's bitcoin being whipped the hardest.

 

Where do you buy crypto call options @DanW ?

 

Dip? It's a full blown crash... I'd be very surprised if it does not retrace all the way back to December prices.

And yes, there are a lot of muppets on leverage. Maybe not on here, but you hear so many stories out there. It's going to be bloody.

 

feels like late feb, definitely a big one! took my portfolio 7 weeks to recover from that one...

highly relevant right now:
HODL ON

 

Haha- I think that link with the rollercoaster is quite accurate! I can’t bring myself to look at my account at the moment...

 

I was watching it live as it happened 11pm-ish AEST last night. Apparently nearly all the major exchanges were frozen or people were locked out from trading. Which with my tinfoil hat on, makes me think there's some sort of conspiracy going on that the circumstances favour institutional investors buying up for the long term during this unprecedented price dip; while retailers don't have a choice but to HODL.

Anyway, I more than doubled my money on Cardano having sold last weekend at all time highs; I got back in during the dip. So I guess I'm seeing a long term future with ADA (in crypto terms - that means a few months). Price of Bitcoin came down to what I had purchased at, late Jan this year; and I have since purchased (and sold) at much higher price levels; so I bought the dip on that as well. But not as much or as low as I'd like. I'm a bit cashflow restricted so I'm really hoping it bounces and isn't the start of a longer term downtrend.

 

So are the believers piling in now?

 

When the market moves fast, all the plebs will be locked out.
Only the few will be able to liquidate their positions.
And if it moves big enough...bye bye exchange. And your "coins".

 

It depends who the believers listen to. Some segments analyse the price movement data and believe it fits a Wyckoff distribution, expecting a steep drop in coming days and the end of the bull market for Bitcoin and cryto. Others believe it will continue sideways for the next week or two, before going up again, as the market has just taken a breather and is still in a bull run phase.

Lowes in the US announced profits two times surpassing analyst expectations and yet the share price still dropped to the news. So the stockmarkets and crypto markets are still less about true economics and prices; and more influenced by people and sentimental emotions. So it's really hard to tell. But I'm putting my money where my mouth is - I've gone in on crypto, expecting an uptrend. I just bought a property lately too, settlement next week; no mortgage so no worries with banks coming after me. It's all play money so I can afford to be wrong. But everyone here is optimistic on property even in redneck parts of Queensland so from that POV can't be far off...

 

The big crypto's, mainly BTC, markets are not as liquid as they are made out to be.
Still many more billions looking for exits, as soon as they start selling it tanks the price.
There is now a lot or Wall St and corporate money in btc. And while they aid the upside with their spruiking they'll be the first to bail out of losses.

 

Deribit

I gotta start trying to use my discount links, 5 years in crypto and I still forget...
Deribit Options Exchange

Be aware collateral is in bitcoin or ethereum, so gains and losses also paid out in bitcoin or ethereum.

Read their knowledgebase (link on left of main screen).

Once I've done ID verification and added my withdraw addresses, I found deposits and withdraws very fast and reliable. I've been able to hedge when I needed to, but mostly I've been placing some cheeky bets with spare leftover btc or eth.

 

haha yes, it was a crash.. it was intense.
Have seen stories of some that lost everything (due to leverage and exchanges not filling stops). Most exchanges actually went down so people couldn't take advantage of the bottom, or get out if they needed to. Some got liquidated simply because they couldn't login to close the position.

I believe the people that got wiped out are those that had everything on the exchange, alot of exchanges can liquidate your other assets when a leveraged position goes. I don't think anyone should "trade" with more than 10% of their capital, its safer to make spot investments and store with your own keys.

FTX is the exchange that through all the recent crashes stayed running while every other major exchange is down, I was on the whole time yesterday/last night and never had any hiccups everything went as good as I could make it.
My referral link has 5% discount on fees FTX Exchange but fees are dirt cheap on there anyway compared to other exchanges, especially if you limit order.
Surprised so many people still using binance or bittrex etc when FTX is so good.

Here's the best breakdown of the cause of the crash: https://twitter.com/AlamedaTrabucco/status/1395211786006183938
Sam also has previous threads covering previous crashes.
Most leveraged trading is done via futures now, not much on spot anymore.
You can monitor futures volumes on the major exchanges here FTX
A good chart of the open interest is here Bitcoin (BTC) Open Interest Chart - BTCUSD Perpetual FTX (BTC-PERP)
Notice the bottoming out of open interest yesterday showing half of the futures contracts are just closed now, people ran out of money or got scared off. The market is much lower risk of another wick down, although it could still happen if people get overconfident and crank up the margin lever again!

ps just saw this data analysis by Willy Woo got posted too https://twitter.com/woonomic/status/1395350421187690500?s=20

 

That's beacuse they are not really exchanges. More like half exchange, half bucket shop (or CFD).
The "exchange" is on the other side of your transaction.
If you sell, they buy and supply. If price drops fast they loose.
When a whale decides to sell out or lighten his postion, the bucket shops get caught out cause they have to buy.
So they close the exchange and give excuses.

If you buy, they have to sell it too you. If it shoots up, they loose.

As for the open interest chart, if you look at the 1m chart you will see that it's a delayed reaction.
Open interest closed after the big dump started.