Grid+, a blockchain startup operated by ConsenSys, the largest blockchain software company in the world operated by Ethereum co-creator Joseph Lubin, has successfully started to supply electricity to its clients in Texas. Milestone Reached: Grid+
Last year, crypto exchanges recorded around $266 million in losses from security breaches and heists. The first half of 2018 recorded triple the amount stolen from crypto exchanges in 2017, triggering investors in the cryptocurrency space to develop concerns regarding the standard of security measures implemented by crypto trading platforms.
Two of the biggest crypto exchange hacks in 2018 were the $500 million Coincheck hack in Japan and the $40 million Coinrail hack in South Korea. Both exchanges stored an unusually large amount of crypto assets in their hot wallets, or wallets connected to the internet, instead of cold wallets stored offline.
As such, as soon as hackers gained access to the system of Coincheck and Coinrail, they were immediately able to steal hundreds of millions of dollars in cryptocurrencies without any hurdle.
Subsequent to its hack, Coincheck admitted that its $500 million security breach was a result of the lack of talented and experienced developers working on the platform’s security systems.
Coincheck CEO Koichiro Wada said in an interview with Bloomberg:
“We were aware we didn’t have enough people working on internal checks, management and system risk. We strived to expand using headhunters and agencies, but ended up in this situation.”
However, the statement was released after a controversial press conference regarding the hacking attack that prompted investors to outrage over the company’s attitude about its infrastructure.
Merely days after the breach, Coincheck held a press conference to outline the company’s future and the method that will be used to deal with the breach.
As CCJ previously reported, Yuji Nakamura, a technology reporter based in Japan, said that Coincheck claimed:
Essentially, investors were outraged by the fact that the exchange did not know how the hacking attack occurred, its failure to utilize multi-signature technology to secure user funds, and its reluctance to admit that its security was weak.
Coinrail, formerly the fifth-largest digital asset exchange in the South Korean market, also admitted after its breach that it did not have enough resources and developers to fix and improve its security system.
Japan and South Korea, two countries that experienced the largest security breaches in 2018, have already started to implement strict regulatory policies to establish industry standards regarding cryptocurrency exchange security.
The government of South Korea has chosen to regulate cryptocurrency exchange as banks, providing local financial agencies the authority to monitor and oversee crypto exchanges.
With stricter regulations and consistent monitoring of the security systems implemented by exchanges, authorities of Japan and South Korea expect the magnitude of security breaches in the cryptocurrency sector to decline over time.
Cinnober has a history for bullishness towards digital assets and making it easier for institutions to invest in them. One of those efforts is the partnership with BitGo, a behemoth for institutional-grade cryptocurrency custody security. BitGo itself has built partnerships and acquisitions over its history, which have helped it firm up its mission, including the acquisition of Kingdom Trust and a partnership with the South Korea exchange Korbit.
Nasdaq’s latest acquisition highlights, though indirectly in this case, its taste for cryptocurrency trading. As CCJ reported, on the heels of the SEC’s second rejection for the Winklevoss twins’ ETF, the Nasdaq held a closed-door meeting with cryptocurrency industry experts. In the meeting, participants discussed ways to legitimize cryptocurrencies as a traditional securities product, especially in ways to appease the fickle SEC.
Cinnober’s BitGo platform is well-suited for large institutional investors in Nasdaq. The multi-signature security and custody solution with BitGo has made it one of the most popular in the space. Nasdaq’s release points to their interest in Cinnober’s success in offering newer asset types. Adena Friedman, President and CEO, Nasdaq, said:
“The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq. Not only have the global capital markets continued to evolve rapidly, new marketplaces in various industries are demanding market technology infrastructure that enables rapid growth and scale as well as access to tools to promote market integrity. This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
Cinnober has developed in-house solutions and technology acquisitions that make it a prime candidate for the tech-heavy Nasdaq Corporation. Cinnober’s cryptocurrency custodian service, in specific, could be one of the most coveted arms of the acquisition, as questions over custodianship have made many institutional investors leery.
Household names in finance are racing to developer regulated and clearly audited custodian solutions, including Citigroup and Bank of America.
Large institutions’ concerns over custody are understandable, given the number of exchanges hacked in Bitcoin’s history. The Bancor exchange hack is the most recent large example. Many cryptocurrency experts believe that the custodian problem has been solved, especially with multi-signature technology and cold storage.
While the technology is there, legitimacy can only be improved when large names like Nasdaq can provide tangible audits that traditional securities managers are accustomed to. Nasdaq acquisition of Cinnober is another box to check off in the race to provide the first (and best) publicly trading cryptocurrency vehicle (and thus the servicing fees that translate to more profits.)
On Aug. 15, American investor Michael Terpin filed a $224 million lawsuit against AT&T. He believes that the telecoms giant had provided hackers with access to his phone number, which led to a major crypto heist.
Michael Terpin is a Puerto Rico-based entrepreneur and CEO of TransformGroup. He is also a co-founder of an angel group for Bitcoin (BTC) investors named BitAngels and of a digital currency fund, the BitAngels DApps Fund.
Terpin claims that he lost $24 million worth of cryptocurrencies as a result of two hacks that occured over the course of seven months: The 69-page complaint he filed with California law firm Greenberg Glusker mentions two seperate episodes, dated June 11, 2017 and Jan. 7, 2018. In both cases, as per the document, AT&T, of which Terpin was a longtime subscriber since the 1990s, failed to protect his digital identity.
Now, Terpin is seeking $200 million in punitive damages and $24 million in compensation from the telecommunications corporation.
“What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner,” the complaint states, arguing that Terpin fell victim to a SIM swap fraud, also known as SIM hijacking or a “port out scam.”
SIM swapping is a process of leading a telecoms provider like, say, T-Mobile transferring the target’s phone number to a SIM card held by the attacker. Once they receive the phone number, hackers can use it to reset the victims’ passwords and break into their accounts, including accounts on cryptocurrency exchanges.
Occasionally, that allows thieves to bypass even two-factor authentication, as Motherboard writes. According to their investigation, SIM swapping “is relatively easy to pull off and has become widespread,” adding that “cryptocurrency accounts are common targets.”
The tactics employed by criminals to perform such hacks may vary. Sometimes, they trick customer representatives into believing they are the targets and make them hand over their data. However, as per Motherboard, fraudsters often use the so-called “plugs”: telecom company insiders who get paid to do illegal swaps. An anonymous SIM hijacker told the publication:
“Everyone uses them[…] When you tell someone [who works at a telecoms company] they can make money, they do it.”
An anonymous source at Verizon told Motherboard that he had been approached via Reddit, where he was offered bribes in exchange for SIM swaps. Another Verizon employee claimed that the hacker promised that they would make “$100,000 in a few months” if he would cooperate — all he had to do is “either activate the SIM cards for [the hacker] when [he was] at work or give [the attacker his] Employee ID and PIN.”
More related to the Terpin case, Motherboard’s dialogue with an AT&T employee suggested that their system’s design reportedly allows some employees to supersede security features, such as the phone passcode that AT&T requires when porting numbers:
“From there, the passcode can be changed[…] With a fresh passcode, the number can be ported out with no hang ups.”
As mentioned above, Terpin was hacked twice: in June 2017 and in January 2018.
First, in the summer of 2017, he found out that his AT&T number had been hacked when his phone suddenly went dead, according to the complaint. He then learned from AT&T that his password had been changed remotely “after 11 attempts in AT&T stores had failed.”
After gaining access to Terpin’s phone, the attackers used his personal information, including calls and text messages, to break into his accounts that use telephone numbers as a means of verification, including his “cryptocurrency accounts” — although it doesn’t specify the type of those accounts. The hackers also reportedly hijacked Terpin’s Skype account to impersonate him and convince one of his clients to send them cryptocurrency.
AT&T reportedly cut off access to the hackers only after they managed to steal “substantial funds” from Terpin. The document also states that after the incident, on June 13, 2017, Terpin met with AT&T representatives to discuss the attack and was promised by AT&T that his account would be moved to a “higher security level” with “special protection,” akin to the ones used by celebrities:
“AT&T further told Mr. Terpin that the implementation of the increased security measures would prevent Mr. Terpin’s number from being moved to another phone without Mr. Terpin’s explicit permission, because no one other than Mr. Terpin and his wife would know the secret code.”
Nevertheless, half a year later, on Saturday, Jan. 7, 2018, Terpin’s phone reportedly turned off again — he got attacked yet another time. The complaint claims that “an employee in an AT&T store cooperated with an imposter committing SIM swap fraud,” despite extra security measures being taken back in June 2017:
“As AT&T later admitted, an employee in an AT&T store in Norwich, Connecticut ported over Mr. Terpin’s wireless number to an imposter in violation of AT&T’s commitments and promises, including the higher security that it had supposedly placed on Mr. Terpin’s account after the June 11, 2017 hack that had supposedly been implemented to prevent precisely such fraud.”
This time the thieves allegedly stole about $24 million worth of cryptocurrency, even though he tried to contact AT&T “instantly” after his phone stopped working. AT&T allegedly “ignored” his request, leaving the hackers enough time to get enough information about Terpin’s crypto accounts to move his funds to their own accounts. The plaintiff complaint argues that Terpin’s wife also tried calling AT&T at the time, but was put on “endless hold” when she asked to be connected to AT&T’s fraud department.
As the complaint sums up, emphasising the potential scale of port out scams:
“AT&T is doing nothing to protect its almost 140 million customers from SIM card fraud. AT&T is therefore directly culpable for these attacks because it is well aware that its customers are subject to SIM swap fraud and that its security measures are ineffective. AT&T does virtually nothing to protect its customers from such fraud because it has become too big to care.”
When Gizmodo contacted AT&T for a comment on the story, the company reportedly denied the accusation, stating that they are ready to stand their ground:
“We dispute these allegations and look forward to presenting our case in court.”
Terpin told Gizmodo that such crypto heists are commonly performed by “college kids who go online in these Discord groups.” He also insisted that in his case, the thieves used an AT&T employee:
“The one thing that’s been a link between [the crypto hacks] is that in every case they’ve had an insider[…] [Trading cryptocurrencies] is safe as long as nobody gives out your digital identity.”
He added that he contacted the FBI, Homeland Security and the U.S. Secret Service, and they’ve identified the AT&T employee who allegedly participated in the attack.
Terpin also claimed that he doesn’t give out his phone number anymore, relying on Google Voice instead.
Let me ask you one question…
What kind of trader are you?
Are you the type of person to look for steady, more conservative profits, protecting yourself from big risks over time? Or are you the type who enjoys the high risk to high reward game?
You know…the type of person that’s ready to knock it out the park, retire early, and travel the world eating bizarre food while hiking in the rain forest.
There’s no shame in taking the easier more conservative route. Buy a few coins, hold, and collect your earnings several years on down the line. If that’s more your speed, this guide isn’t for you.
Check out my guide: Ultimate 2018 Cryptocurrency Beginners Trading Guide for Bitcoin & Altcoin Investing for all the insight you need to get your feet wet with basic “crypto investing strategies”.
For the rest of you adventure seekers…..keep reading.
If you’d like to jump into any part of this guide later, use the….
Table of Contents
The Finer Details of Crypto Swing Trading
There’s one strategy that holds the potential to deliver the type of massive returns that most people only dream about…
Sure, swing trading can be great when everything goes your way. However it takes real grit and discipline to keep those profits and not go “all in” with one or two bad trades.
It takes A LOT of “discipline” to continue down this rocky path, when you’ve lost 3 straight trades in a row and are starting to question your new career path (or lack thereof).
I’m not saying this to scare you, I’m just letting you know the truth. You’re about to embark on a journey that will take you on an emotional rollercoaster.
Although swing trading can be a long and treacherous road, paved with a lot of “emotional discomfort”, with the right trading system, discipline, and emotional grit, the riches found on the other side of that wall are lined with streets of gold.
I’m going to be going over A LOT of material within this guide. I highly recommend you take copious notes (or bookmark this page) as a lot of this stuff is going to make more sense as you start getting your feet wet in the field.
I’m going to be giving you everything that I learned on my own swing trading journey, so you don’t make the same mistakes I did.
Many of these lessons I’ve learned the hard way. Many of them, you’ll learn the same way too, regardless of how much I emphasize them here.
Like most of us, we never truly learn our lesson until mistakes are made. So get ready and welcome “your mistakes”. You’ll soon become best friends with them.
So let’s get right to it, shall we?
Take siege over the crypto market and storm those golden palace walls in order to claim the riches that are rightfully yours!
Buy low, sell high. Easy enough right?
I thought so too when I first started swing trading, but it’s everything in between that really matters.
There are typically two types of trading , which can normally be split into day or swing trading. Day trading typically describes someone who sits in front of the computer all day and makes several trades during this timeframe. Typically this type of trader accumulates small percentage gains (1-3%) which end up compounding towards the end of the day.
I don’t know about you, but I don’t have time for all that.
It’s great on some days where it’s rainy outside and you have nothing else better to do, however doing it for a living is a whole nother reality that I don’t intend to live in.
Considering the volatility of crypto trading, I’ve personally found much more success swing trading, than day. Swing trading also allows you to live a life that’s not always behind the computer.
Typically, swing traders will make one trade every 1-3 days, but can sometimes last up to a week or more.
The beauty behind swing trading is that you can accumulate much larger profit (20%-50%) within a relatively short amount of time, without sitting and staring at charts all day. It’s also a lot less stressful and time consuming.
There 2 types of methods that traders formulate their strategies around… news events and chart analysis.
News events are when a trader believes that a price will go up or down according to government regulations, cryptocurrency bans, exchange hacks, etc. This also includes more inclusive news like cryptocurrency airdrops, contests, new exchange listings, technology upgrades, and more. These events can trigger a bullish or bearish move in price, however it’s not always the case.
On the other hand, technical analysis is the most commonly used tool for trading. It’s a swing trader’s best friend, and can be used at any time, regardless of news or events.
A typical trader will study the price movement of a currency and formulate a strategy based on chart patterns, indicators, as well as the current momentum. Once these indicators and patterns line up (known as convergence), a predictable price movement of over 75% can occur in some cases (like a head and shoulders pattern).
The probability of a trade going your way will exponentially increase when certain news events meet technical analysis. The BEST TRADES are made when these two methods converge.
Predictable chart patterns are found within all markets (stocks, forex, options, etc), but are extremely prevalent within the cryptocurrency trading market. Some may say it’s even more prevalent due to the fact that there are so many novice traders out there.
Now, most “non-traders” will simply call this luck or gambling, until their blue in the face. However, gambling primarily relies on chance. Seasoned traders primarily rely on decade’s worth of market evidence on group psychology.
Let me explain…
Technical analysis is nothing more than a visual representation of trader psychology on a massive scale.
I wish there was something magical about it, however it’s about as plain and straightforward as math. It’s essentially what happens when you mate human psychology with math over an extended time.
Sorry if I might have taken away some of the mysticism behind it for you, but its predictive nature has worked for decades and will continue to work for decades to come.
It all comes down to herd mentality…
Regardless of how much you want to believe that you’re an individual…. you’re not!
Individuals can make unexpected decisions once isolated, however when placed in a group setting, predictability becomes imminent. A group of individuals will inherently make predictable decisions (and even act the same way others do) within a “community”.
This is the nature of being human.
We are designed to be predictable creatures when placed within these group settings. There’s nothing wrong with that. It’s what has allowed us to survive for so long.
Just realize, that this predictability allows “smart traders” to capitalize on the primal nature of communities.
Now the only question I have for you is…will you be the predator or the prey?
Enough about that, let’s move forward with what you came here to learn, starting with the fundamentals.
Now that you have a good idea of why technical analysis works, let’s start to go over the how.
Within this section I’ll be going over the fundamental pillars of swing trading. This will be the foundation that you build your crypto trading career on. Make sure you don’t just gloss over this section as its one of the most important.
1. Only invest in what you can afford to lose. This is the GOLDEN RULE to trading. I realize you probably heard this 100X by now, but the only reason why you’ve heard it so much is because it’s remarkably true. Not only for the fact it can leave you broke and depressed (that’s a good enough reason than any), but for the simple fact that it will make you emotionally unstable for trading.
Trading with fear is one of the worst emotions you can carry with you. This will cause you to make careless mistakes. Fear will cause you to lose your patience. Fear will inevitably ruin your trades… so don’t do it!
If you’re just starting out, trade with only a fraction of what you make per month. That way, if you lose it all, it’s no big deal. If you end up making all the right moves and come out ahead, carry that mindset over to accumulate more crypto with your winnings.
Remember, if you’re investing money that you can’t afford to lose, then you’re simply trading out of desperation. Just assume that what you invest in trading cryptocurrency is lost forever. Only with this mindset will you trade with a clear head.
PSA: never use money from your home equity, credit cards, or from some bookie you just met at your local bar.
2. Don’t get greedy. This is probably one of the toughest pillars to master. Once you stop trying to hit home runs all the time, and settle for a first or second base score, you’ll find yourself winning most of your trades.
Greed was the primary issue I had when I first started trading and will most likely be a difficult one for you to overcome too. Once I stopped swinging for the fences and focused on taking profit while it was on the table, is when my trading success started to take flight.
There is one strategy that I typically use on all my trades, which really helped me out with this greedy mentality called “scaling”. Basically it’s where you take partial profits from your trade till you reach your target goal. I’ll cover more on the scaling strategy under the technical analysis portion of this guide below.
Just remember, no one ever lost money taking profit.
3. Don’t FOMO. This is another principle that has frequently lost many novice and intermediate traders a lot of money. Trading into FOMO is a combination of being too greedy and investing blindly.
The reality of the situation is, if a coin pumps quickly, it will more often times than not, dump just as quick. It’s only a matter of time before a pump and dump claims you as its next victim. Don’t be that guy.
Like jumping onto a train going full speed ahead doesn’t sound like something that most people would be eager to try, treat FOMO in the same manner. I’m sure most of us can agree that we can wait for the next stop.
4. Learn from your mistakes. This may seem like common sense however you’ll inevitably make the same trading mistakes multiple times, before you learn from them.
Don’t beat yourself up too much when this happens. It will happen a lot when you first start swing trading. Just learn from them and do your best to ensure that they never happen again.
Writing down your mistakes on a notepad and posting them somewhere close to you will definitely help you not make them again.
At the same time, remember not to let the losses discourage you. The reality is, they’re making you a much better trader…that is if you choose to learn from them.
5. Accept your losses and move on. Similar to the pillar above, however it deserves its own topic. Crypto swing trading will not always go according to “your” plan. It’s how you deal with those losses that matters. Try to realize early in your trading career that an integral part of swing trading is taking your licks and moving forward.
You have to be willing to accept your losses when they happen. Accepting your losses is as much a part of trading as winning is. Even the most elite traders in the world deal with losses. It’s impossible to make accurate predictions 100% of the time.
Never chase your losses either. Chasing losses is where a trader experiences more loss by trying to make it up and taking on high risk trades. This is another reason why the majority of traders fail.
Accept your losses, take it as a learning experience, reflect on your mistakes, and start a new trade (preferably the next day or after a break) with a fresh pair of eyes.
6. Volatility is your friend. It doesn’t matter if the price of an asset moves up or down. What really matters is that it’s moving. In order to capitalize on those 30-60% swings, you need to pick coins that showcase a lot of volatility.
The beautiful thing about crypto trading is its inherent volatility. What some may deem a negative trait of cryptocurrency should be more so considered a strength. Massive swings are a great benefit to swing traders who know what they’re doing.
One of the initial steps to swing trading is to look for coins with high volatility for the day and analyze the charts for promising entry and exit positions.
Here are two amazing resources I use to view what crypto coins have the most volatility on any given day.
7. Always pay attention to Bitcoin. Almost all altcoins are paired closely to Bitcoin. If the price of Bitcoin pumps drastically, altcoins price will almost always drop.
This is the results of people trying to exit altcoins in order to ride the Bitcoin profits. On the other hand, if Bitcoin prices dump, altcoin prices will also follow suit and dump.
The sweet spot for trading altcoins is during the consolidation phases of Bitcoin or when it steadily increases in price over time. As long as Bitcoin is still “the king of crypto”, drastic movements will always equal drastic altcoin results.
8. Keep a trading journal. This provides any serious trader a way to help them evaluate themselves objectively. The primary objective to a journal is to monitor both the performance of your trading system as well as the ability to execute it on a consistent basis.
More often times than not, traders who consistently lose trades are typically not based on their poor trading systems but the inability for the trader to follow the rules properly.
Trading journals are only as good as what’s written in them. If you fail to accurately track your trades, it becomes very hard to judge your trading performance over time.
Be thorough and honest. Don’t shortchange yourself and fail to list entries because it’ll make you feel better. Reflect on your entries every month and I guarantee you’ll learn a lot about yourself and your trading psychology.
9. Practice makes perfect. Before depositing funds into your trading account, practice on a chart or a demo account first. TradingView offers paper trading where you can trade with fake money in order to harness your technical analysis skills.
Once you’ve got a good grasp on how the markets works and a fundamental understanding of technical analysis, indicators, and chart patterns, you’re ready to take the next step with real money.
Start off with low trading amounts in order to get used to the psychological factors that come with trading with money. Take your accumulated profit and keep reinvesting into your trading capital.
If you end up losing all your money, chock that up as a paid education. At this stage, it’s all about improving your skills and knowledge before investing large amounts of capital.
These are my trusted 9 fundamental pillars of swing trading. I highly recommend you do your best at following these tactics to the very best of your ability. If you need to, print them out and keep them close by.
Next, we’ll move onto the finer technical details of swing trading like layering, stop losses, take profits, and everything else in between.
Crypto traders have many tools and strategies at their disposal. Within this section I’ll be going over the most noteworthy. Utilizing these tools, will teach you things like….
I will not be covering…
Technical analysis, charting patterns, candlestick formations, or indicators within this section. I’ve constructed thorough guides for each of these aspects of trading on our trading page located here.
Here is a quick reference to some of the guides located on CryptoCoinJunky. I highly recommend you read up on all the aspects of trading you’re not familiar with before going at it with your own money.
and many more located here
There’s nothing more gratifying than the feeling you get buying at the very rock bottom of a dip as the price rallies upward, later cashing out at the very top of a peak.
Sure you may get lucky on a trade or two, but this is more of an anomaly than the norm. That’s not to say however, that you can’t get close.
There’s only one method I’ve found where you can come close an overwhelming majority of the time. The strategy is called “scaling”.
Scaling is the process where you divide the capital you intend to trade with into segments. Each segment is divided into 2-4 price levels.
Let’s say you’re trading with a total of $400 on Bitcoin. Instead of placing a lump sum of $400 all at one time, you’re going to divide it up into sections in order to obtain the best possible buy-in price.
Example: Bitcoin is dipping and close to a bottom of a major support along with it showing oversold on the RSI and Stochastic indicators. You place a buy order like so…
– $100 at price level $8,110
– $100 at price level $7972
– $100 at price level $7875
– $100 at price level $7819
This scaling strategy would average you out out to around $7944 after spending your full $400 buy order. As you can see, this is much more efficient at getting you a better price than placing it all on one bid at $8,110 as Bitcoin continues to decrease.
Now it’s entirely up to you on how far you want to spread these scaling intervals out. You can choose to spread them out at every 0.50%, 1%, or even 2%, etc. This is simply a matter of personal preference and also depends heavily on the type of coin you’re trading. Low market cap coins increase/decrease percentages in price more easily over the higher market cap coins.
Now were not out in the clear just yet…
Your next step would be to set a stop loss to avoid having a large majority of your trading capital wiped out. This will also avoid you scaling into a losing trade.
It’s up to you to determine where to place your stop loss, however I’ll cover stop loss placement strategies below.
Another alternative to the scaling strategy would be…
– $100 at price level $8094.50
– $125 at price level $7972.43
– $175 at price level $7875.04
As you can see from this example, we’re increasing the buy order amount the lower price action goes. This allows you to accumulate more on each level of the dip so that you take away more profit when bulls are back in favor. Make sure you set a stop loss after your last buy order, under a major support and/or a previously large candle wick dip.
A stop loss is basically a price level you automatically exit your trade at. It’s really not that difficult to understand, however there are many strategies revolved around the placement of your stop loss.
For a more detailed analysis of hard and mental stop losses check out our guide: Cryptocurrency Trading: Stop Losses VS Mental Stop Losses
Now there are two types of strategies behind stop loss placement. There really is no right or wrong regarding these placements. It all depends on how conservative or risky of a trader you are.
Let’s first take a look at the conservative approach.
Stop loss placement with this strategy consists of a tight stop loss, generally around 1-5% below your buy order. It’s also important to place these at an adequate distance below a major support.
Let’s examine both the pros and cons of this placement strategy.
Pros – Keeps your losses to a minimum ensuring you don’t lose much on any particular trade.
Cons – You can be “stopped out” by whales (large scale investors) before a major rally. This is why it’s very important to place your stop loss at a good distance below a major support.
It’s also a best practice to place them below a previously long candle wick that has already broke through the support.
The second stop loss placement strategy is for more risky traders. These placements are typically 10%+ below your buy order. Much like the strategy mentioned above, it also comes with its own pro and con.
Pro – keeps you from being “stopped out” by whales before a major rally. This gives you a lot of wiggle room in order to avoid those evil “quick wicks”.
Con – if a dip turns out to be more than just a quick dip, then you’ll end up taking on a major loss, which can sometimes be mentally hard to come back from.
As you can see, there is no right or wrong stop loss placement strategy. The smarter strategy is to choose a stop loss according to the history of the coin you’re currently trading. Some coins are a lot more volatile than others.
Some coins have a long history of dumping before they pump. Some coins are fairly stagnant before a rally. Take note of these types of patterns and realize that there is no “one size fits all” stop loss strategy.
I do not recommend placing a trade without a stop loss, unless you’re willing to wait a few days, weeks or even months in order to break even on the trade.
I’ve tried this strategy on more occasions then I’m willing to admit and have got stuck holding bags for a very long time (some of which have never recovered). So please take that into consideration.
Next, let’s cover a the most important part of your trade, take profit targets…
Many novice traders place too much emphasis on their entry points and not enough on their exits. It’s not your entries that’ll make you profit, but your exits that determine your success.
Setting a proper “take profit target” is one of the most important aspects of trading, so don’t take this section lightly.
As you might’ve guessed by now, take profit targets are where you claim your riches. There are many ways to determine where to set your profit targets according to technical indicators, chart patterns, or candlestick formations.
I’m going to show you the two easiest ways to set your profit targets for maximum profit potential.
#1 Using Resistance
Setting a take profit target under a prior resistance is a great strategy for beginners. Make sure to not get too greedy and place your target 1-2% below a major resistance.
To ensure your target is reached, make sure that the price is at an odd number and not exactly at a major price level as well as even number.
Example: set it to $8,191 and not at $8,200
#2 Scaling Out of Your Trade
Much like the scaling strategy I mentioned above, it’s also good to take some profit all the way to up to your final take profit target.
This will ensure that you always walk away from a winning trade with some form of profit. Your final take profit target may not always be reached, so it’s good to take a little profit while the bulls are in session.
Here’s a good example:
Your buy order for BTC is at $7318 and your take profit target is set at $7,464., just under a major resistance. Alternatively, you could set your targets to take 50% at $7464 and 50% at $7542 where a few previous wicks have touched. This would give you a chance to take profit while holding out for previously recorded peaks.
This is another way to relieve some of the stress that comes with trading. The feeling you get with taking profits along the way will ensure a better mindset for future trades.
#3 No Stop Loss Strategy
Warning: Not to be used by novice traders.
I couldn’t end this stop loss section without at least mentioning the “no stop loss strategy”. Take note that I DO NOT recommend this strategy for beginners, however there are times where having no stop loss can benefit you in a trade.
If you end up trading on an extremely volatile and erratic chart, utilizing no stop loss can end up benefiting you in the long run as you can more easily recover losses on an upswing. Again, this should only be considered during a steady bull market. This will make it much easier to recover from losses if the coin temporarily dips on you.
Also worth noting…
Never trade without a stop loss during a major uptrend or near an all-time high for any particular coin.
Pro – you’ll never get stopped out by a whale right before a rally and can end up taking advantage of those massive rallies after a quick, but major dip. Nothing is more irritating than taking a loss due to a triggered stop loss as you watch a massive rally leave without you.
Con – a sudden dip can leave you with a huge loss if the coin never recovers. Either that or you end up waiting it out for several weeks or months until it reaches your buy order price, which eats up a lot of time.
Tip: If things go south quickly and a dramatic dip has occurred near a strong support, always exit out of the trade during the next upswing, close to your initial buy order. This is not the time to be greedy. Take what you can get on the following rally. Recovering your loss is your upmost priority at this point.
You’ll typically have only one (two at the most) chances to recover from a dramatic dip past your initial buy order. Take the first rebound you get off the dip in order to recover your loss.
This could mean the difference between taking on a 30% loss or 5. Remember it’s always better to be safe than sorry.
Divergence is one of the most powerful signals you can use in order to spot the reversal of a trend. This is something that you’ll want to look for early in on your crypto trading journey.
Although the name may sound a bit intimidating, the signal is far from it. Divergence is merely the comparison of the trending price action to the trend found within the RSI indicator. When you see price action moving up and the RSI indicator is trending down, chances are high you have an impending trend reversal.
The more time frames you can locate divergence, the stronger the signal. For example, if you find divergence on the 30, 60, and 240 minute time frames, you know that a reversal is on its way.
Confluence is another very powerful signal you want to look out for. It’s the exact opposite of divergence. This signal occurs when there are several technical indicators that line up and give you the same trading signals towards one direction of a trend. The more confluence you have, the greater probability that this trend will prevail.
Confluence can include a combination of indicators and chart patterns.
For example, if price levels reach the very top of the bollinger bands, while forming a double top charting pattern, while also being overbought within multiple time frames on the RSI and Stochastic indicators. This would be a sign of confluence in which price will most likely drop. The confluence would signal a good time for a trader to either exit their long position or enter with a short position (making profit on the way down).
Great job on making it through to this long and intensive guide!
The rules and strategies I covered above are by no means the end-all be-all lessons you’ll learn for swing trading crypto, however they are a great starting point. When it comes to trading, things are easier said than done. Do yourself a favor and follow this guide to the best of your ability. Just remember that nothing will ever truly replace personal experience.
You might be feeling a bit overwhelmed by now. That’s completely normal as I’ve threw a lot at you. Let me give you a good starting point from here.
Practice, practice, practice. Learn from your mistakes. Move forward and don’t ever give up.
If you’re truly passionate about living an independent lifestyle, free of the 9-5 hustle, then don’t stop till you get there!
“The best preparation for tomorrow is doing your best today”
Good luck my friend and enjoy the journey!
Leave a comment below if you have any questions and I’ll be sure to get back at you shortly!
Blockchain and investment company Decentralised Capital has announced the launch of Australia’s first ever cold storage vault for digital assets. The vault was created in partnership with Custodian Vaults, a subsidiary of precious metals firm Pallion Group.
According to Stephen Moss, founder and director of Decentralised Capital, the new crypto vault is expected to take advantage of Australia‘s growing market for digital currency storage solutions, and it is a sign that bitcoin is a bona fide long term asset.
Following a spate of high profile hacks at major exchanges, resulting in losses worth hundreds of millions of dollars, industry players have developed a heightened interest in cold storage, which ensures that private keys are stored offline and away from internet thieves. The new crypto vault by Decentralised aims to take advantage of this interest, marketing itself as Australasia’s first insured cryptocurrency vault.
Speaking in a recent interview with the Australian Financial Review, Moss alluded to the industry’s need for secure and reliable crypto custody services. Giving his thoughts on the crypto industry and explaining the problem his firm is solving, he said:
“This is a solution for the next phase of the industry and it gives real security…You can’t hack your way into the safe…In my opinion bitcoin will not be remembered as the bubble, but the pin. While the short-term future of bitcoin may be debatable, the blockchain and its benefits are not.”
Cold storage is not a new concept, as it is employed by a large number of crypto holders using computer peripheral storage devices such as USB drives to store crypto wallets. Such devices, however, may remain susceptible to hackers once they are connected to the internet, and even when offline, there is a physical theft risk.
According to Moss, the new Decentralised custody service gives its users direct access to their crypto funds using a combination of security measures including CCTV monitoring, physical surveillance, biometric identification, PIN codes, alarm systems and fire control systems.
The service targets high net worth individuals, institutional investors, crypto exchanges, and ICO issuers, offering them all the advantages of cutting edge cold storage along with an in-house private WiFi room to permit safe inward and outward cryptocurrency transfers. In the event of a catastrophic failure of all defenses, all digital asset holdings are also insured.
Bitcoin company Xapo uses a range of formidable cold storage security solutions including satellites, “deep” cold storage, and military grade bunkers spread out across five continents.
Having seen the growth statistics, Custodian’s parent company, Pallion, is now seeking to get in on the growing crypto custody market.
“While traditionally we have offered secure vault services for clients storing precious metals and other assets, we are increasingly receiving interest from clients searching for solutions to store cryptocurrency,” said Director Janie Simpson said.
The Korea Times reported today that South Korean regulators are finalizing drafts of bills intended to develop a set of rules on cryptocurrencies, blockchain technology, and initial coin offerings (ICO’s).
South Korea lawmakers will introduce the draft as an extraordinary session of national assembly which is going to Take Pl., July 13th through 26. According to Korea times, representative Song Hee-Kyung, of the Liberty Party Korea is calling for regulations on crypto trading platforms in order to prevent money laundering, personal data leaks, and cyber crimes.
South Korean officials are reportedly planning to present new regulatory bills on the legal status of digital currencies and the legal requirements for cryptocurrency exchanges. Many officials are calling for more security measures for cryptocurrency exchanges with regard to the recent string of crypto hacks.
As of recent, South Korean regulators have been gradually changing their stance towards cryptocurrency. Last month, the government announced that they plan to reverse the ICO ban which they initially enacted back in September of 2017.
The South Korean Ministry of Science And Technology also strengthened their cooperation with the US in order to advance the “Fourth Industrial Revolution” powered by blockchain technology.
Hackers have stolen cryptocurrencies worth $30 million from South Korea’s leading virtual currency exchange Bithumb, reported June 19. As a result all deposits and payments have been temporarily suspended.
Bitthumb announced that it will compensate all users who were affected by the hack. All assets will now be moved to a cold wallet in order to prevent further hacks.
The exchange has moved a large amount of Ethereum to its cold wallet once they noticed an abnormal amount of access to their exchange.
According to resident officials from the Sentinel Protocol, a project which specializes in hacking, scams, and fraud detections, was the first to report that the company’s wallet was hacked on June 19. Some of the coins stolen included Ripple.
Earlier in the month, hackers had stolen $37 million worth of cryptocurrency from another South Korean cryptocurrency exchange, Coinrail. While Coinrail is only ranked 99th of the largest cryptocurrency exchanges in the world in terms of trade volume, the media claimed that the hack was partially responsible for the cryptocurrency market crash as of late.
Joseph Young, a cryptocurrency industry journalist, stated..
|The WSJ (Wall Street Journal) believes that Bitcoin price fell 11% because they rather small cryptocurrency exchange in South Korea was hacked. Bitcoin fell because people sold and not enough other traders were willing to buy. This was not due to a small hack.|
With recent changes in regulation as well as customer sentiment rapidly shifting, it’s no surprise that cryptocurrency exchanges are embracing changes within this constantly fluctuating industry.
It’s important to note that there are only a few key players that handle the overwhelming bulk of crypto trading volume.
There are 3 types of cryptocurrency exchange groups. Custodial, noncustodial, and decentralized exchanges (also known as DEXs).
Custodial exchanges are those that act as a crypto wallet managers. They maintain user assets through an internal ledger. Customers therefore don’t have direct access to their wallets that the exchange holds for them. Only when the user decides to transfer his currency does he have a resemblance of control.
An example of these exchanges would be Coinbase, Bitfinex, Gemini, Bittrex, Bitfinex, etc. These are, by nature, centralized exchanges. An overwhelming number of trading volume (73%) runs through these custodial exchanges.
One of the most notable advantages of using these exchanges is the ease of use at which they come with. Nonetheless, this still provokes concern over the exchanges centralized nature. With hackers breaching their internal systems and attaining private keys to the exchanges, a user’s funds can be lost overnight.
It’s worth noting that more exchanges these days have been proactively taking measures to store funds in “cold storage” (storage without connection to the Internet) which provides an extra layer of security. However, what happened with the infamous Mt. Gox, Bitfinex, and recent CoinCheck hacks still have users weary when it comes to storing large amounts of cryptocurrency on their chosen exchange.
These types of exchanges also face a major concern over price manipulation as reflected in the recent probe by the US Department of Justice.
– Pros: easy to use interface, instant fiat to cryptocurrency conversion, customer support
– Cons: lack of privacy, high fees, and major target for hackers.
Most of these concerns over the custodial exchanges have prompted many users to push for more decentralized exchanges.
These exchanges, although still centralized, do not manage user wallets. They simply match orders through an internal order book and then take a fee on top for providing their services.
Some of the more popular noncustodial exchanges are Changelly and ShapeShift. The more popular exchange of the 2, Shapeshift, roughly takes in around 15,000 orders a day and averages around $10-$15 million in transaction volume.
The exchange’s internal mechanics are still not transparent, which is why they are still considered centralized. Foul play is still possible within these exchanges. Also worth noting, non-custodial exchanges tend to have low liquidity which scares away more sophisticated investors.
Last but not least, we have the decentralized exchanges, also known as DEXs. Many within the crypto community are rooting for their success. After all, isn’t the whole appeal behind cryptocurrency the idea of having a decentralized currency as well as a platform that no single party controls?
If that’s the case why do centralized platforms control so much of our crypto assets? On paper, decentralized exchanges are the perfect solution for concerns raised over centralized exchanges. They are extremely light in fees (if there are any fees at all), they are transparent in nature, and are highly secure as they allow you to control your own wallet.
There are several DEXs which execute orders under smart contracts. The chart below lists some of the current players in the space including companies that are building protocols around decentralized exchanges.
There are a few downsides to decentralized exchanges in their current state. Many of these downsides mimic the challenges of non-custodial exchanges.
Many within the crypto community agree that decentralized exchanges will take a more prominent role in the future. Megan Hernbroth, Head of Communications for Coinbase, stated that the decentralized exchanges are “very important to the ecosystem of cryptocurrency trading by acting as a middle ground”.
Also note, custodial exchanges play a major role in the future of crypto trading as they offer more convenience for the casual trader. Many enthusiasts believe that the future of crypto will contain more of a hybrid approach in which both centralized and decentralized exchanges are combined. These newly developed hybrids will utilize the benefits of both exchanges.
It’s inevitable that decentralized exchanges will continue to rise in popularity. With that said, it’s highly doubtful that they match the scale and popularity of custodial exchanges anytime soon. If the awareness of security and privacy continues to grow, we may witness the birth of these “hybrid solutions”.
With regulation concerns looming over the industry, presently those within the crypto community should not entirely comfortable with storing or trading their cryptocurrency with one particular exchange.
Cryptocurrencies and blockchain technology has opened doors to many new innovations and has positively impacted people all over the world. Along with the positive roles it’s played in this world, the crypto sphere has brought a few problems.
Cryptocurrency related crimes have been on the rise over the last several years. The anonymity of these transactions has attracted the attention of many criminal organizations in order to utilize these little nuggets of digital gold as an opportunity for kidnapping, money laundering and other illegal activity.
Law enforcement agencies around the world are trying hard to find a way to track and stop these criminal activities. We’ll share with you a few cases studies where law enforcement handled such issues.
This is one of the most popular crypto crimes in the world of today. Criminals create a fake project to attract willing investors, pretend to launch an ICO, and collect money in the form of BTC/ETH or other digital currency and inevitably take off with the investors’ money.
To pull these off, they create fictitious project names, sometimes even pretending to have a few big name investors or team members etc. to gain credibility. Once they receive the money, they leave the project behind and vanish like a thief in the night.
One scam artist used the photo of Ryan Gosling for his profile picture and called himself “Kevin Belanger”, a graphic designer. The Miroskii ICO is suspected to have raised around $830,000 from unsuspecting investors. No one knows what happened to the funds after the project closed, however their website is still running. There is little that local law enforcement can do in most of these cases as some of them may be in different geographic locations and the anonymity of a bitcoin wallet makes it hard to link it to a real person.
There have been so many ICO scams that the US Federal Trade Commission (FTC) is trying to find a way to tackle this problem, but has not been successful so far. Without a regulatory framework for the cryptocurrency world, it will be hard for the federal agencies to find and prosecute such criminals. Some states like Texas have taken an active role in identifying and banning fraudulent ICOs. More needs to be done for such bans to have a real effect within the ICO community.
The crypto sphere is infamous for their exchange hacks and ICO scams, however criminals have found more ingenious ways to steal money from people. In Dubai, a group of criminals impersonated trade officials issuing licenses and duped 2 brothers out of $1.9 million in cash as well as assaulted them. Fortunately, the group was apprehended quickly and were later prosecuted.
Kidnapping has also become common place in the crypto world.
Louis Meza, a New Jersey local tried to kidnap a business associate by inviting him for a fake ‘Uber’ ride. Meza, along with another criminal partner, forced the victim to hand over his apartment keys and the 24-word passphrase to his Ledger Nano S wallet at gunpoint. Meza took all valuables from the victim’s apartment. It was almost a successful plan except for two small problems.
Meza was seen entering the victim’s apartment, thanks to the surveillance camera in the building. Secondly, Meza used a cryptocurrency exchange to change the ETH in the wallet to BTC. Meza’s mistake was that the exchange account was in his name and that gave the DA enough evidence to prosecute Meza for kidnapping, robbery and other crimes.
Cryptocurrency has made it very easy for drug dealers and money launderers to move money across borders without getting caught by the banking system. Law enforcement agencies have already sniffed out several rather large money laundering cases. They’ve made several arrests as well as convictions on many cases.
One of the most famous cases was of Thomas Mario Costanzo who was convicted for laundering $164,000 on behalf of undercover agents who posed as drug dealers. Costanzo was apprehended by a DHS-ICE led joint task force. Costanzo was also charged for providing an exchange service without a KYC process (know your customer). The service was primarily used by others for buying drugs from dark web marketplaces similar to Silk Road.
Costanzo’s conviction carries a five-year prison sentence and a $250,000 penalty for five other counts. This was an easy case since it occurred within the US jurisdiction.
In other scenarios, help has been sought from international law enforcement agencies. In one case, agencies from Finland, Spain, the United States, and Europol were involved where a total of 137 people were investigated and 11 were arrested in laundering money for a drug cartel. The drug dealers used credit cards to launder money from Spain to Colombia.
After a while, they decided to switch to cryptocurrency since bank accounts can be easily traced, even if it was located in different countries. Europol’s crime unit was able to trace the transaction by keeping an eye on the crypto to peso conversion and successfully tracked the laundered money. Europol will be training more officers in detecting crimes related to cryptocurrency and will continue to monitor such activities across Europe.
There is no doubt that cryptocurrency related crimes are bound to rise as they become more accessible to common people. Although there are several advantages to using these digital coins, (transactions can stay private, no central control, no geographic boundaries , etc), they also bring with them a few unique challenges for law and financial enforcement professionals.
The anonymity as well as a lack of geographic restriction on crypto transactions has made it harder to apply traditional policing techniques to detect, stop and punish offenders. Law enforcement will need a lot more training and tools to stay on top of the new technologies.
There is also a need for consumer education in order to ensure new investors are educated with such scams and the crypto economy. This will ensure they don’t fall victim to typical scams like fraud, ICO investments, free hardware wallets that steal coins, high exchange rates, etc.
Much like the real world, if something sounds too good to be true, it generally is.
Over the last few years cryptocurrency has not only gained a lot of attention in the media, but also more trust and curiosity from investors, banks, governments, and corporations. Even though it was initially met with cynicism, more and more investors and companies are moving toward the utilization of cryptocurrency.
This digital currency seems to be much more fitting for those of us living in the digital age as opposed to our antiquated fiat currency. When compared to the longevity of fiat, the 9 years that Bitcoin has been active seems like a blip on the radar. Regardless of what your stance is on the cryptocurrency, the blockchain technology behind it is here to stay.
It’s also much more likely that cryptocurrency has solidified its position as an international currency over any other previous currency in history. It should not be taken lightly as an asset and will surely be around a lot longer than most have predicted.
One of the key characteristics of the cryptocurrency market is its volatility in price. Have you ever wondered why the price of cryptocurrency, whether it Bitcoin or Ethereum, tend to fluctuate so much? We’re here to explore those aspects of volatility and what drives market prices one way or another.
This characteristic of volatility is easy to understand. Each time the government passes a law or publishes statements regarding how to regulate cryptocurrency, the price of the asset is bound to mirror an effect in price. For instance, heavy regulation tends to push people into selling their coins, thereby causing a downward pressure on the price.
Even new regulations that aren’t specific to cryptocurrency, but adhere to a general financial action by the government, may also be translated into fluctuations.
An example of this could be a financial crisis suffered on Wall Street which would inherently affect the crypto world as well. Whether it would positively or negatively impact the crypto market depends on many different variables
There is an inherent anonymity behind cryptocurrency. This has been the primary reason why the currency has garnered so much popularity. With recent popularity, more and more governments are pushing to impose rules to end anonymity and increase transparency as well as regulation. If this occurs, cryptocurrency prices are bound to be affected.
User trust is an important factor in determining the price of any financial asset. By trust, we mean whether or not individuals believe that the currency will be able to sustain its purchasing power in the future.
As an example….
Imagine that you invested in Ethereum, but as the months pass you expect the value of your investment to likely decrease in the nearby future. This could be due to media, government regulations, or a host of other factors. These outside forces will more than likely reduce the trust you have with your particular currency.
So what do you do?
If you’re a new trader or investor the chances are high that you’ll likely sell. You might make this choice because you don’t trust that your shares of Ethereum will have the same value it currently holds in the future.
If there are a lot more people like you who sell their investment today due to this news, they will also garner a “lack of trust” in Ethereum or even cryptocurrency as a whole. You will inherently drive the price of the currency down, thereby playing an integral part in the currency’s inability to preserve its future purchasing power.
Trust is extremely valuable within the crypto sphere. Always remain calm and headstrong before you make any decision to sell, as more times than not, the market will change and the price of your sold cryptocurrency will rise well above the market price you purchased at. Many of us call this “seller’s remorse”.
Trust was one of the reasons Bitcoin was able to rise to an all-time high back in December 2017 to 20k. Another major reason why cryptocurrency is valued at such a high price is due to the fact that it cannot be hacked due to the blockchain technology in which it operates on. However, be very aware that this still doesn’t mean that hackers won’t be able to hack an exchange and obtain access to your online wallet. Fortunately, most reputable crypto exchanges are insured against these types of scenarios. Most users are compensated for their losses.
Also note that most of the Top 10 cryptocurrencies are expected to exponentially gain value over time. Many newer cryptocurrencies have exponentially increased their value within a year, so keep that in mind before you start to panic sell.
Cryptocurrency once had a humble beginning. While they are valued at a much higher price today than they were several years ago, this was not always the case. What brought this onset of new found value? The rising demand and mass adoption of blockchain technology has made a profound affect on the value of cryptocurrency. The viral exposure on social media, news, TV shows, movies, as well as word of mouth also inherently relay value to the digital coin.
Cryptocurrency has been gaining momentum since its inception. This coupled with the fact that more technologically advanced countries like China, Japan, and South Korea are starting to utilize it within their everyday commerce.
More and more people every year begin to understand why cryptocurrency is such a beneficial investment. They realize how much of a lucrative opportunity it is and as a result, the popularity of cryptocurrency, especially Bitcoin, has gone through the roof. The law of supply and demand dictates, when demand increases while the supply stays constant, the price will inevitably rise.
Remember, almost all cryptocurrencies are available in a limited amount. When there is an increase in demand, it’s soon followed by mass adoption. While more investors enter the market, the price further increases. This trend is expected to continue as cryptocurrency is still a hot topic in most countries.
Speculators exist in every facet of the financial market, and cryptocurrency is no different. Speculation regarding the future value of any particular coin can be derived from the news or other venues like social media and online forums.
For instance, if the liquidity of a particular cryptocurrency were to increase, speculators would deduce that more people are likely to buy. This would translate to an increase in prices. This speculation could have some investors purchasing a particular coin today in order to sell it tomorrow at a profit. This single action is what would drive the prices upward, thus creating a “buying frenzy”.
On the other hand, news regarding how much more effective another cryptocurrency is, compared to say Bitcoin, can lead to a decrease in Bitcoin’s price before the newer currency even hits the market.
Why? Speculation my friend, speculation.
Speculators will expect the new cryptocurrency to drive the price down. Traders will begin selling their investment before its release in order to get a jumpstart on the market.
Speculators might be responsible for the initial decrease in prices, however “the herd” (trend followers) would cause it to exacerbate. Not everyone understands what they are doing. If everyone else is selling their investment, “the herd” will follow. This mentality is what governs a further decrease in price. This event can also be referred to as “panic selling”.
It’s hard for any financial asset to avoid price volatility caused by speculators. However, since cryptocurrency is largely unregulated and can inevitably deliver its investors high returns, the effects of speculators are felt much more prominently.
As long as the stock market has been active, news and other media outlets have always played a major role in price fluctuations. This is also a common occurrence with cryptocurrency, however it can generally be more pronounced.
News regarding crypto related bankruptcies, hacks on crypto exchanges, government regulations, delays in service, issues with crypto technologies, can cause an immediate disruption with any particular cryptocurrency.
Media influence can sometimes reflect a more negative “opinion” on some less reputable media outlets. These FUD syndications may release false information in order to decrease the value of a particular cryptocurrency. Negative news which is found to be primarily false is commonly referred to as FUD (Fear, Uncertainty, and Doubt). Be very careful when falling into this inevitable trap. Always do your own research (DYOR) and check other credible use sources for comparison.
If you’re not familiar with the term “whales”, you’re obviously very new to any form of trading or investing. That’s okay, you’re here to learn right?
The term is commonly referred to as an individual (or group e.g. corporation) who buys or sells large amounts of cryptocurrency, thus greatly influencing the trend of that particular market. These are also referred to as “market makers” and can be found within any trading marketplace (forex and stocks).
As you can imagine, these individuals maintain a lot of power within the market. These titans of the industry may sell a large amount of cryptocurrency, only to take advantage of other “panic sellers” who will inevitably liquidate their digital asset. Once the time is right, they’ll buy back that currency at a lower rate. This is standard protocol for these types of traders.
There’s nothing that you can do to stop this from happening other than recognizing when it’s happening and ride the trend which the whales are currently dictating. Having a fundamental understanding of technical analysis can also help you spot these trends and take advantage of them before they happen.
There are many factors that determine the price of cryptocurrency. The ones mentioned above are just a few of the main culprits. Remember, not only does each factor play a significant role in determining the price of a cryptocurrency, but two or more can wreak havoc.
Just be careful that you’re not on the other side of these renegade dips. Stay current with daily crypto news. Make sure to follow your cryptocurrency investment on Twitter in order to help you keep an up to the minute pulse on the latest developments.
Overall, most of the Top 10 cryptocurrencies located here will increase in price over time. This is true even after weekly (or sometimes monthly) volatility in price is experienced. Understanding how these factors work will allow you to be in a much better position to realize when to buy or sell your digital asset. Understanding how this process works, along with personal experience, will give you a fundamental edge over the so called “herd”.
Leave a Comment
Latest Crypto News
Grid+, a blockchain startup operated by ConsenSys, the largest blockchain software company in the world operated by Ethereum co-creator Joseph Lubin, has successfully started to supply electricity to its clients in Texas. Milestone Reached: Grid+
Coinspectator is a highly respected cryptocurrency news aggregator that is dedicated to showcasing 1000s of cryptocurrency news sources from all over the world. Located in the center of the site, you’ll see a list of
Brave, the web browser created by Mozilla founder Brendan Eich and funded through an initial coin offering (ICO), is rapidly carving out a significant market share as entrenched giants like Google Chrome shred their privacy
Gemini, the U.S. cryptocurrency exchange founded by bitcoin billionaires Cameron and Tyler Winklevoss, is rumored to be eyeing an expansion into the United Kingdom. Gemini Plots Transatlantic Expansion Citing two sources close to the process,
Content creators on the internet will now be able to accept payments in XRP tokens directly from their users. The tipping-for-content has become possible because of Coil, the brainchild of Stefan Thomas, the former CTO
In a supernormal rally that almost lost ethereum its silver spot, ripple (XRP) gained about 100 percent in a week. The maximum difference in XRP’s market cap between the week’s lowest and highest level turned
The U.S. Navy Naval Air Systems Command (NAVAIR) is currently exploring the blockchain technology for tracking aviation parts throughout its lifecycle, according to its press release. For NAVAIR, changing the way it currently tracks the lineage
As Canada prepares to legalize recreational marijuana next month, the impact this will have on online drug marketplaces has remained unclear. Consequently, the Department of Public Safety Canada is looking to commission a study that will shed
On Friday, Sept. a U.S. member of Congress announced that he will introduce three new bills aimed at supporting the development of blockchain technologies, as well as the use of cryptocurrency, within the United States. Rep. Emmer:
Using candlestick formations in order to determine price movement from one direction or another is great for what it does within a more confined timeframe. The problem is, the level of detail that you get
Poloniex, one of the oldest crypto exchanges in the global market, has become a major digital asset trading platform once again after years of stagnation. Until 2015, Poloniex was one of the largest crypto exchanges
A “Flippening” has once again arrived in the cryptocurrency markets, but — much to the chagrin of ethereum investors — it’s not the one that ETH holders have long anticipated. Bolstered by a seemingly-parabolic rally
U.S. lawmakers have called on the Internal Revenue Service (IRS) to issue clarified and “comprehensive” crypto taxation guidance, in an open letter submitted yesterday, September 19. The letter was sent to acting IRS commissioner David Kautter by Congress
Cryptocurrency exchange operator Coinbase has denied that it engages in proprietary trading and that these activities account for a large percentage of the firm’s overall trading volume. Yesterday an investigation into cryptocurrency exchange policies and
With the explosion of cryptocurrency, more online gamblers have demanded that casinos open up their spending options to this new digital asset, which seems to be a “perfect match” for these type of platforms. FortuneJack
The cryptocurrency markets are nine months into a bear market, but the animal spirits that drove the bitcoin price to nearly $20,000 haven’t disappeared. Rather, it seems that they have found a new outlet —
Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews
Crypto Guides & Tutorials