🧘♂️ALERT: 3 Profit Tips
Market Meditations | January 25, 2022
Seriously Important for Bearish Markets
It’s easy to make money in a bull market.
Whilst more difficult, it is not impossible to profit in more bearish market conditions. Provided you know what to do and how to behave.
These 3 tips are for anyone who wants to win no matter what the market conditions are.
Read, enjoy and share with your network. Let’s all build wealth together.
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
? Who Let the Bears Out?
1) Manage Your Emotions
These kinds of markets are a breeding ground for revenge trading.
In other words, aggressively and emotionally taking positions to make up for money lost.
The sad truth is the following: the market doesn’t care about you.
That is, the market doesn’t care if you had $200k and you now have $100k.
And so, trying to make your money back is no different to trying to make $100k from nothing!
✅ TIP: Low time frames in particular produce a lot of market noise and may tempt you to enter trades more often. Particularly if you’ve just lost a chunk of money. Always remember that lower time frames are risky and analysis done on higher time frames tends to be more reliable.
? ACTION: Tread these waters carefully, with an understanding of risk, reward and probability of success. Always good to have a look through our resources:
Finally, for more on controlling your emotions there is a wealth of Trading Psychology books such as Trading For A Living. Alternatively, you may decide to practise mindfulness: just 10 minutes meditation a day can have serious benefits.
2) Study Narratives
In a bull market all crypto prices and projects do well.
This makes it hard to identify trends and narratives.
During more bearish markets, outlier pumps and strengths are clues as to what assets will do well in the future (when conditions are more neutral or bullish).
It’s through outlier pumps and narrative spotting that Market Meditations was able to flag key narratives early:
Metaversal / NFT Gaming Tokens
And much more!
✅ TIP: Join our free email list if you’d like insights as to what trends and narratives are emerging.
? ACTION: Use this time to monitor price feeds like CoinMarketCap to see which cryptos are showing some strength. Or consider DefiLlama to see where there is still development activity. For instance, later in this newsletter, you’ll see building activity is still thriving on Fantom! Finally, consider on-chain analytics to observe trends, one of our favourite platforms for this is Nansen. Every Wednesday we create reports on On-Chain Analysis which are shared for free on our newsletter.
3) Build Your Network
Herd mentality is entering a trade based on someone else’s analysis.
It can be profitable in the short term but if you blindly follow others without understanding the context, you can be sure it won’t work in the long run.
Whilst there is much to learn from big crypto publishers and profiles, it is essential to only select aspects you agree with and what fits in your own trading system.
? ACTION: One of the best ways to develop your own understanding of the crypto markets is to interact with cryptos, projects and protocols more. Ask questions on Twitter, level up your DYOR by asking questions on project Telegram’s and importantly, familiarize yourself with Discord. There are so many great Discord servers with communities who share knowledge and help each other. If you don’t want to spend financial capital at the moment, build your social capital! Resources to help with DYOR:
Why navigate the crypto markets alone when you can get free resources and analysis sent straight to your mailbox? Make sure you’re on our free email list where we are helping over 43,000 people build life changing wealth?
? Hacked Off
About 30 crypto-related YouTube accounts were hacked on Sunday. Videos were uploaded encouraging pre-sale investment into a ‘new’ cryptocurrency. But how did experienced crypto players get played and did the hackers make any money?
Big name accounts including IvanOnTech, BitboyCrypto and many others had short videos uploaded with text asking viewers to invest in One World Cryptocurrency (OWCY).
They requested stablecoins to be sent to a Binance Smart Chain address, but to date only ~$850 has been deposited, suggesting most retailers were able to identify it as a scam.
Some claims have been made that this was a Sim Swap attack, where your phone number is assigned to a new sim by someone impersonating you, with all of your data porting over.
However, those hacked would’ve noticed strange behaviour on their phones, and to hack 30 accounts at once suggests a highly coordinated attack or automated software.
On top of this, hacked YouTuber Boxmining suggested that the fault may lie internal to YouTube, as they noticed an unauthorised brand account login from The Philippines. YouTube has so far not commented on the incident.
This hack serves as a reminder to keep your security tight. As criminals collect data from data breaches and piece together profiles of individuals, it’s important not to use pin numbers that are easily guessable, such as birthdays, and consider the use of an external 2FA device, independent from your phone.
? Fantom on the rise?
Fantom (FTM) is a fast and cheap layer 1 protocol many will be familiar with due to its rapid increase in price and attention over the last year or so.
Fantom has made its mark once again becoming the third-largest decentralised finance (DeFi) ecosystem by total value locked (TVL) overtaking layer 1 big dogs Binance Smart Chain, Avalanche and Solana.
The chain shows further signs of strength as according to data provided by CoinDesk, the Fantom network can process twice as many transactions per second (tps) as Ethereum.
The ecosystem currently has 129 protocols and according to DeFi Llama, TVL has increased 65% in the last 7 days and is the only chain to experience growth over the same time period.
TIP: TVL is a metric that calculates the total value that is invested in platforms or protocols through staking, loans, providing liquidity, etc. This is used as a measure of adoption and growth, so a sustainable increase is fundamentally very bullish for the chain!
The ecosystem is home to projects which utilise vampire attacks to gain TVL such as Radial, veDAO and 0xDAO. Meaning new projects offer extremely high rewards to steal users from popular protocols.
If you have a slightly higher risk appetite and want to delve into these kinds of projects, approach with caution and DYOR! You can certainly profit in the short term but you must be aware that the tokens often have an initial price jump as users buy to receive the high APR’s, and will dump when whales take profit.
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Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.