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Disclaimer: I am not a financial advisor. Anything said in this report is strictly opinion and should not be used as advice. All actions are at your own risk.
Crypto Market Update and Trading Digest 11.11
By Trader Gabi
Insight
The market had a strong pull-back yesterday from false news of a Evergrande default. The Evergrande situation has been made to feel like a ticking timebomb. BTC fell from 65k to 62.5k in a matter of hours. News of a completed payment was later released from reliable sources and many in the market saw the opportunity to enter positions at substantially lower prices. The market is confidently climbing back up today.
This goes to show how quickly markets can become fearful. At the end, fear and greed are the true market drivers. It’s hard to separate oneself from the emotion of the moment and to stick to a plan, but it is vital for success. In the moment, it’s best to see these events as small opportunities. The lucrative ones will come during the large bear markets which occur in crypto.
Events like these emphasize that buying and holding long term continues to be one of the most effective strategies. Every retail trader should have a large portion of their portfolio allocated towards that purpose. Taking chances into small altcoins can be very profitable but comes at the risk of losing all your investment. There really isn’t any reason to ape all your funds into risky, small cap altcoins when some of the best protocols can still give you 2x to10x returns.
Market Update
· Crypto market rebounds after false reports of Evergrande defaulting
· Bitcoin successfully tests 63.5K support level
· Total 3 is up 3.27% and bitcoin dominance is down 1.53% signaling large amounts of money flow are going back into the altcoins.
· Render Network (RNDR) a distributed GPU rendering service in up 58% today and up 224% for the week. Entries have been hard into Render but large pull backs can open up opportunities in the future. Render will largely benefit from market moves into gaming and metaverses. They recently signed a deal with Apple and it will come standard on Apple laptops. RNDR is available on Kucoin exchange.
· Dencentraland (MANA) could be breaking out of its pennant. Look for more volume and a stronger candle on the 1-day chart for confirmation. I did a trade set-up on MANA 2 days ago. Here’s a link to that. 🔗
Bitcoin Fear and Greed Index 77 Extreme Greed
Bitcoin Google Trends 39
Major Crypto News
· Bitcoin loses 6K due to conflicting reports about Evergrande defaulting. A few news outlets began prematurely reporting that Evergrande had defaulted on their payments causing crypto markets to flash crash. Bitcoin dipped as low as 62.8k in a matter of hours. The reports turned out to false.
· US congress is holding a much needed ‘demystifying crypto’ committee hearing on Nov 17. There will be a panel of industry experts speaking at the hearing.
· Proshares Bitcoin ETF is in the 2% percentage of volume for ETFs. BITO traded $400M yesterday. This is further proving that institutions want more exposure to bitcoin and crypto in general.
· Miami to start giving MaimiCityCoin holders Bitcoin dividends. This could become an innovative way to help fund cities and projects in the future. NYCityCoin was released today. What does it have in store with a crypto-friendly mayor at the helm?
Notable Events
· Parachain Auctions/Crowdloans are officially live on Polkadot (DOT). These are some of the best investments in crypto.
· Lighthouse begins registration for the IDO of Moonscape (MSCP) P2E game. These IDOs can be lucrative as prices usually surge right after launch. 🔗
· Coin Bureau does a deep dive into Decentraland (MANA), one of the top Metaverse projects in crypto. Coin Bureau is one of the most respected crypto content providers on Youtube. His reviews often hold a lot of weight. 🔗
· Codi Finance is currently having an IDO for its native token CODI. Codi finance is a decentralized lending and borrowing protocol on Solana. You can currently get 5000 CODI for one Solana. 🔗
NOOB Lesson of the day
What is a decentralized stablecoin?
Yesterday I gave some basics about stablecoins 🔗 . A decentralized stablecoin works much the same, but there is no third-party control when it comes to decentralized coins. They utilize algorithms, smart contracts and supply/demand structures to keep their peg. Decentralized stablecoins are fully transparent on a publicly verified blockchain. UST and DAI are some of the more common decentralized stablecoins.
Why is the market slowly transitioning to decentralized stablecoin?
Centralized stablecoins are backed by collateral that is controlled by an institution. Tether, the makers of USDT, back their USDT coin with variety of methods to include fiat, bonds, corporate debt and even some crypto. Coin Bureau did an excellent video on the topic🔗 in July. The centralization of these assets turn these institutions basically into large unregulated banks. The risk here could be tremendous.
The issues with centralized stablecoins has caught the eye of US regulators. Some talks are going as far as to track all transactions. The President’s administration has even claimed they will enact measures if nothing is done. Many predict that along with tracking will come taxing and loss of privacy.
Decentralized stablecoins are trustless in nature and often there is no central entity to regulate. If regulators start enacting strong restrictions and tracking on centralized versions, you can expect the market to start swaying towards decentralization. This is a trend that has already begun.
If you read yesterday’s report, there are ways to profit off the trend into decentralized stablecoins under the LUNA section. 🔗
Thank you all for the continued support. I am always open to suggestions. My goal here is to open your mind to crypto, keep you up to date and to help you be aware of the many opportunities out there. If you ever have questions about the content or feel confused, feel free to message me on twitter @ TraderGabi or text if you have my number. Thanks for the continued support.
Gabi
P.S. Tomorrow I’ll give a basic run-down on Polkadot Crowdloans and why they’re one of the best long term investment opportunities in crypto. I’ll also tell you which ones I’m personally investing into.
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