View profile

The Wolf Den #20 - Hacked, $BTC, Alt Trades, Emotions, More

Revue
 
What a week. Since I last wrote, I was the target of a SIM-Swap and have been relentlessly working to
 
February 11 · Issue #20 · View online
The Wolf Den Crypto Newsletter
What a week. Since I last wrote, I was the target of a SIM-Swap and have been relentlessly working to stay ahead of the hackers. I have spent days (and nights) working on this - needless to say it has been a major inconvenience and strain on myself and my family.
It has also forced me to evaluate what and how much I share online. As you all know, I am a very public person, a function of being a public personality before crypto even existed. Further, I am completely transparent with everyone, even strangers in my Twitter DMs. “Scott, what exchanges do you use?” I give them an honest answer… NOT smart. I have probably told the hacker quite a bit of information directly, trying to help a stranger.
We all love the statement that “Bitcoin solves this.” We believe that cryptocurrency can change the way that the world views and utilizes money and can put control into the hands of the people and not the middle men and governments with their own interests at heart. That said - with great power comes great responsibility. If you are hacked and lose your money or credit card, there are systems in place to protect you, to help you recover your funds, and to mitigate future damage. Regulation is, more often than not, good for the consumer when that consumer is at risk.
This is not the case with crypto. You are responsible for your own security and nobody will be there to bail you out. This is why I would never be overexposed to Bitcoin. The risk of becoming a target (which I am) and losing everything far outweighs the benefits of holding too much crypto or the potential gains. That is my opinion, especially being in the public eye. Be careful being “all in” anything, especially if that thing can be stolen from you with no way to recover it.
If you want to hold crypto, understand that YOU ARE YOUR OWN BANK. If you are not ready to accept this responsibility, then put your money elsewhere. This means taking similar personal security measures that a bank takes to protect their money. If you get robbed, it is most likely a result of your own laziness and less because of the brilliance of the criminal. Being a crypto maximalist means being VIGILANT. There are countless steps to take to maximize your security - some are listed below, but there is always more to do.
On a brighter note, the market has been spectacular. While I am not personally trading for a while after the hack, there have been numerous opportunities to make money both in crypto and legacy markets, many of which I will share today.
I put out a newsletter like this EVERY TUESDAY for paid members. The setups and ideas alone have paid for people’s memberships many times over. It is only $15 a month - less than a weekly cup of coffee at Starbucks. Every Thursday, I look at requests from members and share their charts. It’s a HANDFUL. Last week alone I looked at these charts - $ALGO $ARDR $ATOM $BE $BSV $BTT $CBT $DASH $DGB $ETSY $ETH $FTX $HBAR $HOT $ICX $LINK $MATIC $PDD $POWR $RCN $REN $TRX $TTD $TWTR $URTH $WTC $XAG $XRP $XTZ $ZRX.
If you cannot use a credit card, please respond to this email directly for BTC and crypto payment options. I will go out of my way to make sure that you have access to this information, as I believe the hard lessons that I have learned are valuable to beginners and advanced traders a like.
What’s in this issue?

  1. Bitcoin Charts And Analysis
  2. Hacked: SIM- Swap, My Story And Security Tips
  3. Altcoin Trades
  4. CryptoTrader.Tax
  5. Legacy Markets
  6. Tips To Detach Your Emotions From Your Trading
  7. Chinese Miners Shut Down
  8. Institutional Money Is Already Here

Bitcoin Charts And Analysis
Bitcoin looks bullish, which has been the case since the lows around $6,400 when I started buying again. I have made the arguments over and over again as traders have continued to short the “bear market.” As of now, I see no reason to change my opinion or bias. As always, I will change my feelings when the market offers evidence that I should do so. Let’s dive in.
MONTHLY CHART
Incredibly bullish. Anything above the most recent support at $9,243.83 remains as such. The last monthly candle engulfed the previous 2, with a hammer at the bottom - arguably a morning star reversal. There is quite literally nothing bearish about the chart on this time frame.
WEEKLY CHART
As I have been saying for months, this time frame has been the best to watch for bullish bias. Incredible. The present weekly candle does not look great, but it is only Tuesday so it’s not particularly relevant as of yet. Price is trading well above all EMAS (21, 50, 200), all of which are curled up. As you can see, THE LINE at $9,090 was not only perfect on the daily, but the weekly as well. That was my last Bitcoin entry. You can see the full progression of my thinking on the weekly, from SFP and Stoch Bull div to now in this thread. Lots of information in those tweets.
The Wolf Of All Streets
$BTC Weekly

This time frame shows the most bullish potential. Huge bull div with Stoch RSI (and Stoch + MACD histogram not shown), nice bounce from the bottom of the channel and potential beautiful reversal candle brewing (check back on Sunday). https://t.co/NHAKouO4gL
9:35 AM - 20 Dec 2019
DAILY CHART
Perfect bounce off of “The One Line To Rule Them All” at $9,090. If you have been following me, you likely considered a bid in that area, as I have been talking about it for ages. Everything looks good here as well. At present, the new candle looks like a small hammer with tweezer bottoms and a green body. Check back at candle close to see if this holds. If it does, price should be continuing back up.
4 HOUR CHART
As of now, this is a very healthy retrace. Nothing to see here. Price is currently working on a break of local resistance at $9,866. There were tweezer bottoms inside of a fresh demand zone (likely place for sitting bids). This was likely a decent place to consider buying again. The “big” recent drop occurred in a SINGLE ONE MINUTE CANDLE. This is likely evidence that it was a single, huge, over-leveraged long being liquidated and not a sign of general bearish sentiment.
Price also bounced perfectly off of the 50 EMA and is currently attempting to flip the 21 EMA back to support. The 21 EMA is in confluence with the black resistance line in the previous chart.
Hacked: SIM- Swap, My Story And Security Tips
I was the victim of a hacking attempt from a known hacker who targets public cryptocurrency holders. The past few days have been difficult, spending countless sleepless hours vigilantly changing passwords and getting my accounts and life locked down. It’s been a miserable experience, and one that I would not wish on my worst enemy (although I don’t have enemies).
Here’s what happened. I glanced down at my phone and noticed that it had no service. Strange, but not uncommon. I immediately started receiving emails about change password requests - email accounts, crypto exchanges etc. Warning. A hacker had called my phone carrier, convinced them (or paid them?) that they were me and swapped my sim into their own phone. This should be impossible, but clearly we cannot trust the phone companies to protect us. At that point, they had access to my phone number, texts and calls. This would allow them access to my 2 factor authorization if I was using SMS Authentication (I was not).
Presumably they had hacked me in advance, or gotten all of the information they needed to pretend to be me and to prepare to immediately start attempting to access my accounts. Scary.
They first thing they did was to hack my email provider and change the mx records on my main email account so that they would receive my emails instead of me. This way, they could start sending password resets and I would not know about it. Luckily I saw the first few come through before he deleted them. They would also, theoretically, have access to the texts coming for 2FA to confirm my identity. As of now, this did not work. Why?
The Wolf Of All Streets
Basic Security.

2FA on a separate device, never your phone.

Private keys stored outside of your house in a secure location, like a safety deposit box.

Multiple hard wallets in secure, fireproof locations.

And for me - rebalance and go to cash often.
9:35 AM - 17 Jan 2020
Because I have all of my 2FA on a separate, offline device. This is the SINGLE thing that largely saved me from the most damage. Even with my logins and passwords, they were unable to access my 2FA (thus far, as I do not feel like I am in the clear). This gave me enough time to contact my banks, credit cards, crypto exchanges etc. and have my accounts locked. Key point - never use SMS verification as a part of your 2FA - they are counting on this vulnerability in a SIM-Swap attack. 2FA is a double edged sword - it offers protection when used correctly (on a separate device), but allows easy access to everything if it is simply a text message to your phone - because the hacker will be receiving your texts and calls.
Below is a definitive guide to SIM-Swapping. It is thorough, terrifying, but necessary. Read it, read it again, read it again. Slowly go through all of the steps to protect yourself. It will take time.
The SIM Swapping Bible: What To Do When SIM-Swapping Happens To You
The silver lining of this experience is that it has forced me to reevaluate everything with regards to cyber security in general. Let’s just say that the hackers lit a serious fire under my ass.
The article above is very detailed and tells you everything you need. Here are a few ideas that you can do RIGHT NOW to help avoid this problem.

  1. Call your phone company and tell them to put a sim lock on your phone. Ask what advanced options they offer for protecting your account. Push hard. Request that they never change anything on your account without you walking into a specific store location, near your home and showing ID. Be relentless, threaten to take your business elsewhere. There’s always another security precaution they can take on your behalf.
  2. Make sure you have a separate email account and password (preferably encrypted email like protonmail) for every exchange. Have 2FA using an authenticator (google authenticator, authy, although AUTHY CAN BE HACKED etc) on a separate, offline device. NOT ON YOUR PRESENT PHONE. The minute they swap your sim card, everything on your present phone becomes a liability.
  3. Get a Yubi key or another hardware 2FA device. Then nobody can access your accounts unless they are physically sitting at your computer. Get a separate one for each computer you use, and another that you have to put in for withdrawals.
  4. Put 2FA on EVERYTHING. Facebook. Instagram. Twitter. Bank Accounts. EVERYTHING. Do NOT use SMS Authentication - do it on your separate device with an authenticator.
  5. If you trade on your mobile, consider getting a separate phone altogether who’s number you never share just for trading. This one is supposed to be awesome. https://sirinlabs.com/. You can use GoogleFi sim cards to constantly change numbers if you are really serious.
  6. If you do not have a separate phone, you can get a google phone number and use that everywhere that requires a phone number. That way if you are hacked the 2FA codes go to your secret google number. This number MUST REMAIN SECRET.
  7. Start changing passwords now - this is something you should do often. Make them unique - never use the same password for ANYTHING.
  8. Generally get away from using Gmail, Yahoo mail etc. Easy to hack. I cannot stress enough - encrypted email services with 2FA on a separate device.
  9. STOP USING CHROME! It’s a piece of shit browser made by a company that is mining your data for profit. Th vulnerabilities are astounding.Use Firefox, Brave or another secure option.
  10. Get a virus program for your computer, like Bitdefender. This has nothing to do with a sim swap, but it can still save your ass from viruses and phishing. Malware on your computer is an advanced way of getting the information the hacker needs before the sim swap. Remember, they knew exactly where to go the second they had control of my phone. This is a layer of protection, but not even enough.
  11. Stop sharing everything online. I am extremely guilty of this, and for me it is very hard to put the cat back in the bag since I have been a public figure in the music world for decades. Look for anywhere your phone number, address and email address are available and delete them.
  12. REMOVE YOUR PHONE NUMBER FROM CRYPTO EXCHANGES. Even if you set up 2FA with an authenticator, they usually have your phone number stored from your first authentication. BAD. Once your 2FA is set on an authenticator, go back and DELETE YOUR NUMBER.
  13. Secure your Telegram - instructions are in the article, but Telegram is tied to your phone number. Bad.
  14. Get your crypto off of exchanges and into cold storage. So simple, yet most do not do it.
This is really JUST THE BEGINNING. I know it’s annoying, frustrating, it “won’t happen to you” and none of this is “really necessary,” but I highly suggest going through the article above and doing as many of the things possible. It’s your life - don’t let someone else steal it.
Altcoin Trades
It continues to be alt season, which I have been calling since September. Trading alts has been amazingly fun and profitable for the past few months, and is only getting better. Last week alone we made huge gains on AE, OAX and others.
Unfortunately, I have waited for a real alt season for a couple of years and presently am not trading due to the hack! I will share the trades I “would” take, but my accounts are presently frozen with no intention of accessing them any time soon.
BAT/BTC
This one took off before I had a chance to share it today. I did, however, share it on Twitter last night right before the big candle. I see a ton more potential in this setup if Bitcoin behaves. The breakout should have just begun. I have been sharing this setup for weeks, so the entry on the break of the descending resistance should have been obvious for anyone following.
The Wolf Of All Streets
$BAT

My favorite setup right now, wish I could buy this here. Broke the large descending wedge and is presently consolidating above resistance and flipping it to support in another local descending wedge. I think this will do what $MANA did for us before. https://t.co/EcuvkIOFWA
8:03 PM - 10 Feb 2020
For reference, here was the first time I posted this potential setup a few weeks ago. You can hit play on the link to advance the chart and see how closely it followed my idea - and that it offered 2 amazing entries.
BNB/BTC
BNB broke out of it’s downtrend and made a strong bullish move up. Price is presently at the most key level on the chart. This would be buying resistance. However, a break through and retest as support could be an excellent entry for a move back to the top of that wedge. Set your alarms and watch.
LINK/BTC
The Wolf Of All Streets
$LINK / $BTC

I think I am an honorary LINK MARINE now. This is the weekly chart. A perfect ascending channel that encompasses the entire price history... and price is bouncing off of the EQ. If this candle closes like this, I would expect price to target the top of the channel. https://t.co/lf2s4lLMSo
8:22 PM - 10 Dec 2019
That tweet shows my thoughts on LINK 2 months ago, and it has not disappointed. Here is an update to that incredible channel.
The daily looks incredibly bullish as well, breaking a key level or resistance. It’s getting riskier as it goes higher, but a retest of that top black line as support would be the next entry I would be looking for.
LINK/USD
LINK looks incredibly bullish on the USD pair as well. The pink line represents the highest candle body on the chart and is a key level of resistance. Personally, if you are not already in, I would wait to see this broken and flipped to support - less risk than entering now coming into resistance.
RVN/BTC
RVN FINALLY made a move out of that blue weekly demand zone that it has tapped so many times. Price broke a key level at 335 and has seemingly flipped it to support. As long as no candles close below that, this looks bullish.
Zooming out I can once again show you that epic red line - the neck of a huge head and shoulders that has acted as resistance since. The real party should start above that, if it gets there.
XMR/USDT
We have absolutely crushed it on this pair - if you’ve been following you are likely trading this. Price broke a key resistance and is yet to test it as support. If you are looking for an entry, $81.55 has great risk reward. If it turns to support, sky is the limit. If it fails, you can place a stop a few percent below and take a small loss.
XTZ/BTC
Still looks incredibly bullish. While I never allow emotion to enter my trading, this one hurts a bit… When I was hacked, I had orders in the blue circle. My account was shut down so the orders were canceled - they would have filled and been in tremendous profit. Either way, price has broken the all time high and flipped it to support. Anything above that area remains bullish.
XTZ/USD
If you have missed this one (like me), then you are likely looking for an entry. If you are trading the USD pair, I would watch that black line. It seems like a big drop, it may not come back - but if it does, that area would be a retest of the previous all time high and likely a great entry for the long term.
CryptoTrader.Tax
CryptoTrader.Tax | Crypto Taxes Done In Minutes
Are you looking for a quick and easy solution for filing your crypto gains and losses with your taxes? Now that we’re into tax season, I wanted to give a shoutout to CryptoTrader.Tax. They make the excruciating task of reporting your cryptocurrency gains and losses a breeze.
It’s basically like TurboTax for cryptocurrency investors. All you have to do is connect your exchanges and import your trade history into the platform. CryptoTrader.Tax will do all of the number-crunching and spit out your auto-filled tax reports with the click of a button. Simply give these generated tax forms to your accountant or even import them into your preferred tax filing software like TurboTax or TaxAct.
Join more than 10,000 cryptocurrency investors who are automating their crypto tax reporting with CryptoTrader.Tax today. Creating an account and importing your historical data is completely free! You only pay when you want to download your tax report for the year.
Legacy Markets
AMZN (AMAZON)
I have posted this so many times that it’s giving me a headache. There was a clear cup and handle breakout (not drawn anymore) and an ascending triangle. Price has now broken the all time high and retested it as support. The target of all of this is roughly $2,800. This is my biggest stock holding, both as an investor and trader. Not complicated - bet on the best companies in the world.
CRWD (CROWDSTRIKE)
Confirmed double bottom at the break of the black neckline with a successful retest as support. Anything above $60 remains bullish here for me, with targets shown as the lines above. Simple.
DIS (DISNEY)
As expected, Disney reported great earnings and pumped after hours that day. Then… dumped for no good reason! That said, price is still above our entry and holding support nicely. I think this is still yet to really move and I remain bullish.
ROKU
Another setup that I have been sharing that looks ready to go. Price is breaking through resistance, today’s candle should be massive. I would personally be buying more of this if I was trading today. Expecting a potential gap up to break resistance.
UBER
Absolutely nailed it - I hope some of you were in on this trade as it progressed. As I said, my expectation was a large move up to fill the gap (grey box). Price hit the gap and dropped, causing bearish divergence with overbought RSI. As you know, I do NOT believe in Uber fundamentally, so I would once again be short from this point. This could continue up further, but that bear div has me thinking that a drop is coming soon.
XAG/USD (SILVER)
Silver is looking incredibly bullish. Price broke the descending wedge weeks ago on strong volume and has since been consolidating in a bull flag. The safest entry would be a break of the top of the flag, with the target based on the height of the flagpole. This target depends on where the break occurs.
Tips To Detach Your Emotions From Your Trading
Humans are inherently emotional beings — we love, we hate, we feel fear, we experience greed and we question our decisions. All of these emotions are the enemy of a successful trader.
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.”
— Victor Sperandeo
Knowing how to control emotions while trading Bitcoin - or any other asset — will likely be the difference between success and failure. Maintaining a calm and calculating demeanor is key to making money as a trader.
Emotional traders’ most common mistakes
Here are some common mistakes that emotional traders make: over trading, trading impulsively, revenge trading, missing trade after trade, hesitating, chasing the market, entering late, taking premature profits, moving stops too close to the market or too far away from the market, breaking their rules or blowing up their accounts. 
Do any of these sound familiar?
When I first started trading “professionally” I felt desperate to prove that I could make it without another source of income. I spent countless hours at the screen, studying price action and searching for the perfect entry for my next trade. 
Since I was “full time,” I felt the need to always be in the market, taking trades that did not fit my plan because it was my “job” and, in my mind, that meant I needed to always be “working.”
I took larger losses than I did when I was not a pro, moving stop losses down in fear of barely missing the next big move or taking a significant hit to my trading capital early in my career. I also took profit far too quickly, fearing that price would turn against me and I would miss the opportunity to make money. 
These were all emotional decisions that cost me money. Luckily, I reeled in my emotions quickly and was able to turn my bad habits into lessons.
Acknowledge fear vs. greed
Fear and greed are the two most common emotions that traders experience, and these account for most of the poor decisions that lose them money. 
Fear is often caused by trading with too much size, compounding the consequences of a bad decision. Traders often make mistakes when they are in too large of a position that they would not make otherwise. 
Fear is also common when you take a trade with little conviction — you know that you are in the “wrong” trade but are unsure how to escape. Fear is what makes us sell our winners too early and hold our losers too long.
In the movie Wall Street, Gordon Gekko famously stated that “greed is good.” A certain amount of greed is necessary because it’s required to make speculators want to trade in the first place. 
The downside to greed is that it causes traders to “chase the market,” or FOMO into bad positions. An example is buying after a large sudden move higher when the market is already overbought and demand is waning. 
Greed also causes traders to hold a position past their target, often failing to exit at the right moment, right before the price turns the other way. So how do we fight the pitfalls of trading with too much emotion?
Failing to plan is planning to fail 
Develop a system and stick to it. Have specific criteria for entering and exiting trades. Always trade your plan. Have your entry, stop loss and take profit levels mapped out in advance — don’t change them once you are in a trade. 
Be patient and wait for your entry. Entering into mediocre trades will yield mediocre results. If you only trade the best opportunities you will trade less but you will have greater success. Write down your rules. Do nothing unless every rule is satisfied. 
Treat trading like a business
If you are a full-time trader, then you need to approach trading like a business. Create a business plan and edit it monthly. Keep a trade journal and study your past mistakes. Have specific rules for taking profit to pay your bills and cover expenses. Set achievable goals and incorporate daily activities (studying markets, reading financial news, paper trading, etc.) to keep your emotions at bay. 
You will be less likely to force trades out of boredom or because you feel internal pressure to be productive. Without a plan, you are likely to wake up each morning and force bad trades with no real direction.
Never watch the scoreboard
The only score that matters is the score at the end of the game. Avoid checking your portfolio or trade status repeatedly — set it and forget it. The more often you check to see how your trade is doing, the more likely you are to make an emotional decision to either exit too early or move your stop loss.
Know when to trade
Staying away from suboptimal market conditions is prudent. The crypto market, and more specifically, the altcoin market, is rarely tradable. Wait for the right moment to execute. 
Only trade when you are in the proper mindset. Don’t look to the market to make you feel better; if you aren’t up to trading the simple solution may just be to step away.
Trade with the proper size
Nothing causes more fear than trading with too much size. Start small and scale up as your portfolio and comfort level grow with the market. Scale in and out of positions to minimize the emotional drain from exiting too early or too soon.
Have a life outside of trading
Spend time with your family and friends. Go to the gym regularly. Eat healthy food. Turn off your phone and don’t check your portfolio regularly. Keep specific trading hours, and do not trade during your leisure hours. Nobody can trade 24/7 — it causes mental fatigue and poor decisions. Get a life!
There are numerous steps and techniques that a trader can use to eliminate emotion from their decision making. Find what works for you and stick with it. Control your feelings and become a successful and profitable trader.
Chinese Miners Shut Down
China Powers Down Bitcoin Mining Farms Amidst Coronavirus Scare | CryptoGlobe
A number of Chinese mining farms have been shut down, purportedly as a part of the effort to stop the spread of the coronavirus. The mining owners believe that it’s a bit suspect, since they are nowhere near the outbreak and other businesses in the area have remained open. That said, many huge businesses (Tesla, Apple etc) have had their operations effected by the virus, and crypto is surprisingly no exception. Hash rates continue to rise, even with the miners shuts down, which would indicate that China is no longer the mining super power that it once was.
Institutional Money Is Already Here
JPMorgan reportedly in talks about merging Quorum with Ethereum development studio ConsenSys
Further evidence that the big banks and institutions are interested in expanding their exposure to crypto companies (and likely cryptocurrencies themslelves). As you likely know, JP Morgan is already working on an XRP competitor - a stable coin for faster transactions. Give this a read, it will make you feel bullish on the future of crypto!
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.
Did you enjoy this issue?
 
Become a member for $15 per month
Don’t miss out on the other issues by Scott Melker aka The Wolf Of All Streets
You can manage your subscription here
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue