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The Wolf Den #216 - Tips For Aspiring Traders

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April 8 · Issue #216 · View online
The Wolf Den Crypto Newsletter
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A few quick thoughts for the aspiring traders out there.
Traders do not average down
A common grave mistake many traders make is Averaging Down: buying more of the coin as the price drops with the logic that a good thing is now cheaper (an even better bargain). This logic applies to investing, not to trading
A trader has an invalidation level for their idea — price dropping significantly should invalidate their trade and cause their stop loss to fire! Most beginners do not understand this and dig a deeper hole than necessary.
The only time you average down is when you already had set orders in place to fill a full position. Never add to a loser if that was not your plan. Thta’s how you become a bag holder and “passionate community member.”
Risk management is everything
Risk Management is boring — and happens to be the most essential skill necessary to be profitable. Understanding how much to risk on a trade and how to properly balance a portfolio are exponentially more important than entries and exits. Learning this takes time — most new traders are broke before they understand risk.
Most people would be far better off slowly investing a small percentage of their entire portfolio in crypto — and in Bitcoin, in particular.
The casino never closes. You have to.
The crypto market is open 24/7, giving traders the feeling that they always have to be trading. This causes tremendous fatigue and FOMO (fear of missing out) for emotional traders. Nobody can effectively track a market that is perpetually available, and new traders find it difficult to step away. This often ruins both their personal lives and destroys their finances. You need to find life balance and be able to remove yourself from the market on a regular basis.
Trading is HARD. Be an investor first, and if you insist on trading, do it with a small percentage of your capital.
This newsletter is ALWAYS sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out!
In This Issue:
  1. Tips For Aspiring Traders
  2. Bitcoin Thoughts And Analysis
  3. Altcoin Charts
  4. Chart Requests
  5. Will Coinbase’s Success Pump Bitcoin?
  6. Peter Theil Expresses Bitcoin Concerns
  7. Elrond Gold Continues To Make Breakthroughs
  8. Moonbeam: Multi-Chain DApp Development Platform
  9. Boson Protocol - dCommerce
  10. The Wolf Of All Streets Podcast Ft. Mark Yusko
  11. Mina Mainnet Is Live
  12. My Recommended Platforms And Tools

Bitcoin Thoughts And Analysis
As I said yesterday, I was feeling somewhat confident that the drop was temporary and that price would head back up. That has happened so far. Anything can happen, but things look good for now.
DAILY CHART
Beautiful touch of support at the equilibrium of the trading range. That was the key area we were watching, so a nice large candle today that hold it as support would be bullish. If it loses the EQ, then look to the bottom of the range as the next major support. The safest trade at this point is a break of the range highs (the all time high) and entry into price discovery. It all depends on your time preference and strategy.
4-HOUR CHART
The 4 hour chart has a clear bull flag, with price currently attempting a break into the upper half. As you can see, the retracement stopped just above the 50% level, which is normal after a major move up. Any bull flag should not retrace much more than 50%. The trade here is a break of the upper resistance. You can see the target based on the length of the flagpole - around $68,000.
As you can see, price bounced perfectly from demand while retesting the former descending resistance as support. It also flipped the 200 MA right back to support, which is encouraging. 50 MA is the next clear target here.
Altcoin Charts
We have had some amazing trades in the past couple of weeks, namely BNB, SOL, 1INCH, EGLD, UTK and others. The TRX setup still looks like a beautiful potential retest and LTC is looking good as well. You can revisit all of those in past issues.
FTT/BTC
This ran away before I had a chance to post, unfortunately. I reviewed it on the live stream yesterday. It is back in price discovery for new all time highs after breaking out of the ascending channel. A retest of 80489 as support would be an amazing entry, but so potentially would a retest of the top of that channel as support. Either way, this looks ready to continue flying.
INJ/BTC
Injective is currently breaking through both descending and horizontal resistance. It has struggled with this level, with a few wicks above, so we want to see a clear break and close above 24800. I would be looking for a retest of that area as support for an entry. I would place stop below the ascending black line, which is the main support in my opinion. Target is the top of the descending line.
Chart Requests
Chart request from yesterday! I was unable to find a few of them, sorry!
$AAVE $ADA $ALPHA $ATOM $AVAX $BAT $BQX $CHZ $COMP $CRO $CRV $DODO $DOGE $ENJ $eRSDL $EWT $FET  $FLM $FTT $GRT $HBAR $HNT $HOT $HTR $ICX $KICK $KIN $KSM $LPX $LUNA $LUA $MATIC $OM $ONT $ORN $PMON $RAY $RLC $RSR $RUNE $SAKE $STMX $SUSHI $TORN $TRX $TVK $WAXP $WTC $XVG $ZIL
Bitcoin And Altcoins Correcting - What's Next?
Will Coinbase’s Success Pump Bitcoin?
Coinbase - Coinbase Announces First Quarter 2021 Estimated Results and Full Year 2021 Outlook
Coinbase’s success is certainly an indicator of the health of the market, but it’s my belief that the direct listing next week will not directly impact price. Bitcoin is in a bull market and it is publicly known that exchanges have been performing exceptionally well, so this isn’t fresh news now that Coinbase is more transparent with its growth.
Coinbase acknowledged in their own news detail that crypto cycles impact their results. The logical progression of cause and effect starts with Bitcoin, then works its way down. Below is an excerpt from Coinbase.
These cycles can be highly volatile, and as a result, we measure our performance over price cycles in lieu of quarterly results. We believe that we can create long-term value throughout these price cycles.
Peter Theil Expresses Bitcoin Concerns
Peter Thiel Calls Bitcoin ‘a Chinese Financial Weapon’ at Virtual Roundtable - Bloomberg
Peter Theil, the German-American billionaire entrepreneur, venture capitalist, and PayPal co-founder likened Bitcoin to a “Chinese financial weapon against the U.S.” Thiel has been both a maximalist and investor in Bitcoin for a long time, which lends credibility to his thoughts. China has been advancing , but for Theil to equate Bitcoin to a Chinese weapon may be rooted in paranoia more than fact. Japan, Switzerland, Singapore, Iran, and many other countries have also taken unique steps towards adopting the technology, but are they using Bitcoin as a weapon? If Bitcoin is damaging to the U.S. dollar, wouldn’t it also damage other outdated fiat systems around the world? And is China the real threat to the dollar or is the threat really just the actions of our own politicians? Bitcoin’s geopolitical role is far from concrete, but likening Bitcoin to a weapon seems a little extreme. China’s CBDC seems like the more likely threat.
Elrond Gold Continues To Make Breakthroughs
Beniamin Mincu ⚡
BIG news. 🇺🇸

US shoppers to pay with $EGLD at e-commerce giants such as Amazon, Walmart & eBay via @shopping_io. 🔥

#hypergrowth100 Day 92.
https://t.co/4MkU514lq2
Alts have been performing well across the board over the past few months. I believe the longevity of a project is determined by its ability to mature and grow when times are both favorable and undesirable. Elrond Gold, one of my favorite long-term altcoin holdings, released two big updates the past couple of days that I felt were worthy of sharing here.
First, US shoppers can pay with $EGLD at Amazon, Ebay and Walmart via Shopping.io. Of course, it would be 10x more exciting if you could directly spend your $EGLD at these companies, but the first step in adoption will be through intermediaries. Second, a project I invested in and have already reviewed, Polkamon, will now be powered by the Elrond Network. Elrond’s mainnet will be integrated with the Polkamon platform – which is great for Elrond’s natural move into NFTs.
Consistency and progress are something I look for in a coin I want to hold long-term and Elrond continues to prove both those characteristics.
Moonbeam: Multi-Chain DApp Development Platform
Moonbeam | Polkadot Smart Contract Platform
Moonbeam is one of the easiest on-ramps for building an application on Polkadot. 
As an Ethereum-compatible smart contract platform, Moonbeam makes it easy to use popular Ethereum developer tools to build or redeploy Solidity projects in a Polkadot-based environment.
By providing the easiest development environment AND the richest set of developer integrations on Polkadot, Moonbeam is attracting and onboarding new and existing applications to the Polkadot ecosystem very quickly. Dozens of integrations have already been deployed or are in the works.
Moonbeam has become a favorite platform for multi-chain projects because of its unmatched Ethereum compatibility:
  • Minimal Changes: if you have an existing contract, it will work right away with no need to rewrite or reconfigure.
  • Languages: write smart contracts in Solidity or anything that compiles to Solidity bytecode
  • Use Existing Tools and dApp Front-Ends: connect popular tools like MetaMask, Remix, and Truffle via a complete set of Web3 RPC endpoints. Use well known Javascript libraries such as Web3.Js or Ethers.Js.
  • Unified Accounts, Addresses, and Signatures: use your existing Ethereum H160 accounts & ECDSA signatures to interact with Moonbeam.
  • Publish-Subscribe Capabilities: subscribe to contract events and updates about on-chain transactions, balances, and more.
Moonbeam also has a sister network, Moonriver, which lives on Kusama.
Like Kusama itself, Moonriver’s initial purpose is to serve as a “CanaryNet” — which is to say, it will act as a “canary in a coal mine” and sound the alarm for any potential issues before the code is deployed to Polkadot. In practice, that means code will first be deployed to Moonriver (on Kusama), where it will be tested and vetted both for functionality and for other more-difficult-to-foresee abuse and manipulation scenarios.
Moonriver is expected to launch shortly, as soon as parachain functionality is enabled on Kusama. Moonbeam will launch later this year when the same functionality is extended to Polkadot. Learn more about Moonriver and Moonbeam on the official project website: https://moonbeam.network/ 
Boson Protocol - dCommerce
Introducing the dCommerce Sustainability Loop | by Nico Rodriguez | BosonProtocol | Feb, 2021 | Medium
Boson Protocol has been all the rage lately - their dCommerce proposition is a very important one for crypto at large - we all know how much value is captured by centralized coordination monopolies, such as Amazon, eBay, and Alibaba. Boson has raised $10m+ privately and now have raised north of $7m on their ongoing Gnosis auction.
As the IDO happens, they are already being announced by Kucoin as a listed project, which puts into perspective how fast things should happen from here. 
The BOSON token is the core economic unit of the dCommerce ecosystem and will be available at decentralized and centralized exchanges alike very shortly. One thing that I found interesting is that they are modeling their long-term sustainability in the same ways Amazon did. See more here
Boson Protocol’s vision is to enable a decentralized commerce ecosystem by funding and enabling the development of a swarm of specialized applications to disrupt, demonopolize and democratize commerce.
Boson Protocol is a foundational Web3 primitive for commerce that unlocks two planetary-scale value pools: a public infrastructure for coordinating commerce transactions and a Web3 Commerce Data Marketplace. 
To date, Boson Protocol has announced over 20 key partnerships passed a successful token contract audit by Certik and released a detailed whitepaper. The $BOSON public sale is taking place with 6 million tokens being made available for public purchase.
The Wolf Of All Streets Podcast Ft. Mark Yusko
Podcast - The Wolf of All Streets
Bitcoin Could Hit $500,000 | Mark Yusko
A fan favorite from his first appearance on the podcast, Mark Yusko returned for round 2 to discuss Bitcoin’s epic price appreciation. From schmuck insurance to boomer rocks to flying money, this episode will raise your Bitcoin conviction at least two notches higher no matter where you’re at. Yusko’s epic career in finance continues to race ahead of the curve, making this an episode not to be missed, plus he is the only guest to actually howl on the show. Follow Mark Yusko on Twitter, @MarkYusko.
In this episode, we discuss a range of topics including:
  • Halvings + human emotions = cycles
  • Energy converted to value
  • Financial natural selection
  • Satoshis instead of Bitcoin
  • Zero is off the table
  • Being wrong vs staying wrong
  • Boomer rocks
  • Flying money
  • Concentration vs diversification
  • Group stink
  • Opting out of systemic devaluation
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Mina Mainnet Is Live
The world's lightest blockchain, powered by participants.
This newsletter is brought to you by Mina, the world’s lightest blockchain-powered by participants. Mina uses zk-SNARKs to keep the blockchain a fixed size of 22kb. Bitcoin’s ledger is currently 336 gigabytes and growing. That means you can fit 45 thousand Mina blockchain proofs in the same storage place.
22kb is the equivalent of the email you sent your ex asking for your high school sweatshirt back trying not to be mean. 22kb is the equivalent of 8 tweets you sent out about shrimp tails in your cereal. 22kb is so small, if it were a ship, it’d fit through the Suez Canal while the Ever Given was stuck there.
Mina’s mainnet has just gone live, offering users a platform to build a private gateway between the real world and crypto. And as a reminder, Mina’s public token sale is only available to non-U.S. persons. It will take place on April 13 with their official partner CoinList! Go to Mina to find out more.
My Recommended Platforms And Tools
This is where I trade with leverage and can also trade spot with no fees.
This is where I spend my days teaching and learning! Our Discord group is a one stop shop for everything you need to learn to trade and control your emotions. Feel free to DM me on Twitter or respond to this email for questions. Code Wolfsden50%off for a 50% discount on the first month.
This is where I invest, commission-free. They now let you earn interest on your Bitcoin held in Voyager, so you can compound while trading. Not only that, you’ll get $25 in free BTC when you download & fund.
Rewards Code: WOLF25
I use RoundlyX to buy small amounts of Bitcoin every single day. They automatically round up my credit card purchases (with 10x multiplier) and invest them in crypto. Absolutely brilliant. Passively invest money you don’t need without a thought. Further, they have integrated with Voyager (see above) to offer commission-free purchases.
Rewards Code: WOLF
Binance is finally available in Florida!
Concierge Phone Service for Americans that protects your from SIM Swaps and other phone related hacks. I cannot stress enough how amazing this service is.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
On-chain and fundamental analysis, research, predictions and indicators, all in one place. Highly recommend.
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. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to “Buy,” “Sell,” or “Hold” an investment.
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