The Wolf Den #517 - Go Fish

In celebration of the 500th Wolf Den Newsletter, my amazing sponsor Bitget decided to join in on the giveaways with a $50,000 prize pool! Simply make your first deposit of $50 to get $50 USDT from 23rd May till 10th June. No strings attached. No trades required! Literally $50 for free. Just sign up using my link. This is exclusively for my followers.

For more information on the giveaway, click HERE.

Get up to a $5,000 bonus in USDT when you sign up using my link to Bitget! Bitget is the best crypto exchange for both spot and leverage, world’s largest crypto copy trading platform, and the official partner of Juventus Football Club. They are also offering a 15% discount on trading fees!

Today feels like a great time to go fishing.

What does this mean?

Markets are exhausting, often confusing and irrational. If you are an active participant, there are numerous options at any given time as to how you can approach your trades and investments. This is especially true in crypto, where the casino is open 24/7/365.

Nobody can remain on top of the crypto market at all times, so trying is a fool’s errand.

When the market is choppy and confusing, it’s time to go fishing.

A trader does not need to be actively trading the market at all times. I often say that sitting on your hands is a position, meaning that doing nothing is challenging and is a sort of "trade” in itself. If you have decided to trade full time, then doing nothing feels like failure. When I was trading as my main source of income, I found that I pushed trades constantly that I would have otherwise passed on, only to feel like I was “working.” This was a losing strategy that I quickly had to force out of my repertoire.

Reinforcement of the previous idea. This quote reminds us that trading less often gives us more. More money, of course, but also more free time to expand our knowledge and experience and to keep our mind clear to approach the next opportunity with confidence.

What is the moral of the story? Sometimes doing less is more, sometimes taking a break is the best trade, and being patient is ALWAYS the best strategy.

By visiting the Ethereum Foundation and hovering over the “community” tab, you will find a number of ways in which you can get involved in the Ethereum ecosystem. If you have ever thought about being a validator, coder, researcher, or event attendee, this is your starting place. If you do plan to explore this rabbit hole, I suggest creating both a Reddit and Discord account, as all of the important conversations start on these platforms.

It’s finally done and it’s a big one! The highly anticipated bipartisan Responsible Financial Innovation Act addresses the crypto industry’s most pressing concerns. The topics within the bill include definitions, securities laws, jurisdiction of authority, stablecoin regulation, advisory committees, disclosure requirements, and further studies. There is a lot.

I won’t have time to read the whole bill before sharing (it is 69 pages long), but from what I skimmed through, there are a few points that I liked right off the bat that I copied directly from the bill. I was able to find these points through the Section-by-Section Overview. I recommend starting your journey there.

Section 201 - Gross income shall not include gain or loss from the disposition of virtual currency in a personal transaction for the purchase of goods or services. The amount of gain or loss excluded from gross income shall not exceed $200.

Section 301 - A person acting at the direction or on the behalf of such an issuer, shall be not required to treat an ancillary asset provided by such an issuer as a security under this Act or any other provision of the law.

Section 403 - The Commission shall have exclusive jurisdiction over any agreement, contract, or transaction involving a contract of sale of a digital asset in interstate commerce, including ancillary assets.

These three things constitute a huge leap forward. Section 201 attempts to establish using crypto for payments in small amounts ($200) without having to worry about being taxed on gains. Section 301 amends our outdated securities laws with new definitions to extend to digital assets. And lastly, Section 403 moves a large burden of responsibility of our space to the CFTC from the SEC.

I’ll keep an eye out for comprehensive articles or threads in the coming days, but I think we should chalk this up as an early win. This bill lays the groundwork needed for industry stakeholders and researchers to fill the necessary gaps. Let’s get this thing edited and passed!

For PayPal users with crypto in their accounts, you will finally be able to withdraw your assets to your own wallet. Coming to U.S. customers within one to two weeks, the functionality will be possible for anyone who completes an additional identity verification. By the way, this is not your cue to use PayPal as a trading platform. They have explicitly said in the past that is not what the platform is designed for.

This just means that you can finally take custody of your own assets.

“Says White House Office of Science and Technology Policy Principal Assistant Director for Energy Costa Samaras,

The study, which is coming months after President Joe Biden signed an executive order aimed at ensuring the responsible development of digital assets, will reportedly examine issues ranging from the noise pollution by crypto mining farms to the various mining techniques.

This should be interesting.

Our friend Caitlin Long is not playing games. Custodia would be the first “bitcoin bank” to gain a master account with the Fed, something is essential moving forward. The application has been delayed for 19 months.

“"Through this lawsuit, Custodia seeks to ensure that its Federal Reserve master account application receives the fair dealing and due process guaranteed to it by both federal statute and the U.S. Constitution,” said Custodia Bank’s spokesperson Nathan Miller in a statement. “Custodia has satisfied every rule applicable to it, and has gone beyond by applying to become a Fed member bank.”“

Get your popcorn.

Proud sponsor of The Wolf Den Newsletter. The world’s biggest crypto copy trading platform, up to a $3000 bonus for signing up.

Mining for everyone! You can buy an ASIC and have it set up at a destination of your choice by them, and you only pay the electricity cost. Absolutely awesome.

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.

Rewards Code: WOLF

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.

Subscribe to my YouTube channel for free daily content.

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 most comfortable clothing on the planet, so much so that I went out of my way to ask them to be a sponsor after pushing them endlessly on my YouTube streams! Seriously, these are my favorite clothes. Whatever you are wearing right now is less comfortable than Vuori.

I have chosen Bullish as a sponsor for both my podcast and livestreams! They are an awesome exchange that incorporates all of the benefits of both centralized and decentralized exchanges. Your keys, your coins, but with a robust order book, complex orders and deep liquidity.

Vauld are sponsoring both my podcast and livestreams and have become my personal platform of choice for holding coins and earning yield. I love their rates (12.68% on Stables and 6.7% on BTC and ETH) and their buy the dip feature that automatically buys for me when price drops.