zen Posted November 29, 2021 Share Posted November 29, 2021 This post is for those who want to know the basics about Crypto: Crypto is traded through technical analysis and on various news/rumors. Below is one of the charts that I have open on BTC, where I have drawn potential support and resistance levels (you do not buy or sell crypto based on what the general sentiments are): Even in a bull market, Crypto can be 40% down. It is good to understand whether the market is in the bull stage or the bear stage You will most likely lose money on leverage trading where you can get "liquidated" (if you do not know what it means, google it) Crypto is first purchased through bank transfers, credit cards, etc., which is all white money. Yes, there can be means to turn black money into white and then invest that in such assets (or any other thing including purchasing a business) but the money used in crypto would be white Many people invest in crypto because it is "decentralized" and seen as a store of value To conduct transactions above certain limits on reputable exchanges, one is required to send it the identifying documents (passport, etc.) All crypto transactions can be traced (more expensive process to go into details but governments can do that) as they are conducted digitally. Below are some transactions of a major whale who bought 991 BTC at $54K: Block Time Amount Balance Balance, USD @ Price Profit 711748 2021-11-28 21:53:21 +0.00000777 BTC (0.45 USD) 114,959.57000322 BTC $6,592,334,292 @ $57,344.81 $4,252,301,446 711622 2021-11-28 00:49:57 +0.00000777 BTC (0.42 USD) 114,959.56999545 BTC $6,246,834,241 @ $54,339.4 $3,906,801,395 711508 2021-11-27 04:08:26 +0.00000777 BTC (0.43 USD) 114,959.56998768 BTC $6,321,457,934 @ $54,988.53 $3,981,425,089 711456 2021-11-26 19:52:52 +991 BTC (53,702,631.63 USD) 114,959.56997991 BTC $6,229,698,727 @ $54,190.34 $3,889,665,883 711358 2021-11-26 03:40:02 +0.00000777 BTC (0.43 USD) 113,968.56997991 BTC $6,269,724,751 @ $55,012.75 $3,983,394,539 711227 2021-11-25 00:55:21 +0.00000777 BTC (0.44 USD) 113,968.56997214 BTC $6,518,989,714 @ $57,199.89 $4,232,659,502 711195 2021-11-24 19:43:48 +105 BTC (6,088,282.26 USD) 113,968.56996437 BTC $6,608,312,598 @ $57,983.64 $4,321,982,386 Can Crypto be used for illegal purposes? Yes, but that would come under "fraud", which can be done in most fields with false documents, fake accounts, keeping it off the books (but it can be traced) and so on. ravishingravi 1 Link to comment Share on other sites More sharing options...
goose Posted November 29, 2021 Share Posted November 29, 2021 1 hour ago, zen said: This post is for those who want to know the basics about Crypto: Crypto is traded through technical analysis and on various news/rumors. Below is one of the charts that I have open on BTC, where I have drawn potential support and resistance levels (you do not buy or sell crypto based on what the general sentiments are): Even in a bull market, Crypto can be 40% down. It is good to understand whether the market is in the bull stage or the bear stage You will most likely lose money on leverage trading where you can get "liquidated" (if you do not know what it means, google it) Crypto is first purchased through bank transfers, credit cards, etc., which is all white money. Yes, there can be means to turn black money into white and then invest that in such assets (or any other thing including purchasing a business) but the money used in crypto would be white Many people invest in crypto because it is "decentralized" and seen as a store of value To conduct transactions above certain limits on reputable exchanges, one is required to send it the identifying documents (passport, etc.) All crypto transactions can be traced (more expensive process to go into details but governments can do that) as they are conducted digitally. Below are some transactions of a major whale who bought 991 BTC at $54K: Block Time Amount Balance Balance, USD @ Price Profit 711748 2021-11-28 21:53:21 +0.00000777 BTC (0.45 USD) 114,959.57000322 BTC $6,592,334,292 @ $57,344.81 $4,252,301,446 711622 2021-11-28 00:49:57 +0.00000777 BTC (0.42 USD) 114,959.56999545 BTC $6,246,834,241 @ $54,339.4 $3,906,801,395 711508 2021-11-27 04:08:26 +0.00000777 BTC (0.43 USD) 114,959.56998768 BTC $6,321,457,934 @ $54,988.53 $3,981,425,089 711456 2021-11-26 19:52:52 +991 BTC (53,702,631.63 USD) 114,959.56997991 BTC $6,229,698,727 @ $54,190.34 $3,889,665,883 711358 2021-11-26 03:40:02 +0.00000777 BTC (0.43 USD) 113,968.56997991 BTC $6,269,724,751 @ $55,012.75 $3,983,394,539 711227 2021-11-25 00:55:21 +0.00000777 BTC (0.44 USD) 113,968.56997214 BTC $6,518,989,714 @ $57,199.89 $4,232,659,502 711195 2021-11-24 19:43:48 +105 BTC (6,088,282.26 USD) 113,968.56996437 BTC $6,608,312,598 @ $57,983.64 $4,321,982,386 Can Crypto be used for illegal purposes? Yes, but that would come under "fraud", which can be done in most fields with false documents, fake accounts, keeping it off the books (but it can be traced) and so on. the worst part about trading crypto is the fact it's open on weekends. one way ticket to an early grave. ravishingravi and randomGuy 1 1 Link to comment Share on other sites More sharing options...
mishra Posted November 29, 2021 Share Posted November 29, 2021 (edited) Somehow i see crypto as combo of Tulip bud trade, work of art auction and black money stash. Value of crypto is same as what investors are paying. Investors as in black money hoarders. In day and age of FATF, i do not understand why its being even allowed unless government like US are simply waiting to pull the plug once enough black money is invested in it to let people know in big way that $$$ is only currency of reseve. Edited November 29, 2021 by mishra Link to comment Share on other sites More sharing options...
ravishingravi Posted November 30, 2021 Author Share Posted November 30, 2021 13 hours ago, zen said: This post is for those who want to know the basics about Crypto: Crypto is traded through technical analysis and on various news/rumors. Below is one of the charts that I have open on BTC, where I have drawn potential support and resistance levels (you do not buy or sell crypto based on what the general sentiments are): Even in a bull market, Crypto can be 40% down. It is good to understand whether the market is in the bull stage or the bear stage You will most likely lose money on leverage trading where you can get "liquidated" (if you do not know what it means, google it) Crypto is first purchased through bank transfers, credit cards, etc., which is all white money. Yes, there can be means to turn black money into white and then invest that in such assets (or any other thing including purchasing a business) but the money used in crypto would be white Many people invest in crypto because it is "decentralized" and seen as a store of value To conduct transactions above certain limits on reputable exchanges, one is required to send it the identifying documents (passport, etc.) All crypto transactions can be traced (more expensive process to go into details but governments can do that) as they are conducted digitally. Below are some transactions of a major whale who bought 991 BTC at $54K: Block Time Amount Balance Balance, USD @ Price Profit 711748 2021-11-28 21:53:21 +0.00000777 BTC (0.45 USD) 114,959.57000322 BTC $6,592,334,292 @ $57,344.81 $4,252,301,446 711622 2021-11-28 00:49:57 +0.00000777 BTC (0.42 USD) 114,959.56999545 BTC $6,246,834,241 @ $54,339.4 $3,906,801,395 711508 2021-11-27 04:08:26 +0.00000777 BTC (0.43 USD) 114,959.56998768 BTC $6,321,457,934 @ $54,988.53 $3,981,425,089 711456 2021-11-26 19:52:52 +991 BTC (53,702,631.63 USD) 114,959.56997991 BTC $6,229,698,727 @ $54,190.34 $3,889,665,883 711358 2021-11-26 03:40:02 +0.00000777 BTC (0.43 USD) 113,968.56997991 BTC $6,269,724,751 @ $55,012.75 $3,983,394,539 711227 2021-11-25 00:55:21 +0.00000777 BTC (0.44 USD) 113,968.56997214 BTC $6,518,989,714 @ $57,199.89 $4,232,659,502 711195 2021-11-24 19:43:48 +105 BTC (6,088,282.26 USD) 113,968.56996437 BTC $6,608,312,598 @ $57,983.64 $4,321,982,386 Can Crypto be used for illegal purposes? Yes, but that would come under "fraud", which can be done in most fields with false documents, fake accounts, keeping it off the books (but it can be traced) and so on. A layman question. What is underlying back up for bitcoin ? For instance, when a central body prints notes, it is against the underlying assets / gold of that sovereign. Since, bitcoin is out of purview of any sovereign regulatory authority, is it effectively a cash settled derivative rather than a currency. Or is it the new safe currency ( Yen ) / Gold ? Link to comment Share on other sites More sharing options...
Clarke Posted November 30, 2021 Share Posted November 30, 2021 21 minutes ago, ravishingravi said: A layman question. What is underlying back up for bitcoin ? For instance, when a central body prints notes, it is against the underlying assets / gold of that sovereign. Since, bitcoin is out of purview of any sovereign regulatory authority, is it effectively a cash settled derivative rather than a currency. Or is it the new safe currency ( Yen ) / Gold ? Do they still do that ? I thought they just print https://brrr.money/ Link to comment Share on other sites More sharing options...
goose Posted November 30, 2021 Share Posted November 30, 2021 1 hour ago, ravishingravi said: A layman question. What is underlying back up for bitcoin ? For instance, when a central body prints notes, it is against the underlying assets / gold of that sovereign. Since, bitcoin is out of purview of any sovereign regulatory authority, is it effectively a cash settled derivative rather than a currency. Or is it the new safe currency ( Yen ) / Gold ? my understanding is that it derives it's underlying value from mass network adoption of the bitcoin blockchain. basically, it's a confidence trick. just like the dollar in your pocket. in the first example you are putting your faith in a decentralised piece of code. in the second example you are putting your faith in centralised govt. ravishingravi 1 Link to comment Share on other sites More sharing options...
zen Posted November 30, 2021 Share Posted November 30, 2021 4 hours ago, ravishingravi said: A layman question. What is underlying back up for bitcoin ? For instance, when a central body prints notes, it is against the underlying assets / gold of that sovereign. Since, bitcoin is out of purview of any sovereign regulatory authority, is it effectively a cash settled derivative rather than a currency. Or is it the new safe currency ( Yen ) / Gold ? https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/ ravishingravi 1 Link to comment Share on other sites More sharing options...
Chakdephatte Posted November 30, 2021 Share Posted November 30, 2021 6 hours ago, ravishingravi said: A layman question. What is underlying back up for bitcoin ? For instance, when a central body prints notes, it is against the underlying assets / gold of that sovereign. Since, bitcoin is out of purview of any sovereign regulatory authority, is it effectively a cash settled derivative rather than a currency. Or is it the new safe currency ( Yen ) / Gold ? Not true. A government can print notes anytime they want. They don't do it coz it's bad for its economy. See Hyperinflation in Zimbabwe Sunil_narine024 and ravishingravi 2 Link to comment Share on other sites More sharing options...
ravishingravi Posted November 30, 2021 Author Share Posted November 30, 2021 11 minutes ago, Chakdephatte said: Not true. A government can print notes anytime they want. They don't do it coz it's bad for its economy. See Hyperinflation in Zimbabwe Exactly. I mean you can do it of course, but then your currency becomes a piece of paper. No more. Chakdephatte 1 Link to comment Share on other sites More sharing options...
goose Posted December 4, 2021 Share Posted December 4, 2021 hope everyone made it through the nuke. Link to comment Share on other sites More sharing options...
zen Posted December 4, 2021 Share Posted December 4, 2021 (edited) Usually, I do not post such things but since y'day was one of those instances that happens 2-3 times in a year which can create panic, for those looking for guidance: On the 4-hr: We are seeing a bullish candle RSI is above 20 Stock RSI is looking to break into the 20 level as well A bounce can be expected before another potential dump. Two scenarios - If BTC closes below $40k on daily/4 hourly, try to exit the market as it could signal crypto entering a bear market. If BTC continues to rise turning higher levels into support, it could eventually go parabolic to 6 figures. PS Not a financial advisor so manage your risks with due diligence! Edited December 4, 2021 by zen Link to comment Share on other sites More sharing options...
Prakat Posted December 9, 2021 Share Posted December 9, 2021 Crypto's wash trading epidemic Quote Imagine you bought an apple for US$1. Then sold that apple to yourself for US$1.25. Repeat that process a few times and you could end up with a US$2 price tag on that same apple (which is perhaps a little less crunchy by now). This is a very simple, albeit usually illegal, way to inflate the value of something you own—just manufacture both demand and supply for it yourself. The technical term for this is wash trading. While any financial market can be manipulated in this way, unregulated ones with complex instruments (re: crypto) can be especially susceptible. And a new study now suggests that as much as 70% of the activity on unregulated crypto exchanges could be wash trading. That’s what we’ll look at in today’s edition. There are also quick updates on India’s plans to rope in its markets regulator for crypto supervision, and the possible emergence of an oligarchy centered around non-fungible tokens. Regulators have long suspected that crypto markets are prone to wash trading. For instance, concerns around such activity were among the reasons why the US Securities and Exchange Commission rejected investment firm VanEck’s application to list its bitcoin-backed exchange traded fund last month. And these suspicions seem justified. A recent study released on the Cornell University-owned arXiv archive observed that over 50% of trading activity on unregulated exchanges such as Binance and Huobi are essentially individuals trading with themselves to inflate the value of their assets. While Binance is considered the world’s largest crypto exchange—with assets worth over US$76 billion traded on it each day—Huobi used to be China’s largest exchange before the recent government crackdown. Huobi now plans to move its headquarters outside the country. “We estimate the average wash trading to be 53.4% of trading on unregulated Tier-1 exchanges and 81.8% on Tier-2 exchanges,” the study noted. [Source: Crypto Wash Trading/arXiv] While a total of 29 exchanges were analysed for the study, prominent names that feature on the list include Binance (denoted as UT1 in the above table), Bitfinex (UT3), and Huobi (UT5). Why some crypto owners would want to wash trade is a no-brainer, but why do exchanges look the other way? One simple reason could be because their popularity—and money making potential, by extension—depends on the volume of trading activity on their platform. If an exchange wishes to boost its ranking on a metric like, say, ‘Spot Trading Activity Volume’—which is tracked by Binance-owned CoinMarketCap—it can end up being hand-in-glove with wash traders who deliver higher volumes. And as noted in the study: Profit-driven exchanges may also take advantage of the information asymmetry or even directly act against users’ interests through various market manipulation measures. In an unregulated environment, an unethical cryptocurrency exchange can be “both a referee and a player” at the same time. But not all exchanges are quite as vulnerable. The study found that even though unregulated exchanges tend to lean heavily on wash trading to prop up volumes, regulated ones have a much lower incidence of such activity. Take Coinbase, which was fined US$6.5 million in March 2021 by the US Commodity Futures Trading Commission—both for misleading data reporting and operating a wash trading mechanism on its GDAX trading platform between August and September 2016. “A former Coinbase employee used a manipulative or deceptive device by intentionally placing buy and sell orders in the Litecoin/Bitcoin trading pair on GDAX that matched each other as wash trades. This created the misleading appearance of liquidity and trading interest in Litecoin,” the commission noted, adding that Coinbase was vicariously liable for the employee’s conduct. The exchange seems to have cleaned up its act since, and its recent public market debut has only expanded the scope for further regulatory scrutiny. Any goof up now will likely also be accompanied by a sharp reduction in its stock price. Without such checks though, exchanges may be quite tempted to let such activity slide, especially in jurisdictions like India that are yet to set up a regulatory framework for crypto. Crispy bytes India might end up roping in the Securities and Exchange Board of India to regulate crypto-assets. Under the proposed legislation, using crypto to make payments could open people up to arrest without a warrant, with no access to bail. [Mint, Reuters] David Marcus, head of Meta’s (formerly Facebook) digital currency project, has decided to step down. He will be succeeded by former Upwork CEO Stephane Kasriel [The Wall Street Journal] Zimbabwe’s central bank is mulling the issuance of a central bank digital currency (CBDC). [Bloomberg] Virtual real estate might not be real exactly, but its valuation depends on the same factors as its real-world counterpart: location, location, location. [The New York Times] Singapore has suspended crypto exchange Bitget due to a situation involving a crypto pension scheme, the South Korean boy band BTS, and a crypto asset called Army Coin. [Financial Times] Source: https://the-ken.com/tokenised-edition/crypto-exchanges-have-a-wash-trading-malady/ the study: https://arxiv.org/pdf/2108.10984.pdf Link to comment Share on other sites More sharing options...
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