Governance Tracker by Tally Review

The cryptocurrency market is fluid and ever-changing.

When you think you’ve got a handle on the pulse of a coin or token’s price action, it takes an unexpected turn.

No one is perfect, and that’s especially true when it comes to cryptocurrency. By using the right tools, though, you can tilt the odds of success in your favor.

That’s why, in this article, I’m going to go through some of the greatest crypto tools I’ve discovered and how you may utilize them to get the most out of your investments.

The crypto tool to add to your belt is another bundle and that’s the Governance Tracker by Tally, the governance tracker by Masari and the governance tracker by Deep Down.

Starting with Tally’s governance tracker.

This tool lets you see all the most active dowels on Ethereum, Polygon, Avalanche, Optimism and Arbitram.

Any dows that have active proposals in process are automatically top of the list otherwise it’s sorted based on how many active voters there are.

I’ll quickly note that it’s quite remarkable how little engagement there is outside of the top 10 dows.

Now what’s cool is when you click on one of the dows tally will show you how the governance process for the dow in question works.

In simple terms as well as the top voters in that dow and their voting power.

Not surprisingly the top voters in these dows are often crypto VCS.

What’s awesome is that tally even lets you create your own proposal for the dow you’ve selected and gives you a step-by-step guide on how to publish your proposal note that you’ll need a web3 wallet like Metamask for this.

Now besides making it easy to have a say in your favorite crypto projects Tally’s governance tracker can be another way to keep track of any cell pressure your favorite coins or tokens could experience assuming they have proposals waiting to be passed.

Of course not only that but keeping track of proposals before they’re passed can be a great way of getting ahead of an upcoming rally.

All you need to do is check when the proposal will be passed and if you know it’s a significant one you could make an easy profit selling the news.

Ideally you’d catch a bullish proposal before it’s even tabled and that’s where Masari’s governance tracker comes in.

This tool also gives you an overview of the most active dows on popular smart contract cryptocurrencies including governance for smart contract cryptocurrencies themselves unlike Tally’s governance tracker.

However Masari’s governance tracker gives you an overview of all the preliminary discussions going on within these dows.

This makes it easy to spot proposals that have yet to be tabled and can therefore get you in extra early on a price move before the proposal is passed.

Now the only thing I’ll caution is that Masari’s assessment of the importance of a particular proposal isn’t always accurate so don’t give too much weight to that indicator on the dashboard.

Always click on the proposal to double check what it’s about then ask yourself whether it’s something that could be passed and what it could mean for the price of the coin or token in question.

Last but not least we have deep dow’s governance tracker which essentially combines the best of the two other governance tools.

Deep dow lets you sort dows by changes in treasury value token holders and active voters on the home page.

The tool also lets you see both discussions and proposals in real time on the dao feed.

The difference is that deep dow aggregates this data to give you an idea of how daos are doing in general be it by active voters or treasury balances.

Deep dow also lets you see which wallets are the most active in crypto governance on the people tab interesting stuff to say the least.

BUSD vs. USDC

Binance announced it would be converting all USDC, USDP and TUSD stable coins on the exchange into BUSD at the end of this month.

Binance also announced that it will be removing all USDC, USDP and TUSD trading pairs on the exchange.

Note that these stable coins will automatically be converted into BUSD and any open trades involving these stable coins will be automatically closed and liquidated in the case of Leverage trades.

Binance’s BUSD is issued by Paxos a fully regulated Trust Company in the United States which seems to have the best track record as far as stablecoin reserves go.

Circle 2 is based in the United States and its USDC stablecoin has come to have the same kind of high quality reserves as Paxos’s BUSD albeit with slightly less regulatory oversight.

The same is true for TrueUSD and its TUSD stablecoin by contrast Tether is not based in the United States and though the reserves backing its USDT stablecoin have been improving.

They are not nearly of the same quality as its competitors this has resulted in lots of regulatory scrutiny from the United States and other countries.

Now as it so happens Binance confirmed to coin Telegraph shortly after its stablecoin enhancement that the exchange may eventually apply the same Auto conversion to Tethers USDT.

What this means is that Binance has effectively declared war on all other stablecoin issuers and that is a very big deal.

This is why it’s so odd that Circle CEO Jeremy Alaire said that Binance’s auto conversion of USDC into BUSD is a good thing for USDC consider that most active USDC trading pairs are on binance so eliminating them almost guarantees that USDC’s liquidity will be significantly reduced.

That said there is one very important factor that could protect exchanges and stablecoin issuers and that’s the adoption of US dollar stable coins which continues to accelerate as inflation continues to rise around the world and foreign currencies continue to collapse against the Greenback.

How to Invest in Cryptocurrency

Digital money is called cryptocurrency. Cryptocurrency uses blockchain technology, which has been described as secure since it can establish decentralized consensus among untrustworthy parties. Cryptocurrency blockchains function similarly to traditional bookkeepers’ ledgers, except that the ledger is digital and everyone with access to it can serve as the bookkeeper.

Cryptocurrency has been embraced by both investors and entrepreneurs around the world, with funds pouring in from all corners of the globe. Though Bitcoin is undoubtedly the most renowned cryptocurrency, there are thousands of alternative digital currencies already in existence.

Cryptocurrency is one of the newest and most exciting asset classes available to investors, and it’s fast becoming a major player in financial markets.

When it comes to investing in cryptocurrency, you might imagine purchasing and holding one or more crypto coins. Buying cryptocurrencies outright is typically the most popular method of expanding your portfolio’s cryptocurrency exposure, but there are a few alternative options:

Buy cryptocurrency directly: There are established cryptocurrencies like Ethereum and Bitcoin, and then there are less known coins that come out with an ICO.

Invest in cryptocurrency companies: You may invest in firms that have a minor or total focus on cryptocurrency. Cryptocurrency mining companies, mining hardware manufacturers, companies like Robinhood Markets, Inc. (HOOD) and PayPal Holdings, Inc. (PYPL), as well as other businesses with various degrees of crypto exposure, are just a few examples of where you can put your money. You may also invest in firms like MicroStrategy Incorporated (MSTR), which store large amounts of bitcoin on their balance sheets.

Invest in cryptocurrency-focused funds: If you don’t want to pick and choose individual cryptocurrency companies, you could opt to invest in a fund that focuses on cryptocurrencies. These funds come in the form of exchange-traded funds (ETFs), such as index and futures funds, or trusts. Some crypto-focused simply invest in cryptocurrency while others put their money into companies with a crypto focus or derivative securities, like future contracts.

Invest in a cryptocurrency IRA: A cryptocurrency IRA is a great way to invest in cryptocurrency while also taking advantage of the tax benefits of an individual retirement account. The best crypto IRA providers can help you safely store your holdings and take care of all the paperwork involved.

Become a crypto miner or validator: The most common way to invest in cryptocurrency is to mine it or be a validator in a crypto network. By doing so, miners and validators earn rewards in the form of cryptocurrency, which they can either HODL as investments or trade for another currency.

Here’s a step-by-step guide on how to use a cryptocurrency exchange if you want to invest in digital currency directly:

Choose the cryptocurrency exchange you want to use. A well-known, reputable exchange with a broad range of currencies is your best option.

Create a cryptocurrency account with the exchange. To finish the registration procedure, you must provide personal information and authenticate your identity.

Create an account using fiat money. You must first deposit another currency like as US dollars into your exchange account in order to buy any cryptocurrency.

There are many cryptocurrencies to choose from, so do your research and pick the one (or ones) that you think have the most potential. You can invest in as many or as few as you want.

To purchase cryptocurrency, first find an exchange and create an account. Then follow the steps provided by the exchange to submit a buy order for your chosen coins. Finally, complete the transaction as instructed.

Your cryptocurrency will be stored in a digital wallet after your purchase is complete. The information you need to access your cryptocurrency is held in that digital wallet, which can be hosted by the cryptocurrency exchange or an independent wallet provider.

Reviewing your investment portfolio periodically is a smart way to ensure you are meeting your goals. This might include selling or buying more cryptocurrency, depending on what else is going on in your finances.

Many people view investing in cryptocurrency as a high-risk investment. The prices for cryptocurrencies, even those which are well-established, can be incredibly unstable when compared to stocks or other assets. In addition, the value of cryptocurrencies could drop sharply if there any changes made to cryptocurrency regulations – including making it illegal altogether.

Although the volatility of crypto can be a deterrent for some investors, others see it as an opportunity to make large gains. If you’re thinking about investing in cryptocurrency, do your due diligence and research each digital coin before making any purchase. Always check transaction fees when buying cryptocurrency because they vary significantly from one currency to another.

The cryptocurrency domain changes rapidly, so it’s crucial to monitor new updates that may influence your crypto assets. People who invest in cryptocurrency should comprehend the tax implications of dealing with crypto, particularly if they buy or sell anything related tocryptocurrency.

Given the riskiness of cryptocurrencies as an asset class, it’s critical not to put more money into them than you can afford to lose.

Ethereum’s merge – will it cause a problems with ETH or ERC20 tokens?

If you’re wondering where all the speculation has been coming from the answer is of course Ethereum’s transition from proof of work to proof-of-stake which is officially expected to occur between the 10th and 26th of September as per a blog post by the Ethereum foundation.

The merge itself will be preceded by the bellatrix upgrade on the 6th of September which will activate Ethereum’s consensus layer on the proof-of-stake beacon chain. The magic that happens between the 10th and 20th of September will be the actual transition of the execution layer from proof of work to proof of stake.

As amazing as it is to finally get confirmation of one of the most highly anticipated milestones in the history of cryptocurrency the fact of the matter is there could still be some unforeseen issues as was the case with the discovery of a small bug on the very day that the final dates were announced.

Don’t get me wrong Ethereum’s core developers are definitely prepared for the upgrade and have likely found all the bugs that any human being could hope to find. From what I’ve heard and seen most of the concerns are about damaging bugs in other places such as Ethereum’s decentralized applications.

As we’ve seen over the last few days there’s no shortage of leverage related to the merge and lots of this leverage is actually within Ethereum’s own defy ecosystem.

It’s possible if not likely that there could be pricing issues during the merge that lead to unwanted liquidations in some d5 protocols not only that but it’s easy to forget that centralized exchanges are effectively part of the Ethereum stack as well I’m sure many of you have seen the announcements from Coinbase and Binance that they will be pausing deposits and withdrawals for ETH and ERC20 tokens around the time of the merge.

Although Binance provided an exact date for its deposit and withdrawal pause it appears that Coinbase didn’t and I suspect that not all exchanges will provide exact dates for whatever reason.

Never mind the possibility that the exchanges which did provide dates could be forced to change them last minute. As such you should consider moving any ETH or ERC20 tokens you plan on selling on or around the merge to a centralized exchange in the next week or so.

Just make sure you’re using a regulated exchange and bear in mind that many exchanges could see outages due to all the trading activity.

Moving of your ETH and ERC20 tokens to another secure smart contract cryptocurrency could be a good way of hedging yourself against any exchange outages.

Week’s overview: FED, CPI and August expectations

Last week the consumer price index or CPI for the month of July was released by the United States bureau of labor statistics and it came in at 8.

5 percent. This was 0. 2 percent less than the 8. 7 percent that investors were pricing in and a full 0. 6 percent less than the 9.1 CPI print for june. This resulted in a rally across all asset classes as investors took the surprisingly low inflation reading as a sign that inflation might have peaked and that this means the federal reserve will not raise interest rates as aggressively when its officials come back from their break in September.

For anyone unaware the fed’s rate hikes are what has been causing the crypto market to collapse since november and if you have read about the fed’s most recent press conference you’ll know that the interest rate rhetoric alone is enough to cause markets to crash.

You’ll also know that the fed will continue raising rates until its officials are confident that inflation is headed back for the institutions.

2 target consider for a moment that the US is still a full 6.5 percent above this target even with the latest inflation reading.

This is why many experts are cautioning that the fed’s aggressive rate hikes are not done yet and on friday one of the fed’s officials explicitly stated that so long as inflation remains at these levels, quote – “we’re just going to have to continue to move rates into restrictive territory”.

This same official also specified that he and his constitutions would quote “like to see inflation running at our target which is two percent at the pce”.

For context pce is short for personal consumption expenditures. Price index the fed’s preferred inflation measure from the pce’s perspective inflation hasn’t peaked and that’s partly because the pce figures for July have yet to come out.

These are set to be released on Friday the 26th of August and if these figures come in higher then it effectively guarantees an aggressive rate hike in September. So mark your calendars and while you’re at it mark another date Tuesday the 13th of September.

This is the day that the CPI for August will be out and if it comes in cooler again then the markets will likely rally again even though the fed doesn’t pay all that much attention to the CPI when deciding on rate hikes or so they say.

How to Buy Bitcoin

Bitcoin is bought on exchanges and is then either traded for other cryptocurrencies or stored in a wallet. The exchange you use will mostly depend on where you live. The bulk of cryptocurrency trading happens in North America, UK, China, and Korea. Coinbase is where a lot people start off because of it’s ease of use. From there they may transfer their coins to other exchanges where they can trade different types of cryptocurrencies based on market trends in hopes to make more profit.

Most exchanges will ask you to confirm your identity by uploading a picture of your driver’s license and maybe another photo of yourself to confirm it is actually you. Identity confirmation criteria varies between different exchanges.

Getting Started on Coinbase

We will use Coinbase in our example since it is the exchange used most by beginners. Go to coinbase and follow the steps to sign up. You will need to verify your phone number and identity before you can deposit and withdraw funds from Coinbase. During the signup process coinbase will make two small transactions on your visa of $1.xx and ask you how much the transactions were in order to verify your credit card. If the transactions do not so up right away on your online banking try giving your bank or credit card provider a call. It might be a good idea to give them a call anyway and let them know you’re buying cryptocurrency as some banks will temporarily freeze your card if they have not been notified.

Once you are signed up and verified you can now purchase bitcoin and a few other cryptocurrencies. The process for buying each is the same. We will go through the process of buying bitcoin now.

Buying Bitcoin on Coinbase

Step 1: Log into coinbase and click on “Buy/Sell” in the top navigation

Step 2: From here you can buy or sell a number of cryptocurrencies. Make sure you are on the “Buy” tab and you have Bitcoin selected. Choose your payment method and the amount of bitcoin you wish to buy. Your fees are automatically updated on the right as you enter your purchase amount. Click on “Buy Bitcoin Instantly” to continue.

Step 3: A confirmation page shows up to confirm your purchase. It will show how many bitcoin you are buying, the price it costs, and what your fees are. Click “Confirm Buy”

Your coinbase account will be credited with your bitcoin within a few minutes. It takes a little time for the transaction to take place so don’t worry if it takes a little while. Sometimes the system gets bogged down during busy times.

What is Cryptocurrency?

Cryptocurrency is a form of digital currency that uses cryptography to secure and verify transactions. One of the main benefits of cryptocurrency is that it can be decentralized. Transactions can go from point A to B without a payment service in the middle such as a bank or payment gateway. Another one of the major benefits is that it can be somewhat anonymous, with the only thing being traceable is the wallet address.

 

Bitcoin was the first one of these cryptocurrencies and the first to hit the mainstream. It was created by Satoshi Nakamoto in 2009. Nobody knows exactly who Satoshi is, or if it was a group or an individual. Since then multiple cryptocurrencies have emerged. Each one has their own name but you will often hear of people referring to it as either Bitcoin or Altcoins. An altcoin is essentially a cryptocurrency other than bitcoin.

 

Side Note: Although you will most often hear of cryptocurrencies in the context of currency, there are also types of cryptoassets which use the same technology for other uses, such as ownership of items.

 

Cryptocurrencies use cryptography along with a public ledger that anybody can download and view. This public ledger is stored on what is known as the blockchain. We will explain the blockchain in more detail later, but for now just think of it as a bunch of transactions stored in blocks. As new transactions happen more blocks are added to the blockchain. Before blocks are added to the blockchain they need to be verified. Computers that verify transactions are called miners. You’ll often hear of bitcoin mining. What these people are doing is verifying transactions for a reward.

 

There have been many attempts to create a digital currency before bitcoin and cryptocurrency came around. One of the major problems they struggled to overcome was the double spending problem. Double spending means spending the same money twice. This problem is solved by having multiple miners verifying a timestamped transaction. As soon as you spend your bitcoin it will show up as a pending transaction on the network. It then needs to be verified by multiple sources before it is confirmed and then added to the blockchain. If someone tries to spend some bitcoin and then tries to spend the bitcoin again before the previous transaction is confirmed then the first transaction is considered the real transaction and the second one is simply rejected by the system

The definitive guide to WSOT

When I first seeded the securetask.net concept, before expanding it to the Academy and all that came with it, I was basically betting on the fact that tournaments would do for the trading side of crypto what they did for poker : bring it mainstream. In a way, sportify it.

During my first pitch to my teammate Marco Belletti – our graphic designer and webmaster extraordinaire – as I was trying to explain the allure of a trading competition, I went something like this : Imagine the World Series of Poker. Vegas, the bright lights. The competition and adrenaline and the validation of a dream. The physical representation of your victory, the bracelet. That fleeting moment of glory captured in a title. You are crowned World champion.

Now zoom out, dude.

Now the Arena is crypto. Bigger audience. Widespread. Decentralized. Everybody is only one click away, no physical limitations, no borders. The market is on 24/7, no barriers, no entry restrictions. And a levelled playing field. You see what I’m saying now ? And in this avatar commanded, hyperspeed, impermanent world, if you are good enough, you will be crowned World Champion.

Now see, Marco is the only guy in the team that didn’t have a crypto background back then. But just like me, he has been in the poker world for over a decade. He just nodded.

I’m in, he said.

WSOT
Why am I telling this story ? Well, it seems that the guys at Bybit – read the exchange review here – had that same exact vision. And are now running with it. The crossover with poker is evident with them having people like Mike Mcdonald and Doug Polk as team captains, as well as the narratives chosen and the formats. It’s a very smart move, as the two communities already massively crossover for many reasons. They already announced this is gonna be the very first edition of a biannual recurring series, which we also think is a very smart move : you don’t want to dilute your brand. It needs to be prestigious. They also went, as WSOP does, with tangible gear and swag for the winners.

Oh. Yeah. And a 2 million dollar prize pool.

Rules of Engagement
Now for this first article all we want is to keep it simple and explain the basic rules of the competition as per Bybit’s website. Our very own Dan Cohen did a quick video that explains how to create an account on Bybit and register to the WSOT. So let’s start from here.

And now let’s dig deeper into the tournament’s format.

First of all, some basic data :
Registration Period: 30th July 2020 10:00 AM UTC – 10th August 2020 10:00 AM UTC
Late Registration Period: 10th August 2020 10:00 AM UTC – 14th August 2020 10:00 AM UTC
Competition Period: 10th August 2020 10:00 AM UTC – 31st August 2020 10:00 AM UTC

BTCUSD perpetual contract will be the only contract for this year’s BTC Troop Showdown. The profits earned from other contracts (such as EOS, ETH, XRP or USDT) will not be included. To enter the competition you will need 0.1 BTC in your account by august 10th snapshot. Once you’ve done that, you must join a troop. Aka a team, headed by your favourite captain.
Our Tournament specialist, the one and only Quokka is captain of one flying the securetask Banner. His team is also gonna have many of our coaches in the roster. As a multiple times Binance and Interdax tournament winner, we cannot think of anyone better to lead the charge. He will also have a dedicated telegram team channel, the Quokka’s WSOT den, where together with other coaches and participants he will discuss strategies, play by play analysis and you’ll get to battle side by side with the pros in the biggest tournament arena of the year. And possibly share in their triumph.

That’s right: sixty percent of all winnings in the team competition are going to be shared amongst all team members !
But let’s brake that down into more detail. The BTC Troop Showdown awards consist of the Troop P&L Award, Individual P&L Award and Individual Profit Award. The total prize pool is up to 150 BTC, and 5% of the prize pool will be donated to Unicef, which we think is a very nice touch. So with that 0.1 BTC you’ll have access to all three awards, leaderboards and prizepools. The troop captain shall receive 20% of the prize, 20% to be shared by troopmates ranked in the top 10, and the remaining 60% will be distributed equally within the entire troop. Troopers with zero BTCUSD contract trading activities during the competition will not be eligible for the prize.

This is the troop P&L award. Aka, the award for the best performing team in terms of ROI ( percentage gains ) based on the 10 best performing team members. Up to 600k for first place at today’s BTC prices. Top 10 teams will win prizes. Individual P&L will work the same way, but for the best performing individual. ROI based. Those are incredibly fair and level the playing field, as whatever capital you decide to deploy ( 0.1 and above ) all that will matter is how well you trade it : your ROI. So as long as you have 0.1 BTC and trading skills, you can compete. It’s the closest to how we intend Crypto Tournaments at their very core. A sportlike competition of trading wits.

Finally individual profit is pretty self explanatory : whoever makes the most amount of money in the time allotted. Whale game.

So what now ? Well it’s pretty simple at a glance, but also quite nuanced if you decide to dive deeper into Game Theory and strategy. That 0.1 btc will be the stack you use to trade, as you normally would. Any winnings and losses will apply as per normal trading. If you used our reflink, you will have some pretty juicy discounts on fees ( 20% ) and some extra deposit bonuses, as well as WSOT specific daily bonuses, so there’s value already. But to some extent, you could have the WSOT as a nice extra in the background, “just in case”. Almost an afterthoght.

The money is yours, at any point you can simply decide to leave the competition and withdraw. Kinda like a cash game, if we want to use a poker analogy. So you could simply trade your stack as you normally would and enjoy the benefits. And IF you do go on a hot streak then maybe focus more on tournament dynamics.

Or, you could actually PLAY the tournament. The R/R is pretty clear, and the asymmetry of it is astonishing. That 0.1 could turn into a juicy slice of 2 million dollars. Strategies have been studied for this format, risk adjustments and meta game analysis must be made. That’s what securetask and our coaches are here for. We will be covering the WSOT extensively, with the coache’s journey updates, insights, strategy articles as well as a general overview of the most exciting competition in crypto.

And then of course both our telegram and the Quokka’s trading den will be bustling with discourse on the action. If you want to learn more about tournaments, this is a good starting point.

So good luck everybody, and may you be crowned the new Crypto World hampion. See you in the arena !

 

Interdax – Our Review

Headquartered in Hong Kong, and with engineering offices in London, Interdax is an up and coming exchange with a strong focus on crypto tournaments. They rely on derivatives, primarily perpetual swaps and futures. Bitcoin only at the time of writing, but ETH products are already available for testnet and will be launching on main net in weeks.

Interdax launch video

They launched in January 2019, a few months after a very successful ICO. Interdax has been coded from scratch in optimized C++ by experienced professionals and is only the second crypto exchange in the world, alongside bitmex, to use KDB+/q, a high-frequency trading technology reserved for elite financial firms hat can handle over 300000 transactions per second. The company boasts a strong team of professionals who came from pioneering crypto projects and well-known financial institutions, and participated in building and deploying stock exchanges like Nasdaq, NYSE, TYO and MICEX/MOEX.

Liquidity is a little bit lacking, as is to be expected for a new exchange, with spreads pretty steep in times of high volatility. The website interface is neat, and easy to navigate although still a bit glitchy on mobile. Learning how to trade on it will be a breeze for anybody with very basic futures trading experience, and they also have a small but lively and helpful telegram community that can guide you through the process.

Trading panel

They offer 2FA protection for your account, which is standard, but always nice to see. Also cool that Interdax follows a maker-taker model with positive rebates for maker.

The fees charged depend on whether the trader is a market maker or market taker: Market makers (who provide liquidity and successfully submit limit orders that are rested on the order book) are paid a rebate of +0.025% of the value of a transaction. Market takers (who take liquidity from the order book by using market orders or limit orders that remove resting orders) are charged a -0.075% fee of the value of a transaction. Fees are charged in the settlement currency depending on the instrument: BTC, ETH, etc.

The most interesting and unique aspect of the exchange is of course clearly the tournaments. Every day you have a 0.025btc entry fee tourney with a winner takes all structure, and a 0.05btc added by the exchange. And then a 0.1 btc weekly tourney with a 0.25 prize pool added, divided amongst the top 3 finishers. These are all prizes added by the exchange, clearly providing a ton of extra value, especially considering fields are pretty small, a few dozens players at most. On top of all this, they regularly have bigger monthly battles, with up to a 100.000$ up for grabs, usually shared among the top 10 finishers.

So how does it work ? Basically once you registered to your desired tournament, which is just two clicks away, a sub account gets created and your “stack” – let’s use the daily 0.025 as an example – is there for you to trade independently from your main account.

Weekly tournament schedule

At this point you’ll just start trading as you usually would on any futures account, except you will be pitched against the other players in the tournament, wich creates a fun sublayer of metagame and strategy. You’ll be able to see how others are doing as well in a simple and effective dropdown infographic, and see if they are long or short, again contributing to the strategy element of tournaments : we are behind and very close to the leader, and he’s long going into the end of the trading day. Do we switch short to try and capture the first prize value, although our bias is still long ? Do we press our longs ? Do we just preserve capital and let the market take its course ? That’s the extra layers to decision making that tournaments bring to the table. At the end of the day, you get to keep any winnings – and take any losses of course – on top of the prizes.

Interdax also has a series of social elements that up the camaraderie created amongst players, encouraging banter and competition, further pushing the gamification aspect of their competitions. As being the very first crypto tournaments focused exchange, with daily choices for tournament grinders, they will have a very big first mover advantage, especially if they polish off those small growing pains that are pretty standard for a new exchange. Overall, we feel like they are doing a great job in filling a small but rapidly expanding niche in crypto trading.

The Market Snapshot 10 Sep 2020

This ‘Market Snapshot’ is going to be an interesting one, as it is sharing some of my thoughts inspired by the markets and my trading rather than market action.

The first thing I’d like to talk about is the correlation between Bitcoin, Altcoins, Gold, Stocks and the USD, as it is definitely a topic many people are discussing and it’s a heated one.

Since the March crash we have seen most assets get much more correlated than they were before, and the main reason is that the USD has become more volatile and it’s importance to markets has become very clear. Due to the fact that the biggest markets in the world are the US ones, most debt is in USD and most assets are traded vs the USD, it is normal for assets to be correlated to an extent just because of that. At the same time, many retail traders are looking at the same things, along with institutions which aren’t focused on crypto. Many of them actually bought the dip this time, and now have a bigger influence in the crypto markets than ever before.

Another thing is that the US stocks are going parabolic, especially the big tech names, while the VIX is near 30. There is a lot of uncertainty in the world right now and one market has gained most of the attention. At the same time, crypto is still flying under the radar and the crypto total marketcap is 50% below its ATHs nearly 3 years later. Eventually things are going to change as this market is maturing and the technology is progressing.

Bitcoin usually starts moving very quickly when something changes in the global picture. We saw that both in Dec 2017 and Nov 2018, March 2020 and also during this correction where Bitcoin started dropping before stocks and bottomed before them. Don’t forget that crypto is still the wild west and a 24/7 market.

In my first ‘Market Snapshot’ I got many of the targets for closing shorts and going long correct (SPX 3300, NDX 10900-11100 & Bitcoin 9500-9800), but then I became overly bearish. On my ‘Weekly Open’ analysis although, Bitcoin and altcoins had dropped substantially, I felt they had more to drop as traditional markets fell further. So why did I get it wrong, what were the signals that I was wrong and what to do next time?

A. Always focus on the chart you are analysing for entries and exits. If an entry is really good, don’t leave it on the table because you think the xyz asset could do something different. Crypto is a different beast and respects TA incredibly well, but also has its own intricacies. For example the diagonal held nicely and the price never even closed below 10k or the 128 DMA. On top of that, the BTCUSD & ALTBTC correlation had started breaking since Sunday. Alts where also not dropping much despite BTC trying to go lower.

B. Always look at both BTC and USD charts for alts. Nowadays USD charts are more important as most trading is going on in USD/USDT pairs. Even though alts didn’t seem ‘oversold’ enough in BTC terms, they certainly were in USD terms.

C. When markets get volatile stick to your initial plan, because during crazy corrections like this one – fastest 10% drop in 3 days in Nasdaq’s history – you could be your own worst enemy by overthinking or, even worse, overtrading.

D. To me it was and still is very clear that we are in a bull market both in Crypto and stocks. NDX could drop to 10200-10600 which I think is possible, yet after such a strong correction it is definitely worth betting with the trend if something is sitting at support. Even if if will be just a dead cat bounce. What got to me was the fear of a March-like crash, which imho is simply not likely to happen anytime soon.

When things get volatile, try to play level by level and go small until you get a clearer picture of the market. Let the dust settle.