1. Last week, @robbietilton sold this art piece for about 17305$ on @withFND.
I saw a lot of people asking questions on CryptoArt and NFTs (Non-fungible token) to understand how it works. I'll try to explain the basic concepts on this thread ↓

2. First, you don't directly buy the art piece, you buy a token. This token is what holds the asset that you're buying, it is a unique id that is used to represent what you bought. It can hold information like the name of the asset, an URL, a description, and so on.

3. On most marketplaces, you won't have a classic signup or login form when you'll want to create an NFT or buy one. Instead, it will be asked to connect your crypto wallet.

4. Now, why bother with a crypto wallet? Couldn't we just do an app that works with dollars? This is where things get interesting: when you buy an NFT, the data is not stored on the marketplace servers.

5. When you post a picture on Instagram, it is stored on their servers. If the app is shut down, your data might be deleted. But also, Instagram could delete your content if they want to, NFTs works differently.

Master class on HEAD & SHOULDERS pattern for trading Bitcoin.

A thread.

Comprehensive guide to head and shoulders pattern. Made exhaustive enough for Trading purposes.

t’s a frequently occurring, misunderstood and arguably the most useful pattern.

RT would be appreciated.

H&S is probably the first pattern a trader hears of. Here is what we will cover.

Content
1. Nature
2. Identification
3. Occurrence
4. Historical performance
5. Finding entries
6. High probability trades
7. stop losses
8. Miscellaneous
9. Conclusion

Nature

The head and shoulders top is a reversal, bearish pattern, signifying a prospective drop in future prices.

The formation of pattern with a breakdown from its neckline(base) starts a probable bearish move.

Identification.
A prospective H&S pattern should have 3 distinct peaks. The middle peak is the head. This is the highest point of this pattern, sitting in between 2 shorter peaks, i.e. the shoulders. There must be an overlap in prices of these 3 distinct peaks.

The line where these prices overlap is called the neckline. A head and shoulders pattern is easily visible. So, don’t force yourself into finding it. The more times the prices overlap, the stronger is the pattern.

1/ “Bitcoin is better at being gold than gold” - SkyBridge Capital

@Scaramucci 's SkyBridge Capital released their investment thesis for their new Bitcoin Fund LP. They go a step further than other investors in why they are actively choosing bitcoin over gold

A thread 👇

2/ SkyBridge Capital’s main fund, with $9.3B AUM, had invested ~$182M in BTC. In Dec., they announced they were raising a new, separate Bitcoin only fund and already transferring ~$25M of BTC into it

3/ Today they opened to accredited investors w/ min invstmnt of at $50K. This Bitcoin LP won’t trade BUT you only pay 0.75% annual fee and no premium, the portfolio is priced by Bloomberg’s fixed rate (XBT). In contrast, GBTC trades OTC, a 2% yr fee, and a premium to BTC’s price

4/ Their website is a vast library of info. Not just their Offering Memo, pres. & investment thesis. It also includes:
- FAQ videos (Michael Saylor features and Scaramucci has cited him as a major influence)
- Readings on Bitcoin (@real_vijay The Bullish Case for Bitcoin)

5/ Towards the bottom of the page, they also take a dig at GBTC’s premium and offer to walk through a “GBTC swap” to their fund. They understand the hurdles that many traditional investors face in investing into BTC and lean into it

As a “lifelong” technician, I am finding that bitcoin lends itself well to technical analysis. Here is my take on the recent price action. (THREAD)

Elliott Wave Theory: Looking at the chart pattern since the recent high of 64,870, I can't help but notice that a textbook 5-wave decline may be unfolding. According to EWT, primary trends move in 5 waves and corrections are 3 waves. /2

The typical progression is that wave 1 is generally dismissed as noise, then wave 2 is a sharp and deep retracement of wave 1 (at least 62% but sometimes 75% or more), which creates the false comfort that it was indeed just a minor correction. /3

Then wave 3 comes & that's the big one. It's called the recognition wave & is typically the longest & most impulsive wave (usually 1.618x wave 1). /4

After the wave 3 low, the 4th wave is often a triangle or "zigzag" (a triangle pattern that retraces much less of wave 3 than wave 2 did of wave 1). A rule of thumb is 38%. Finally we get wave 5, which is often equal to wave 1, but often also less (0.618x). /5

1/ If you’ve been listening to @HiddenForcesPod over the last few months, you will know that I’ve been wrestling with many emotions as we’ve moved through the 2020 election, past the inauguration and towards the start of a new presidential administration.

2/ I’ve felt some combination of anxiety, nervousness, distress and sometimes even, anger.

I think these result from the threat I feel emanating from our broken society, as evidenced by not only the assault on the Capitol but by the larger forces that have led us to this moment.

3/ Rather than make an effort to bring our country together, our partisan media and talking heads on cable news outlets find every opportunity to tear it apart.

Likewise, our regulators continue to turn a blind eye to the systemic build-up of risk happening in financial markets.

4/ The celebrated rise of Bitcoin is a symptom of these broken markets.

People have such little faith in government that they'd prefer to hold their money in a database with the carbon footprint of a small nation than in government bonds or in their FDIC insured bank accounts.

5/ And this illuminates a larger observation, which has to do with the generational divide that we are experiencing—a divide which cuts much deeper than any political fissure currently tearing the country apart.

Once again, we can turn to Bitcoin for answers.

The CBN's official reason for its recent cryptocurrency restriction is that cryptocurrencies are anonymous and used for money laundering, terrorism financing, and tax evasion. Let’s dig into what the facts say.

A THREAD #Nigeria #Bitcoin

1/21

We’ll break up the allegation into two. First up, “cryptocurrency is used for money laundering.”
Cryptocurrencies have been used for illicit activities but so too have official currencies. So the CBN's argument must be that cryptocurrencies make the situation worse.

2/21

But as things stand, significantly more illicit activities are conducted with regular money than with cryptocurrencies. According to the UN, between $800 billion and $2 trillion is laundered globally every year, mostly in cash.

3/21

Meanwhile, the entire global value of cryptocurrencies is currently $1.4 trillion. Chainanalysis, the leading crypto-analysis company helping governments track criminals, estimated that 1.1% of all cryptocurrency transactions are illicit.

4/21

So, if the government is trying to clamp down on money laundering and terrorism financing, they are better off spending their energy on their naira accounts.

5/21

Crypto trading - some personal takeaways from 2020

Disclaimer: my job requires picking investments, at times with short/medium term view (days-months), many times with a long term view (years).

This is mostly a thread on reminders to myself relating mostly to the former.

Watch out for decisions based on fear & greed

Confirmation bias (ignoring contrary signals), anchoring bias (married to entry, trading PnL), sizing too big on low r/r trades, hesitating to buy cheap assets because "it's fallen/rallied too much".

/1

Minimize regret

Constantly question whether you have done all you could to maximize returns in the past month/quarter. Review all tools at your disposal (vol strats, momentum strats, fundamentals) but don't Dunning-Kruger yourself. There are no jack of all trades.

/2

You can't catch them all

Don't regret missing out on a few trades/ investments. Better to win big on 1 high conviction idea then win big on 100 small ones. Be ok with missing out but be ruthless with not learning from it.

/3

# 💹 The effect of Currency Exposure on Shareholders Equity 💹#

When we invest, one important aspect to consider is our portfolio exposure to currencies. It is not important where the company is trading, but where and how is making business ‼️

Keypoints 🗝️:

- In which currency is the company getting paid?

- In which currency is the company paying their costs?

- Are they hedging?

- In which currency is their cash, investments & deposits?

I specially look at them in companies with business in LATAM, Africa or Asia. 🌎

One of the checks you make is looking at the "Other comprehensive income".

I remember that I was very confused the first time I look into a company from a developing country (Pakistan). 🇵🇰

It was a software company (Really good ones in Pakistan) and they seemed to be doing pretty well (Positive Income) but the equity was just decreasing. WTF?

Reason: They were very exposed to Pakistan Rupee!

⬇️Here you go ⬇️

They were collecting most of their cash in Ruppes...

We’ve been around CT for a few years, and while the road still appears curvy, we believe the pieces are moving into place and the destination becomes more clear with each passing day. The following people are all pioneers, when they speak you should listen.

Going to lay out who we think some of the most fascinating thinkers are and some of our favorite podcasts. While these people still differ on some of their viewpoints, they are either the thought leaders of the world we are moving towards or contributing towards building it.

1) Nick Szabo (@NickSzabo4) - Truly one of the pioneers of our space and one of the first podcasts we ever listened to. Still the pod we send to people wanting to dip their toes in the space. Funny listening to nick, @naval, and @tferriss 4 years

2) Naval (@naval) - Clearly a thought leader in the traditional world, but he understands and is dedicating time to bring the future to the present. When this guy speaks the whole world seems to listen. Once again @tferriss does a phenomenal

3) Vitalik Buterin (@VitalikButerin) - The father of Ethereum and when Vitalik speaks we all should listen. He thinks differently than almost every human in this world. Yes...he’s a

How to Trade without Fear, Stress or Anxiety. 💯

Trading should bring wealth, happiness and peace.
Not stress and sleepless nights.

Here is how to trade without dying faster.

Please share to de-stress the world.

A Thread.

The reasons for feeling anxious and Stressed.

1. Too high Position Size.
2. No Exit Plan.
3. Almost no Entry strategy.

We will learn about them below and try to find a solution.

1. POSITION SIZE.
Position size should be equal to what you're willing to lose and not cry over.

Eg. If your position size is 10K, you should be able to lose 10K without it making you depressed.

It doesn't mean you throw away 10K as a random experiment.

If you're stressed? Reduce your Position size, Now!

But If I trade with such a small position size, it won't be much Profitable?

-Profits and wealth are built slowly, trade with small amounts, built your system, profits will accumulate.

Small Position size. Low Stress. Better life.

Remember, you don't need a lot to become big.

1% gain per day compounds to 3700% Return per year.

- If Stressed or anxious, reduce your position size.

Switch to smaller position which doesn't make you feel sleepless.