Crypto101 - How to Make Money with DeFiHi Traders, Investors and Speculators 📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher.
If you’ve been following me on TradingView for a while, you’ll now that I’m a believer – a believer in the promise of blockchain. One of the principals of this promise is to move away from centrally controlled banking systems. This would eventually include the act of saving and earning interest for the money that you leave in the capable hands of your banker (who also gets to decide whether or not you qualify for loans). Currently, you need to give up all of your personal information to open a bank account and furthermore you are seriously undercut in the returns / interest rate that you will be receiving (to name only two of many problems with the system). For example, where I reside, the most common interest on a savings account is 5% annually, whereas the interest on your credit card is 19.5% annually.
Before we continue, familiarize yourself with these Key Terms:
TVL – Total Value Locked in the platform
DEX - A decentralized exchange. Peer-to-peer marketplace where transactions occur directly between crypto traders like Coinbase and Binance
Blockchain – A unique way of coding that is open for anyone to use, many believe that web3 will be built on top this kind of coding
DeFi – Decentralized Finance such as cryptocurrencies and stablecoins
dApp – Software like apps that work on the basis of blockchain code and thus apps that accommodate cryptocurrency such as UniSwap and NFT Market places
LP tokens - New liquidity pool tokens. LP tokens represent a crypto liquidity provider's share of a pool, and the crypto liquidity provider remains entirely in control of the token. For example, if you contribute $10 USD worth of assets to a Balancer pool that has a total worth of $100, you would receive 10% of that pool's LP tokens.
APY - Annual Percentage Yield, think of it as yearly interest in percentage
Smart Contracts — Electronic, digital contracts coded to integrate with dApps. Automated financial agreements between two or more parties once the pre-determined terms of the contract is reached
With the rise of Blockchain, Crypto and then Decentralized apps, yield farming was born to address some of the banking system's limits. Or at least, that would be in the perfect world. Yield farming is the process of using DeFi to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services. This works for both parties, because yield farmers provide liquidity to various token pairs and you earn rewards in cryptocurrencies. However, yield farming can be a risky practice due to price volatility, rug pulls, smart contract hacks etc.
Yield farming allows investors to earn interest which is called ‘yield’ by putting coins or tokens in a dApp, which is an application (coded software) that integrates with blockchain code. Examples of dApps include crypto wallets, exchanges and many more. Yield farmers generally use decentralized exchanges (DEXs) to lend, borrow or stake coins to earn interest and speculate on price swings. Yield farming across DeFi is facilitated by smart contracts.
Let’s take a closer look at the different types of yield farming:
Liquidity provider: You deposit two coins to a DEX to provide trading liquidity. Exchanges charge a small fee to swap the two tokens which is paid to liquidity providers. This fee can sometimes be paid in new liquidity pool (LP) tokens.
Lending: Coin or token holders can lend crypto to borrowers through a smart contract and earn yield from interest paid on the loan.
Borrowing: Farmers can use one token as collateral and receive a loan of another. Users can then farm yield with the borrowed coins. This way, the farmer keeps their initial holding, which may increase in value over time, while also earning yield on their borrowed coins.
Staking: There are two forms of staking in the world of DeFi. The main form is on proof-of-stake blockchains, where a user is paid interest to pledge their tokens to the network to provide security. The second is to stake LP tokens earned from supplying a DEX with liquidity. This allows users to earn yield twice, as they are paid for supplying liquidity in LP tokens which they can then stake to earn more yield.
Yield farmers who want to increase their yield output can also use more complex tactics. For example, yield farmers can constantly shift their cryptos between multiple loan platforms to optimize their gains. Pro Tip: Use a High-Speed, Anonymous VPN. This lets you securely access the internet in an untraceable way. If you’re a cryptocurrency trader, you may want to remain anonymous or mask your IP address to another location.
With all of the above mentioned, the first step would be to determine your needs or interests and thereafter, opening an account or accounts. A few popular places to start exploring include:
1. Quint – Voted one of the best yield farming crypto platforms for 2022
2. Uniswap - Second-largest decentralized exchange (DEX) behind Curve Finance
3. YouHodler – Worldwide Exchange with yield farming
4. eToro – Regulated platform offering crypto interest tools
5. Crypto.com – Great platform for earning a high APY on Stablecoins
6. BlockFi – Popular Platform for Bitcoin yields. BlockFi was one of the first platforms to launch its own crypto credit card. The BlockFi Rewards Visa Signature Credit Card earns up to 2% back in the cryptocurrency of your choice and doesn't charge an annual fee
7. Coinbase – Top-Rated yield-generating platform for beginners
8. DeFi Swap – Overall best DeFi yield farming platform 2022 , earning up to 75% APY on DeFi coins
9. AQRU – Voted one of the best crypto Yield farming platforms for 2022
10. Aave - Reigning DeFi king in terms of total value locked
Note that the above is in no specific order. On the chart, you will see some fast facts on some of the options that these platforms offer. This is also not a shill, and I am not currently participating in any of the above mentioned. This is just intended as an easy introduction to another branch of what the world of Blockchain and DeFi has to offer.
I hope you enjoyed this post today! Please give us a thumbs up to support all the efforts that went into this post.
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Stalking
AIDoge : Make Money from MEME's 🤖Hi Traders, Investors and Speculators of Charts📈📉
MEXC:AIDOGEUSDT BITGET:AIDOGEUSDT OKX:AIDOGEUSDT.P
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year 🏫
AiDoge is a new crypto project that strives to solve the need for exciting memes that drive engagement. As a result, it offers an AI platform that allows users to buy credits with the native crypto, NYSE:AI , and use them to generate memes. By typing prompts into the system, the AI behind it interprets your request and generates an appropriate meme. With this unique utility fully described in the official whitepaper, AiDoge has effectively combined two popular trends in the crypto world — memes and AI. No other coin has managed to do the same, not even ArbDoge AI, a similarly designed crypto that lacks the utility aspect of AiDoge.
AiDoge wants to create an entire community behind the project, and it aims to achieve this by rewarding both those who stake and vote. Once you buy NYSE:AI tokens, you can stake them to gain daily rewards in the form of the same token. Moreover, you can vote on memes other users have created. In turn, this yields you more tokens and rewards the best meme creators. Other similar projects have also gained popularity and increased in value, including Pepe Coin and Wojak. If you’ve missed these pumps, AiDoge might be the next big thing for you. It certainly has more promise than many other cryptos from the past.
As more people realize its potential, artificial intelligence is expanding . Now, with AiDoge, it has entered the crypto market. AiDoge was built on the Ethereum blockchain as a memecoin. The AI-driven meme creator is set to be widely adopted in advertising and marketing sectors due to its ability to create high-quality memes that are also unique. The thing that could potentially give this coin value is the fact that anyone can use their creativity to create memes and be recognized in the community for their efforts. This means that creating memes will be done in moments and will be displayed publicly. The creators who make the best memes will be rewarded for it. Furthermore, the platform is user-friendly and easy to use, which will be extremely helpful for beginners searching for a meme coin to begin their investing/speculation journey.
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HEADS UP! Has the DAX stalled?As you see on this 30 min time frame. The DAX is almost flat in its leading edge.
Some try to find out what this means. It doesn't matter what it means or what's going in there.
There are only three directions: UP, DOWN or SIDEWAYS.
What do you do here? Difficult to say, because price can suddenly break out north or south. Whipsaws are quite possible too.
When in doubt stay out, and wait for a clear trend to establish itself. Alternatively if you have cash to burn take a stoploss long or short (at your own risk).
We shall have to wait and see - but this is one to stalk.
JOURNEY SOUTH?The most important part of trading - especially with true trend-following - is stalking your prey very very carefully. The next is controlling loss.
Trend followers suffer heavier controlled losses - but also enjoy far greater gains - than those who rely on targets-based methods of trading. It is certainly not for 'everybody'. Only about 20% of all traders are true trend followers. Trend continuity trading is not trend-following.
Of high importance with 'stalking' any particular trend - because losses can be heavier - is the entry point. For example the ideal entry point in the chart snapshot would have been close to 26000. Anything much lower than that means risking heavier losses.
I'm often asked if A, B, or C instrument is heading north or south. Most traders when they ask this sort of question are not thinking in terms of time frame. They're mainly looking at price and thinking R:R ratio. In trend following all you can do is control the loss. You do not know how much you may eventually gain. That's why it's very scary! But this is not a tutorial on trend following techniques or strategy.
Overall though, one just has to pick a trend control loss and follow on that chosen time frame. It could be a lowly 1 min trend to a higher 1H trend - whatever you want so long as you can take the loss without flinching. I almost never get involved with higher than 1H trends these days.
For those new to trend-following, from my experience, a simple 5 min trend can take up to about 2 days before it reverses. A 15 min trend can last several days. 1H trends can last a couple weeks. Of course, they can be very short lived too.
Trend followers will also use harmonic patterns and other methods to assess key entry points. So 'we' don't have a problem with other methodologies. We'll use anything to get a pound of flesh out of the markets. But following the trend is the big thing.
Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
USDJPY: A confused picture with mixed messagesUSDJPY is giving us some mixed messages on different time frames. For sure some people are gonna win and lose money by taking a position. I'm keeping my powder dry just for now. Later tonight (UK time), I'll see what the latest picture is like. I'm focusing on the 2H time frame for a hit.
GOLDMAN SACHS: when a giant stumblesGoldman Sachs has stumbled and now there is much debate out there about what next to do. As usual some are shouting "enter long now", whilst others are saying "stay out" etc.
For me, it's very simple i.e. I just need to wait on a favourable time frame, somewhere between 2 - 6 hourly if I'm to go north. It's difficult to go short as there could be a rebellion of hopefuls heading north anytime soon. A northward push (if it happens) could attempt to test what I see as the base of a not so well-defined head and shoulders on the weekly.
The other major problem is that we are in dangerous economic times - far worse than 2008. So, GS could well head into a massive dive just like around 2008.
My strategy in the short term:
1. Wait for a pulse north and follow that if it happens on a microtrend (long position).
2. If that microtrend happens to get near the base, I'll be out - then look to short.
(Emphasis on the word 'if').
Longer term strategy:
1. If price goes into a deep dive like in 2008-ish probably months away, then look for favourable trend heading north, to go long.
2. Stalk for a double bottom if it happens.
The Loonie in troubleIn this screencast I show how waiting for a key position in the market is good idea. As I always say, 'Stalk 90% trade 10%'.
The CAD - often referred to as 'the Loonie' (not by me) has been in some trouble across many currency pairs. I'm not interested 'why'. All I care is where the trend is going and key areas of opportunity and probability.
As strange as it sounds, not trading is actually a winning strategy. So for newtraders especially, don't feel that if you're not in a trade that you're missing something. You are actually wise.
XRP/USD - Another shot at an entryAs many of you who have been following me have known I've been stalking ripple for a few days now.
Providing this chart remains similar to what it is, I'll be raising orders for XRP/USD to the upside using the "crypto cradle" strategy.
We have the price that's pulled back to the 61.8% fib level, a small bullish candle in the cradle zone, as well as convergence and trade direction on the daily chart.
Even though this set up looks really good to me I'm remaining cautious and minimising my risk to 0.5% of my portfolio for this trade.
If you're interesting in learning the methods I use to trade, visit www.tradercobb.com :)
Peace, and happy trading.
ETHUSD 8 hour Potential Trade BreakdownI take you through specifically what I'm seeing on the ETHUSD 8 hour chart.
We have an uptrending chart coupled with MACD convergence. I'm looking for a continuation of trend here, and seeing if I can find any entries.
The price has passed through the 61.8% fib level, but we do have a double cluster around that range. What I'm looking to see is if we have a bounce. Fib's solidfy trends for me on the higher time frames and I rarely base my entries around them.
Anyway, we still have some time till the candle closes, so I'm still playing the waiting game, but wanted to get a video to explain what I'm seeing.
I hope you enjoyed this.
Peace.
ETH/USD 8 hour - Spoiled for choice for onceI've been extremely active today due to the current nature of the market. Here we have another possible opportunity to get in on the upside. I'm stalking a move to the upside providing all the rules are met when this 8 hour candle closes. Once again we're seeing the price pull back to the 61.8% fib level. I don't base my trades off the higher time frames off fibs, they just assist me on assessing how far the price has moved and where it currently sits. As I trade predominately off pull backs, it's crucial for me that I'm entirely conscious of this.
By using the 8 hour as our trigger, we have a trending and converging higher time frame. My only reservation about this trend is on the daily time frame. That spike on the 15th of October has left a sour taste on the charts for me.
It's important to remember, that although we are seeing a lot of opportunities that it's important to only select the best. Ensure you minimise and manage your risk where you feel best fits.
If you're interesting in learning the methods I use, head over to www.tradercobb.com
Peace, and remain patient.
XAG/AUD - Another lovely down trendHere is another lovely down trend in play and another cross I am stalking. I'm waiting for a small bearish candle to present itself to me in the cradle zone, then will play a short trade if it's there. I like how the price is nearing in on the previous level of support/resistance. I'd like to see it test that level before bouncing to the downside.
We have convergence all the way up to the daily, as well as the trend in our trading direction.
I'll stress to you that I'm sitting and waiting to see what happens with this trend, I know what I'm looking and waiting for and will not settle for anything less.
If you're interested in learning the methods I use, visit; www.tradercobb.com
Peace, and remain patient.
EOS/BTC - My favourite trend in the top 10 market cap.I've been pretty vocal about how much I've been loving the trend on EOS. Although my analysis was covering EOS/USD, EOS/BTC also looks to be providing us with a new smooth flowing trend. I'm waiting once again, and stalking this trend with the possibility of a trade to the upside. If you'd like to, check out the daily time frame, and you'll see it's one of the few tokens in the top ten that are in a solid uptrend.
If you'd like to learn the methods I use, visit www.tradercobb.com
Peace, and patience.
Stalking Sterling for next week - as Brexit panic sets in. In the screncast I start off with GBPAUD on a weekly time frame and move on into much lower time frames across other pound-pairs.
The geopolical/macroeconomic picture for the UK with Brexit, creates uncertainty.
There are reliable reports of preparations for pharmaceutical stock piling, big push in logistics sector for storage of tinned food and firelighters and Whitehall preparing 'war games' scenarios. Such preparations would not be happening if there was no realistic probability of a hard Brexit.
The issue of course for us traders is not about Brexit as a politico-economic event. We need to be prepared to make some money out of it. Right? This is not a moral issue for me, but if it is for some traders, then avoid Pound pairs.
Bitcoin: BTCUSD Now you're stalkingBitcoin: BTCUSD Half-Time NOW you're stalking
Football half time and Bitcoin has just broken above that old trend line - and nw it's coming back to test it from above
...so cool, so far...it should dance between the line and fixed support potential at 7350 ....the old near term resistance
becoming support...as you were writing a text book and the stock just obeyed the rules...it's so weird. It should, if it
carries on behaving in classical fashion bounce here - if it doesn't , support is close at hand....raise stops to just under
7240 or even to 7320 if day trading and running a big profit...otherwise hold. We either lose 30 points or...the
.upside is incalulable once 7500 is beaten
USDMXN (Weekly or Daily) Long or Short.USDMXN on weekly and daily charts are approaching critical positions. Some key features -
On weekly:
1. Price is approaching or could approach an important trend line.
2. 50, 100 and 200EMAs have been separating, suggesting the trend still has strength.
3. On there is some sign of increasing bear strength on the weekly looking at the (red) Aroon line.
On Daily:
1. Price has fallen through a band of support.
2. There is resemblance to a (distorted) head and shoulders pattern.
3. Price has touched the 200EMA and made an initial bounce.
4. The Aroon (25) is now dominant for the bears. Therefore this time momentum leads to an expectation (not a prediction) of more downside.
Am I long or short. Neither. I'm stalking. Why? The position in my estimation is too risky to go long or short. Yes - price may do some interesting or unexpected things - and noobs may go 'coulda-shoulda-woulda'.
What am I stalking? I'm looking mainly at price on the Weekly. If price falls below the trendline, I'll cautiously reassess the situation with a view to going long. Why long? Because this is where trend strength is. However, I can't say what I will think in advance because, I do not know what the market will look like at that point.
If the Aroons on weekly show a bear market and price falls below the trend line, extreme caution will be required. Price could well fall into an area between the 50EMA and the 100EMA, below the trend line, at a level of support.
What if I miss the boat? I don't care!! I'm not into playing cat and mouse with the markets. If I'm not losing anything, I'm actually winning. So 'missing the boat' is a good thing. :)