Crypto Trading Strategy You Need To Know!
There’s something quite poetic about seeing crypto pumping almost a year to the day after the collapse of FTX. One of the darkest periods in this industry’s short history is coming to an end and the future suddenly looks bright again.
Which means of course that our attention must turn to preparing for the bull market - a bull market that may be coming sooner than we think. How are we going to navigate the waters ahead of us and ensure that we make the most of all the opportunities we’re going to be presented with?
This is where a good trading strategy comes in and today’s video will give you some vital pointers as to how to put one together. It covers the five key steps you need to take to develop a game plan that will put you ahead of the pack. Once you have this five-step framework assembled, those gains will be easier to come by.
I said in last week’s newsletter that now is when you need to be paying attention and everything that’s happened in the intervening seven days only confirms that. Get ready to get ahead.
You can watch today’s video here.
📈 Crypto Market Forecast 📈
It looks like it might finally be Ethereum’s time to shine. As you may have heard, BlackRock has reportedly registered a new corporate entity for a spot Ethereum ETF, presumably in preparation for an application. Now that Nasdaq has filed said Ethereum ETF, expect to see round two of the spot Bitcoin ETF hype, but for ETH instead of BTC.
This begs the question of what will happen to the other altcoins when the money finally starts rotating into ETH. As you may have noticed, SOL has been rallying like crazy. What you may not have noticed is that SOL experienced a pull back when the ETH FOMO kicked in. This makes sense given that SOL is a competitor to ETH.
It also makes sense because SOL traders have probably made a pretty profit trading it over the last couple of weeks. It would make perfect sense for them to rotate capital into ETH now that there’s a catalyst in place - there are bigger gains to be had in ETH (at least for now). It seems that capital is starting to flow out of BTC too.
On that note, it’s important to remember that almost all of this rally has been driven by spot Bitcoin ETF speculation. The SEC reportedly has until 17th November (this Friday) to approve all spot Bitcoin ETF applications. If it doesn’t, then it looks like the next decision date would be early January.
If BlackRock and other asset managers start filing for spot Ethereum ETFs in the interim, this could accelerate the aforementioned rotation from BTC into ETH.
By the way, you should know that the rotation into ETH is more significant than you think. For starters, most of the crypto ecosystem is built on Ethereum. When capital flows into ETH, it makes it that much easier to flow into other cryptos in its ecosystem. Layer 2s and DeFi protocols will likely benefit the most.
Speaking of which, did you know that DeFi leverage is determined by ETH’s price? When ETH’s price rallies, degens tend to borrow against it to buy other coins and tokens (usually in Ethereum’s ecosystem). If we see USDC’s market cap start to rise, then this will be evidence of such leverage, given USDC’s use in DeFi.
This wouldn’t be surprising considering we’re already starting to see a huge uptick in leverage on centralised exchanges. Judging by the liquidation data, traders are taking aggressive long and short positions. The result is what you see - extreme volatility in BTC’s price both to the upside and the downside.
Until there is some certainty in the crypto market, it’s likely that we will continue to see extreme volatility. So far, it’s been mostly to the upside, but don’t underestimate how quickly things can move in the other direction. FYI, certainty means either a spot Bitcoin ETF being approved or rejected. Let’s hope it’s the former.
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But which one is right for you?
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🔥👀 All Eyes on Yuga 🔥👀
Despite the lull experienced by the broader NFT market, things seem to be in motion around Bored Ape Yacht Club (BAYC) creator Yuga Labs, as they have consistently made the headlines over the past couple of weeks.
Of course, while not all of these headlines were positive, they have resulted in some attention returning to one the largest companies in the NFT ecosystem – an industry that mainstream media has ironically declared dead multiple times.
For starters, Yuga Labs’ infamous fight against the copycat creator Ryder Ripps finally came to an end on 25th October, when a United States district court judge ordered Ripps and Jeremy Cahen to pay the original BAYC creator a total of $1.57 million in disgorgement and damages, along with legal fees.
Notably, the ruling follows a 21st April partial summary judgement that held Ripps and Cahen guilty of violating copyright laws via their copycat versions of Yuga Labs’ Bored Ape Yacht Club collection.
With the Ryder Ripps issue now finally resolved, it seems like Yuga isn’t wasting any positive momentum, as it announced another massive development just a week after the copyright win.
Specifically, Yuga revealed that it was partnering with Solana NFT marketplace leader Magic Eden to launch "the first major ETH marketplace contractually obligated to honour creator royalties” by the end of the year.
You might be wondering why Yuga Labs is launching a new marketplace, given that the Apecoin DAO already has a dedicated marketplace for NFT collections from Yuga. Well, it seems like the new move is an attempt to fight back against other major NFT marketplaces like OpenSea and Blur, which have allowed traders to conduct ‘optional’ and ‘minimal’ royalty fee trades on their platform over the past year.
It’s no secret that Yuga’s revenue has been taking a hit because of these marketplaces. For context, Yuga once made the headlines for earning the most in royalty payments among NFT collections on Ethereum in 2022. So, the shift in royalty policy among NFT marketplaces in early 2023 was likely a nasty shock for the company.
It also launched an open war declaration against OpenSea back in August, stating that it would no longer support OpenSea’s SeaPort for “all upgradable contracts and any new collections” from February 2024.
Interestingly, Yuga Labs is the least of OpenSea’s worries – the NFT giant’s market share has been on a downward trend ever since Blur made its appearance late last year. In fact, Blur currently captures more than 75% of the trading volume between OpenSea and itself.
This fall in market share seems to have even prompted tech-focused investment firm Coatue Management to slash the value of its stake in OpenSea by nearly 90% - effectively bringing the on-paper valuation of the marketplace down from $13.3 billion to $1.4 billion. Ouch.
With OpenSea seemingly on its deathbed, Yuga’s Magic Eden partnership announcement was received with much positivity by most of Crypto Twitter. However, some did point out the irony of Magic Eden not doing the same for creators on Solana. I digress.
Speaking of positive vibes, Yuga Labs co-founder Wylie Aronow (aka Gordon Goner) seems to have been infected with a case of bullishness, as he recently went on a shopping spree for non Yuga-related NFTs, spending north of $1.7 million in the past few days. This has triggered some NFT bull market speculation once again.
However, it isn’t all sunshine and rainbows. The most eye-popping (pun intended) Yuga headline this week wasn’t Aronow’s spending spree. Rather, it involved a crypto festival gone wrong. To be more specific, the Magic Eden partnership mentioned earlier was first announced at a Yuga Labs community event called ‘ApeFest’ hosted in Hong Kong earlier this week.
While the event itself was a huge success, some of its attendees felt the ‘laser eyes’ vibes a bit too literally. More than 15 of them had to check themselves into the hospital after they experienced eye pain and blurry sight due to ‘photokeratitis’ (basically sunburn of the eyes) after the event.
The leading theory, later confirmed by Yuga Labs, was that attendees were exposed to harmful ultraviolet lights from some non-standard gear used for the stage lighting. This incident has prompted one attendee Asif Kamal - the CEO of art technology company Artfi, to file a lawsuit against Yuga, after he sustained an eye infection and facial burns at the event. You really couldn’t make this stuff up.
So, just as one lawsuit ends, another arises. I wonder if Asif’s lawsuit will encourage others affected by the event to also sue Yuga? Chances are that Yuga will settle with everyone outside court, but, based on its response to the situation, I suspect we could see a change in sentiment among holders soon.
📊 Guy’s Personal Portfolio 📊
BTC 41.63% | ETH 30.39% | USDT 24.22% | ATOM 2.56% | DOT 1.20%
🔮 Video Pipeline 🔮
- Shrinkflation: Here is How They Are Robbing You!
- Crypto Investing on a Budget: The Optimal $100 Portfolio
- Banker Wars: They Are Fighting To Control Us All!!
- Coin Bureau Portfolio Revealed: What Are We Holding?!
- Top 10 On-Chain Indicators: You Need To Watch These!
🏆 What's New at CoinBureau.com This Week? 🏆
✅ Best Mobile Wallets 2024: Top 8 Wallets for Safe and Secure Crypto Storage
✅ Solana (SOL) Review: The Scalable Blockchain Clock
✅ Coin Bureau x Hacken: Battling Crypto Hacks
✅ Crypto Gaming: Will It Ever Reach Mainstream Adoption?
✅ Tezos Review 2024: The First Self-Amending Blockchain
✅ M6 Labs: BTC & ETH Surge, Market is Risk ON
✅ Trezor Safe 3 Review 2024: Safe Hardware Wallet?
📖 Quote of the Week 📖
We get it. Bitcoin is rallying. Alts are exploding. Fomo is flying. You’re getting itchy fingers wondering what coins to buy. However, it’s now more important than ever to invest in solid crypto education. The higher the fomo, the higher the risk of making a costly mistake.
“If you think education is expensive, try ignorance” - Jeff Rich
Team Coin Bureau
Disclosure: Authors may own cryptoassets named in this newsletter. These are unqualified opinions, and a Coin Bureau newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor.
Guy is one of the founding members and face of the Coin Bureau. Like many of us, he is just an average joe who became “crypto curious” back in 2013. After recognising the potential of blockchain technology, Guy set off on a mission to create crypto educational content, working with others to start the Coin Bureau website and released our first video on YouTube in 2019. You can learn more about him in his Who is Guy? blogpost.