Trading Bitcoin 005
Hello degens!
I’ll start off by first sharing a bit more about myself before we go any further; the reason I trade bitcoin (perps) besides these amazing reasons is because it allows me to make an income even when my health disallows me to do so on a regular basis.
I mean, this is why I’ve pivoted my so-called “career” for 2022 which was supposed to be (and still very much is) the year of “getting all my shit together so I can survive another 40 years” type of thing.
Namely my mental health but also including my physical and spiritual. This past week I had a bit of a mental “hiccup” and had to get a little bit more help than usual and had to take a visit to the hospital. I share this not to draw sympathy or undue attention but to simply explain why I hadn’t posted much at all this past week.
But… again, that’s why I trade bitcoin. Where other, more “normal” jobs would find it difficult to work with (and generally employ) someone who would randomly disappear for an unknown amount of time without a moment’s notice, bitcoin is always here and the market is always available to me, fresh with new data the moment I return.
I never have to worry if “work” is waiting for me or if I’ll find “work” when I return. The market is the market is the market and the market, she beckons, ceaselessly!
With that being said I do not have much this week and the next few weeks might be a bit more lighter than usual. I do plan on posting actively on Twitter the harmonics that I find and if you survive the market last week — bloody fucking mess that was — then you’ll find me there too, in the depths, making my ends.
To infinity & bitcoin,
— 8ɃIT
Resources, Alpha, & More:
First, I want to talk to you about Dollar Cost Averaging or DCA and the really, terribly bad religion and dogma of “1 BTC = 1 BTC”.
First off, let’s clear the confusion for good so that we’re all on the same page: No, the local tops / bottoms are NOT “extremely difficult to time” and you should not trust folks who say that it is.
I was once part of the “DCA Army” and it was good for me and it helped get me started but after I got recked because I didn’t know how the financial markets worked. Now, I do. I properly spent the time necessary to learn more about the property that I already own and how markets work and how money flow affects the notional price of bitcoin. DCA is a “passive” way to stack satoshis but remember that “active” capital is always better.
And if you really want to know the dramatically-more pernicious fact, which is that the DCA Army is unknowingly establishing a baseline pricing “floor” for market makers and larger institutions. We call this “manipulation” (or being manipulated) in common parlance, but, you can use whatever other word you’d like. I, for one, would rather take back control of the game instead of being played, if you know what I mean.
And remember that bible verse about digging a hole and sitting on a capital investment versus going out and actively making a return (on investment)? Even if you’re not into the bible stuff you do know that being an active capital manager is just wisdom, plain and simple. That’s what being a good financial steward is all about.
And you don’t have to go to far! Here, 3 simple tools and charts that show historical patterns! You’re welcome because those might be all you need! Now you’ve got a serious leg-up on basic, fundamental satoshis stacking!
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Even if you sold at the last local top of $40,000 a few weeks back and bought it all back at $25,000 this past week you’d have the same amount of satoshis but would have $15,000 USD(T) in cash, minus expenses, taxes, and whatever else cost you to transact.
It’s just math, folks.
Go one step further and learn more about financial (money) markets taking time to learn not only the fundamentals but the more intricately-moving parts can grow your stack faster, as you might imagine.
That clearly brings us to our second part, the infamous “1 BTC = 1 BTC” mythology.
Let me just set this straight and let you know that you’ve been lied to, obviously. 1 BTC does not equal 1 BTC and could never be when you do the math (👆🏼 — like the real-life example above) and when you understand that a “satoshi” is a dynamic unit of account, a technological container that represents a flexible and fluid value pair, both of which have fluctuating values relationally and exogenously.
Take it from a 20+ year software engineer who’s built nearly everything on the bitcoin rails, studied it inside and out, built a venture-funded startup out of Silicon Valley with it (that sadly failed), and who now actively trades the asset with millions of others completely pseudonymously through digital crypto-pirate wires.
Truly, few.
Weekly Notes: Bitcoin core config generator just got a major upgrade! Learn reverse engineering. So gucci. Buying a home with btc? Boiling frogs. Upsides and downsides to everything — you have to decide. You know that the “inflation hedge” argument doesn’t make any sense, right? The future bitcoin city? Terra got recked. Develop teh person, eh? Kukoin on the rise! Ouch. 40% are down. Oh. pro horse betting is a thing.