CRYPTOCURRENCY TRAINING: BLOCKCHAIN TRADES & TRENDS PT.4

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THE METRICS HAVE MEANING. THE CHATTER MATTERS. THE HANDWRITING IS ON THE WALL. BUYING THE DIP, TRADING THE FLATS AND SELLING THE HIGHS IS WHAT MONEY MARKETS ARE ALL ABOUT ISN'T IT? WARNING: FOR "THE MARKET" TO STAY IN BUSINESS "THE MARKET" MUST MAKE ITS PROFIT FIRST. "THE MARKET" MANIPUATES OUR WALLETS TO FUEL ITS OPERATIONS.

The beautiful thing about being a "hodler," is that (H.O.D.L.) Hold On For Dear Lifer's never lose. Remember we cannot see our profits or suffer any loses until we're  wiped out or we cash out. The key to being a successful investor in cryptocurrency is to keep our "E's" in order. It is vital to put Education first and Experience second. We STRONGLY recommend the following steps in the exact order presented here. First learn as much as possible, then by narrowing our focus we can concentrate on a achievable objectives. The next most important thing to do is to trade on paper. Many brokers and exchanges offer "paper trading" demo accounts to practice on. Although these mainly function as Enticements they are also Educational. After forming a strategy we must put it to the test constantly and modify it periodically. After we find that it works it is important to backtest the strategy. If it works historically against already Executed trades and  there's a "paper" profit, consider it to be workable. Next let's do a few more live paper trades to apply it under different circumstances. Now the Entertainment begins. The idea is to not get overly Enchanted by the hype from the Energy and Excitement of trading. Trading with real assets (money) will feel much different from the paper trades done previously. The last "E" to consider is Evaluating. Reviewing whatever happens, profit or lost is critical. By honing our skills we have a better chance of padding our wallets or breaking even. Remember to stay disciplined within the buying, holding and trading strategies already formulated. No matter how good or bad things look, stick to the plan. Becoming a member of a trading group can also enhance our abilities. The bottom line for all investor/players is to "Play The Plan."

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THE TOKENIZATION OF ASSETS

Whether we are i​nvesting, trading, scalping, speculating or gambling there must be a plan! This is why we consistently warn our readers not to take shortcuts although many think they can. ​Cryptocurrency exchanges can be defined through coins and tokens. There are essentially only two categories of coins, but basically four categories of tokens. When it comes to coins there are Bitcoins and all other coins called AltCoins. Bitcoin was the first commercially available coin and gets that unique distinction. Every other coin is an alternative to bitcoin even if they use the same consensus mechanism (Proof Of Work) for exchange. Tokens are more like a denomination of the coin they represent. With tokens we can purchase a share or part of a complete coin. Coins are actually the symbol of the company that they represent. Each company coin functions and operates on a specific blockchain technology that suits its ecosystem design. The type of consensus mechanism (proof of work, proof of stake or variations of either) that operates across the shared ledger used to validate each transaction is defined by the coin or company that created it. On the other hand there are thousands of tokens. Tokens fall into categories like governance tokens, utility tokens, security tokens, equity tokens and our own tokens that we can create and use within our own blockchains. Many initial tokens are distributed through airdrops. Airdrops are free giveaways of tokens to investors and others with "skin in the game" to promote the Company/Coin and kickstart business. Tokens have whatever value their creators give them. Decentralized Storage Networks like Filecoin and Sia, Memecoins like Dogecoin, Utility tokens like Funfair and Brickblock, Stablecoins like BinanceUSD and Tether, governance tokens like Maker (MKR) and Compound (COMP), and now new security tokens litter the crypto landscape. The complexity of the architecture of the ecosystem within many blockchains  can be quite confusing. The system by design incentivises its users to support it and penalizes users who do not. Blockchains are designed as "skin in the game" ecosystems. Unlike many of today's economic and financial systems blockchains have equity built into them. Powerful, rich and influential investors cannot exploit other frail and poor individuals using the same system. Within  a blockchained  network we can say goodbye to hostile takeovers, to SPAC's, and to leveraged or management buyouts. The application of any Blockchain technology is  the very definition of "economics by design" rather than by accident or default. Entry and access barriers are virtually eliminated by virtue of an asset based system. Everyone has assets and something to offer. When we open our eyes to the latitude available to anyone in this space, we will see the opportunities that Defi, staking, Liquidity pools, Yield farming and smart contracts offer. We are exposing our readers to an in depth, "under the hood" look at a new system of exchange. Most of us will understandably experience difficulties perceiving or accepting such a revolutionary technology due to the bias of our prior perspectives. To properly understand the potential applications of blockchain technologies we have to abandon and virtually forget what we've already learned, practiced and think we know about economics. This is the dawning of a fiscal revolution. Banking and government infrastructures will need modifications to adapt and adopt the changes. The source of this revolution is not from a citizen uprising. This revolution comes as a by-product of technical advances. We have developed self sustaining technologies which have evolved into new systems with a life of their own. Life and the awareness of it is a spiritual attribute. The age of technical advances has a spirit of its own. We already have the solutions for most of our ongoing economic, political and social problems. Our greatest challenge is applying them. Sometimes new solutions call for sacrifices from the old guard. The problem of global warming can be easily solved by eliminating the burning of all fossil fuels. However, removing oil and gas from the energy sector without a plan would be a disaster. Economics built on non-cyclical, non self sustaining structures eventually fail. This is the problem with our current economic, financial, monetary and political policies worldwide. The present systems are credit and debt driven. They work by taking advantage of those with the fewest resources and least power. The present system relies on the good will of the "haves" to allocate a fair share to the "have not's." Unfortunately human nature generally exploits advantage and governments are stuck with the responsibility of being our brothers keeper. There have been and will continue to be multiple attempts at changing or corrupting blockchain technologies. This new system functions and behaves differently from our traditional economic models. History tells us unequivocally that people resist change. Yet change is inevitable. This post is about embracing and prospering through and with those changes. Look for the changes. Centralized exchanges cannot dominate decentralized markets. Anticipate changes in many of our current financial structures as they continue to merge, develop and evolve. Adapt and adopt or diminish and die, the choice is ours!

TRANSITIONING TO TOKENOMICS

Economic forces are the true building blocks of society. This is how we organize populations, their resources and the way they exchange or share value. We are accustomed to a system which has no cyclical renewable premise and operates off of win-lose results rather than win-win scenarios. Nature's economy works in a recyclable manner. Nothing is wasted; the system maintains and supports itself. It is our man-made governmental, financial , commercial and economic systems that were not designed or applied in a balanced renewable manner. Blockchain technologies are having a trans-formative effect on the way society functions. We are experiencing the advent of an economic evolution. Blockchain and token economics are influencing all of our traditional systems of governance. The design of economic systems based on blockchain technologies have begun to revolutionize the way we think, transact and live. Moving beyond centralized governance to decentralized organizations will take some getting used to. The economics of a decentralized society are much easier to design and implement through incentives rather then enforce through laws. Token networks are at the core of these blockchain designs. The design of incentive structures that align the interests of individuals on all of the processes between production and consumption is what blockchain networks are all about. Tokenization is the conversion of any asset into a digital token. We are quickly moving towards a service oriented architecture in monetary policy. Token economies are a new form of economic organization that could be termed as "distributed" economy. The economic model of the industrial age is being modified and must come into harmony with the information age. Token economics has given us the opportunity to redefine how our ecosystems operate. This has become a modern day experiment with both visible and invisible catalysts. The participants include people, advancements, discoveries, evolution, progress and energies that have taken on a life of their own.

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PASSIVE INCOME FOR HODLERS

Crypto Hodler's have an advantage over all typical hoarders or misers.  The cryptocurrency sitting in our wallets don't have to be dead funds. Although they may grow against other currencies via their exchange rates cryptocurrencies can also be reinvested. Here are five tried and true methods to grow funds, but there are risks associated with each of them. 1. Participate in "centralized" crypto lending platforms such as Bloxfi, Celsius and Nexo that will manage submitted assets and grow them through interest. 2. Participate in "decentralized" lending platforms that offer direct peer to peer lending. Some of these have no K.Y.C. (Know Your Customer) requirements so be careful. All risks involved on many of these platforms are on the investor. We can lend cryptocurrency and receive interest through Binance smart chain and DeFi programs that utilizes smart contracts created between borrowers and lenders. We recommend separate wallets for exchanging, growing and stashing crypto. There are Web 3.0 defi wallets and programs such as "AAve" and "Compound." Look into "Wrapped bitcoin," and "ethereum" based wallets like Metamask to participate. These programs allow us take on the personal responsibility of creating our own loans, terms and risks 3. The option for Liquidity mining and Yield farming are examples of (yearn finance) smart contract insurance. Liquidity pools are basically pools of tokens that sustain smart contracts. Liquidity pools that maintain a large variety of tokens insure that all kinds of trades can be facilitated and managed by an exchange. 4. Staking coins on exchanges with staking rewards such as "Coinbase" or "Binance." 5. Being in the right place at the right time has it perks also. Many cryptocurrencies have periodic buybacks, token burns and airdrop arrangements. 

BENEFITING FROM BLOCKCHAIN RATHER THAN BITCOIN

Most gamblers think that they have a good chance at beating the house. This is the allure of gambling. On the surface things may appear pretty simple. But under the hood there are amazing forces at work. Applying these forces to our everyday strategies is what this section is about. This is the part most readers disregard. Few people can consistently beat the house the majority of the time. The purpose and design of any business organization or monetary exchange is to make profit. These companies have operating expenses and require constant funding or capitalization. The capital needed to fund their operations comes from us the users. Although cryptocurrency exchanges mimic stock markets, at the core their functionality and operations differ. Stock market investors can be anonymous, detached and disinterested in the welfare of the company their investing in. The primary incentive is profit. Although Crypto Markets seem to follow the same pattern, blockchain technology ecosystems are built differently. Blockchains are designed to incentivize investors to have skin in the game. The economics of blockchained networks differ from that of any previously known ecosystem. Most people view economics simply as the study of how money moves throughout society. Economics is actually a branch of "social scientific knowledge" that deals with the production, consumption, and transfer of wealth in the form of assets, currency or tokens representing it. Without considering the economics of any system it is impossible to truly gauge it effects or know its efficiency. Whether we are dealing with an aquarium, a car or a city, maintaining a functional ecosystem creates a cyclic self sustaining environment. To properly create and apply blockchain technologies, knowledge of economic, legal and technical issues must be mutually considered. We cannot stress enough that understanding the purpose, pattern and path a company takes as they convert to blockchain technologies has a huge effect on their future. How a company advertises, incetivises, integrates, markets, merges and creates trust among its users is critical in this space. Knowing the difference between economics, crypto-economics and tokenomics will help us to make wise decisions within our investment portfolio. 

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FORECASTING AND PREDICTIVE INDICATORS

Much like weather forecasting, we can now see and read many of the signs of impending conditions but we still cannot pinpoint exactly how it will manifest and effect us. It is generally better to be the first rather then the last to try a new idea. Being ahead of a curve can be costly if it catches and crushes us. Being behind a curve is disheartening watching the waves we missed roll away as we chase them. However, riding the wave is a thrill when we catch it. Surfing is ALWAYS rewarding because no two waves are the same. Anyone participating in these markets should really understand the difference between investing and trading strategies. Investing in cryptocurrency is different from investing in stocks. Although the platforms resemble one another the inner workings are not the same. Stocks are more predictable, as their business model is transparent and there is more accountability. These markets may not continue to operate in their traditional manner. During this pandemic over 10 million new investors have entered into money markets. The hype heightens the hope of holding the next high yield "Google like" stock. Although Crypto and Stock Markets resemble one another their operations are totally different. What deceives many people is that the platforms these markets operate on resemble one another but the inner workings and underpinning have vast differences. There is an old slogan when it comes to stocks. Don't love it, Don't hate it, don't date it, just trade it! This does not apply to cryptocurrencies! May we be bold enough to "coin" our own saying for cryptocurrencies? Find it, get to know it, understand it and then grow it. Investors in cryptocurrencies miss the boat when they fail to understand that the meaning of INVESTING in the cryptocurrency market means having "skin in the game." People who only buy, "hodl," or trade coins like stocks are just skimming the surface. The cryptocurrency market has yet to be regulated on a wide scale basis. The road to cryptocurrency treasures are seemingly paved with gold. However there are many bad drivers, potholes and road hazards ahead. Many investors will fall prey to Defi rug Pulls, Pump and dumps along with a variety of fraudulent offers and scams. This four part series has just scratched the surface of blockchain technologies. One of the best strategies to adopt that will prevent us from succumbing to the spirit of deceptive hype is to seek out and listen to sources that we don't agree with or want to hear. Readers who are really interested and want to invest should join or start a group of their own. We have our own private blockchain with modest membership and a shared trust consensus mechanism based on each individuals word. We are currently documenting our progress using traditional written contracts and keeping a formal ledger. As our experiments with these new principles progress we will share what we've learned and create ways to include many others. These posts are for information purposes only. We are not financial advisers, psychologists, psychiatrists or counselors. We are information brokers that offer a spiritual perspective. This is the worlds final opportunity to implement an equitable worldwide economic system. Here is an economic system based on fairness. It is designed to incentivize and enforce equity through computer code rather than laws and litigation. It is immutable and is a threat only to those unwilling to fairly share the resources of the planet. A system that gives value to people and assets previously excluded from the mainstream ecosystem is due. This leveling of the playing field through economics rather then focusing on race, religious, social or political status will work. We no longer have to define ourselves through our differences. We can offer inclusion in a system based on accessibility through whatever asset we mutually decide to give value to.