40 minutes ago, DaEagles4Life said:

Anyone up for the fun?! 

 

 

Ahem...

On 11/30/2021 at 9:23 PM, TEW said:

Not pricing in risk does not make a market more efficient. It makes it frothy. Liquidating leveraged longs in the face of increased risk is a good thing.

But it seems humans will never learn the lesson of leveraged risk, only the delight of leveraged reward.

 

This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

3 minutes ago, Aspiritfall said:

This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

Essentially, ya

12 minutes ago, we_gotta_believe said:

Essentially, ya

So I would think that those who borrowed are panic selling to prevent any further losses basically the opposite of a short squeeze 

Just now, Aspiritfall said:

So I would think that those who borrowed are panic selling to prevent any further losses basically the opposite of a short squeeze 

I haven't been following what's going on or the instruments available in crypto but they might not have a choice in the matter if they don't have enough to keep the trade open.

7 minutes ago, we_gotta_believe said:

I haven't been following what's going on or the instruments available in crypto but they might not have a choice in the matter if they don't have enough to keep the trade open.

I rarely ever buy on margin because I don't like to but I was awake when everything dropped 25 percent last night and said to myself OOOOOOH girl treat yoself and picked up a little bit of etherium at 3800... 

4 minutes ago, Aspiritfall said:

I rarely ever buy on margin because I don't like to but I was awake when everything dropped 25 percent last night and said to myself OOOOOOH girl treat yoself and picked up a little bit of etherium at 3800... 

I've always viewed on margin like betting on parlays in sports handicapping. Sounds good in theory because of the potential gains, but mostly a trap for overconfident novices who don't understand how the cards can be stacked against them.

Just now, we_gotta_believe said:

Buying on margin is like betting on parlays in sports handicapping. Sounds good in theory because of the potential gains, but mostly a trap for overconfident novices who don't understand how the cards can be stacked against them.

Yeah I don't like to but I only bought a little bit... Enough that I can pay it back fast or dump some lousy performing stocks... It's not enough to put my account in danger I won't do that 

1 hour ago, Aspiritfall said:

This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

Not stupid at all. Essentially yes, but I'll give you a more detailed explanation.

A lot of people trade assets -- bitcoin, stock, corn futures, options, whatever. The idea here is generally shorter term profit. You're looking for small moves over small time frames rather than holding for years on end. Because you're operating in short time frames, you will use leverage to amplify your profits. If you make a long BTC trade using 10x leverage, and the price goes up 1%, then you've made 10% on your trade.

The problem comes when you start losing money. To use the same example, if BTC went down 1%, then you've lost 10%. At some point as the trade keeps going against you, you either have to close the trade and eat your losses or eventually you will get what is called a "margin call" -- basically when the exchange forces you to either add more money to the account or close the position since they're the ones who lent you the money to lever up your trade. So what happens is you might get a quick drop in price, this forces people who are long to sell, that pushes the price down further, and that forces other people to sell, and that forces the price down further. And this can keep happening very quickly until almost all of the levered trades are closed. That's why you see these huge crashes in BTC. So many people are long with insane amounts of leverage that when the first domino falls it turns into a death spiral.

5 minutes ago, TEW said:

Not stupid at all. Essentially yes, but I'll give you a more detailed explanation.

A lot of people trade assets -- bitcoin, stock, corn futures, options, whatever. The idea here is generally shorter term profit. You're looking for small moves over small time frames rather than holding for years on end. Because you're operating in short time frames, you will use leverage to amplify your profits. If you make a long BTC trade using 10x leverage, and the price goes up 1%, then you've made 10% on your trade.

The problem comes when you start losing money. To use the same example, if BTC went down 1%, then you've lost 10%. At some point as the trade keeps going against you, you either have to close the trade and eat your losses or eventually you will get what is called a "margin call" -- basically when the exchange forces you to either add more money to the account or close the position since they're the ones who lent you the money to lever up your trade. So what happens is you might get a quick drop in price, this forces people who are long to sell, that pushes the price down further, and that forces other people to sell, and that forces the price down further. And this can keep happening very quickly until almost all of the levered trades are closed. That's why you see these huge crashes in BTC. So many people are long with leverage that when the first domino falls it turns into a death spiral.

Well that makes sense thanks... I mean it sucks to see the price come down so hard but at the same time it creates buying opportunities 

11 minutes ago, Aspiritfall said:

Well that makes sense thanks... I mean it sucks to see the price come down so hard but at the same time it creates buying opportunities 

Just be careful. Crypto crashes are insane. That wasn't even a 40% drop peak to trough. They can be 80% or more in crypto.

8 minutes ago, TEW said:

Just be careful. Crypto crashes are insane. That wasn't even a 40% drop peak to trough. They can be 80% or more in crypto.

Yeah I held through last time I'm not going crazy and only putting in what I can afford to lose... 

For me margin calls should be fast. Get in and get out when you see the buying opportunity present itself like it did on Friday night. 

Always up your stop loss as well. 

On 8/13/2021 at 8:52 PM, Aspiritfall said:

Hopefully it keeps going... Smart contracts are coming September 12th that should help the price... As long we don't see any major downturns by the end of the year I wouldn't be surprised to see a price between 4 and 5 dollars... Good luck 👍

This didn't age well 

18 hours ago, DaEagles4Life said:

For me margin calls should be fast. Get in and get out when you see the buying opportunity present itself like it did on Friday night. 

Always up your stop loss as well. 

You mean exits, not margin calls. Fast margin calls would mean you quickly come close to liquidation.

 

15 hours ago, TEW said:

You mean exits, not margin calls. Fast margin calls would mean you quickly come close to liquidation.

Yeah, meant exits. 

 

Someone is betting big on BTC in the next few weeks. 

On 12/7/2021 at 8:21 AM, Kz! said:

 

Great idea, but I wonder how hard it will be to get the Swiss on board.  They host one of the 3 datacenters that run Swift and historically have been frustratingly neutral on geopolitical issues. 

 

 

PulseX is a Uniswap fork that will run on PulseChain's network. Decentralized exchanges at this point have proven to be very valuable and useful and you can get in on this before it even launches. I'll be doing the sacrifice for this. Created by the same person that created HEX.

The other day, I read that 100 dollars in Solana last January would have made you a millionaire now.

So, on January of this year, which crypto is the next millionaire maker by the end of this year?

I see these random motley fool articles (Im not a subscriber but they pop up on yahoo), in the last few days I have read about Ankr, Basic Attention Token, and Harmony.

Are any of these things gonna make me a million bucks this year?

🤣

 

6 hours ago, HazletonEagle said:

The other day, I read that 100 dollars in Solana last January would have made you a millionaire now.

So, on January of this year, which crypto is the next millionaire maker by the end of this year?

I see these random motley fool articles (Im not a subscriber but they pop up on yahoo), in the last few days I have read about Ankr, Basic Attention Token, and Harmony.

Are any of these things gonna make me a million bucks this year?

I'm going to buy like $50 in $NFTBS which is currently $0.0000000003, which will give me like 166 billion coins 🤣