WAX ON: 2 Crypto Trading Tips That Will Put You In Top 10% Of All Traders

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I am going to share TWO VALUABLE things today about TRADING cryptos.
The first is a PSA about the difference between trading Volume and Liquidity. And why you’ve got to know the difference if you’re thinking about buying a token. ANY TOKEN
The SECOND trading tip I want to share, is a SIMPLE trading practice that will PUT YOU in the top 10% of all traders. Human and non Human. IT IS simple. But bizarrely, not practiced very much.

Ok first let’s distinguish between Volume and Liquidity. Coinmarketcap—until very recently—only reported trading VOLUME. The trading volume THEY report, comes from ALL the hundreds of exchanges OUT THERE in the universe. Many, most, nearly all, EXCHANGES….ENCOURAGE, or tolerate, WASH TRADING. Now WASH TRADING is what happens when you set up a couple of accounts on an exchange and just trade back and forth between those accounts. Its tolerated because exchanges make money on some of this wash trading volume, AND because exchanges ARE RANKED by their daily trading volume. And since exchanges don’t pay any fees themselves to execute these wash trades – since the trading is done on their internal ledgers- NOT on the blockchains themselves WHICH would trigger mining fees, or require staking, – there’s no cost to them to pump fake volume. There are many ways to do wash trading. Some ways are easier to spot than others. But it’s all bullshit. THE THING you have to keep in mind is that WASH TRADING is rampant in cryptoland. How rampant? Well, a crypto research firm called BitAsset did a thorough analysis of wash trading behavior for JUST one coin: Bitcoin. They published that report earlier this year. *You should review it if you have not seen it.* It is an indictment of the state of wash trading on crypto exchanges. According to BitAsset’s methodology, 95% of ALL BITCOIN exchange volume, is wash trading. Holy shit. I had long expressed the view that Bitcoin volume was probably 70% fake. But 95%? That’s crazy. But also totally believable. When you evaluate who these exchanges are that are reporting hundreds of millions of dollars in daily Bitcoin trading volume, you can see it just isn’t believable. So you get what VOLUME means now, and how TODAY, it is massively manipulated. And of course the reason THIS MATTERS..is because if you are not aware of fake-wash-trading volume, you might mistakenly BUY a token that will be VERY HARD to get out of when the time comes to sell it.

LIQUIDITY is the antidote to fake wash trading volume. LIQUIDITY… is a measure of how many tokens you could really sell, ON a particular exchange, at a price NEAR the bid/ask average. This is what you really want to know. Not the fake “volume” figure on coinmarketcap. You want to know how much can I really sell RIGHT NOW. Coinmarketcap recently added their own version of LIQUIDITY. You can go to CMC and check out, for any particular token, the difference between “trading volume”, reported by the exchanges, and the real LIQUIDITY for that token (what they call Adjusted volume). Its not great yet. CMC doesn’t REVEAL how they calculate LIQUIDITY. But it’s a start. The differences between reported volume and adjusted volume on CMC are shocking. The only annoying thing with the CMC’s “Adjusted Volume” section is that they don’t sum everything up for you. So you have to compare the difference between reported volume and adjusted volume,by exchange. But it is immediately obvious that most of the reported volume is bogus. If you are interested in knowing the real trading volume of a token, there is a better site that does a good job reporting this. It’s called MESSARI dot IO. Today when I scanned a few pages on that site, it was the same old story. TRON’s $1 billion dollars in trading volume –the volume reported by all the exchanges—-MESSARI DOT IO says TRONs real trading volume is closer to $3 million dollars! 97% fake volume! ETHEREUM’s $16 billion in reported trading volume—is really $42 million. Check it out. And keep in mind for Bitcoin and for all the altcoins, coinmarketcap trading volume REPORTED by the exchanges, is just garbage. Meaningless. Only look at Adjusted Volume on CMC, to get an idea of real liquidity. Or go to MESSANI DOT IO. Now you know that..

Ok now, onto a trading tip that you just have to do. WHEN BUYING OR SELLING a token on an exchange, do so slowly. NEVER place an order all at once. If you are placing an order of $5,000 of ANY TOKEN but maybe Bitcoin or Tether, SELL IT IN SMALL AMOUNTS – over SOME trading window. BTW, I am pleased to report that the token I co-founded–Tether—has the most REAL LIQUIDITY of any token on earth
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Scott HarrisFirestone says:

✊🏽 thanks

Investry says:

Thanks William…very educational. Would like to see more of your videos ……always insightful.

jan juggernog says:

Great Video! 🙂

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