However, to achieve this level of self-sovereignty, you will need to become a Bitcoin HODLer. The term “HODL” can be intriguing when entering a new world like Bitcoin. In fact, I often have newcomers read my articles and put comments like this:
“You can’t even spell the verb HODL”.
This shows us how far along we are in the Bitcoin revolution. So I’m taking my time to explain to these people the origin of the term “HODL”. No, this is not a mistake on my part.
Probably drunk, GameKyuubi then made a spelling mistake that has since become part of Bitcoin lore. Now, when we talk about someone who plans to keep his BTC no matter what, we say he’s a Bitcoin HODLer.
Taking profits with your BTC is clearly like buying U.S. dollars. You would then be choosing to sell the hardest money in the world for weak money. This clearly doesn’t make any sense, you will agree. It’s all a matter of perspective, and you need to take the right view to take full advantage of Bitcoin in the future.
Some people will ask you how long you plan to HODL Bitcoin no matter what. I am often asked this question. To these people, I always answer the same sentence:
The point here is to make it clear to people that I am determined to support the Bitcoin revolution no matter what.
At your level, what does this mean for your relationship with Bitcoin?
If you buy Bitcoin and keep it for a week or less, you are clearly in gambling mode. You could go to Las Vegas to gamble at a casino and bet it all on roulette to get the same result. You clearly have no interest in doing so. In the short term, the price of Bitcoin is extremely volatile. Doing so puts you at unnecessary risk.
Those who can HODL Bitcoin from one to six months are rather speculating in my opinion. The risk is always high because you are going to be subject to the cycles of the market.
Beyond one year, you already show more conviction in Bitcoin, but ultimately you are still hoping to make profits. Profits in U.S. dollars, which is weak money that keeps devaluing over time. Your interest is quite different.
HODLing Bitcoin makes sense if you can hold your position for more than 5 years. Why? Simply because it allows you to ignore market cycles. With halving occurring every 4 years, the Bitcoin market responds to 4-year cycles.
Your greatest natural advantage in the world of Bitcoin is your confidence in its revolution. The greater your confidence, the greater your patience. If you can HODL Bitcoin for more than 10 years, you will truly be in savings mode.
Bitcoin is first and foremost a savings technology. By adopting this mindset with Bitcoin, you will make the most of its revolution on all levels. You’ll have more time to learn, more time to focus on the essentials of life, and more time to detach yourself from the fluctuations in its price.
In the long run, the price of Bitcoin will explode as demand continues to grow while its supply is hard-capped at 21 million units.
IDEX, a San Francisco-based decentralized exchange, has unveiled new protocol upgrades designed to solve two of the biggest issues with DeFi — slippage and front-running.
The exchange claims that its Hybrid Liquidity protocol solves these challenges by combining an order book and trading engine with the liquidity pools of an automated market maker, or AMM.
“The novel exchange design protects users from the most glaring pitfalls of AMMs, including failed trades and front-running, by instantly executing trades against the best combination of limit orders and pooled liquidity,” the company said, adding:
“This approach generates higher returns for liquidity providers while also allowing for more advanced trades like stop-loss and limit orders.”
IDEX cites research from Dune Analytics showing that up to 5% of transactions on Ethereum-based decentralized exchanges fail due to complications like “too much slippage or insufficient gas prices.” Data from Etherscan and Dune Analytics also show that roughly 22% of Uniswap transactions between Apr. 15-21 failed.
Uniswap is the second-largest decentralized exchange by trading volume, according to Coingecko. Mdex takes the top spot, based on 24-hour transactions as of Thursday.
DeFi, which stands for decentralized finance, is one of the biggest trends in the cryptocurrency market, but the industry’s rapid growth over the past 12 months hasn’t come without complications. Exorbitant costs, smart contract risks and the higher likelihood of user error are just some of the biggest pain-points dragging on adoption. Security is also an issue, as evidenced by the theft and exploitation of hundreds of millions of dollars worth of DeFi assets.
Nevertheless, DeFi remains on track to grow considerably during the next leg of the bull market. Currently, more than $137 billion has been locked into the ecosystem, according to industry data.
Crypto analytics firm Coin Metrics has raised $15 million in funding led by investment bank Goldman Sachs. Founded in 2017, the firm is planning to use the funding proceeds to grow in Europe and Asia, creating new products while expanding its current offerings.
Coin Metrics Raised $15 Million Led by Goldman Sachs
Coin Metrics, a crypto data provider to institutional clients, has raised $15 million through investors led by Goldman Sachs Group, according to an announcement from the company. The Series B financing will be used to expand on the company’s global expansion.
Coin Metrics provides cryptocurrency market data, feeds, indices, and network risk solutions with clients such as Fidelity Investments, Osprey Funds, and BlockFi.
BlockFi, Acrew Ventures, Morningside Group, and Warburg Serres Investments also participated in the funding round. While Castle Island Ventures, Highland Capital Partners, Fidelity Investments, Avon Ventures, Communitas Capital, and Collab+Currency each contributed to their respective stakes in the company.
The managing director at Goldman Sachs, Mathew McDermott, will be serving on Coin Metrics’ board of directors.
“Data is critical for the mainstream adoption of crypto assets by traditional investors and financial services players. Our clients will greatly benefit from Coin Metrics’ institutional-grade data insights and emerging risk management tools,” he adds.
Goldman Sachs Shows Interest in Bitcoin
Goldman Sachs has been showing an increased interest in Bitcoin this year. In mid-March, the investment bank filed with the U.S. Securities and Exchange Commission for launching a Bitcoin exchange-traded fund (ETF). Besides, a month later, it announced that it would soon offer bitcoin investment vehicles to its clients.
On leading Coin Metric’s investment round, Marianna Lopert-Schaye, firmwide strategy at Goldman Sachs, said:
“We are excited to be leading their (Coin Metrics) Series B, thereby enabling their growth and supporting their mission to be the leading provider of data-driven market insights and intelligence for institutions in crypto.”
Many of the market’s altcoins like Polkadot and Bitcoin Cash, at press time, were refusing to follow Bitcoin’s lead to trade sideways and consolidate on the charts. With ETH climbing to a new ATH and the altseason well and truly in flow after BTC’s market dominance fell again, such contrarian price actions are likely to be even more frequent in the short term.
While the rest of the market has surged in the time being, Bitcoin, the world’s largest cryptocurrency, has traded within a $10,000-channel range for the past two months. While the king coin did register an ATH of close to $65k back in April, at the time of writing, it was well below the same, valued at just under $59,000.
The king coin’s on-chain metrics and trading volumes have remained healthy, however, with many in the community expecting greater highs from the crypto once BTC breaches the aforementioned range.
While the mouth of Bollinger Bands was closing in to suggest that price volatility may fall soon, Chaikin Money Flow registered an uptick that saw it move above zero.
The cryptocurrency was in the news a few days ago after Tesla sold some of its Bitcoin holdings to prove its liquidity, a move that fueled quite a stir in the community.
At the time of writing, Polkadot was ranked 8th on CoinMarketCap’s charts, with its position on the same superseded by the performances of other alts such as Cardano and Dogecoin over the past few months. Unlike Bitcoin, DOT has been on an uptrend somewhat since the market-wide depreciation event over the 24th and 25th of April. In fact, the last 7 days saw DOT climb by 19%.
Parabolic SAR’s dotted markers were observed to be under the price candles, a sign of the bullishness prevailing in the DOT market. Something similar was pictured by Awesome Oscillator’s histogram, with the same expected to head above the half-line soon.
As highlighted by a recent analysis, if the present breakout continues, the next targets for DOT would lie at the $40 and $42-levels.
Until a few days ago, Bitcoin Cash’s price action was destined to mimic BTC’s. This changed recently, however, with the fork coin surging by almost $500 in a 24-hour window. On the back of the said hike, BCH also climbed to touch levels unseen this year.
At the time of writing, corrections had started to set in despite an uptick in trading volumes being seen.
While the MACD line registered a sharp divergence from the Signal line on the charts, Relative Strength Index was dipping towards the equilibrium zone after a brief foray into the overbought zone.
As was the case last time, right now, it’s still difficult to ascertain if the crypto will be able to sustain its press time price action.
Vanessa Grellet, a five-year veteran of Ethereum software company ConsenSys, will be joining crypto investment group CoinFund as its new head of portfolio growth.
In an announcement from CoinFund today, the investment group said Grellet would be responsible for guiding its portfolio of more than 50 companies and projects. The new head of portfolio growth will be aiming to “bridge the gap between the worlds of traditional companies and decentralized networks” by forming alliances between blockchain projects and protocols.
“My team will serve as partners who support and guide founders and their teams during their journeys from early-stage to growth-at-scale,” said Grellet. “The firm’s investment in our Portfolio Growth team […] demonstrates our dedication to meeting the needs of early-stage companies as well as our long-term commitment to the blockchain industry.”
A financial analyst and lawyer, Grellet previously worked as a corporate strategy executive at the New York Stock Exchange. She currently sits on the boards of the Arts and Antiquities Blockchain Consortium and the Accounting Blockchain Coalition and is the president of Blockchain for Social Impact Coalition.