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Ruth Kise

Ruth Kise

20 Articles

Ruth Kise is an enthusiastic crypto explorer and anime fan. Graduated from the Faculty of Linguistics. "In word I trust!"

June Katz

June Katz

152 Articles

I am a crypto enthusiast. I spend most of my time writing or chasing the next cool topic to write about. Lucky for me, this aligns nicely with my interests, which include: looking for patterns in the world around me, digging deep into causes and effects of things and making sense of unlikely coincidences.

John Martin

John Martin

25 Articles

Crypto-enthusiast, philosopher, historian of anarchism.

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Some of the Consequences of FTX Collapse: Another Overview
Some of the Consequences of FTX Collapse: Another Overview

Some of the Consequences of FTX Collapse: Another Overview

John Martin 7 min read
On November 8, the entire crypto world was shocked by the news of the collapse of the FTX exchange. We already wrote a detailed articl e about this. Since its release, a lot of dirty details have appeared, a lot of interesting facts have surfaced, and we also had more time to analyze all the events that happened. Today we will talk about the hacking of the exchange for $600 million, and investigate to answer the question: where did the $8 billion hole come from in the budget and where did the $1 billion of client funds go? Let's provide information about the ties between FTX head Sam Bankman-Fried and the head of the US Securities Commission, analyze what projects will undergo cascaded liquidation and follow FTX and argue that the crypto market is waiting to see further: which sectors will be affected positively, and which will simply be killed. Recall that on November 8, the cryptocurrency market experienced a severe shock. The native token of the largest FTX exchange collapsed by more than 90%, which entailed a drop in quotes of absolutely all cryptocurrencies.  Why Did People Put Their Money into FTX? A few months before the collapse, FTX launched a series of very profitable products: a US dollar deposit product with an interest rate of up to 8%, a BTC deposit product with an interest rate of 5%, etc. Because of this, a large number of users deposited tokens , and some users even took loans from banks for a deposit. The media estimated that in Taiwan between 500,000 and 600,000 people suffered losses as a result of the collapse of the FTX, people even borrowed from banks on the FTX to get 8% per annum. Also, this situation greatly affected users from Singapore. Singaporean retail investors cannot use Binance, Bybit, and other well-known sites, so they carried their funds to FTX. And this offer — earning 8% in dollars — was hard to resist. Moreover, the reputation of the FTX exchange was equal, and in some aspects even higher than that of Binance. FTX’s head, Sam Bankman-Fried, was the voice of the cryptocurrency community in the offices of Washington and had great weight in the eyes of the SEC and other US regulators. US Treasury Secretary Janet Yellen claimed that "FTX had great legitimacy in the eyes of users." How to Lose $8 Billion in One Night On November 2, Coindesk published an investigation, which immediately began spreading to all crypto media. The investigation affected the FTX exchange and the Alameda Research fund — two companies that are considered friendly because Sam Bankman-Fried owns 50% of FTX and 100% of Alameda Research. Journalists gained access to the internal documents of the second company and found a large number of FTT tokens on Alameda's balance sheet. FTT is a utility token of the FTX exchange that you can trade and conduct financial transactions. According to the investigation, as of June 30, Alameda Research had $14.6 billion in assets, of which $3.66 billion were "unlocked FTT tokens," and $2.15 billion were "FTT in collateral" or "collateral tokens." Those are the largest asset of the company and the third largest asset, respectively. Experts concluded that most of the net capital in Alameda Research's business is its own centrally controlled token. What does it mean? SBF created FTX’s token, raised its price to heaven, and under its security gained loans for his second company. And with the fall of the FTT token, loans, of course, stopped being secured, which caused a liquidity crisis and formed a hole in the budget by more than $8 billion. As for the personal net worth of SBF, the Bloomberg Billionaire Index valued it at $1. This whole situation is not one fatal mistake of the CEO of the largest player in the market, it is the systematic adoption of the wrong decisions about the development of FTX and Alameda Research, as well as his greed and penchant for fraud. And all this on such a scale, of course, could not have happened without serious patrons, which we will talk about a little later. Where did the user funds go? Will someone be able to get any returns? Spoiler — they will not. One of the analysts involved in the investigation found that Alameda owed FTX $1.4 billion in BTC, every time someone deposited BTC to the exchange — Alameda borrowed these funds and dumped them into users, so the crypto had a negative correlation and did not bounce off every time there were rallies in macro markets. Moreover, those in a close circle to Sam Bankman-Fried knew about the use of FTX customers' funds to finance the hole in Alameda, which exacerbates the situation of SBF and its entire team. Sam's Interview with the New York Times At first, after what happened, Sam refused to communicate with publications, but at the same time actively tweeted. The main essence of this thread: "Today I filed FTX, FTX US, and Alameda documents for voluntary Chapter 11 proceedings in the United States. I hope there's a way to recover. Ultimately, I'm optimistic. I'm going to clarify the situation as soon as possible in terms of user recovery. " In an interview with the New York Times, SBF repeatedly expressed regret about what happened and admitted that the events could have developed less dramatically. According to him, the margin position "was significantly larger than he believed," — "billions of dollars." Sam Bankman-Fried refused to give details of the collapse, discuss the subject of imprisonment and reveal his location, citing security concerns, but agreed that he expanded his business interests too quickly and missed the signs of problems. The former billionaire also called the criticism of Binance head Changpeng Zhao a "strategically wrong step " in his conversations with regulators. "Oh, Excuse Me" or 20 Years in Prison? What Threatens the Head of FTX? The US Justice Department has everything necessary to initiate a criminal case against the now-former FTX CEO Sam Bankman-Fried and other executives of the bankrupt exchange. The Bahamas authorities, the Manhattan County Prosecutor's Office, and many other structures have already begun their investigations. A lawyer with many years of experience in the crypto industry in a conversation with Fortune referred to a federal law covering electronic fraud. The maximum penalty is up to 20 years in prison. He added that as evidence of intent, law enforcement officers will be able to use the terms of service of the platform, presentations for investors, and public statements by Bankman-Fried. The crypto jurist has no doubt about the fact that the exchange's business practices and the behavior of its head demonstrated fraud. Will SBF be able to avoid punishment? He has strong patrons, and rumors about this have long filled the info space, but will they stand up for Sam or prefer to remain in the shadows, given the scale and scandals of the situation? FTX is Dead. Who's Next? With FTX and Alameda, everything is clear. No one is betting on the restoration of companies. It is enough only to look at their balance gaps to understand that no investor will give liquidity to their rescue. But after all, Alameda Research was one of the largest venture funds in the blockchain space. What will happen to the projects in which they invested? Nothing good. The market is waiting for the domino effect. Some projects will receive additional liquidity and will be saved, and some will be forced to simply declare bankruptcy. By the way, to reduce the further cascading negative impact of FTX, Binance is forming an industry recovery fund. They want to help projects that are strong in their fundamentals but are experiencing a liquidity crisis. But the amount of the fund of $100 million is not enough to help all standing startups. Who Benefited from the Collapse of FTX? Market maker Cumberland said the collapse of FTX will lead to significant structural changes in the markets and the crypto industry, namely, the rejection of centralization to decentralization. Decentralized exchanges (DEX), like non-custodial wallets, turned out to be the main beneficiaries in this crisis. In support of his words, the Trust Wallet TWT decentralized wallet token grew 84% over one week. Not without the help of the head of Binance, of course, whose company owns this wallet. Also, the collapse of FTX played into the hands of their main competitor Binance. The exchange secured the title of the most reliable for users, began to support projects affected by the fall of FTX, and confirmed the assets available in its accounts. Conclusions. What Awaits the Crypto Market Next? The $9 billion asset hole left by FTX will affect the crypto market for a long time. Many companies that had a close relationship with FTX are trying to brush their losses under the carpet, but one way or another, they will have to recognize losses. Many market makers have lost substantial capital on FTX, which means there will be more market space for small-capital traders and more blockchain/exchange arbitration opportunities. Alameda Research, which participated in 186 projects as a venture fund. Otherwise, we will be waiting for the "sudden" collapse of coin rates after the malicious actions of Alameda/FTX in the coming years. The industry is also waiting for more regulation, since it’s clear by now that ordinary users must be protected from such situations. One of FTX's major co-investors said, "Institutional capital will no longer invest in the crypto industry until it is fully regulated."
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DIgital Euro: Overview, History, and Plans
DIgital Euro: Overview, History, and Plans

DIgital Euro: Overview, History, and Plans

John Martin 6 min read
The European Central Bank (ECB) may begin developing and testing the digital euro in 2023, said ECB Executive Board member Fabio Panetta, speaking at the National College of Ireland. He also said that it can take up to three years. Panetta noted that the introduction of the digital euro is aimed at strengthening the monetary sovereignty of the European Union and ensuring a reliable and stable monetary base for the creation of new payment and financial services in the era of universal digitalization. Cryptocurrencies are confidently entering our lives. The words Bitcoin , Ethereum , Tether , and "crypto exchanges" cease to be something of a secret knowledge for the chosen and become commonplace for those who want to learn to competently manage their finances. Not much time has passed since the advent of crypto — and the central banks of different countries have begun to declare a desire to create their digital currencies . The digital yuan already exists, the dollar has several analogs at once, for example, Tether — a stablecoin tied to the dollar exchange rate, and work is underway on the digital euro, which may soon bear fruit. So, what about this euro? The Answer to the Digital World People are increasingly paying in digital format, not in cash. Cash cannot be used in e-commerce, and many physical stores also prefer cashless payments. The answer to the growing preference of citizens and firms for digital payments can just be the digital euro. In the European Central Bank (ECB), according to Evelyn Witlox, head of the digital euro program, the developers see three main options for using a single digital European currency: Peer-to-peer payments enable people to make personal transfers to each other. Payments between buyer and seller in real and virtual stores. Payments in the interests of the state or between state organizations. Simply put, digital money may well serve as its analog "ancestors." Do not forget that the euro at first was also a little "virtual," because it was introduced on January 1, 1999, and used for cashless settlements. Euro banknotes and coins were presented only in January 2002, that is, more than 20 years ago. However, the EU is quite skeptical of blockchain and does not understand how technology can be used at the state level. But the global trend around digital assets is forcing the European Central Bank to keep up with galloping digitalization. However, the final decision to launch the digital euro into the masses has not yet been made. There are tests, the results of which will determine the fate of the European cryptocurrency. Amazon and Digital Euro The European Central Bank intends to cooperate with five corporations to test the single digital currency (CBT) within the European Union. The tech giant Amazon will work on a digital euro payment system for e-commerce. CaixaBank and Worldline will be responsible for prototyping P2P payments (that is, personal transfers to each other), and EPI and Nexi will work on retail payments at points of sale for goods and services. These companies selected 54 applicants from the list who also had an interest in developing a digital euro. The results of the testing, which is now being carried out, will be published in 2023. But the European Commission is inclined to think that their digital currency will fully work no earlier than 2026. And even then, only if the tests prove that the blockchain is safe and has sufficient throughput. What Is MiCA and What Role Does It Play in This Story? Markets in Crypto-Assets or abbreviated MiCA is a European bill that should regulate the crypto industry. It appeared back in 2020. It took two years to finalize it. MiCA will protect consumers from some risks associated with investing in crypto assets and help them avoid fraudulent schemes. For example, the recent depreciation of stablecoin UST showed the risks borne by stablecoin holders due to lack of regulation. This will bring more clarity to the European Union, as some member states already have national legislation on crypto assets, but so far there has not been a specific regulatory framework at the EU level. Without going deep into detail, the document is intended to become the main official use of cryptocurrencies. The downside is that with the help of MiCA, the EU authorities want to oblige all crypto exchanges to provide personal customer data, including transaction information, which, in principle, annihilates the original meaning of creating crypto — anonymity and deregulation. Already on September 1, members of the German Blockchain Association discussed the introduction of rules on cryptocurrency markets (MiCA) — the final text of regulations were published in October 2023. EU legislators agree with all the provisions of the document. The agreement was reached in June of last year. MiCA, by the way, will allow Europe to become the first region in the world where clear rules will be established regarding digital assets. The head of the cryptocurrency exchange Binance Changpeng Zhao suggests that the MiCA will be adopted worldwide as a standard of regulatory policy regarding cryptocurrencies. Although such a development, according to Zhao, may lead to a ban on stablecoins in the EU. Regulation and Emission of Digital Euro The average resident will not notice the difference, because for him it will be just numbers on the map or in an electronic wallet . As planned, the digital euro can be exchanged for a cash or non-cash euro at a rate of 1:1. But banks will have to connect to the system of the European Central Bank, which (with all likelihood) will begin to issue digital currency. The money supply will become easier to control, because you will not be able to hide the digital euro under the mattress, and the transition to other digital assets or fiat currencies can be easily limited or prohibited. In addition, if the conditional Bitcoin can be mined, the ECB will have a monopoly in this regard. If the digital euro is launched, its issue will be limited to €1.5 trillion. This was stated by Fabio Panetta, a member of the board of the European Central Bank (ECB). According to him, the EU authorities fear that consumers may transfer all their money to digital format, actually moving them to the Central Bank. This will deprive commercial banks of the funds necessary for lending to individuals and enterprises. The limited issue of the digital euro will help avoid negative consequences for the financial system and monetary policy of the EU. The digital euro system will interact with the private banking system, which means that people will be able to transfer their money from their accounts in commercial banks to their digital accounts in euros and vice versa. At the same time, the "digital money" system will save the government from the need to save banks from bankruptcy, because the money stored in the central bank will be risk-free. So far, the EU says that their digital asset should be an addition, not a replacement for the physical currency, but everything can change. Therefore, the main motivation is control. And not just control, but total control of the income and expenses of citizens. With a digital euro, money laundering will become simply impossible, because all transactions are recorded, tied to a specific person, and publicly available. But the issue of digital currency will affect the cost of the euro. The ECB does not publish information about the costs of its banknotes, but, according to the press service of the regulator for 2015, the cost of issuing euro notes is from 6 to 10 euro cents.
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Exciting New Developments in Blockchain Technology
Exciting New Developments in Blockchain Technology

Exciting New Developments in Blockchain Technology

Ruth Kise 10 min read
Day to day we hear different news about blockchain technology, crypto, and new projects in this area. The fast-growing high-tech industry offers new solutions to its community in an effort to protect its users and create the most favorable conditions. In the article below, we will take a look at interesting current events. Visa Has Developed a Solution for Auto Payments on the Ethereum Blockchain This year, payment companies from the traditional financial industry actively began to develop projects related to blockchain and cryptocurrency.  Visa has developed a solution for auto payments on the blockchain. The new concept is based on Account Abstraction (AA) technology from Ethereum designers. (Details can be found in the document published by the company.) This solution will enable users to automatically make pre-planned payments using smart contracts in noncustodial wallets of users. Account Abstraction technology was proposed back in 2016. With Ethereum's core network not yet supporting AA, the payment company has implemented its solution in StarkNet, a second-tier blockchain built on top of the Ethereum blockchain. In contrast with regular accounts, which check whether a transaction is signed correctly for a specific address, on StarkNet it’s enough to simply check that the transaction comes from a given address. In addition, the introduction of the Visa concept in this blockchain allowed not only to deploy a new auto payment function, but also to increase transaction throughput. Visa notes that it sees auto payments as a core functionality that lacks existing blockchain infrastructure, and invites interested companies working in the field to collaborate on programmable payment projects. Huobi Partners with Visa On December 22, Huobi announced a joint event with Visa: the launch of the Huobi Visa card to promote the virtual asset industry. Initially, the Huobi Visa card will be offered in the European market. Subsequently, the map will be distributed in other regions. Justin Sun argues that the launch of the Huobi Visa card is a milestone for both the company and the crypto community. He tweeted: "In future. Every Huobi user will automatically obtain a citizen of the Dominica universe, and visa card enjoying the freedom of identity, financial freedom. Travel around the world with one card in hand!” The launch will help promote virtual assets around the world. In addition, it will provide access to virtual asset services for all and expand access to global financial services. “We are thrilled to partner with an innovative platform like Huobi and look forward to Visa being able to serve as a bridge between the crypto ecosystem and our global network of merchants and financial institutions,” said Kay Sheffield, Head of Cryptocurrency at Visa. The Huobi Visa card will be linked to the Huobi user account. The Huobi account's virtual asset balance can be used to make payments to more than 80 million Visa-enabled outlets worldwide. Also, the card offers advantages such as cashback in Huobi Token ( HT ), discounts and drop-off coupons, as well as investment privileges in Huobi Earn products, etc. MetaMask Swaps Get Sidechain Support MetaMask wallet-based swaps now support Arbitrum and Optimism sidechains. This was reported on the official website of the wallet. The new features are also available in the MetaMask Portfolio DApp service. Before supporting sidechains, MetaMask users could convert tokens based on Ethereum, BNB Chain networks (formerly Binance Smart Chain), Polygon , and Avalanche . MetaMask will collect sidechains data on decentralized exchanges , according to the announcement. In November, MetaMask's owner company — ConsenSys — updated its privacy policy, saying it collects IP and wallet addresses when they use Infura's infrastructure service. Infura is the standard way to connect MetaMask users to the Ethereum blockchain. Amid criticism from the cryptocurrency community, ConsenSys was quick to clarify that they would only store data for seven days. In early December, MetaMask co-founder Daniel Finlay threatened to withdraw the app from the App Store due to Apple's non-replaceable token ( NFT ) policy. Apple's 30% commission on payments within the iOS ecosystem is an "abuse of monopoly," Finlay said. He also warned that Apple is likely to take on all cryptocurrency wallets to maximize its profits from activity in the crypto market. To stop Apple's monopolistic manners, the co-founder of MetaMask proposed using a third-party service that would relay on-chain transactions for prepayment. Such a decision would make cryptocurrency applications "free" for users of Apple devices, saving them from commission cheating by the Cupertino company, Finlay said. Cardano Update Developers of the Cardano cryptocurrency ecosystem spoke about the key innovations: updates will include both the blockchain itself and decentralized applications built on its basis. One of the key developments was developed in conjunction with Cardano's co-founder, Charles Hoskinson, and represents a network control mechanism. The innovation is outlined in the CIP-1694 proposal (Cardano Improvement Proposal). This will be an important stage in the transition to the Voltaire phase (Voltaire). The proposal, put forward by Hoskins' colleague Jared Corduan in late November 2022, is currently going through the voting process. The Voltaire era itself is intended to be the last stage in the development of the Cardano network. It should be an example for the entire crypto industry in terms of how decentralized platform management is carried out. Another major innovation is the development of the Cardano native token price index . An independent dcSpark team is standing behind its creation. The idea is that the index can be deployed locally and for free without using the API or involving a third party. At the moment, the number of tokens based on Cardano exceeds 7 million. This index is already supported by the three largest decentralized exchanges by total value locked (TVL): Minswap, WingRiders, and SundaeSwap. Polygon Launches Second zkEVM Test Network Before Core Network Deployment Over the past couple of years, Polygon has made several acquisitions and in-house zero-disclosure evidence developments, a relatively new technology that can improve network scalability and privacy — and what Vitalik Buterin says can be used for Ethereum long-term improvement. Now the test network experiences a new update called "recursion", which, as it claimed, can lead to exponential scaling of Ethereum. Polygon does not disclose the scheduled time of the main network launch. ZkEVM is a new technology for scaling Ethereum, which gained popularity last year. While it has not yet been proven, it’s thought to be able to significantly reduce the cost and increase the speed of Ethereum transactions — and ultimately ensure online privacy — all of which will make it easier for developers to build applications. This could open the door to a host of new online applications, bridging the gap between off-grid data and real assets in cryptocurrency. Last month, Matter Labs raised $200 million to develop the zkSync ecosystem in a Series C funding round. The funds are intended to develop the network's ecosystem. Privacy Protocol Web3 Aztec Network Raised $100 Million Aztec aims to fully encrypt the Ethereum blockchain to increase privacy and reduce computational redundancy. The firm will use the new boost to develop an encrypted architecture that allows people to use blockchains correctly without revealing identifying information.  “What we are building is a revolutionary technology that is changing the way we interact with each other online, where the end user is the customer, not the product,” said Zack Williamson, CEO of Aztec Network. “Blockchains with end-to-end encryption protect people by eliminating the need for centralized financial systems.” A Capital, King River, Variant, SV Angel, Hash Key, Fenbushi, and AVG also participate in the round, according to the company's blog post. The company plans to use the capital mainly to hire more engineers around the world to build the network. Over the past year, Aztec's team has increased from seven people to about 40, but it hopes to double that number soon. Overall, public blockchains lack the "missing part" of encryption, which could provide more use cases by ensuring privacy on a case-by-case basis, Andrews said. Adding encryption to blockchain technology could "spawn an entire wave of personal consumer finance," he said. While there are several encrypted blockchains, such as the Zcash network and Iron Fish , Aztec differs from them in that it can be programmed, Williamson said. “They are a bit like Bitcoin — what you can do with these networks is determined by who created them.” Until recently, programmable encrypted blockchain technology did not exist, Williamson said. “One of the reasons we were able to raise $100 million is because our internal R &D made it a reality,” he said. The firm aims to launch the test network within 12 months. Aztec Connect will launch online as its first app, Williamson said. Glupteba Blockchain Botnet Threatens Again Glupteba malware infects computers again despite Google's attempts to stop the spread of the virus. The Bitcoin-based Glupteba botnet attacks computers again to steal sensitive data. This is reported by researchers of the IT company Nozomi. Malicious software began to spread again in the summer of 2022 despite Google's successful attempts to sue Glupteba developers Dmitry Starovikov and Alexander Filippov. According to Nozomi, at least five swappers and crypto exchanges have been sponsoring the virus since 2019. What kind of sites are in question is unclear. The Glupteba botnet was first spotted by ESET experts back in 2011. The virus is spread through torrent platforms in the form of pirated software. By infecting the victim's computer, the virus steals sensitive data, including cookies. The main difference between Glupteba and other viruses lies in remote control through the Bitcoin blockchain network. Attackers transmit server data to the virus to steal data using the addresses of bitcoin wallets that store encrypted information in their transaction history. At the end of September, IT researchers found a new virus called Erbium, which spreads under the guise of cheats for video games. The virus first appeared in July 2022. However, it is still unclear who exactly created the malicious software. Among attackers, the virus spreads according to the subscription model. At the start of its existence, the virus cost $9 a week, and at the end of August the price jumped to $100. An annual subscription costs $1,000. QuadrigaCX Wallets "Woke Up," Access to Which the Head of the Exchange Took to the Grave Real miracles began to happen before the New Year holidays. At once, five wallets tied to the long-defunct Canadian cryptocurrency exchange QuadrigaCX, previously considered forever lost, suddenly "woke up." On December 17 the movement of BTC worth $1.7 million was detected in these wallets. Crypto-researcher ZachXBT alerted the crypto community in a Dec. 19 tweet, pointing to five wallets that had transferred about 104 BTCs two days earlier. “Five wallets attributed to QuadrigaCX unexpectedly moved ~104 BTC on Dec 17 for the first time in years”. Blockchain records show that wallets have not sent BTC since at least April 2018. Canada's once largest crypto exchange, QuadrigaCX, filed for bankruptcy in April 2019, following the December 2018 death of its founder, Gerald Cotten. As CEO, he was solely responsible for the private keys of the exchange's wallets. About 155,000 users of the exchange lost a total of $200 million in cryptocurrency at the time of its bankruptcy. In February 2019, a report by Ernst & Young — the Big Four accounting firm that controls the exchange's property — said that on February 6, 2019, QuadrigaCX accidentally transferred about 103 BTCs to cold wallets, access to which only the late Cotten had. The amount is almost identical to the BTC amount that was just moved. At the time, the company said it would work with management to extract the cryptocurrency from cold wallets. The mysterious death of QuadrigaCX's founder and CEO, followed by the collapse of the exchange, sparked theories that the founder faked his death to appropriate millions of client funds. The story has received such resonance that it even became the subject of a 2022 Netflix documentary. It is not yet clear whether the BTC movement is linked to Ernst & Young's rebuilding efforts.
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What Is a Tilt in Cryptocurrency Trading: How to Deal with It And Avoid It?
What Is a Tilt in Cryptocurrency Trading: How to Deal with It And Avoid It?

What Is a Tilt in Cryptocurrency Trading: How to Deal with It And Avoid It?

John Martin 8 min read
Understanding emotions is one of the components of success not only in trading crypto but also in life. And the problem is that many people know about the negative aspects of excessive emotionality, but continue shooting themselves in the foot. The mistake is that in a calm state, a person underestimates the harm that uncontrolled emotions can do. He does not notice the signs of getting out of the state of psychological balance. And when an emotional breakdown occurs, then it’s already time to eliminate the consequences. What Is Tilt? Tilt is a human condition in which a person is susceptible to emotions and takes rash actions. The term is often used in gaming practice. For example, in poker, a person in a state of tilt experiences disappointment and dissatisfaction with the situation, begins to choose suboptimal strategies, and loses, which ultimately leads to aggressive behavior. Tilt in the game is a state of anger caused by failure or a series of defeats. Emotions characteristic of a person in tilt: Aggression and dissatisfaction. Unwillingness to accept the outcome of the event, a sense of injustice of what is happening. Anger, rage. Mostly about others, and not themselves. A desire for revenge. Sometimes the desire to use physical violence towards both a person and an inanimate subject. Despair. Apathy. Tilt in trading crypto is a condition in which a person is in an excited emotional state and cannot or does not want to control his actions, completely being in the grip of emotions. There are two causes for tilt in trading: Negative emotions. Irritation, anger caused by failure, loss, etc. Instead of analyzing the situation, a person fixates on emotions and begins to make even more mistakes. Positive emotions. The euphoria is caused by a quick achievement of the result, a successful deal, etc. Under the influence of emotions, the trader overestimates his strength, relaxes, and takes a greater risk, hoping that he will be lucky again. There are also hidden and obvious tilts. The obvious manifests itself instantly: the transaction closed at a loss, an in its footsteps, an emotional reaction immediately arrived. Hidden tilt: every day the efficiency of trade is worse and worse, and depression comes slowly but surely. Susceptibility to tilt depends on the type of the person’s nervous system and mental state. Phlegmatics and sanguines are the least susceptible. They perceive everything that happens with indifference or a smile. Cholerics and melancholics are most susceptible to tilt.  The former reacts aggressively, the latter engages in self-healing. The degree of emotional perception is also different for everyone. Someone will return to normal within a few minutes, and another person in a state of affect will be breaking plates for an hour. Why Does Tilt Occur in Trading? Causes of tilt: Psychological causes. Related to the internal, emotional state of the trader, his character. For example, a tendency to experiment or gamble, a splash of emotions, fatigue, self-doubt, etc. Market causes. Do not depend on the character and the state of the nervous system of the trader. Trading situations that "do not go according to plan" and knock the trader out of track. Consider them in more detail. Treating Trading as a Gamble A person treats trading as a game: Not analyzing the situation, takes rash action. Relies on luck. Does not use technical and fundamental analysis. Relies on someone else's opinion. Does not have a clear plan of action. Does not use risk management rules. In other words, it is guided by emotion, not reason. This situation falls under the definition of tilt and its consequence is loss and negative emotions. On the other hand, such a perception of trading is not always bad — the question lies in the trader's purpose. If a person has the goal of enjoying the game process itself, regardless of its result, then treating trading as a game is permissible. The main thing is that emotions stay positive. But you can forget about earnings in this case. Fear of Losing a Deposit Uncertainty and, as a result, fear of loss. Closed circle: there are all the prerequisites for opening a deal, but an internal voice says: "What if I make a mistake?" The signal remains unrealized, the price goes towards the forecast, and the trader begins to torment his conscience for an unrealized chance. Desire to Compensate for Lost Profits Or compensate for the loss. The desire to achieve the goal at any cost leads to the fact that a person begins to perform rash actions on emotions. And rash actions are like opening deals, guided by the theory of probability. Lucky or not — 50/50. Poor Psychological State Caused by External Factors Often, along with tilt, there is another negative condition — FOMO, loss of profit syndrome. It is common for a person to compare himself with others. And as a result of the comparison, there is an illusion that others are doing better — they are more successful, they have better results, greater income, etc. And instead of concentrating directly on trading, a person begins to engage in self-analysis. He begins to doubt the correctness of his actions (because others are doing better!), which reduces his self-esteem, and internal uncertainty appears. Poor Physical Health Feeling distracted: the problem of concentration can be the result of lack of sleep, or illness. A person begins to make mistakes due to inattention, which leads to a loss of money and time. The consequence is negative emotions. And there are several other reasons for tilt in trading crypto as well: Market injustice. Crypto whales sometimes manipulate the market as they need it. But the trader is the one who takes losses from this. When the obvious trend suddenly unfolds and turns on its head, there is an insurmountable desire to launch something into the monitor. Unwillingness or inability to lose. Defeat is common not only in trading. But the question is how to perceive it. Someone will work on mistakes, and someone will be overwhelmed by emotions. Error. And the more stupid it is, the more offensive it is to realize. The most offensive mistake is a mistake by inattention. In second place is the refusal to open a deal at a signal that could be accurate. The easiest way to move on is to accept a mistake and try not to think about it. But this is easy only in words. Despair. "Yes, let it all burn" — a censored version of this emotional state of tilt. It is preceded by unfulfilled goals, unrealized opportunities, and loss. At some point, the trader gives up, ceases to think (because, in his opinion, it is still irrelevant), begins to make spontaneous decisions, completely loses all the money, and decides not to return to trading. All these reasons ultimately lead to the fact that a person makes decisions under the influence of emotions. Most often negative. But in trading, the cold sober calculation is important. Tilt is Dangerous! What Should the Trader Be Afraid Of? The more logic and sequential actions in trade, the more effective it is. But a person cannot live completely without emotions: interest in trading, and joy from achieving the goal are also emotions. The question is what is the degree of emotionality and where is the critical level after which tilt begins — decision-making under the influence of emotions? Statistics show that traders aged 20 to 30 years and over 50 are the most emotional. This is due to the fact that the middle generation, thanks to experience, is cooler and knows how to manage their emotions. Young people still have "growing pains," and the older generation loses its grip. The effects of tilt, like the causes, can be divided into two groups. Market Effects Making easily avoidable errors: early or late opening of transactions, incorrectly calculated resistance/support levels, errors in calculating foot lengths, ignoring fundamental analysis, etc. The reason may be both aggression and euphoria from the result. Violation of risk management rules. Over-sitting, early closing, increased risk per deal. A habit of emotional reaction to any unusual situation. Most often, emotions get out of control after unprofitable transactions. Instead of analyzing errors, the trader begins to doubt the correctness of his actions and begins to randomly open transactions in opposite directions. Chaotic actions run counter to the algorithm of the trading system. And after a while, the trader loses control of the situation. Possible consequences: loss or lost profit. Psychological Effects Stress, oppressed state. Stress is also transferred to the real world — a person ceases to see positive moments and rejoice in life. Underestimated self-esteem. A person loses confidence in himself and his abilities, productivity, and desire to achieve goals are reduced. Pessimism. Uncertainty in your powers. Opening a new deal, the trader is sure in advance of his mistake. If in the first case, the worst thing that can happen is the loss of money within the amount of the deposit, then in the second case tilt can lead to problems in personal life and health problems. Sometimes tilt manifests itself in positive emotions. In moderate numbers, they are useful — a good mood adds optimism and pushes to set new goals. But euphoria from success can cause harm. It is believed that euphoria is the point of maximum risk. Conversely, a state of despondency and depression is the best point for a new start. The idea is that sooner or later everyone falls, but only spirit-strong people have the strength to rise again. In Conclusion: Restoration The best advice that can be given to those who have ever experienced tilt (and this is most traders) is that being vigilant about their feelings and actions can be key to preventing its consequences. Once captured by a tilt, it is quite difficult to get out of it, so identifying its signs and possessing a mechanism to block its consequences can give you incredible help. It can be a break from working at a computer, breathing exercises, short intense physical charging, or setting a hard daily loss limit. However, frankly speaking, it is easier to try to avoid tilt in principle. This involves identifying your susceptibility to tilt at a particular point in time, identifying an option for a trade scenario that can serve as its trigger, as well as being vigilant if triggers are triggered, and tracking the emotional signs of the tilt state approach. Preventing tilt is much easier if you are ready for it than then trying to get out of it.
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SwapSpace is Happy to Announce the Launch of the Invaders Club!
SwapSpace is Happy to Announce the Launch of the Invaders Club!

SwapSpace is Happy to Announce the Launch of the Invaders Club!

June Katz 1 min read
Hi guys! We believe that the bear market is not a bad thing but instead is a perfect opportunity to prepare for the inevitable bull market. After all, when you’re just getting into an asset at its peak, you’re already late.  With that thought, we’ve decided that now is the best time to launch our very own SwapSpace Invaders Club! We’re minting 9999 genesis tokens that will serve as a foundation for the Invaders Club. And right now, you can get your tokens for free after completing any exchange on SwapSpace — as simple as that! Or, for something even more special, watch our social media and sign up for airdrops. You can find out all about getting those tokens on the Invaders Club page . In the next stages, we’ll expand the functionality of your Invaders, giving you: Reveal & Customization Loyalty Features We aim to make your Invaders more than NFTs : they’ll have all the NFT features that we know and love — but the holders will also be able to get cashbacks and other pleasant surprises at SwapSpace, depending on their token configuration. So, what are you waiting for? Join our community and stay tuned — in other words, get in early while it’s still easy!
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