ACE’S TAKE:
Perpetual swaps is a derivative that allows users to trade a variety of assets with up to 100x leverage. The user can select from many different collaterals, which is nice because you can use your favorite tokens (e.g. ETH or BTC) and trade others.
Perps are a game of extreme highs and lows because crypto volatility gets amplified when using leverage. Here are my rules for perps trading:
Don’t use leverage for directional trades
Only use leverage for hedging exposure (this can be capital efficient)
Always use a stop loss
Trading spot makes much more sense for longer term thesis investments, while perps are great for immediate term catalyst trades (e.g. Elon Musk changes the Twitter logo to a Shiba Inu and you long $DOGE).
MARKET:
I can’t recall a more volatile price action day than Wednesday, April 26 since the FTX collapse last year. The lack of liquidity in the crypto market has created some big swings. This particular event erased 9 figures of leveraged long $BTC positions.
Wall Street has not been kind to regional banks after First Republic was acquired by JP Morgan on the brink of collapse. The Federal Reserve will announce the interest rate hike tomorrow morning, and 25bps are expected to continue the current tightening cycle. The question investors are asking is ‘how much higher and for how much longer?’ as rates continue to wreak havoc on banks and the markets.
NEWS:
Coinbase expanding overseas to avoid US government:
LSDFi is dominating:
Cicle innovates on crosschain liquidity with CCTP:
FBI raids FTX exec home:
Crypto is on Venmo!
REGULATORY:
Warren’s having trouble building an anti-crypto army:
RUGS:
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None of this is financial advice