
**Introduction:**
In the ever-evolving digital landscape, cryptocurrency is not just an investment vehicle but a transformative tool for business operations. As a business owner, embracing cryptocurrency can offer competitive advantages, streamline processes, and open new markets. Here are seven strategic ways you can utilize cryptocurrency to enhance your business operations.

**1. Accept Cryptocurrency Payments:**
   - **Benefits:** Expanding your payment options to include cryptocurrencies like Bitcoin and Ethereum can attract a broader customer base, particularly the tech-savvy and privacy-conscious consumers. Crypto transactions often have lower fees compared to traditional credit card or bank payments, which can save money on transaction fees.
   - **How to Implement:** Integrate a digital wallet service into your payment systems. Services like Coinbase Commerce and BitPay facilitate cryptocurrency transactions and convert them into fiat currency, reducing the volatility risk.

**2. Pay Vendors and Contractors in Crypto:**
   - **Benefits:** Paying vendors or contractors in cryptocurrency can simplify cross-border transactions, reduce transaction times, and minimize fees. It also eliminates the need for currency conversion for international payments.
   - **How to Implement:** Set up agreements with your vendors and contractors to accept payments in cryptocurrency. Ensure that both parties understand the tax and legal implications in their respective jurisdictions.

**3. Use Crypto for Cash Management:**
   - **Benefits:** Holding part of your business's operating cash in cryptocurrencies can be a strategic move, especially if you operate in a country with a volatile currency. It can also act as a hedge against local currency inflation.
   - **How to Implement:** Convert a portion of your cash reserves into stablecoins (like USDC or DAI), which are pegged to stable assets like the U.S. dollar and offer less volatility than other cryptocurrencies.

**4. Fundraising Through Cryptocurrency:**
   - **Benefits:** If you are looking to raise funds, issuing a cryptocurrency token or conducting a small-scale Initial Coin Offering (ICO) can be an innovative method. It provides a way to raise capital without diluting equity significantly.
   - **How to Implement:** Develop a clear and compliant token issuance plan, ensuring it meets all regulatory requirements. Utilize blockchain technology to issue tokens that represent either debt, equity, or access to a specific product or service.

**5. Enhance Supply Chain Transparency:**
   - **Benefits:** Using blockchain, the underlying technology behind cryptocurrencies, can increase transparency and efficiency in supply chain management.
   - **How to Implement:** Implement blockchain to track goods as they move through the supply chain, ensuring all parties have access to the same information and significantly reducing discrepancies and disputes.

**6. Offer Loyalty Rewards in Crypto:**
   - **Benefits:** Crypto-based loyalty programs can enhance customer retention and provide a quick, cost-effective way to reward loyal customers.
   - **How to Implement:** Create a digital token specifically for your loyalty program, or offer existing cryptocurrencies as rewards. Ensure that the rewards system is easy to use and understand.

**7. Invest in Crypto-related Technology:**
   - **Benefits:** Investing in crypto-related technologies or startups can potentially yield high returns as the technology matures. It also keeps your business at the forefront of innovation.
   - **How to Implement:** Allocate a portion of your investment portfolio to crypto-assets or blockchain startups. Consider working with a financial advisor who specializes in cryptocurrency and blockchain technology to make informed decisions.

**Conclusion:**
Cryptocurrency offers a multitude of opportunities for business owners willing to embrace its potential. From enhancing operational efficiencies and reducing costs to opening new funding avenues and markets, the benefits are compelling. As the digital currency landscape continues to mature, staying informed and adaptable will be crucial for leveraging cryptocurrency to its full advantage.

**Call to Action:**
Ready to leverage the power of cryptocurrency for your business? Killer Whale Crypto has you covered with services tailored to your needs.

•⁠  ⁠*New to Crypto?* Book an installation with us to set up your automated trading portfolio. Get started on the right foot with professional guidance.
•⁠  ⁠*Looking for a Custom Solution?* Schedule a consultation to develop a tailored strategy that meets your unique business requirements. Our experts will help you maximize the benefits of crypto for your operations.
•⁠  ⁠*Existing Client?* Keep your automated trading setup running smoothly with a tune-up. We'll ensure your system is up-to-date and optimized for performance.

*[Contact us today](https://www.killerwhalecrypto.com/services) to take your business to the next level with cryptocurrency!*


Discover the top seven strategies for leveraging cryptocurrency to boost your business's efficiency, security, and market reach.

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7 Ways Business Owners Can Utilize Cryptocurrency to Enhance Operations

The landscape of financial investment is undergoing a seismic shift, thanks to the advent of algorithm intelligence (AI) and machine learning (ML). In this new age of trading, traditional methods are being augmented—or in some cases, replaced—by these advanced technologies, offering precision, efficiency, and unparalleled insights. Killer Whale Crypto stands at the forefront of this revolution, implementing cutting-edge AI and ML solutions to redefine trading for our customers. Let’s explore how this innovative approach is setting a new standard in the cryptocurrency market and why investors should be paying attention.

**The Power of Algorithm Intelligence and Machine Learning in Trading:**

Algorithm intelligence refers to the application of complex algorithms that can analyze, predict, and execute trades at speeds and volumes far beyond human capabilities. When combined with machine learning—a branch of AI that enables systems to learn and improve from experience without being explicitly programmed—these technologies can transform data into actionable investment strategies.

**Customized Trading Strategies:**

At Killer Whale Crypto, we harness AI and ML to develop personalized trading strategies that align with our customers' risk profiles and investment goals. By analyzing vast datasets, including market trends, historical data, and real-time economic indicators, our algorithms identify patterns and predict market movements with a high degree of accuracy. This allows for the creation of tailored strategies designed to maximize returns while minimizing risks.

**Enhanced Decision-Making:**

One of the key advantages of algorithm intelligence is its ability to make informed decisions quickly and efficiently. In the fast-paced world of cryptocurrency trading, where market conditions can change in an instant, the speed of decision-making is crucial. Our AI-driven systems continuously monitor the market, executing trades at the optimal moment to capitalize on opportunities and hedge against potential downturns.

**Risk Management**

Risk management is a cornerstone of successful investment, and it's an area where AI and ML excel. By employing sophisticated algorithms, Killer Whale Crypto can assess and manage the level of risk associated with each investment. Our systems evaluate the potential impact of market volatility, regulatory changes, and other variables to adjust trading strategies in real-time, ensuring a balanced approach to risk and reward.

**The Future of Trading with Killer Whale Crypto:**

The integration of AI and ML into trading represents a paradigm shift in how investments are managed and decisions are made. At Killer Whale Crypto, we're not just adapting to this change; we're leading it. Our commitment to leveraging the latest technologies ensures that our customers are equipped with the most advanced tools in the market.

**Conclusion:**
Algorithm intelligence and machine learning are not just buzzwords; they are the driving forces behind the new age of trading. With Killer Whale Crypto, investors can tap into the power of these technologies, benefiting from customized strategies, enhanced decision-making, and effective risk management. As the cryptocurrency market continues to evolve, so too will the tools and technologies we use to navigate it. By choosing Killer Whale Crypto, you're not just investing in the market of today; you're investing in the future of trading.

**Invitation to Join the Revolution:**
Ready to experience the cutting edge of cryptocurrency trading?[ Join Killer Whale Crypto](https://www.killerwhalecrypto.com/services) and unlock the potential of algorithm intelligence and machine learning in your investment strategy. Together, we'll navigate the dynamic world of cryptocurrency, powered by the latest advancements in trading technology. Embrace the future with us and transform your investment journey.

Step into the future of trading with Killer Whale Crypto, where algorithm intelligence and machine learning are transforming investment strategies in the cryptocurrency space and other markets alike.

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Embracing the Future: Algorithm Intelligence


Seize the future of wealth with Killer Whale Crypto's innovative portfolio management service, designed to navigate the complexities of the cryptocurrency market with precision and foresight. Led by the visionary Dylan Shively, this non-custodial platform equips investors with the essential tools, strategies, and insights to flourish in the dynamic world of crypto. Discover how customization, vigilant monitoring, and direct communication are revolutionizing investor experiences and outcomes.

## Revolutionizing Crypto Investments: A Tailored Approach

**Personalized Strategy Development:**
At the core of Killer Whale Crypto's offering is the development of customized investment strategies. Understanding that each investor's profile – encompassing their goals, risk appetite, and financial landscape – is distinct, our team dedicates itself to formulating investment plans that resonate with individual needs. Whether your strategy leans towards the stability sought by long-term holders, the agility of active trading, or a well-calibrated, risk-managed approach, Killer Whale ensures alignment with your overarching financial goals. This bespoke strategy lays a robust groundwork for your crypto journey.

**Adaptable Daily Portfolio Oversight:**
In the fast-paced crypto market, staying informed and agile is crucial. Killer Whale distinguishes itself with daily portfolio monitoring and the flexibility to adjust strategies swiftly in response to market movements. Utilizing cutting-edge analytics and market insights, the team ensures your portfolio is not just reactive but proactive, optimizing for market volatility and positioning you for success.

**Direct Access to Expertise:**
What sets Killer Whale apart is the direct communication channel with our team, providing investors with real-time insights, strategy discussions, and expert guidance. This level of access ensures that investors are not only kept in the loop about their portfolio's performance but also have a trusted advisor available to navigate the complexities of the cryptocurrency market.

## Collaborative Growth and Transparency

**Engaging Monthly Performance Reviews:**
Killer Whale prioritizes transparency and partnership through monthly performance reviews. These sessions are instrumental in evaluating investment performance, discussing strategy adjustments, and ensuring that your portfolio remains attuned to both your evolving goals and the shifting sands of the crypto landscape. It's a testament to the service's commitment to fostering a deep, informed relationship with each investor.

**Fair and Aligned Compensation Model:**
Killer Whale's compensation model underscores its commitment to client success, featuring a clear, equitable structure. With a fixed monthly management fee complemented by a performance-based profit-sharing scheme, the service ensures that the team's incentives are perfectly aligned with maximizing investor returns. An exploratory package is also available, catering to those new to crypto and underscoring Killer Whale's confidence in delivering value.

**Conclusion: A Beacon in the Cryptocurrency Storm**
Killer Whale Crypto emerges as a guiding light for investors navigating the tumultuous waters of cryptocurrency.  This service not only promises to guide investors through the market's inherent challenges but also to harness its vast opportunities, enabling them to achieve their financial aspirations in the burgeoning realm of digital assets.

**A Call to Adventure**
Embark on a transformative journey in cryptocurrency investment with Killer Whale Crypto. By choosing a path marked by informed strategy, expert guidance, and a partnership-oriented approach, you position yourself at the forefront of financial innovation. Join us as we navigate the promising, yet challenging, seas of the crypto market, driven by a commitment to achieving your financial objectives. 

Experience customized strategies, expert guidance, and dynamic performance optimization

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Killer Whale Portfolio Management Service

In the ever-evolving landscape of digital technology, smart contracts stand out as a revolutionary tool, promising to automate and secure the world of digital agreements. As we delve deeper into the era of blockchain and cryptocurrencies, understanding the mechanics and potential of smart contracts is crucial for anyone looking to navigate the future of finance, law, and beyond.

**What are smart contracts?**
At their core, smart contracts are self-executing contracts with the terms of the agreement between buyer and seller directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The beauty of smart contracts is that they allow transactions and agreements to be automatically executed without the need for a middleman, once predefined conditions are met. This not only cuts down on time and potential costs but also significantly reduces the risk of fraud or third-party interference.

**How Do Smart Contracts Work?**
Smart contracts work by following simple "if/when...then..." statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain then updates to reflect the transaction, which cannot be changed or deleted, ensuring transparency and trust in the process.

For example, consider a smart contract used for a property sale. The contract might state that when the buyer transfers a certain amount of cryptocurrency into a secure account, then the digital deed for the property is automatically transferred to the buyer’s name. Both actions occur simultaneously and automatically, with the blockchain recording the transaction.

The potential applications for smart contracts are vast and varied across multiple sectors:

**Finance and Banking**: Smart contracts can streamline processes, such as loans and mortgages, by automatically verifying and processing transactions, reducing the need for manual processing and checks.

**Supply Chain Management**: They can provide a transparent and unchangeable ledger of product journeys, from production to delivery, ensuring compliance and quality control.

**Healthcare**: Patient records could be securely stored and automatically shared between authorized parties, improving data accuracy and privacy.

**Real Estate**: Property transactions can be simplified, with smart contracts automating the exchange of deeds, checking for liens, and transferring funds.

**Legal Industry**: Automating the execution of legal processes and documents, reducing the need for intermediaries and lowering costs.

**Voting Systems**: Smart contracts could create secure, transparent voting mechanisms, reducing the potential for fraud and ensuring the integrity of electoral processes.

**Challenges and Considerations**
Despite their potential, smart contracts are not without challenges. They are only as good as the code they are written with, meaning bugs or vulnerabilities can lead to unintended consequences. Furthermore, the legal status of smart contracts is still evolving, with questions around enforcement and jurisdiction in need of clearer regulations.

**The Future Is Automated**
As technology continues to advance, the role of smart contracts is set to grow, offering a glimpse into a future where digital transactions are faster, cheaper, and more secure. By automating processes that were once manual and prone to error or fraud, smart contracts could redefine the way we think about agreements in the digital age. The journey of integrating smart contracts into daily operations is just beginning, but its direction points towards a more automated and efficient future.

Schedule a consult today to learn how smart contracts could automate your business.

"As technology continues to advance, the role of smart contracts is set to grow, offering a glimpse into a future where digital transactions are faster, cheaper, and more secure. "

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Smart Contracts: Automating the Future

**Project Use Cases**

The advent and use of cryptocurrency is synonymous with the highest thinking levels of human development. When currency was in its earlier stages, physical materials of scarcity such as gold provided the underlying value. As we can see with smart contract enabled development platforms, such as Ethereum, Cardano and Solana, things can be done differently. The underlying value of assets such as these, revolves around data, efficiency and progress; much in the same way that the world wide web is valued in and of itself.

The best performing cryptocurrency projects are those which best fill a global need. Bitcoin for example fills a global need for financial inclusion, however there are many other cryptocurrency platforms which serve far more specific needs. Empowa – a project built on the Cardano blockchain that focuses on creating affordable housing in Africa – is a great example of a cryptocurrency with a highly specified use case.

When selecting coins for investment purposes, always consider what its real-world application is. Projects with a strong use case are far more likely to perform better over time than projects with weaker use cases. 

 

```product
large-cap
```

 

**Development Teams**

If you were to ask a room filled with venture capitalists what they look at when determining whether to invest in a new project, many, if not all of them would tell you that they look at the development team behind the project before they anything else. The same goes for cryptocurrency. The best performing cryptocurrency projects tend to be the ones with strong development teams. If a team has a reputable track record for creating successful projects, then it’s likely that new projects which they develop will be prosperous as well. In many cases, projects with weaker use cases and a strong development team will outperform projects with stronger use cases and weaker development teams.

Another factor to consider beyond the track record of a development team’s previous projects is the team’s ability to meet goals within their own roadmap in a timely manner. If a project is doing a good job of following its own roadmap by regularly achieving goals, then it is likely that the project will continue to stay competitive as well as relevant in years to come.


 

**Tokenomics**

Understanding the breakdown of how a coin works is vital knowledge when selecting projects to invest in. learning how a coin works at the deepest levels will help you with forecasting to a degree, but more importantly, this knowledge will help you avoid potential rug-pulls and other detrimental situations that could occur because of how funds within the coin’s ecosystem are managed. The tokenomics of a coin will reveal other useful information as well, such as a coin’s potential staking rewards, or any other feature the coin may have that would add to its potential value as an asset.

 

**Conclusion**

The fundamental coin selection process is different for everyone. If you are a member of the Killer Whale Pod, we highly recommend using the coins we’ve placed on the Killer Whale suggested coin list when selecting coins to trade with your hopper. Killer Whale updates the Killer Whale suggested coin list periodically to match market conditions, so keep an eye on it to ensure you’re getting the best results out of your bot!

 

# [Killer Whale Crypto](https://www.killerwhalecrypto.com/)
**CHANGE THE WAY YOU TRADE**

For those who are new to cryptocurrency, selecting the cryptos you want to invest in can be a daunting task. Luckily, there are a few basic things you can look for which can help you determine which coins you feel most confident placing your hard-earned money into. In this piece we will take a look at what you can learn from project use cases, the teams behind projects, and a project’s tokenomics: All of which are indispensable pieces of information when selecting the cryptos in your portfolio!

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Crypto for Beginners: Fundamental Coin Selection

**Breaking Down the Basics**

To fully understand what caused the Terra Luna crash, let’s look at how Terra Luna works. Terra Luna is a project which incentivizes network participants to balance Terra Luna’s algorithmic stablecoin – UST. UST is what is known as a Seigniorage algorithmic stablecoin, which is a specific type of algorithmic stablecoin.

 

**Algorithmic Stablecoins**

Many of us are familiar with traditional collateralized stablecoins; particularly those which are fiat backed, such as USDT and USDC. There is however an entirely different category of stablecoins. This variety of stablecoins – algorithmic stablecoins – are non-collateralized by nature and instead are balanced by computer algorithms that are designed to mimic the value of other currencies, such as fiat currencies.

These stablecoins are smart contracted and algorithmically generated. An algorithmic stablecoin system will increase and reduce the number of coins in circulation, to match the price to that of which it represents. The system will remove tokens when the stablecoin falls below the price of the asset and will add tokens when the stablecoin increases in value. This target price is known as the “peg.”

 

**Seigniorage Algorithmic Stablecoins**

Seigniorage algorithmic stablecoins refer to the difference between a coin and its production costs. Network participants are incentivized to maintain the value of a token by its minting and burning. Essentially, this system involves a token which is pegged to a stable value, and another token which is used to incentivize network participants to accurately rebalance the token pegged to the stable value. This is the stablecoin model which is implemented within the Terra Luna ecosystem for its stablecoins.


 

**What is Terra Luna**

Terra is a cryptocurrency project which was originally created nearly 4 years ago by Korean software company, Terraform Labs. Terraform Labs was founded by Daniel Shin and Do Kwon. The Terra project is designed to support a basket of stablecoins. What separates the Terra project from other similar cryptocurrency projects is that the Terra project is designed to operate as the backend protocol for the implementation of the cryptocurrency apps and products designed by Terraform Labs.

 

**How Terra Works**

The Terra mainnet was launched in 2019, and allows the creation of stablecoins, which are pegged to fiat currencies. The most common stablecoin created on the network is the UST token: UST is an algorithmically balanced stablecoin which represents the price of USD. UST is implemented in the same way that tokens such as USDT are utilized, however its value is not backed by the traditional 1:1 ratio of USD against each coin minted.

To mint UST on the Terra blockchain, the creator of the stablecoin needs to burn the equivalent amount of Terra’s native token LUNA. One of the most intriguing functions of Terra, is that the UST stablecoins created on its blockchain can respectively be burned by the network, in exchange for LUNA tokens. This ability to burn the network’s stablecoin – UST – in exchange for the native LUNA token is what stabilizes the UST tokens created on the Terra blockchain. The ability to burn the LUNA token at its current value, as well as burn the network’s UST stablecoins at their current value, incentivizes Terra Luna users to profit from each coin’s rebalancing. A user can potentially burn a Terra token, against the UST stablecoin on the network – or vice versa – to benefit from the difference in whichever token is inaccurately balanced. This ability to burn both UST stablecoins and LUNA utility tokens – in exchange for one another – stabilizes the supply and demand ratio of each.

 

```product
gain-btc
```

 


The validators of the Terra network also provide Oracle services to confirm that the prices of both the LUNA token and the UST stablecoins are being rebalanced accurately. It is also important to mention that any discrepancies between the valuation of the LUNA token and the UST stablecoin are incredibly uncommon. This is due to the high number of network participants who are consistently arbitraging the value of both cryptocurrencies against one another.

One of the biggest factors behind the value of the LUNA token can be contributed to the fact that a small percentage of each LUNA token which is used for the minting of stablecoins, is not burned; rather, this small percentage of LUNA goes directly to the Terra community treasury. The holders of the LUNA token are responsible for determining how these tokens are spent. LUNA also acts as a governance token, in that its holders are also tasked with voting on the implementation of changes to the function of the Terra blockchain.

 

![Luna dying.png](https://duj27fxoqhxbb.cloudfront.net/Luna_dying_b7027e3100.png)

 

**May 9th, 2022: The day Terra Luna Unraveled**

On May 9th, 2022, the UST token dropped far below its $1 peg price. This led to even more downward pressure to the cryptocurrency market on a day which was already bleeding with red candles. The LUNA token simultaneously collapsed to nearly zero, leaving many investors confused, sad and angry. In many cases, the Terra Luna crash entirely wiped out the life savings of cryptocurrency investors that were particularly invested in the project. Terra Luna forums across the web were filled with sad posts. 


 

![lunareddit.png](https://duj27fxoqhxbb.cloudfront.net/lunareddit_2cbf293cfa.png)

 


**How the Crash Happened**

As of right now, there is no solid answer for what exactly caused the Terra Luna crash. Most of the information floating around is purely speculative and some of it leaning in the direction of conspiracy. What we do know however, is that the supply of the LUNA token spiked and its price subsequently plummeted. This caused the balancing mechanism that keeps the UST token attached to its peg of $1 to stop working. The dumping price of UST prompted panic selling which led to the minting of more LUNA tokens. This shot the circulating supply of the LUNA token from an average 345 million, to a whopping 6.5 trillion, within a matter of 4 days, hyperinflating the asset.

 

**Is Luna’s Recovery Possible?**

Terraform Labs CEO Do Kwon offered several recovery plans, however much of the crypto community is hesitant to believe that Luna’s recovery is possible after dumping over 99.9% of its value. Nonetheless, Do Kwon’s initial plan prioritizes absorbing the UST supply within the network. Do Kwon has also offered an alternative proposal which aims at recovering the layer 1 protocol by hard forking the Luna network. 

As of the time of writing this article, Luna’s validators still haven’t come to a consensus on any plan to revitalize the project. UST is continuing to slide further away from its $1 peg, settling as low as $0.04.

 

```product
gain-eth
```

 

**Conclusion**

The collapse of the Terra Luna project is undoubtably one of the most painful events in crypto, especially now, as it is still fresh in our minds, and with so many of us continuing to look for resolve and answers. This highlights why it’s so important to only invest with money you are willing to lose. It may seem tempting for new investors to place all their funds in one project that they believe to be the best, however cryptocurrency investing and indeed investing within all asset classes needs to be done with care, as none of us can truly see the future. 

Diversifying your assets, and only adding funds to them when you have enough money to comfortably live is the hallmark of a good investor. A series of well thought out decisions now can little by little, lead you to a prosperous future later in life, while eliminating the risk of loosing everything if a project or asset somehow fails down the road. Learning as much as possible about the projects and assets you’re investing in, and seeking the guidance of professional traders as you navigate all that comes with making your money work for you is indispensable. 

We here at Killer Whale pride ourselves in providing quality bot trading strategies and expertly calculated, technical analysis driven signals. If you are curious to learn more about Killer Whale, just follow this [**Killer Whale**](https://killerwhalecrypto.com/) link!

 

# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CHANGE THE WAY YOU TRADE**

It’s no secret that the last few weeks have been some of the most trying times for traders across all markets, and crypto traders particularly felt the pain. Although nearly every asset worldwide suffered, the collapse of Terra Luna was severe enough to make even the most bullish of crypto investors panic. In this piece, we will look at what caused the implosion of Terra Luna, and more importantly, how a catastrophe such as this could even happen in the first place.

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The Fall of Luna: How Terra Luna Lost it all

**DeFi and Smart Contracts**

First and foremost, let’s talk about DeFi. DeFi or decentralized finance is one of the newest and most interesting aspects of cryptocurrency. it stems from a capability that not all cryptocurrencies have, which is the ability to build contracts, known as “smart contracts,” right on the blockchain itself. A smart contract is essentially the same as a regular contract; the only difference is that smart contracts are governed by a program, rather than a person. This ensures that the contract is unbiased and transparent for everyone who is participating in it.

 

**Minting Tokens**

One of the most common uses for smart contracts is minting entirely new tokens on the blockchains of existing cryptocurrencies. This makes it possible for network users to build all kinds of different programs and utility tokens that can serve an endless number of applications. As an example, this is the technology which allows NFTs to be minted, traded and sold on a blockchain. 

 

**Wrapped Tokens**

As we mentioned above, not all cryptocurrencies have the capability to interact with smart contracts. Some of these cryptocurrencies are widely used and hold – in many cases – more value and a greater trading volume than their counterparts that do have smart contract functionality. Bitcoin is a one of these cryptocurrencies, because it holds more value than any other crypto, but was invented before smart contract functionality had ever been thought of. This is where wrapped tokens come into play

A wrapped token is a token that exists on a smart contract enabled platform, which is pegged to the value of a cryptocurrency that exists outside of the platform. This capability allows for cross-chain use cases. The original crypto stays on its own issuing blockchain, where is locked in a digital vault. Once the crypto is “locked up,” a tokenized “wrapped” version of the crypto is minted on a blockchain that supports DeFi protocols. To unlock the crypto which is being held in the digital vault for collateral, its wrapped and tokenized counterpart must be exchanged and pulled out of circulation.

Wrapped Bitcoin (WBTC) is a great example of this, as it is pegged at a 1:1 ratio to Bitcoin, yet operates on the Ethereum network.

 

```product
Gain-btc
```
 


**Uses for Wrapped Tokens**

- **Lending**
Wrapped tokens are mainly used to add fuel to DeFi; therefore, the first and most common application of wrapped tokens falls under the category of DeFi lending. Tokenized Bitcoin for instance can be used in lending protocols such as Aave and MakerDAO, among several other lending protocols on the Ethereum network. Lenders can even mint the DAI token on the MakerDAO platform, then lend the DAI that they minted at an interest.

- **Decentralized trading**
Although this practice should only be reserved for experienced traders, it is possible to use wrapped tokens like wrapped Bitcoin to trade on margin within decentralized exchanges or decentralized derivatives exchanges.

- **Providing Liquidity to DeFi**
Wrapped tokens can be used to provide liquidity to the ecosystems of development platforms, such as Ethereum. When tokenized versions of assets such as Bitcoin make their way to networks like the Ethereum network, the whole DeFi ecosystem benefits form the additional liquidity.

- **Collateralized Crypto Loans**
DeFi loaning protocols by in large require the borrower to secure their loans with collateral, which is held in reserve until the loan is repaid. In the beginning of DeFi loaning, the most common asset used to collateralize a loan was ETH. With the advent of wrapped tokens, users were then able to collateralize their loans with wrapped Bitcoin, which is generally considered to be a more stable asset.

 Maker DAO, Compound and Aave all allow you to collateralize loans with wrapped Bitcoin.

 

```product
Gain-eth
```

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using [**Killer Whale Signals and Strategies**](https://killerwhalecrypto.com/) , you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/elite) sooner than you know it!

 

# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CHANGE THE WAY YOU TRADE**

There’s a lot to learn about when it comes to crypto, especially if you’re new to the world of digital assets. In this piece, we’ll be looking at wrapped tokens and how they’re used!

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Crypto for Beginners: Wrapped Tokens

**Coins**

The term “coin” is used to describe the predominant and native asset that exists on a blockchain. Coins are used as the currency that makes transactions on the blockchain work. Many of the earlier blockchains and respective cryptocurrencies that came into existence are used exclusively as a store of value. This is because these blockchains were only designed to support their native coin. The currencies which exist on these particular blockchains are referred to as “Store of Value” cryptocurrencies. The Bitcoin network and its underlying coin BTC is a great example of a traditional store of value crypto that has performed exceptionally by its own merits.

 

```product
large-cap
```

 


**Tokens**

As the years progressed, blockchain technology improved, allowing blockchains to not only support the coins that represent their overall value, but also tokens that could represent smaller and more specific values, using the same system. Ethereum was one of the first cryptocurrencies that eventually offered the ability to support tokens through the blockchain, although other cryptocurrency projects have adapted the same functionality since then. The ability to tokenize specific assets under one umbrella of value has since evolved to become one of the most vital functions of blockchain technology.

 

**Non-Fungible Tokens (NFTs)**

The ability to store value in the form of fungible tokens on a blockchain also opened the doors to an entirely new way to store value: Non-fungible tokens. Non-fungible tokens, or NFTs use the same technology that is used to create subsidiarity tokens on a blockchain; the only difference is that each of these tokens is unique. Since NFTs each hold their own unique value, they have their own set of use cases which branch from traditional blockchain technology. NFTs can be tied to any number of digital or real-world assets, assigning a trackable value to anything they are made to represent. As an example, NFTs can be tied to digital artwork – as they so often are – ensuring that the original piece of digital artwork they are tied to can in fact be verified as the true original. 

NFTs have become immensely popular in the digital art world for this very reason. Many of the first NFTs were specifically minted to represent digital artwork, however this is only the tip of the iceberg when you consider the number of other use cases that can be, and are being applied to the same technology. NFTs have the potentiality to replace many of the traditional record keeping systems that we rely upon daily.

NFTs could be used to replace many of the functions that are implemented by both government and private institutions alike. Hospitals could potentially use NFTs to safely transfer patient records, as well as prescriptions. Ranchers and farmers could use NFTs to track crops and livestock. Government agencies like the department of motor vehicles could utilize NFTs to transfer vehicle titles and driver’s license information. NFTs and blockchain technology can handle each of these examples and many more, while also streamlining these processes to a degree that we have never seen before while simultaneously cutting many of the costs that it traditionally takes to maintain these services.

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies, you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/elite) sooner than you know it!

 

*“Fortune favors the bold”*

 

# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CHANGE THE WAY YOU TRADE**


For those of you who are new to crypto, the difference between coins and tokens can be a bit confusing. Coins are intended to serve as currency, while tokens represent more specific values which are stored on a blockchain. in this piece we will take a closer look at what makes the two different.

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Crypto for Beginners: Coins and Tokens

**What is an Oracle**

An oracle is a program that sends real-world data to a blockchain. Oracles usually keep track of specific data, such as weather patterns and temperatures, however they can be used for a multitude of other purposes. In some cases, oracles are used to allocate resources, such as the disbursement of money, to various charities and businesses.

 

**What are Oracles Used for**

Oracles play a vital role within the blockchain ecosystem because they make it possible for blockchains to interact with information that exists outside of their own network. Oracle programs can bridge data from one blockchain to another, just as easily as they can bridge data with external sources, such as traffic and weather monitoring systems. Oracles are even capable of dispersing payroll checks to individuals, based on an unbiased set of parameters. 


 

```product
Large-cap
```

 

**Potential Use-cases for Oracles in Everyday Life**

Oracle and blockchain technologies may very well become indispensable tools for disaster relief, or severe weather conditions. As an example, an oracle could direct a cargo ship away from a potentially dangerous storm before it even takes place, based on weather patterns alone. Using oracle technology in cargo shipping would also make it much easier to track international packages.

 

**Conclusion**

Oracle technology already plays a crucial role in the way we use cryptocurrency. Many of the Web3 protocols that are currently being developed rely heavily on oracle software. Its exciting to see how oracle software and blockchain technology will improve the world we live in, one advancement at a time!

<vr/>

# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CHANGE THE WAY YOU TRADE**

Within the last few years, we have seen a tremendous amount of growth in the crypto space. Every day, new cryptocurrency tokens, protocols and dApps flood the market. Although many of these projects are different in nature, 80 percent of them share something in common: They cannot function properly without an oracle. In this piece we will be taking a look at cryptocurrency oracles and how they are already reshaping the way we use cryptocurrency!


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Cryptocurrency Oracles

**Crypto for Beginners: Wallets vs Exchanges**

The ever-growing world of cryptocurrency is full of questions and answers. Especially for those of you who are just getting started. In this series we discuss the most important things to understand as you explore crypto! This piece describes everything you need to know about the difference between wallets, and exchanges as well as how they’re used.

 

**Wallets**

Wallets are square one when it comes to owning and using cryptocurrency. Specifically, they keep your private passwords known as “keys”. Keys are necessary for accessing your cryptocurrency. If you want to have any interaction with cryptocurrency, you’ll need a wallet.

Wallets come in many different forms, each of which serve a different purpose.

 

**Hardware wallets** 

Hardware wallets, AKA cold storage wallets, or air-gapped wallets, are designed to offer a medium-high degree of security. Some of the most popular varieties of these include Ledger and Trezor. These wallets look like memory sticks or mp3 players. To send and receive crypto with a hardware wallet, it needs to be connected to a computer or cellphone. Only when a button is pressed on a hardware wallet will it unlock the cryptocurrency keys for a specific amount of cryptocurrency which is stored in its memory. The idea behind the hardware wallet is to offer a healthy balance between security and convenience.

 

**Online Wallets**

Online wallets, or hot wallets, are wallets that store your keys in an app or some other type of software. Although they are extremely convenient, online wallets pose a greater security risk to your crypto keys, as they are easier to hack. When selecting an online wallet, be sure to pick one from a credible company or exchange. Some of the better online wallets include Crypto.com, Gemini, and Coinbase. Regardless of which online wallet you decide to use, be sure to enable two-factor identification. It’s also a good idea to keep most of your funds in a more secure wallet. 

Using an online wallet is relatively easy. Online wallet interfaces are similar to the type of interface you would expect from a traditional online bank account. They make it simple to manage, send, control, interact, shop with, and browse decentralized applications with your crypto.

 

**Paper Wallets**

Paper wallets are the least commonly used type of wallet; however, they are by far the most secure. With a paper wallet, your crypto keys are written on a physical medium to be stored in a safe place. This medium can be pretty much anything, but usually paper wallets are printed on paper as the name suggests.

 

```product
Bank-robber
```

 

**Exchanges**

Cryptocurrency exchanges are websites or services where cryptocurrency investors can buy, sell and trade crypto. They are also used to convert digital currency into fiat currency. These exchanges are not dissimilar to the exchanges you find in places like airports; except instead of exchanging your native currency for foreign currency in a building, you are exchanging your digital currencies for other digital and fiat currencies.

Like wallets, cryptocurrency exchanges also come in several forms. Some exchanges perform multiple functions. Classic exchanges and peer-to-peer exchanges are the two most common varieties.

 

**Classic Exchanges**

The Classic cryptocurrency exchange process is like the way trading works in a stock exchange. You can exchange your assets for other assets by placing a limit order or a market order. When you place a limit order, it goes to an orderbook where it waits there until it’s matched with another order. Placing a limit order means that you’re waiting to hit a target price that is either specified, or even better.

Market orders on the other hand, come with higher fees, however they are instantly matched with the buyers and sellers’ requests, that are already available in the exchange’s depth of market.


 

**Peer-to-Peer Exchanges**

In a peer-to-peer exchange, there is no orderbook. Often, there is no middleman and trades are made directly and confidently made between individuals or companies. In the peer-to-peer system, there is no direct effect on the underlying asset

 

**Decentralized Exchanges**

Decentralized exchanges, or DEXs are a new take on how the exchange process works in cryptocurrency and is an integral component of decentralized finance, AKA DeFi. Although they work similarly to centralized exchanges, they lack a central point of failure. DEXs are not run by any company which is in charge of its assets, rather computer programs called smart contracts are implemented to automate transactions and trades. 

DEXs have a big advantage over centralized exchanges. As they are run by a community of active participants, instead of a company, there is no possibility of a security breach assuming the smart contract is well written.

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies, you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/elite) sooner than you know it!

 

*“Fortune favors the bold”*

 

# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CAHNGE THE WAY YOU TRADE**

When you're new to crypto, there is quite a bit to learn about. Wallets and exchanges are undoubtably the first things you will encounter in this fascinating digital world. There are many types of wallets that offer varying levels of security and convenience. There are also different kinds of exchanges that function differently than each other.

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Crypto for Beginners: Wallets vs Exchanges

**Crypto for Beginners: Blockchain Vs. Cryptocurrency**

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few skeptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. In this piece, we will be discussing the difference between two aspects within cryptocurrency that are commonly yet incorrectly used as synonymous terms: Blockchain and Crypto.

 

**What is Blockchain Technology**

Blockchain is a decentralized technology that records and runs cryptocurrency transactions. The blockchain in and of itself doesn’t have any intrinsic value; rather it hosts cryptocurrencies, which do. Furthermore, since blockchains are a decentralized technology, they are non-transferable. Blockchains can also be used for various other purposes, such as information storage.

One of the most important aspects of a blockchain is that the data entered is immutable, meaning every recorded transaction is irreversible. For blockchains used in crypto, this means that all the completed transactions are permanently recorded and viewable by anyone.

The decentralized aspect of the blockchain is equally important. This means that no one individual has full control over a blockchain. Instead, all the users of a blockchain retain collective control. The only hierarchy to speak of on a blockchain such as the Bitcoin blockchain, is directly correlated to how much of the blockchains native asset is in one’s possession. Using Bitcoin as an example once more, the individuals who hold the most Bitcoin, retain the most control, but this control only extends as far as their ability to affect the selling pressure. AKA they can lower the price of an asset by selling large amounts of the asset in question, but that’s about it.

 

**How a Blockchain Works**

A blockchain is a database that is distributed and shared across the nodes of a computer network. The big difference between a blockchain and a traditional database has to do with the way the data is structured. Traditional database’s structure their data in tables, while a blockchain structures it’s data in blocks. These blocks have a set storage capacity. When the storage capacity of a block is filled, the block is closed, and connected to the previously filled and closed block. At this point, a new block is opened, and the process repeats itself.

 

```product
Gain-BTC
```


 

**What is Cryptocurrency**



Cryptocurrencies are virtual currencies which are secured by cryptography. More often than not, cryptocurrency exists on blockchains, which is why blockchain and crypto tend to get mixed up by the uninformed. Cryptocurrencies don’t always have to exist on blockchains, which may come as a surprise to some of you who are new to crypto. There are projects such as NANO (NANO) which utilizes directed acyclic graph technology (DAG) in which no blockchain is necessary.

One of the most important aspects of cryptocurrency is that many of them are not issued by any central authority. This feature allows most cryptocurrencies to theoretically remain immune to government interference or manipulation. Having forms of currency which belong to the people and not the worlds governments is one of the most attractive components behind cryptocurrency for many of its users.

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies, you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/elite) sooner than you know it!

 


*“Fortune favors the bold”*

 


# [Killer Whale Crypto](https://killerwhalecrypto.com/)
**CAHNGE THE WAY YOU TRADE**

Cryptocurrency can be daunting to new investors. This article focuses on explaining the difference between blockchain technology and cryptocurrency technology. 

Crypto for Beginners: Blockchain Vs. Cryptocurrency

**Understanding Indexes: The DXY**

Indexes are by far one of the most important tools in the world of trading. Rather than focusing on one individual asset at a time, indexes allow us to look at a basket of similar assets under the umbrella of one singular averaged chart. In this article series, we will be looking at the most important indexes used by traders, in both cryptocurrency and traditional markets.

 

**What is the DXY**

The DXY, or U.S. Dollar Index is a measure of the value of the U.S. Dollar in a relative perspective to six other foreign currencies. It is maintained by Intercontinental Exchange Inc, or ICE. The basket of currencies which currently make up the DXY are listed as follows:

 

- The Euro (EUR) at 57.6%
- The Yen (JPY) at 13.6%
- The Pound Sterling (GBP) at 11.9%
- The Canadian Dollar (CAD) at 9.1%
- The Swedish Krona (SEK) at 4.2%
- The Swiss Franc (CHF) at 3.6%

 

Although these six currencies currently make up the DXY, they are subject to future revision. For example, both the Swedish Krona and the Swiss Franc are smaller global trading partners than China, Mexico, South Korea, and Brazil. This means that we may eventually see the one or more of these nation’s currencies replacing the Krona, and or the Franc at some point in the future. It’s also possible that other currencies may eventually be added to the DXY rather than replacing those which the DXY already consist of.

 

**History of the DXY**

The DXY was created as a replacement for the Bretton Woods system. The Bretton Woods system was a unified, fixed rate system which was shared between the Allied Nations, which was formed shortly after the second world war. Eventually this would come to be known as the Bretton Woods agreement of 1944. By 1985, the Intercontinental Exchange Commission took over the DXY. That same year, the DXY peaked at its all-time high of $162.72 because of the first ever DXY futures trading. by 2008, the DXY has reached it’s all time low of $70.57 in March of 2008.

 

**How the DXY Moves**

First and foremost, if the DXY raises, it will push the USD base pairs higher, and push USD quote pairs lower. USD base pair – such as USD/CHF, and USD/CAD will move with the DXY, as all these currencies are incorporated into the DXY, with USD being on the front end. Inversely USD quote pairs – such as EUR/USD and XAU/USD – will move in the opposite direction of the DXY, creating more space between the quote pairs and the DXY, as USD is on the tail end of these pairs. Another notable component of the DXY is that it shares a directly inverse correlation with the EUR/USD, as the Euro makes up almost 60 percent of the DXY currency basket.

 

**Using the DXY**

All asset prices are affected by world events, however the DXY is heavily affected by the media. The DXY often increases on days where there is dollar-positive news and decreases on days where there is dollar-negative news. As an example, The DXY will rise whenever the USD is mentioned on television, in a positive light. In the same way, the DXY will lower in value when dollar-negative news – such as war casualties – are at the forefront of the media. Sometimes however this isn’t always the case. On September 11, 2001, the DXY was unaffected by the attack on the World Trade Center in New York, New York. That being said, the DXY correlates enough to provide palpable data.

 

# [Killer Whale Crypto](https://killerwhalecrypto.com/)

**CHANGE THE WAY YOU TRADE**

The DXY is one of the oldest and most useful indexes in trading. It consists of the Euro, the Yen, the Pound Sterling, the Canadian Dollar, the Swedish Krona, and the Swiss Franc. DXY increases when there is positive dollar news and decreases when there is negative dollar news.


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Understanding Indexes: The DXY

**Staking Crypto for Beginners**

Staking can mean various things, depending on how involved you are in the world of cryptocurrency. Beginners and less active investors tend to look at staking their crypto as the equivalent to placing your fiat currency into a Certificate of Deposit, or “CD” in traditional banking. Although this isn’t exactly wrong, as they are similar concepts at the surface level, there is much, much more to staking than what meets the eye of the novice investor. In this piece, we will look at what’s going on behind the scenes when you stake your crypto!

 

**The Right Blockchain for the Job**

One of the most important things to understand about staking crypto, is that not every cryptocurrency can be staked. Cryptocurrencies which need to be mined, AKA Proof of Work cryptocurrencies do not allow for staking, as of now, the only cryptocurrencies that allow staking are those that use Proof of Stake type networks. Some of the most popular staking cryptocurrencies include Cosmos (ATOM), Tezos (XTZ) and as of recently, Ethereum (ETH).

 

**What is Happening When you Stake Crypto**

Unlike Proof of Work blockchains such as Bitcoin, transactions on Proof of Stake transactions are validated only by those who are literally invested in the blockchain, instead of “mined” using large amounts of computer power. The investment which one is required to lock-up to participate as a network validator, is referred to as a “stake.” Furthermore, the amount of cryptocurrency that a validator has staked directly determines the percentage of transactions which the validator can process. Say one validator has 3 percent of the total supply of XTZ staked, then the network will allow them to validate 3 percent of the transactions occurring on the Tezos network. Keep in mind however, the exact implementations vary between the different projects.

 

**Do You Have to be a Validator to Stake Crypto**

Simply put, no. Anyone can stake their cryptocurrency and the most common way this is achieved is through what is known as a “staking pool.” Staking pools are where groups of investors can stake their crypto together on the behalf of validators. This does however come with some risk, as if the validator decides to partake in nefarious activities on the network, then the staked crypto in the pool will be used as collateral, and go back to the network itself. These types of situations are highly uncommon; however, this is still reason enough to only use trusted staking pools, if staking your crypto is something you decide to do.

 

**Reasons to Stake Crypto**

When you stake your crypto, the blockchain puts it to work, which means your assets are working for you, by earning rewards. Staking crypto is good for the ecosystem of the cryptocurrency projects that you support, because the added strength of your funds makes the blockchain more resistant to attacks, and improves its ability to process transactions.
 
In some cases, you can even be rewarded in other “governance tokens” for staking your crypto. These are tokens created by developers and grant the token holders the ability to help shape the future of blockchain protocols.

 

**Conclusion**
Staking crypto may come with risks, however it is a fantastic way to keep your money working for you! Be sure to check out the rest of the [**Killer Whale Site**](https://killerwhalecrypto.com) to see what Killer Whale Signals and Strategies are right for you!

Staking Crypto is one of the most advantageous ways to keep your crypto working for you! Staking helps secure and speed up networks. Staking also comes with some pretty great rewards when done properly.

Staking Crypto for Beginners

**Crypto for Beginners: DeFi**

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few sceptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. We will also take a look at different [**Killer Whale Products**](https://killerwhalecrypto.com/), so our newer members can get a feel for how exactly Killer Whale Works. Specifically, we will be looking at the world of DeFi!

 

**What is DeFi**

Any Smart contract enabled currency, such as Ethereum, falls under the category of DeFi. DeFi stands for Decentralized Finance, and is one of the most fundamental aspects of cryptocurrency. traditional financial systems are considered centralized finance by comparison. This is because governments and banks can control the flow of money within the traditional economic system. DeFi on the other hand, is a system which has no banks. Instead, computer code allows for individuals to exchange their wealth amongst each other, however they see fit.

Traditional banking relies on trust, which is one of the biggest differences between the current centralized system and DeFi. When you keep your money in a bank, you have to trust that you’re leaving it in good hands. In DeFi, there is no need to place trust in a bank, because of the fact that the storage of your wealth is defined solely by computer code. You could even read through all those lines of code and verify its security and method of operation if you were so inclined.

DeFi has other advantages as well. DeFi is censorship resistant. This means there is far less say in how your money can and can’t be spent. Best of all, DeFi is far cheaper than the traditional banking system. There is no need to build large, nicely furnished banks, nor is there a need in DeFi to build massive skyscrapers, or pay anyone’s bank CEO salary. All of these reasons combined are why transactions and finance cost so much within the traditional system. Fees paid in DeFi are algorithmically calculated, and go directly towards the maintenance and security of the network, which includes the rewards received by miners and validators.

 

**DeFi consists of many different components, especially as the number of DeFi applications and participants grows. These however, are a few of the most important aspects of DeFi**

 

**Stablecoins**

Stablecoins act as a sort of bridge between cryptocurrency and traditional finance. They are often tokens which represent fiat currency, or real-world assets. Stablecoins allow traders to park their crypto gains more easily, in a stable variety of cryptocurrency.

 

**Lending and Borrowing**

Lending and borrowing are one of the most unique applications of DeFi. There are many Automated Market Makers (AMMs) that allow users to both deposit and borrow their crypto from various liquidity pools. Depositing into a liquidity pool will earn you interest on what other users are borrowing. The rates for borrowing are also far lower than their traditional finance counterparts.

 

**Decentralized Exchanges (DEXs)**

DEXs are systems in which investors create a pool of different cryptocurrencies to exchange. Traders use that pool to exchange their cryptocurrencies for other cryptocurrencies at a minimal rate. This rate is usually around 0.5% and is locked in, meaning it cannot be inflated or deflated. The small amount of interest for exchange is paid to the DEXs investors. Furthermore, anyone can invest in a DEX or exchange through a DEX.

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using [**Killer Whale Signals and Strategies**](https://killerwhalecrypto.com/), you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/killer-whale-elite) sooner than you know it! 

 


# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

Cryptocurrency can be daunting to new investors. This article focuses on the basics of Decentralized Finance, or DeFi. Specifically, how DeFi is Different than traditional finance

Crypto for Beginners: DeFi

**Cryptocurrency for Beginners: Signals and Strategies**

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few sceptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. We will also take a look at several different Killer Whale Products, so our newer members can get a feel for how exactly Killer Whale Works. In this piece we will discuss signals and strategies: How they work and what the difference is.

 

**Trading Bots**

Before we get into signals and strategies, let’s take a look at trading bots. The concept of the trading bot goes as far back as 1949. This was the year Richard Donchian proposed the idea of an automated trading system, which followed a set of rules to buy and sell funds. John Henry was the first professional trader to adopt the concept of rule-based trading in the 1980’s and since then, trading bots became a powerful tool in the markets.

For a long time, trading bots were not a tool that the average trader had access to. Bloomberg terminals can cost upwards of $10,000, therefore most trading bots were operated by various investment groups. That is until the rise of the internet. Now, all of us have access to these powerful tools that have a long history of use amongst institutional investors.

 

**Killer Whale Strategies**

Killer Whale Strategies are exactly what they sound like: Strategies which have been expertly designed by Killer Whale to help you achieve a wide variety of financial goals. With a little bit of setup, you can plug these strategies into your Cryptohopper bot and begin trading like a pro! Strategies such as [**Killer Whale Ultimate**](https://killerwhalecrypto.com/product/killer-whale-ultimate), [**Killer Whale Gain BTC**](https://killerwhalecrypto.com/product/gain-btc), and [**Killer Whale Gain ETH**](https://killerwhalecrypto.com/product/gain-eth) focus more on gaining various cryptocurrency assets, while strategies like [**Killer Whale Scalp Trade**](https://killerwhalecrypto.com/product/scalp-trade), and [**Killer Whale Swing Trade**](https://killerwhalecrypto.com/product/killer-whale-swing-trade) are designed to buy and sell positions, based on different types of overall trading styles. Check out the [**Killer Whale Products Page**](https://killerwhalecrypto.com/) to learn more!

 

**Killer Whale Signals**

For those who are looking to get the most out of their trading experience, look no further than Killer Whale Signals. [**Killer Whale Bank Robber Signals**](https://killerwhalecrypto.com/product/bank-robber-signals), which give you access to Cryptohopper AI technology and premium indicators, even if you are operating either an Explorer or Adventure subscription. [**Killer Whale Premium Signals**](https://killerwhalecrypto.com/product/premium) on the other hand, is 100% copy trading and runs on Killer Whale’s top performers on the Killer Whale Suggested Coin List. For those who are serious investors, we offer [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/killer-whale-elite). Killer Whale Elite allows traders to take advantage of a multitude of different markets, such as top cryptos, gold, silver, oil and stocks. [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/killer-whale-elite) offers the greatest returns out of all of our products, however we recommend it only to those of you who have a sufficient amount of capitol to invest, as it is not designed for beginners.

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using [**Killer Whale Signals and Strategies**](https://killerwhalecrypto.com/), you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/killer-whale-elite) sooner than you know it!

Cryptocurrency can be daunting to new investors. This article focuses on the basics of bot trading. Specifically, how signals and strategies are used in bot trading

Cryptocurrency for Beginners: Signals and Strategies

**Crypto Terminology: Coin or Token?**

In cryptocurrency, there are all kinds of words and terminologies which are thrown around regularly. For those of us who are new to cryptocurrency, the massive and unique vocabulary that is associated with crypto can be quite daunting at first. In this piece, we will take a moment to look at the different words and terminologies that commonly come up in crypto conversations, so that our newest users are up to speed. This article will focus on the differences and similarities between coins and tokens.

 

**Coins**

The most common mix-up in cryptocurrency terminology is the difference between a coin and a token. Nearly everyone in crypto has confused the two at one point or another, along their cryptocurrency journey. This is because both coins and tokens are very much alike. They each represent value and are capable of processing payments. You can even swap coins for tokens and vice versa.

The biggest difference between the two is that coins operate on their own native platform. This means coins are independent from any other platform, when it comes to exchanging them, holding them, or using them to buy goods and services. Bitcoin is a great example of what defines a coin because it was the first ever cryptocurrency that gave the world a true definition of what a digital coin is.

 

**Tokens**

Tokens are digital assets which are created on, and exist on platforms which already have a native digital currency, or coin. Anyone who creates a token is relying on the platform in which it was created on. For companies and organizations that would benefit from having their own cryptocurrency, but would rather not develop and maintain their own blockchain; creating a token can be a great alternative. 

Because tokens exist on the platforms of other cryptocurrencies, their processing and validation is handled by the platform they were created on. Cryptocurrency platforms that allow for the creation or “minting” of tokens come with a fee; often called a “gas” fee. Although there are a variety of platforms which allow for the creation of new tokens, it requires the expenditure of some of the platform’s native digital assets. This is often referred to as a “gas” fee.

 


**Tokens Becoming Coins**

Tokens can sometimes become coins if they are performing well enough. This has happened with both Binance Coin (BNB) as well as Crypto.com Coin (CRO). For this to happen, the development team behind a token needs to create a standalone blockchain, that can match the value of the original tokens, with the coin on the new network. The old tokens are then exchanged for the new coins. Essentially, the value of each token is moved to its coin counterpart on the new blockchain.

 

**Conclusion**

Regardless of whether a cryptocurrency asset is considered a coin or a token, they both have the same advantageous investment qualities, when you’re using Killer Whale! Be sure to check out our [**Killer Whale Products**](https://killerwhalecrypto.com/) page, to see what Killer Whale Signals and Strategies are right for you!

 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

Coins and tokens are commonly misinterpreted as the same thing within crypto. Coins operate on their own network. Tokens are built on another network.

Crypto Terminology: Coin or Token?

**Crypto for Beginners**

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few sceptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. We will also take a look at several different [**Killer Whale Products**](https://killerwhalecrypto.com/), so our newer members can get a feel for how exactly Killer Whale Works. Specifically, we will be looking at the two biggest cryptos in the cryptocurrency world: Bitcoin (BTC) and Ethereum (ETH)!

 

**Bitcoin (BTC)**

Let’s start at square one: Bitcoin. Bitcoin is the first majorly successful cryptocurrency to gain traction in the markets. Bitcoin still holds the largest market cap out of all cryptocurrencies, however that number is gradually going down, as other cryptocurrencies gain popularity. To be clear, the value of Bitcoin is steadily increasing with time, but as more money flows into other cryptocurrencies as well, Bitcoin is simply taking up a smaller piece of the pie.

Although there is no investment without risk, Bitcoin is considered the safest cryptocurrency investment of them all. For this reason Killer Whale has developed the [**Gain BTC Strategy**](https://killerwhalecrypto.com/product/gain-btc). Gain BTC works by trading Bitcoin against other currencies when the price of BTC is high (BTC is the Native currency of the Bitcoin network) and buys the BTC back when the price goes lower. Gain BTC also detects when the price of another currency is going to increase in value. Whenever this happens, Gain BTC will buy some of the currency that will likely increase in value, and when the price of the currency it buys reaches its peak, it uses those gains to purchase more BTC than it started with. 
The idea is that the price of Bitcoin will steadily increase in value over time, ergo it is advantageous to gain as much of it as you can while the price of BTC is relatively low. Gain BTC is a “get rich slow scheme.” Think of [**Gain BTC**](https://killerwhalecrypto.com/product/gain-btc) as the Bitcoin strategy that “buys the dip” for you!

*(All recorded data on Bitcoin's price action*)
![BTC all time.png](https://duj27fxoqhxbb.cloudfront.net/BTC_all_time_59ee83f28c.png)

 

**Ethereum (ETH)**


Ethereum is another one of the most important cryptocurrency projects that any new cryptocurrency investor should be familiar with. Ethereum holds the second-largest market cap of all cryptocurrencies, but unlike Bitcoin, the Ethereum blockchain can be programed to be used to serve a multitude of different applications, rather than simply being used as a currency. This is achieved through what is known as a smart contract.

Smart contracts are essentially the same as regular contracts, except they are governed entirely by programming. They are simply programs that exist on the blockchain and run whenever permitted conditions are met. They are most often used to execute arrangements so that all the participating parties can be immediately aware of the outcome. Smart contracts also allow people to create NFT’s (Non-Fungible Tokens), and even make their own cryptocurrencies! 

Killer Whale created [**Gain ETH Strategy**](https://killerwhalecrypto.com/product/gain-eth) to achieve the same goals as Gain BTC; only with Ethereum! Because Ethereum has so many use cases, there are many people within the crypto community who believe that it will someday overtake Bitcoin as the world’s dominant cryptocurrency. For new cryptocurrency investors who are looking for lower risk strategies, [**Gain ETH**](https://killerwhalecrypto.com/product/gain-eth) and Gain [**BTC**](https://killerwhalecrypto.com/product/gain-btc) are excellent choices!

*(All recorded data on Ethereum's price action*)
![ETH all time.png](https://duj27fxoqhxbb.cloudfront.net/ETH_all_time_1eab4beed3.png)

 

**Conclusion**

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies, you can graduate from using the Killer Whale Free Strategy to services such as [**Killer Whale Elite Signals**](https://killerwhalecrypto.com/product/killer-whale-elite) sooner than you know it! 

 

***“Fortune favors the bold”***

 

# Killer Whale Crypto
**CAHNGE THE WAY YOU TRADE**

Cryptocurrency can be daunting to new users. This article focuses on the basics of Bitcoin and Ethereum. This article also focuses on two Killer Whale Strategies: Gain BTC and Gain ETH!

Crypto for Beginners: Bitcoin and Ethereum

**Moving Average Convergence Divergence (MACD)**

The Moving Average Convergence Divergence, or MACD, is a momentum and trend following indicator, that shows the relationship between the moving averages of a assets price. This calculation is achieved by subtracting the 26 period Exponential Moving Average, or EMA, from the 12 period EMA. The result is the MACD line. In this piece, we will discuss how killer whale uses the MACD indicator in [**Killer Whale Signals and Strategies**](https://killerwhalecrypto.com/).

 

**How the MACD is used in trading**

The MACD serves several purposes in trading. Firstly, the MACD is used by traders to understand the properties of either bullish or bearish price action. Proper use of the MACD can indicate if bullish or bearish price action is strengthening or weakening. The MACD triggers technical signals for traders when it crosses above or below its signal line. If the MACD crosses above the signal line, this will trigger a signal which indicates an opportunity to buy an asset. In the same way, when the MACD crosses below its signal line, it will trigger a signal indicative of a selling opportunity. The MACD indicator can also be used to signal whether the market is either overbought, or oversold, based on the speed of its crossovers.


The concept of the MACD may be somewhat difficult for new traders to understand but fear not. All of our Killer Whale users are receiving the benefit of a properly used MACD when using Killer Whale products. Killer Whale uses all the valuable information provided by the MACD when sending trade signals, and in the design of Killer Whale Strategies. 

 

**Reading the MACD**

![MACD.png](https://duj27fxoqhxbb.cloudfront.net/MACD_6e2440dd51.png)

In this XRP/USDT chart, you can see the MACD indicator on the bottom of the image. The blue line represents the MACD line, while the orange line represents the signal line. You can see that when the blue MACD line crosses above the signal line, the price action of the asset is moving upwards (FIG.A) and when the blue MACD line crosses below the signal line, the price action is moving downwards (FIG.B). the MACD is often displayed alongside a histogram, which graphs the distance between the MACD and the signal line.

 

**MACD vs RSI**

The MACD measures the relationship between two Exponential Moving Averages, while the Relative Strength Index, or RSI measures price changes in relation to recent price highs and lows. The RSI is an oscillator which calculates average price gains and losses within a given timeframe. The default setting of the RSI is 14 periods and is rated on a scale of value between 0 to 100. For this reason, the MACD and the RSI are often used in tandem, to provide a more complete picture of market conditions, than one could determine by simply basing their predictions off of the Japanese candlesticks alone. Notice in FIG. C (below) the correlation between the MACD crossover, with the RSI value of 50, and how both correlate to the positive price action of the asset.

![MACDRSI.png](https://duj27fxoqhxbb.cloudfront.net/MACDRSI_64db58e200.png)

 

**Conclusion**

Although there are many indicators out there, the MACD is by far one of the most useful. If you are new to trading and some of these concepts do not yet make sense to you, don’t worry about it! That is exactly why Killer Whale is here to help you achieve your financial goals, using state of the art AI and time-tested trading practices. Be sure to check out the [**Killer Whale Products Page**](https://killerwhalecrypto.com/) to find the Killer Whale Signals and Strategies that are right for you! Just look at this review Killer Whale Just received from one of our many satisfied users!

![HAPPY CUSTOMER.png](https://duj27fxoqhxbb.cloudfront.net/HAPPY_CUSTOMER_ab3d571bbd.png)

 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

The Moving Average Convergence Divergence or MACD indicator is one of the most useful tools in technical analysis. the MACD helps traders understand the properties of price action of assets and paints a clearer picture of market conditions. Killer Whale uses the MACD along with other indicators in Killer Whale Signals and Strategies.

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Moving Average Convergence Divergence  (MACD)

**Is Cryptocurrency Part of the Natural Evolution of Money?**

Currency has gone through many changes throughout human history. At first, humans used the barter system. Back then, farmers – as an example – would trade their excess crops for thigs like beer, from the local brewer, or clothing from the local tailor. The earliest traders would often trade a wide variety goods amongst their respective communities. The farmers, brewers, tailors, and anyone else who was providing something valuable to these early communities could simply barter their valuables with one individual, who offered a selection of goods from many parts of the community.


 Of course, these early traders needed to carry a large amount of miscellaneous merchandise with them. That is until early traders came up with the idea of creating coins that represented the items they were bartering. Over time, early traders started moving away from these coins which represented the individual goods which they had in stock. They then started producing coins which had a common measurement of value. These coins first appeared as abstract circles, which could be recognized by everyone who used them as a common measurement of value. Therein lies the concept of money, as we see it today.

 

**The First Money**

The very first coins, which represented common measurements of value, were made around 600 B.C. They were made in the country of Lydia, which is now known as modern day Turkey. These coins were made of a naturally occurring combination of gold and silver; two metals which still drive the economy to this day.

 

**Paper Money**

Paper money was first invented in China, around 700 B.C. This was known as the Tang Dynasty “Flying Money” and was a result of the development of woodblock printing. When Marco Pollo visited China during his ventures around the world, he took the concept of paper money to Europe. At the time, Europe was using a standard international currency, known as the Italian Florin.

 

**Money in the Americas**

When the British first colonized what is now the United States of America, the British government made it illegal to produce any native currencies. This is because the British government was afraid of their colonies developing an independent financial system. British colonies in the Americas began using currencies such as the Spanish Dollar, in leu of the currencies used by the British empire.
In the 1600’s banks in the Americas began issuing notes which promised to pay the bearer a sum of gold on demand. During the American Civil War, both the northern states and the southern states began printing more paper money than could ever be redeemable in gold. Northern money was printed in green ink, which is why many people associate the color green with money today.

 

**The CHARGET**

The world’s first charge card – called the CHARGET – made its debut. Compared to modern day cards, the CHARGET was considerably less advanced. Even so, the CHARGET eventually evolved into the BankAmericard, in 1958. The BankAmericard – which was a product of Bank of America – eventually rebranded as VISA, and the first credit card was born.

 

**ATMs and Electronic Money**

In the 1980s, Automatic Teller Machines, or ATMs hit the financial scene, and changed the way we viewed money once again. Aside from credit cards, the world was introduced to Personal Identification Numbers, or PINs and Debit Cards. Services like these allowed individuals to spend and receive money, without exchanging cash, checks, or bank credit. These same technological advancements allowed businesses and individuals to send and receive money electronically, via ACH and Wire transfers.

 

**ACH vs Wire**

The Automated Clearing House, or ACH network, includes over 10,000 financial institutions. The ACH network is capable of processing direct debits, direct deposits, direct payments, electronic checks, and electronic funds transfers. ACH transactions fall into two categories: Direct payments (debit transactions) or direct deposit (credit transactions).

Wire transfers are also electronic payments which allow users to send money between accounts, with the option of same-day arrival. This convenience, however, comes at a premium. Wire transfers can be used for both domestic or international transfers. In comparison, ACH transfers are strictly domestic. Wire transfers are more often used to send larger payments between accounts, such as those conducted in real estate purchases.

 

**The Elephant in the Room**

Although electronic payment methods are still the most common, cryptocurrency is quickly becoming a viable option, due to its decentralized nature. Because cryptocurrencies – such as Bitcoin – are stored across the entire internet and owned only by those who participate in the cryptocurrency market; banking institutions are unable to control the peer-to-peer transfer of value amongst cryptocurrency’s participants. As cryptocurrency gains traction in the world of finance, it begs the question: Is cryptocurrency the next step in the evolution of money? And if so, what will come next?

 

**Conclusion**

The most likely scenario is that cryptocurrencies – such as Bitcoin – will work in tandem with the current electronic financial systems that we have today. It is becoming more obvious every day that cryptocurrency is here to stay. For this reason, there is a large amount of financial gain taking place in the cryptocurrency markets, which is producing advantageous results for a continually growing number of people. Be sure to check out the [**Killer Whale Products Page**](https://killerwhalecrypto.com/) to see which Killer Whale products are right for you!

 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

Money has evolved many times over the years. From coins, to paper money, to credit, to electronic transfers, to digital currencies; The way we spend our money continues to change on a regular basis. Killer Whale Crypto gives its users the opportunity to profit from this advantageous growth in financial advancement!

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Is Cryptocurrency Part of the Natural Evolution of Money?

**Beware of the Lottery Ticket Mentality**

Within the last year, “meme-stocks” and “meme-currencies” have immensely grown in popularity amongst new traders. There are certainly positive aspects to the increase of public interest in high finance. Unfortunately, there are also many people out there who approach their investments as a gamble – buying assets without looking at any of the technical factors that would indicate whether their assets are likely to head in a bullish or bearish direction – rather than taking the time to do the research needed to place advantageous orders.

This is Where Killer Whale Signals and Strategies come into play. Killer Whale utilizes time-tested technical analysis and state of the art algorithmic intelligence to forecast the cryptocurrency climate, with a high degree of accuracy.

 

**What is the Lottery Ticket Mentality**

The lottery ticket mentality can basically be defined by the mindset that stems from the natural human desire to achieve financial success, without having to overcome the traditional obstacles that separate the average person from their long-term goals. After all, who would honestly be opposed to getting rich quick, if the opportunity presented itself?

 

**The gambler**

This is often the category which many new traders fall into, when they invest, without sufficient knowledge of the assets that they are purchasing. Using proper technical analysis, trade setups can be projected ahead of time, based on market circumstances and trading history. Buying assets without any mathematical indication of future price action, is no different than placing a bet on a craps table. 

Gamblers have an equal chance that their bet will go in either a bullish or bearish direction. Without studying the history of an asset, there is no way to know how it will perform. Traders who use proper technical analysis on the other hand, have a significant market advantage over those who are placing positions on a whim.

 

**Adrenaline Junkies**

Cashing out on successful trades is certainly a one-of-a-kind feeling. The rush that comes from putting your money to work, and making a return on it, can make you feel like you are one of the smartest and most resilient people on this planet. As they say however, “Everyone is a genius in a bull market.”

Adrenaline junkies see the price of an asset rising, and never consider the fact that it will eventually correct downwards, later down the road. As an example, many people at the beginning of this year, dipped their toes into the world of investing because of “Wallstreet Bets” and meme currencies like Dogecoin. There were quite a few people who profited greatly from these investments, although any chance of short-term success had long since disappeared by the time the media caught on. There are also huge risks which can (and often do) come with adrenaline fueled, half-cocked investment strategies. Every stock, security and crypto will follow accumulation, absorption and inevitably distribution phases. Simply put, going to the moon is only worth the trip for those who are also willing to take the hit, if they make the wrong decision.

 

**Conclusion**

We all start with the same set of human emotions about trading an investing. The thrill of the chase is too strong and intriguing to take on the nuance of discipline. While this comes in many forms the "winner take all" phenomena can persist longer than tolerable. There has to be an inevitable flip in mindset. Finding rather than forcing opportunity will become your greatest asset. The one factor on our side is time, tomorrow there will be more action on the chart, new sentiments and the psychology of our fellows to push us forward. Investing is all about surviving and thriving for years to come while having put your earnings to work along the way. We become wealthy when knowledge and ambition come to fruition.

 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

The lottery ticket mentality is one of the greatest forces which has been driving new traders into cryptocurrency. Killer Whale Products are the solution to placing trades with time-tested technical know how and state of the art algorithmic intelligence, rather than merely placing a gamble!

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Beware of the Lottery Ticket Mentality

**The US Debt Ceiling Nears Default Once Again**

As we approach the US debt ceiling deadline – October 18th, 2021 – both investor and consumer confidence are gradually becoming more and more shaken. In this article we will be discussing the history of the US debt ceiling. We will also look at what could hypothetically happen if the United States went into default. 

 


**The Debt Ceiling Explained**

Simply put, the US debt ceiling represents how much money the United States government is allowed to spend to pay its bills. These bills include Social Security, Medicare, Military salaries, Tax refunds, and interest on the national debt. The United States government borrows money from the treasury each year because the revenue collected through things like taxes is less than the amount that the United States government owes to its creditors.

One of the most common misconceptions is that the US budget and the US debt ceiling are synonymous. Although they are major components of the United States financial system, they both serve different purposes. The US budget is how much money the government plans on spending each year, while the US debt ceiling determines how much money the government can borrow to pay bills which already exist. The debts the US pays are often years old, and usually the biproduct of financial decisions made by previous administrations.

 

**The History of the Debt Ceiling**

In 1917, the United States government first put faith in debt and begun borrowing more money than it could pay back each year. The debt ceiling started as a biproduct of World War 1 as the US needed more money to effectively fund the war effort. At this point, the United States incurred its first debt of $11.5 billion. Since then, the government has incurred more debt each year. This has continued for over 100 years.

 

**What Could Happen in Default**

Just to be clear, it is highly unlikely that the US debt ceiling will be going into default any time soon. Although the United States has come extremely close to default on numerous occasions, the debt ceiling has always been increased or suspended in the nick of time. in fact, the US debt ceiling has been raised 98 times in the past, and on many of those occasions, the debt ceiling was modified within a matter of weeks or even days before default.

Congress is the only branch of the US government that has the power to modify the US debt ceiling, therefore modifications to the US debt ceiling need to be put to a vote. Often, delays in the modification of the US debt ceiling are due to internal political struggles, between the left and right parties. This begs the question: What could happen if the United States went into default?

Before going into default, the government will cease reinvesting in programs such as retirement funds, for a period. This allows the government to get a hold of instant liquidity to pay off debts, without raising the US debt ceiling. As a United States citizen with a retirement fund, this would mean your personal retirement fund would increase more slowly, or completely stop increasing temporarily. Keep in mind the United States government returns the retirement funds when it can, with interest; however, this is understandably a problem for those who rely on retirement funds.

If the US debt ceiling is reached, this means that the US treasury has run out of cash and is unable to borrow more. At this point, the government needs to decide which bills it will choose to pay from tax revenue and which bills it plans on pushing to the side until later. This is a terrifying situation for US residents particularly, as programs like retirement funds, Medicare, or paychecks for members of the armed service may not be as important to the government as they are to the people. According to a transcript from the Federal Open Market Committee (FOMC) meeting of August 2011, members of the Federal Reserve and US Treasury determined that they would prioritize Federal debt, over government programs, if congress did not increase the US debt ceiling. 

Both high interest Federal debt, and the government’s financial obligation to the citizens of the United States are highly important. On one hand, the high-income debt incurred by the government would be more advantageous to pay off sooner than that which is owed to the United States citizens. On the other hand, the government’s moral obligation to take care of the citizens of the United States is an equally important consideration. Unfortunately, there are many ways to look at this hypothetical scenario; however, the results of surpassing the US debt ceiling would end in economic recession, or full-on depression. Furthermore, the result of an economic collapse within the United States would have a major impact on the global economy as well.

Another factor of this type of scenario is how surpassing the debt ceiling would trickle into the price action of the stock market and other investments, as well as how it would affect the interest rates of everyday bills. If the people of the United States lost faith in the U.S. Treasury, the interest rates for loans such as credit cards, car loans, mortgages and student loans would all increase exponentially. In the same way, if US Treasury security holders, as well as countries which the United States is indebted, were to lose faith in the system, it would make it difficult for the government to find buyers for securities. This could in turn cause the companies which currently support the system to move their operations elsewhere.

 

**Conclusion**

Regardless of the outcome, the results of the United States surpassing the US debt ceiling would be catastrophic, and therefore the debt ceiling must be raised if the United States government requires the money to stay afloat, although it is a controversial subject. It is unfortunate that we need to raise the ceiling on a program which is causing major inflation, however increasing the US debt ceiling is a necessary, yet symptomatic response. If the United States wishes to lower the US debt ceiling, it would be more advantageous to cut spending within the US budget, but that is a topic for another time!

 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

On October 18th, the US congress will need to raise the US debt ceiling once again to avoid going into default. in this article we will discuss the US debt ceiling, as well as what may happen if the US ever did go into default on our loans. 

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The US Debt Ceiling Nears Default Once Again

**All About Arbitrage: Exchange Arbitrage**

Arbitrage has existed for a long time; however, it is far less understood by many traders than techniques such as traditional day trading. That being said, arbitrage is once again gaining popularity in the world of cryptocurrency. In this article series we will be taking a look at arbitrage.

 

**Arbitrage Basics**

Arbitrage is all about finding one asset that is priced differently within different markets. The basic concept is to buy the asset within one market and sell it in another market where it is priced higher. The result is to profit off the difference. There are several different ways to arbitrage, which we will cover later.

Arbitrage is generally considered to be one of the safest trading practices. Not only does it work in every market, but it is also far less dependent on market conditions than other methods of trading. Because arbitrage is such an old technique, arbitrage opportunities are somewhat hard to find in traditional markets. The cryptocurrency market however offers many opportunities for arbitrage because there are so many cryptocurrencies, trading pairs and exchanges where arbitrage can be applied. For this reason, arbitrage is becoming more popular amongst individual cryptocurrency traders. Trading bots are exceptionally efficient tools for taking advantage of arbitrage opportunities, as pretty much all arbitrage nowadays is controlled by automated systems.


 

**History of Arbitrage**

Arbitrage is one of the oldest methods of trading. Although the exact origin of arbitrage is unknown, the term “arbitration of exchange” first appeared in writings which date all the way back to approximately 1010 AD – the Middle Ages – around the time of the first crusade. Like most things in that point in history, arbitrage was controlled by church doctrine, ergo exchange rates for given fairs needed to be approximately consistent with triangular arbitrage to avoid sanctions from the church. Since then, arbitrage has been used in every market from coinage and bullion, all the way to our modern-day cryptocurrency markets.

 

**Exchange Arbitrage**

Anyone who has ever compared the price of bitcoin between two exchanges has likely made an interesting discovery: The price of Bitcoin on one exchange is different than the price of Bitcoin on another exchange. You might consider buying some bitcoin at a lower price on one of the exchanges and sending it over to the other exchange where it is more valuable, but the problem with this method is that it takes time. The price will often fluctuate so much on both exchanges that by the time your Bitcoin arrives on the other exchange, the price will have already rebalanced, and your arbitrage opportunity will have diminished.

There is however a way around this. Rather than sending funds – such as Bitcoin – from one exchange to another, you can simply hold both Bitcoin and Fiat currency on both exchanges. When you notice an arbitrage opportunity has developed, you can buy Bitcoin on the undervalued exchange, and sell Bitcoin on the overvalued exchange at, or around the same time. If done correctly, you can pocket the difference, or “spread.” This is by far the most effective method for executing an exchange arbitrage play.

 

**Conclusion**

As we mentioned earlier, there are several varieties of arbitrage. Be sure to keep an eye out for our next article, in which we explain the other methods of arbitrage, and how they can help you make successful trades!


 

# Killer Whale Crypto
**CHANGE THE WAY YOU TRADE**

Arbitrage has existed in finance for an incredibly long time. Arbitrage is an essential part of every trading market, and luckily for us, we can use this to our advantage! In this article we explain what arbitrage is, how far back in history arbitrage dates, and how “simple” arbitrage AKA exchange arbitrage works in cryptocurrency.

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All About Arbitrage: Exchange Arbitrage

**Consensus Mechanisms part 2: Alternative Consensus Mechanisms**

Consensus mechanisms are crucial to cryptocurrency. Although there are a variety of consensus mechanisms used in different cryptocurrencies, they all have one thing in common: Cryptocurrency would not exist without them. In [**Consensus Mechanisms part 1**](https://www.killerwhalecrypto.com/article/consensus-mechanisms-part-1-proof-of-work-and-proof-of-stake) we discussed Proof of Work and Proof of Stake consensus mechanisms in great detail. In this article, we will be discussing alternative consensus mechanisms. If you would like to reference any of the previous material regarding Proof of Work or Proof of Stake, you can do so by clicking on the link above!


 


**Delegated Proof of Stake**

Delegated Proof of Stake is much like the traditional Proof of Stake model. The only difference between Delegated Proof of Stake and the traditional Proof of Stake Model is that the validators within this system do not actually have to stake coins on the network in order to validate transactions. A user in the Delegated Proof of Stake system has the option to elect another user to serve as a network validator node. The staked tokens of the individual who has elected a validator are still used as a network insurance policy, however they do not need to validate the transactions themselves. This system is essentially an improved version of the Proof of Stake Mechanism which offers stakers and validators more freedom, while still achieving the same goal. Stakers in this instance can still earn staking rewards, without setting up a validator node.

Some of the coins which use the proof of stake mechanism include TRON, EOS and XTZ.


 


**Proof of Weight**

Proof of Weight is an umbrella term used to describe consensus mechanisms which function similarly to Proof of Stake; however – unlike Proof of Stake – other measures can be “weighted” in lieu of a traditional “stake.” Proof of Weight can utilize measures such as reputation or space, which we will discuss next.
Popular coins which utilize Proof of Weight consensus mechanisms include ALGO and FIO.


 


**Proof of Authority**

In the Proof of Authority mechanism, Validator nodes need to be publicly known and publicly verified. These validator nodes are known as authority nodes. The idea behind the Proof of Authority system is that those who operate authority nodes are unable to do so anonymously. If an authority node validates a fraudulent transaction, it will damage the reputation of whoever is operating the node. This incentivizes authority node operators to play by the rules. Proof of Authority is a more centralized consensus mechanism which functions similarly to a central database. In fact, the Proof of Authority system is criticized by some because having transactions verified through a small number of nodes causes the Proof of Authority consensus mechanism to behave somewhat like a central database with extra steps. 

Some of the coins which utilize the Proof of Authority Mechanism include DOT and VET.


 


**Proof of Capacity (AKA Proof of Space and Time)**

Proof of Capacity is based off the Proof of Work Model; however, miners within the Proof of Capacity model – aka provers – allocate disk storage or memory, rather than processing power. This is a more economically friendly consensus mechanism than the Proof of Work model and is highly efficient when it comes to the prevention of spam attacks. A prover sends a verifier piece of data to the network, proving that they have allocated enough space, when they would like to verify the next block. 

Some of the coins which use the Proof of Capacity model include XCH and BURST. 


 


**Federated Byzantine Agreement**

In the Federated Byzantine Agreement system, transaction information is sent to validator nodes and each node compares the incoming transaction information with some of the information that the node already has, in order to verify the transaction’s legitimacy. The node then compares its results with the other nodes and the transaction either passes through the network or fails, depending on the how many of the nodes passed or failed the transaction. The nodes do not have to arrive at a unanimous consensus to make a decision; rather, the transaction is processed by a majority vote. 

The individual nodes themselves are made up of sub-nodes which arrive at a conclusion in the same way as the nodes arrive at a conclusion for the network. 

XRP is one of the most well-known cryptocurrencies to utilize a Federated Byzantine Agreement consensus mechanism.


 


**Directed Acyclic Graph Technology**

![Screenshot 2021-05-07 231004.png](https://duj27fxoqhxbb.cloudfront.net/Screenshot_2021_05_07_231004_ac92e1e897.png)


Directed Acyclic Graphing is a lightweight alternative to blockchain technology in which each wallet address stores its interactions with other wallets in its own mini-blockchain. Rather than keeping a single record of every transaction on the network, individual wallets only keep track of deposit and withdrawals between itself and other wallets. Since every wallet holds one small piece of the network in its own mini blockchain, all of the wallets form a grid pattern of direct transactions. Because almost zero information needs to be verified by an outside validator for Directed Acyclic Graph systems to operate, transaction speeds are only limited to network latency. Furthermore, Directed Acyclic Graph Technology is free of gas fees, as each wallet is contributing equally to the validation of the network. Directed Acyclic Graph Technology requires a negligible amount of electricity and processing power to operate efficiently, and – unlike blockchain technology – is infinitely scalable in size and transactions per second (TPS).

The most common cryptocurrency project to utilize Directed Acyclic Graph Technology is the NANO project.


 


**In Conclusion**

There are many more consensus mechanisms than those listed in this article; however, these are the most widely used consensus mechanisms outside of Proof of work and Proof of Stake. New consensus mechanisms appear every few months and will continue to change and evolve as time passes by.


 



## Killer Whale Crypto

this article describes several consensus mechanisms besides Proof of Work and Proof of Stake

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Consensus Mechanisms Part 2: Alternative Consensus Mechanisms 

**Consensus Mechanisms Part 1: Proof of Work and Proof of Stake**

Consensus mechanisms are crucial to cryptocurrency. Although there are a variety of consensus mechanisms used in different cryptocurrencies, they all have one thing in common: Cryptocurrency would not exist without them. Even though there are a wide variety of consensus mechanisms out there, almost all of them are derivatives of the two original consensus mechanisms used in cryptocurrency: Proof of Work (PoW) and Proof of Stake (PoS). In part one of this two-part article, we will take a detailed look at both the Proof of Work and Proof of Stake consensus models, before we dive into alternative consensus mechanisms in part two.


 




**Proof of Work**

The Proof of Work consensus mechanism is the first and oldest consensus mechanism. Proof of work is used by coins such as Bitcoin, Litecoin and Dogecoin. The Proof of Work model was conceived in 1993 and was originally intended to combat spam emails; however, it was not used for much of anything until Satoshi Nakamoto created Bitcoin in 2009. Satoshi realized that the Proof of Work technique could be repurposed to bring many nodes on a network to consensus and secure the Bitcoin blockchain.

The Proof of Work algorithm works by having all nodes on a network solve a cryptographic puzzle. These nodes – called miners – compete with one another to solve this cryptographic puzzle. The first one to find the solution to the puzzle gets the miner reward.
 
The more processing power a mining operation has, the more frequently it will solve these puzzles. A miner’s ability to solve cryptographic puzzles is referred to as a “hash rating.” The higher the hash rating means a higher likelihood to mine a greater number of blocks. Essentially Proof of Work gives greater rewards to miners with better equipment. Miners can also work together to form a mining pool, where they combine their hashing power and equally distribute the mining rewards evenly across the pool. These mining pools centralize cryptocurrency mining, which is typically frowned upon in the world of cryptocurrency. This is the first reason the Proof of Stake consensus mechanism was created.

This has led to the creation of massive groups of mining servers called farms. Mining Proof of Work cryptocurrencies has become a growing industry in and of itself, with mining farms all around the world. Although most of the energy used to power these mining operations comes from environmentally friendly sources, mining farms have come under heavy scrutiny within the last year because of the amount of power they consume. This is the second reason the Proof of Stake consensus mechanism was created.



 


**Proof of Stake**

The Proof of Stake consensus mechanism was first proposed in 2011 by a developer under the name QuantumMechanic, in an early Bitcoin chat forum. QuantumMechanic believed that the concept of miners competing against one another was wasteful. This person believed that having miners compete against each other was a waste of resources. QuantumMechanic proposed the same results could be achieved through an election process, which selects a node to validate the next block. 

Proof of Stake does not have miners. Instead, Proof of Stake has validator nodes, which mint or forge blocks. For a node to become a validator, it must first deposit a certain number of coins into the network. This deposit is referred to as a stake and works as a kind of insurance policy for the network. The more coins a validator node stakes on the network, the greater the chance the node has to be selected to validate the next block.

When a node is selected to validate a block, it checks to make sure that all the transactions within the block are valid. Once it has confirmed the validity of the transactions, the node signs off on the block and adds it to the blockchain. The validator is rewarded by receiving the fees that are associated with the transactions which make up the block.

If a validator approves a fraudulent transaction, they loose part of their stake. This is how the stake acts as insurance for the network. As long as the part of the stake which the validator loses for processing fraudulent transactions is greater than the value of the reward the validator receives, we can trust that the validator will correctly do their job. If a node stops acting as a validator, it will eventually receive the coins that it staked, plus the rewards it has received for validating transactions; however, the network will not release the validator’s stake right away. The network holds off the releasing of funds for a certain amount of time, to ensure its ability to punish the validator, if some of the blocks the validator signed off on turned out to contain fraudulent transactions. 

Proof of Stake does have some problems. The biggest problem occurs when a change of protocol is proposed. Protocol changes that lead to the hard fork of a cryptocurrency within the Proof of Work model are always snuffed out by its competitive nature. Since the Proof of Stake model does not have this competitive component, hard forks often lead to the creation of new smaller tokens on the network. These small tokens take up space on the blockchain and can lead to slower transaction times and increased transaction processing fees for the original coin and other tokens on the network.


 


**In Conclusion** 

Proof of Work and Proof of Stake both have their advantages and disadvantages; however, the world of cryptocurrency is transitioning away from the Proof of Work model as technology advances. Proof of Stake is more decentralized than Proof of Work, which in turn is better for cryptocurrency. This is evidenced by Ethereum’s gradual transition into Ethereum 2.0, due to take place around December of this year. If you are curious to read about Ethereum’s transition from Proof of Work to Proof of Stake, feel free to check out our [**Ethereum 2.0**](https://www.killerwhalecrypto.com/article/ethereum-2-0) article by clicking on the link. If you would like to learn about the protocol changes that are forcing Ethereum to become Proof of Stake, take a look at our articles detailing [**EIP 1559**](https://www.killerwhalecrypto.com/article/ethereum-london-hard-fork-eip-1559-goes-into-effect-on-august-4th) and [**EIP 3554**](https://www.killerwhalecrypto.com/article/ethereum-eip-3554)!

**Keep an eye out for Part 2, where we will discuss alternative consensus mechanisms!**



 


## Killer Whale Crypto

This article describes the both the Proof of Work and Proof of Stake consensus mechanisms in detail 

Consensus Mechanisms Part 1: Proof of Work and Proof of Stake

In this article, we will discuss the differences between cryptocurrency and traditional fiat currency.

 

**Advantages and Disadvantages of Cryptocurrency**


When discussing the differences between cryptocurrency and fiat currency, let’s compare the fundamental aspects of each. Fiat money has no intrinsic value on its own. The value of fiat currency is maintained by its issuing government. Cryptocurrency on the other hand can be valued in many ways, which vary between token to token. Usually, the value of cryptocurrency is derived from its utility – and in some cases – overall scarcity.


Some of the general advantages of cryptocurrency are its flexibility; like being able to be used at anytime, anywhere, without the need for a financial intermediary such as a bank. Furthermore, fast settlement times allow for instantaneous transactions as opposed to the electronic cash settlement systems utilized by fiat currencies, which can sometimes take days to finalize.


Some of the disadvantages of cryptocurrency are lack of knowledge. Being that cryptocurrency is still relatively new to most, it is understandable why countries and regulators aren't too keen on cryptocurrency yet. While we’ve discussed not having a financial intermediary as a good thing, when it comes to crypto it could also be a negative. At a bank, if your money goes missing, or you suspect fraudulent activity, you have the aid of the bank to help you get your money back with built-in rules and regulations to help protect the consumer. With cryptocurrency, it is not possible to reverse a transaction. If you send cryptocurrency accidentally, there are no guarantees you will get it back.


 

**Advantages and Disadvantages of Fiat Currency**


Fiat currencies comes with their own set of advantages. Fiat currencies are legal tender by design and have existed longer than cryptocurrency. This lends to fiat currency being far more stable than cryptocurrency. This stability allows regulators and governments to easier navigate their respective economies. Most importantly, fiat currency is the globes predominant currency system, making it easy to spend. It’s true that fiat currency has its share of problems, but cryptocurrency still has a long way to go before it can realistically be utilized as the primary planetary medium of exchange.

![sundaeswap 2.png](https://duj27fxoqhxbb.cloudfront.net/sundaeswap_2_3b04089791.png)


Fiat currencies are usually considered to be stable to most people who exist outside of the investing community, although this is untrue. Fiat currencies are always subject to inflation. Governments can simply print more money if needed. Fiat currencies typically have an average lifespan of 24 years, before they become too inflated to be of any actual value. Bitcoin on the other hand has a fixed supply of 21M BTC, making it even more scarce than gold and eventually deflationary. Recent economic recessions have highlighted some of the issues associated with fiat money. Even with the greater semblance of control the central banks have over fiat money, cryptocurrency is becoming more mainstream by the day.


 


**Cryptocurrency vs Fiat Currency: Which Contributes More to Illegal Activity**


 When it comes to fiat money against cryptocurrency regarding illegal activity, it's not easy to say one participates more than the other. The role that cryptocurrency plays in illicit activity has always been exaggerated by FUD articles. It’s also important to realize that there is north of $2T of fiat currency laundered each year. The reality is a small fraction of activity surrounding cryptocurrency is criminal in nature. Chain analysts estimate that a mere 0.34% of the total activity cryptocurrency was used for illegal purposes, since its inception.



 


If you liked this article, check out 


 


[Cryptocurrency for Beginners](https://www.killerwhalecrypto.com/article/cryptocurrency-for-beginners)


[Debunking Crypto Myths](https://www.killerwhalecrypto.com/article/debunking-crypto-myths)


 




## Killer Whale Crypto

This article is describes the advantages and disadvantages between cryptocurrency and fiat currency

Crypto vs Fiat

**Leverage is a vital tool for many successful traders**

*In this article, we will discuss how leverage is used in every day life and how leverage is used in the markets*

 

 Leverage is one of those daunting concepts to new traders, and for good reason. The typical investor trades assets, using cash which they already have. They need to have enough money in their account to pay for those assets outright. The major drawback of cash investing is that your gains are limited by what you can afford with your financial resources. Leverage is all about investing with more cash than you have on hand. This allows traders to invest with greatly more buying power. This increased buying power can lead to greatly increased returns; however, this strategy comes with exponentially higher risks.
If leverage is not used properly, traders will end up losing more money than they are comfortable with. This can range anywhere from breaking even from what could have been a profitable position, to financial liquidation. In the absolute worst cases, this can lead to further debt on top of liquidation, although this is easily avoidable when using conservative leverage strategies.

 



**Leverage in Everyday Life**

Understanding how leverage is used in everyday life is the first step to understanding how leverage can be used in trading. Leveraged purchases happen all around us and are an integral part of the economy. Leverage applies to many aspects of everyday life but is most obvious in the housing and automotive markets. Furthermore, leverage plays an important role in the small business market.


The most common example of leverage in everyday life is how it is used in real estate. Specifically, how leverage is used in the housing market. It is uncommon for a perspective homeowner to buy a property with cash outright. People often take on a mortgage to purchase a property. For example, if you were to purchase a property which costs $400,000, you might put down a deposit of $40,000 and assume $360,000 in debt.



The purchase of a vehicle is often quite similar. For example, one may only have $5,000 in their budget to purchase a car. They could buy a car that costs $5,000, or they may choose to purchase a $25,000 car with leverage, in the form of a loan. In this case, the purchaser could put their $5,000 deposit down and take out a loan for $20,000, with an agreement to pay back the loan, with interest.



In both examples, leverage is used to purchase an asset. Houses and vehicles tend to lose their value over time. The fundamental difference between someone purchasing a car or home – like we used in our example – compared to a trader who is using leverage to purchase assets on the market, is that the traders who use leverage intend to purchase assets which they believe will appreciate over time. 


Taking out a loan to purchase a business is another fine example of using leverage in everyday life. When an individual takes out a business loan, they are agreeing to the terms of paying the business loan back with interest, because they believe the profits from the long-term success of the business will outweigh the initial short-term debt that they have incurred. If the business turns out to be successful, then the debt which the investor has taken on will have allowed them to not only repay the loan but put them in a position where they have accumulated more initial capital than they would’ve originally had available, had they not incurred the debt in the first place. 


 


**Leverage in Trading**

Luckily, for traders who know how to properly use leverage in their trading endeavors, it is much easier to place a leveraged position, than it is to qualify for a business, home, or car loan. MUCH easier. This also means it is incredibly easy for inexperienced traders to trade on leverage – essentially – taking out a loan to buy assets, which may turn around and bite them in the butt.

Forex trading markets often lend themselves to large amounts of leveraged trading. It is not uncommon to see Forex market trades being placed at 100X leverage – or even more – because of how the Forex market moves, in comparison to the stock market or cryptocurrency. As an example, if we were to place a USD/EUR trade, with a total exposure of $10,000, only one percent of that would need to be tied up in the trade; equating to $100.


In the stock market, you are usually going to see a smaller degree of leverage being placed, due to the higher volatility. In this example, we are trading a $1,000 share of Apple (AAPL) on 20X leverage. We would only need to tie up $50.00, as that is one twentieth of the price of the leveraged position.


In the first position, we have only tied up 1% of our funds, in comparison to the exposure of the trade. In the second position, we have only tied up 5% of our funds, in comparison to our potential exposure. Of course, these are obviously basic examples of how leverage works. There is still much to discuss regarding leveraged trading, however, this has hopefully answered some questions for those of you who are new to the concept of using leverage to your advantage!

 


## Killer Whale Crypto

In this article we discuss how leverage works in trading, compared to how leverage is used in our everyday lives

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The Basics of Leverage

How do Stablecoins work?
Stablecoins are price-stable, digital assets that bridge the gap between the cryptocurrency market, and fiat currencies, such as the U.S. Dollar. As the name suggests, stablecoins are price-stable digital assets, that mimic fiat currencies, while maintaining the mobility of cryptocurrency. Stablecoins are defined by stability being built directly into the asset, however there are four subcategories of stablecoins, which we will be reviewing in this article.

 

**These categories are:**

-	Traditional collateral stablecoins


-	Crypto collateral stablecoins
	
-	Commodity-backed stablecoins

-	Algorithmic stablecoins



 



**Traditional Collateral Stablecoins**

Traditional collateral stablecoins are backed by fiat currency at a 1:1 ratio and are by far the most popular variety of stablecoins on the market. These are considered off-chain assets. this is because the fiat equivalent of these coins is kept in reserve, by financial institutions or central issuers. The amount of tokens must remain exactly equivalent to the amount of fiat currency that is used as collateral. Some of the biggest stablecoins in this category by market cap, are Tether (USDT), Coinbase (USDC), Gemini Dollar (GUSD) and True USD (TUSD).


 


**Crypto Collateral Stablecoins**

Crypto collateral stablecoins are stablecoins which are backed by crypto. This process occurs on-chain. Rather than relying on a central issuer, these stablecoins rely on smart contracts. When these variety of stablecoins are purchased, the backing cryptocurrency is locked into a smart contract, in order to receive these stable tokens of representative value. I say representative value and not equivalent value, because these tokens are not backed by a 1:1 ratio, but rather a 2:1 ratio, unlike their off-chain counterparts. If you wanted 100 DAI stablecoins for example, you would have to deposit $200 worth of Ethereum tokens into the smart contract. On-chain stablecoins are over-backed by the cryptocurrency which they represent, to buffer against price fluctuations. 

 

**Commodity Backed Stablecoins**

Commodity backed stablecoins are backed by physical assets, such as property, oil, and precious metals. The most common commodity backed stablecoins are those backed by gold, such as Tether Gold (XAUT) and Pax Gold (PAXG). Commodity backed stablecoins serve several purposes. First, they provide a convenient solution for individuals who would like to take advantage of a market – such as gold – by trading and or holding the tokens. Second, commodity tokens can be exchanged, directly for the commodity which they represent. Pax Gold (PAXG) as an example will exchange their tokens for physical gold, although the number of tokens this requires is significant. Each PAXG token is equivalently worth the same amount as one ounce of gold, and Pax Gold will not exchange any amount less than 430 oz of gold bars, for 430 PAXG tokens.

 

**Algorithmic Stablecoins**

Algorithmic stablecoins are stablecoins that are not backed by fiat currency, cryptocurrency, or commodities. Instead, these stablecoins are smart contracted and algorithmically generated. An algorithmic stablecoin system will increase and reduce the number of coins in circulation, on order to match the price to that of which it represents. The system will remove tokens when the stablecoin falls below the price of the asset and will add tokens when the stablecoin increases in value. An example of this can be seen with Empty Set Dollar (ESD).

 

**In Conclusion**

Stablecoins have gained a significant amount of popularity within the last several years. in fact the total stablecoin market value has increased by nearly 300% within the last year. Hopefully this article has helped you understand a little more about how these useful stablecoins work, and how much potential the stablecoin market can unlock in the future!

 

## Killer Whale Crypto

In this article, we will discuss the four different varieties of stablecoins, and how they work...

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How Stablecoins Work

### The last year has brought on a whole new influx of interested investors into the cryptocurrency market. While we hear about individuals who made millions from cryptocurrency, there are many people who are struggling to grasp what exactly cryptocurrency is. In this piece, we will deep-dive into some of the terminology, as well as some cryptocurrency facts!

 

**What exactly is cryptocurrency and where did it come from?** Cryptocurrency has a clear history, but it is often shrouded in mystery. Although digital currency has a history going back as far as 1983, one of the most notable and recognizable names in cryptocurrency, Bitcoin, was created in 2009 by mysterious coder, or coders, Satoshi Nakamoto. While Nakamoto is not the first person or group of people in the cryptocurrency history books, Satoshi Nakamoto is undoubtably the most notable of the cryptocurrency developers.


Cryptocurrency had a few simple goals in its infancy: create a decentralized payment that could be used internationally, that no central financial institution or government had any say over. It was digital currency by the people, for the people. What originally caused the creation of cryptocurrency like Bitcoin, Ethereum and many others was the huge economic crisis of 2008. People needed a new way to make money and with the uncontrollable nature of the economy, people wanted to take back some semblance of power when it came to their money. While you are starting to see everything from meme coins like Dogecoin, to brilliantly designed cryptocurrencies, backed by equally innovative projects, such as Algorand (ALGO), or Theta (THETA). It is refreshing to know the history of this electronic digital cash is rooted in the common man’s story.

 

**“Why should I care about cryptocurrency at all?** it's just a fad.” “It's a Ponzi Scheme, it is a stick job,” and so on and so forth. These are some of the most common misconceptions regarding cryptocurrency. While there are no shortage of conspiracies, ignorance, and misinformation out there, cryptocurrency is not going away anytime soon.

 

**The two heaviest hitters are Bitcoin, and Ethereum**. Both Bitcoin and Ethereum are unique – first of a kind – tokens, which both offer different, yet equally valuable features. These two Cryptocurrencies also hold a substantially larger market cap than any other individual cryptocurrency. They are separated by what Warren Buffet refers to as an “economic mote”; meaning there is a substantial gap in their value, compared to the rest of the market.

**The remainder of the market is made up of alternate coins**, or alt coins for short. There are billions of dollars flowing into the cryptocurrency market via altcoins. As of March 2021, there are more than 9,000 different cryptocurrencies, with altcoins accounting for over 40% of the total cryptocurrency market. Most of these altcoins share a similar blueprint to Bitcoin or Ethereum, although many altcoins use unique mechanisms to produce blocks or validate transactions. Some altcoins however are vastly different from the rest, implementing, ideocratic, technologically advanced and beautiful methods of action. Nano for example, does not even have a blockchain! It uses Directed Acyclic Graph (DAG) technology to do what the blockchain does, in a fraction of the time, while using barely any anergy and at zero cost to the user. If you would like to learn more about Nano, you can read all about it [here](https://www.killerwhalecrypto.com/article/nano-coin-review)!


 

**There are many ways one can divide cryptocurrencies into subcategories.** The consensus method that a coin uses to verify transactions is usually one of the first distinctions one would want to look at to determine what makes one coin different from another. The two most common consensus methods are Proof-of-Work and Proof-of-Stake. Proof-of-Work (PoW) coins, where blocks are validated by miners. As an example, Bitcoin is a PoW cryptocurrency. Proof-of-Stake (PoS) cryptocurrencies are similar to PoW cryptocurrencies but modified to de-incentivize hacker threats to the network. Cardano (ADA) is a fantastic example of a PoS coin.

 

**Is it safe for investors to jump into the cryptocurrency game?** Well, just like any other risk asset, there is no guarantee that it will not potentially bite you in the butt if you are not cartful. This is why it is so important to use safe trading practices, such as using Killer Whale signals and strategies. If you’re doing everything right, and listening to expert advice, like that which Killer Whale offers, cryptocurrency trading will prove itself to be a valuable tool, to improve your financial future. Cryptocurrency is constantly gaining popularity, because the results of those who trade cryptocurrency properly are so appealing! 


It was not even 3 years ago that a 2018 study found about 40% of Americans had no interest in cryptocurrency, around 90 million people. Fast-forward, and now we have huge institutions like Goldman Sachs, Morgan Stanley and Fidelity jumping into cryptocurrency. Visa even launched a Bitcoin Rewards Credit Card, which allows cardholders to get 1.5% cash back on purchases that are converted to Bitcoin. If you feel like it may be too late to start investing, you may be delightfully proven wrong. And with more cryptocurrency coins being created, mined and popularized, there are now more options than ever. Cryptocurrency is an ever-expanding realm and, hopefully with some of the tips and facts covered in this article, you can head into the market with confidence.

 

### If you would like to learn even more about cryptocurrency, check out these great resources below!

 

[Algorand Coin Review](https://www.killerwhalecrypto.com/article/algo-coin-review)


[Theta Coin Review](https://www.killerwhalecrypto.com/article/theta-review)

[Nano Coin Review](https://www.killerwhalecrypto.com/article/nano-coin-review)

[Ethereum compared to Bitcoin](https://www.killerwhalecrypto.com/article/ethereum-comparison-to-bitcoin-eth-btc)

[Debunking Crypto Myths](https://www.killerwhalecrypto.com/article/debunking-crypto-myths)


 

## Killer Whale Crypto

This article explains the basics of cryptocurrency in an easy to understand format for anyone who is new to cryptocurrency

Cryptocurrency for Beginners

DXY Explained
In this article, we will be taking an in depth look at the U.S. Dollar index(DXY). We will discuss what goes into the DXY, the history behind the DXY, and how you can use the DXY to improve your trading!

 

**What is the DXY?**

The DXY, or U.S. Dollar Index, is a measure of the value of the U.S. Dollar, relative to a basket of six other foreign currencies, and is maintained by the Intercontinental Exchange Inc. (ICE). The basket of currencies which currently make up the DXY are listed as follows:
-	The Euro (EUR) at 57.6%
-	The Yen (JPY) at 13.6%
-	The Pound Sterling (GBP) at 11.9%
-	The Canadian Dollar (CAD) at 9.1%
-	The Swedish Krona (SEK) at 4.2%
-	The Swiss Franc (CHF) at 3.6%

As I mentioned, these six currencies currently make up the DXY, but that may be subject to revision in the future. Both the Swedish Krona and the Swiss Franc are smaller global trading partners than China, Mexico, South Korea, and Brazil. This means that we may eventually see the one or more of these nation’s currencies replacing the Krona, and or the Franc at some point in the future. Another possibility is that one or more of these nation’s currencies may someday be added to the DXY basket, without replacing the Krona or Franc.

 

**How Was the DXY Created?**

The DXY originated in March of 1973, shortly after the dismantling of the Bretton Woods system; a unified fixed rate system between the Allied Nations, shortly after the second world war. This would come to be known as Bretton Woods Agreement of 1944. Intercontinental Exchange Inc (ICE) took over the DXY in 1985. At this point the DXY hit its all-time high of 164.72, as a result of the first ever DXY futures trading. The DXY would eventually hit it’s all time low of 70.57, in March of 2008.

 

**How Does the DXY Move?**

First and foremost, if the DXY raises, it will push the USD base pairs higher, and push USD quote pairs lower. USD base pair – such as USD/CHF, and USD/CAD will move with the DXY, as all these currencies are incorporated into the DXY, with USD being on the front end. Inversely USD quote pairs – such as EUR/USD and XAU/USD – will move in the opposite direction of the DXY, creating more space between the quote pairs and the DXY, as USD is on the tail end of these pairs.
Another notable component of the DXY is that it shares a directly inverse correlation with the EUR/USD, as the Euro makes up almost 60 percent of the DXY currency basket.

 

**How Can You Use the DXY for Analysis?**

The DXY often increases on days where there is dollar-positive news and decreases on days where there is dollar-negative news. As an example, The DXY will rise whenever the USD is mentioned on television, in a positive light. In the same way, the DXY will lower in value when dollar-negative news – such as war casualties – are at the forefront of the media. This isn’t always the case, however. The DXY was unchanged by the events of September 11th, 2001. Even though the DXY will never correlate one hundred percent with dollar-negative or dollar-positive news, the news and the DXY coincide regularly enough to provide palpable data. You can also apply direct Technical Analysis to the DXY, in order to calculate how the DXY is going to move.

 

![DXY 7.18.21.png](https://duj27fxoqhxbb.cloudfront.net/DXY_7_18_21_61b4f4f3fc.png)

 

# Killer Whale Crypto

In this article, we will be taking an in depth look at the U.S. Dollar index (DXY). We will discuss what goes into the DXY, the history behind the DXY, and how you can use the DXY to improve your trading!

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DXY: Explained

In this final edition of An Overview of the Wyckoff Method, we will discuss the most important fundamental concept, which Wyckoff based all his teachings and studies around. This concept is known as the “Composite Man.”
If you would like to look back at any of the other topics we have discussed in this series, feel free to check out the links below!

[An Overview of the Wyckoff Method: Part 1](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-1)

[An Overview of the Wyckoff Method: Part 2 – Accumulation](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-2)

[An Overview of the Wyckoff Method: Part 3 – Distribution](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-3)

[An Overview of the Wyckoff Method: Part 4 - Reaccumulation and Redistribution](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-4)

 

**Wyckoff’s composite man**

“All of the functions in the market and in of all the various stocks should be studied, as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” – Richard D. Wyckoff. 

 

The “Composite Man” or “Composite Operator” is a heretic device Wyckoff created to help understand the movements of individual stocks, as well as the entire market, on a large scale. Wyckoff. Advised traders to approach the market, as if they were the “Composite Man” themselves. The “Composite Man” – and behaving like him – Is similar to the “Best way to catch a fish, is to think like a fish; rather than a fishermen” concept.
Based on a lifetime of observing the impact of large operators on market conditions, he taught his pupils to understand:
-	The “Composite Man” carefully executes his plans: He is looking at the big picture when he executes and concludes his campaigns.
-	The “Composite Man” only attracts the public to purchase assets that he already owns, in large quantity. He does this by making a lot of large transactions, effectively advertising the palpability of his asset by creating the appearance of a broad market.
-	Individual assets need to be studied to judge, not only the behavior of the asset itself, but the behavior and motives of the large operators who dominate it, with controlling shares.
-	With enough study and practice, one can develop the ability look at a chart and identify the motives of the “Composite Man.”
-	If you can understand the motives of the “Composite Man,” you can identify all kinds of investment opportunities, early enough to be able to profit off of them, by you, behaving as if you are the “Composite Man.”


 

Let us look at some examples of what Wyckoff would like us to understand, from some of the concepts we have discussed up until this point. 
Phase C of the Wyckoff Distribution chart is likely the point where market manipulation by the “Composite Operators” appears most evident.

 

![wyckoff 3.png](https://duj27fxoqhxbb.cloudfront.net/wyckoff_3_b7c3737b7d.png)

 

“Phase C -- This phase may reveal itself with an Upthrust (UT) or an Upthrust After Distribution (UTAD). It is a price move above the trading range resistance, which quickly reverses and closes within the trading range. It is also a bull-trap, meaning it appears to indicate the redemption of an uptrend, but in actuality is intended to "fake out" unconfirmed break-out traders. Upthrust (UT) and Upthrust After Distribution (UTAD) allow large interests the oppertunity to mislead the public about the future direction of the trend, in order to sell additional assets at elevated prices to traders and investors before the markdown begins.” – [An Overview of the Wyckoff Method: Part 3 – Distribution](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-3)

Furthermore, Reaccumulation and Redistribution, which we discussed in [An Overview of the Wyckoff Method: Part 4](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-4) are direct examples of both “Bear traps” and “Bull Traps.” These are essentially events created by the “Composite Man” that are designed to make the market appear as if it is going through a trend reversal. When the market is moving upwards, a “Bear Trap” is placed, and the market is made to look – by the “Composite Man” – as if it will start moving in a downwards direction. Conversely, when the market is moving in a downwards direction a “Bull Trap” is placed, and the market is made to look as if it will start recovering in an upwards direction.

 

**In Conclusion**

The Wyckoff Method is not the only methodology which can be applied to the markets, however it is one of the most fundamental and effective approaches to technical analysis. The Wyckoff Method has has consistently withstood the tests of time, and is still used widely amongst skilled traders. 

The Wyckoff Method is fantastic first step for anyone who is studying technical analysis! We hope you enjoyed this series! 

 

### Killer Whale Crypto

An in depth explanation of the Wyckoff composite man

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An Overview of the Wyckoff Method: Part 5 - The "Composite Man"

Thus far, we Have discussed Wyckoff Accumulation and Distribution events over the course of our previous three articles within the Wyckoff Method series. In this article, we will be discussing Reaccumulation and Redistribution. If you feel the need to review the previous subject material, check out the links below:

[An Overview of the Wyckoff Method: Part 1](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-1)

[An Overview of the Wyckoff Method: Part 2](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-2)

[An Overview of the Wyckoff Method: Part 3](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-3)

 

**Reaccumulation:**

![reaccumulation.png](https://duj27fxoqhxbb.cloudfront.net/reaccumulation_c08e7747a7.png)

 

Reaccumulation serves the exact same purpose as Accumulation, although there are differences between the two. Reaccumulation primarily differs from Accumulation in that Reaccumulation signifies a the end of a downtrend. A Reaccumulation begins with a stop action of a selling climax, which leads to a potentially lengthily uptrend within the market. Reaccumulation is essentially a pause within a major upward trend, the Reaccumulation phase can be a pause in a macro trend which may take weeks, months, or years to complete.

Reaccumulation is essentially a "bear-traps", set by the composite operators of the world and are intended to interfere with major upwards trends. This interference is intended to mimic bearish divergences, by simulating conditions that would normally indicate a Bearish continuation pattern; hence the term "bear trap." Many traders fall victim to this circumstance, by selling their long positions and initiating short positions, under the assumption that the market is diverging into a downtrend. Meanwhile the composite operators take advantage of this artificially induced sideways price action by purchasing assets while the supply and demand ratio is behaving as if it were beginning to stabilized.

All instances in which assets are being absorbed indicate either accumulation or Reaccumulation. In the instance of Reaccumulation, it is more common than not for the initiation of this scenario to appear at the point of Automatic Reaction (AR) on the Wyckoff Distribution events schematic. After this point, the composite operators will place higher bids, on each subsequent pullback. This is the indicative identifier of a potential Reaccumulation, which initially differentiates the price action of a Reaccumulation compared to a Redistribution.

 

**Redistribution**

![redistribution.png](https://duj27fxoqhxbb.cloudfront.net/redistribution_2ed561e9ac.png)

 

Redistribution is the exact opposite of Reaccumulation. Redistribution events often follow Distribution events. In fact, Redistribution can only occur after after a Distribution has taken place. A Redistribution event is essentially a "bull trap." The composite operators use large buying power to incite a bullish "fake out", which mimics the Last Point of Supply (LPSY). This leads traders to initiate long positions, rather than short positions. The overall goal of the composite operator in this instance is to sell into the long positions placed by traders, to gain further market advantage.

 

#### In our fifth and final Overview of the Wyckoff Method: Part 5 "Composite Man" we will discuss how composite operators influence the markets and which disciplines we can gain from understanding the investment strategies of the most influential market movers. 

 

### Killer Whale Crypto

How Wyckoff Redistribution and Reaccumulation works...

An Overview of the Wyckoff Method: Part 4 

**What Is Fundamental Analysis? (FA)**

Fundamental Analysis attempts to measure an asset's intrinsic value by comparing the asset's related financial and economic factors. This is achieved by studying both the macroeconomics and microeconomics of the asset. For this reason, Fundamental Analysis has a great aptitude for the analyzing markets. The macroeconomic portion of fundamental analysis accounts for large-scale factors, such as the current conditions of the market in which the asset exists, as well as the overall state of the economy. The microeconomic portion of fundamental analysis deals with smaller-scale factors, such as the effectiveness of an asset or company's management. The overall goal of fundamental analysis is to come up with a number which an investor can compare to an asset's current price to determine weather or not the asset is over, or undervalued.

 

**The Steps That Go Into Fundamental Analysis**

The step-by-step process of evaluating an asset using fundamental analysis varies from one analyst to another, however there are general steps which all fundamental analysts use. These steps start with the big picture of the economy as a whole, and work towards smaller factors. These steps are broken down as follows:

**Economic Forecast** -- As the economy shrinks and expands, individual businesses and assets shrink and expand along with it. Many economists relate economic expansions and contractions to increases and decreases in interest rates. Because of this correlation, interest is the primary indicator used for fundamental analysis. Although comparing interest rates to the price of an asset is not an exact measurement, coming up with a scenario for the overall state of the economy is the first step needed to determine how to separate industries into groups.

**Selecting and Narrowing Groups** -- The selection of a group is based on what types of assets are most likely to flourish the when the economy is expanding, as well as what types of assets are likely to continue to perform well during an economic contraction. When the economy is expanding, growth-oriented assets are often advisable. These types of assets can include growing technology and software companies, such as those creating or furthering blockchain technology. Similarly, investing in electronic vehicles is another example of growth oriented investing. On the other hand, investing in the energy market or staple utilities is an example of a possible defense-oriented strategy. 

Once the proper markets have been selected, based on the condition of the economy, the next step in fundamental analysis is to narrow these markets down, by comparing the individual assets within said markets. The goal is to determine which asset is exhibiting signs that indicate it will become more prosperous than other similar assets within the selection. In a defensive scenario, one would select individual assets that appear to be affected less by contracting market trends.

**Microeconomic Analysis** -- This is where fundamental analysis becomes a bit more complicated. The microeconomics within fundamental analysis deal with information such as a companies management, and business plan. The final step in fundamental analysis is to take apart the financial statements of a company, in order to determine a number value. This is achieved by way of valuation metrics

**Valuation Drivers** -- Valuation drivers refer to factors which increase the value of a business at the time of sale. There are quite a few valuation metrics which traders can apply to their fundamental analysis technique. below is a list of valuation drivers which can be used in a fundamental analysis:

![Screenshot 2021-07-09 172502.png](https://duj27fxoqhxbb.cloudfront.net/Screenshot_2021_07_09_172502_2ff37ad8a1.png) 

Fundamental analysis is an excellent tool for traders who are seeking out long and palpable positions in traditional and speculative markets. There are many other forms of analysis, such as quantitative analysis, sentiment analysis, and of course, technical analysis. Even so, fundamental analysis continues to hold steady through the years as a predominant resource for many of the most influential market tycoons, who have shaped the world of trading as we know it today.

 

## Killer Whale Crypto

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Fundamental Analysis Basics

So far we have discussed The history of Richard D. Wyckoff and Wyckoff's Five step approach to the stock market in [An Overview of the Wyckoff Method: Part 1](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-1), and we have discussed Wyckoff accumulation events and phases in [An Overview of the Wyckoff Method: Part 2 - Accumulation](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-2). In this article we will be discussing Wyckoff distribution events and phases.

 

**Wyckoff Distribution Events**

![wyckoff 3.png](https://duj27fxoqhxbb.cloudfront.net/wyckoff_3_b7c3737b7d.png)

 

**Preliminary Supply (PSY)** -- Where shares are unloaded in quantity by large interests after pronounced upward movement. The volume expands and the spread widens. This is a signal that a change in market trend may be approaching.

**Buying Climax (BC)** -- The force of buying reaches a climax. heavy and urgent buying by the public being filled by professional interests at prices near the top. A Buying Climax (BC) usually coencides with good news, such as a great earnings report.

**Automatic Reaction (AR)** -- With substantially diminished intense buying after the Buying Climax (BC) and heavy supply continuing. The low selloff helps define the lower boundary of the distribution trading range.

**Secondary Test (ST)** -- The price revisits the area of the Buying Climax (BC) to test the balance of supply and demand at these price levels. The supply needs to outweigh the demand. The volume and spread should therefore decrease as the price approaches the resistance point of the Buying Climax (BC). On occasion, the Secondary Test (ST) takes the form of an Upthrust (UT) - when the price moves above the resistance represented by the Buying Climax (BC) - and in some cases, other Secondary Tests (ST)'s before quickly reversing to a close below the resistance. Prices will usually test lower than the boundary of the trading range, after an Upthrust (UT) 

**Signs of Weakness (SOW)** -- Is a down-move to, or past the lower boundary of the trading range. this usually occurs on an increase of spread and volume. The Automatic Reaction (AR) and initial Signs of Weakness (SOW) are indicative that supply is now dominant, and the asset's price action. undergoes a characteristic change.

**Last Point of Supply (LPSY)** -- This represents an exhaustion of demand. This occurs after testing support on a Sign of Weakness (SOW). A feeble and narrowly spread rally indicates the market is having difficult time advancing. This may be due to one of three circumstances: Weak demand, substantial supply, or both.

**Upthrust After Distribution (UTAD)** -- This is the counterpart to the spring and terminal shakeout within the accumulation trading range. This occurs in the later stages of the trading range and provides a definitive test indicating new demand after a breakout above the trading range resistance. An Upthrust After Distribution (UTAD) is not a required structural element.

 

**Wyckoff Distribution Phases**

 

![wyckoff 4.png](https://duj27fxoqhxbb.cloudfront.net/wyckoff_4_1bd1454f56.png)

 

**Phase A** -- This phase marks the stopping of the prior uptrend. It's the first significant evidence that supply has reentered the market - indicated by the Preliminary Supply (PSY) and the Buying Climax (BC). These events are typically followed by an Automatic Reaction (AR) and a Secondary Test (ST) of the Buying Climax (BC) - However, the uptrend can also terminate with anticlimactic action. In these cases, the asset will demonstrate an exhaustion of demand, with a decreasing spread and volume. less upward progress is achieved per each rally before significant supply emerges.

**Phase B** -- The function of Phase B is to build a cause in preparation for a new downtrend. Professional interests and institutions are disposing of their long inventory and placing short positions in anticipation of an impending markdown. In this phase large interests are net sellers of shares as the trading range evolves. The end goal is to exhaust as much of the remaining demand as possible. This process indicates that the supply/demand balance has tilted away from demand and towards supply.

**Phase C** -- This phase may reveal itself with an Upthrust (UT) or an Upthrust After Distribution (UTAD). It is a price move above the trading range resistance, which quickly reverses and closes within the trading range. It is also a bull-trap, meaning it appears to indicate the redemption of an uptrend, but in actuality is intended to "fake out" unconfirmed break-out traders. Upthrust (UT) and Upthrust After Distribution (UTAD) allow large interests the oppertunity to mislead the public about the future direction of the trend, in order to sell additional assets at elevated prices to traders and investors before the markdown begins.

Some traders may wish to initiate short positions after an Upthrust (UT) or Upthrust After Distribution (UTAD). The risk/reward ratio can be quite favorable. However, the “smart money” repeatedly stops out traders who initiate such short positions with one Upthrust (UT) after another. It is often safer to wait until Phase D.

**Phase D** -- This phase arrives after the tests in Phase C show the last of the demand. During Phase D, price goes to or through the trading range support. The evidence that supply is dominant increases either with a clear break of support or with a decline below the mid-point of the trading range. After an Upthrust (UT) or an Upthrust After Distribution (UTAD) there are often weak rallies within Phase D. These Last Points of Supply (LPSY) indicate excellent opportunities to initiate profitable short positions.

**Phase E** -- Phase E depicts the unfolding of the downtrend. The asset leaves the trading range and the supply is in control. Once trading range support is broken on a major Sign of Weakness (SOW), this breakdown is tested with a rally that fails at or near support. This also represents a potential opportunity. Subsequent rallies during the markdown are usually weak. Traders who have taken short positions, can trail their stops as price declines. After a significant down-move, climactic action may signal the beginning of a re-distribution trading range or of an accumulation.

Thank you for reading along with us! Be sure to keep an eye out for part 4 of Overview of the Wyckoff Method series, in which we will discuss reaccumulating, redistribution and Wyckoff's "Composite Man"

Killer Whale Crypto

An Overview of the Wyckoff Method: Part 3 - Distribution 

## An Overview of the Wyckoff Method Part 2

 

In our previous Article; [An Overview of the Wyckoff Method: part 1](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-1), we discussed the Wyckoff five-step approach to entering the market, as well as a little bit of history about Richard D. Wyckoff. In this article we will be discussing the meat and potatoes of the Wyckoff Method: Wyckoff Accumulation Events and Phases.

 

**Wyckoff Accumulation Events**


![wyckoff 1.png](https://duj27fxoqhxbb.cloudfront.net/wyckoff_1_67c34f56e9.png)

 

**Preliminary Support (PS)** -- PS is where enough substantial buying is providing pronounced support after a prolonged down-trend. The volume increases and the price widens, which is indicative of a downward trend coming to an end.

**Selling Climax (SC)** -- SC is the point where the widening spread and the selling pressure typically come to a climax, as heavy selling and panic selling are either coming to a near bottom, or being eclipsed by larger professional interests.

**Automatic Rally (AR)** -- AR occurs after intense selling pressure has substantially diminished. buying waves push prices up with ease. This can be catalyzed by short-covering, which is when traders buy the assets that have previously been sold short, typically to avoid losses when prices begin to rise.

**Secondary Test (ST)** -- ST is when the price revisits the point of Selling Climax (SC), but this time to test the existing supply and demand balance within these levels. If a bottom price is indeed confirmed, the volume and price spread should be substantially diminished as the market finds support within the range of the Selling Climax (SC).

**Last Point of Support (LPS)** -- LPS is the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term.

**Sign of Strength SOS** -- A price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action.


 

**Wyckoff Accumulation Phases**


![wyckoff 2.png](https://duj27fxoqhxbb.cloudfront.net/wyckoff_2_0850787687.png)

 

**Phase A**-- This is the end of a downward trend. Up to this point, the market was seeing a larger supply than demand. The curtailment of the supply is evidenced by the Selling Climax (SC) and the Secondary Test (SC). As the selling pressures are relived, Automatic rally (AR) ensues.

A successful Secondary Test (ST) indicates less selling in the area of the Selling Climax (SC). If the Secondary Test (ST) drops lower than the Selling Climax (SC), this could indicate either lower-lows, or a prolonged consolidation of support.

**Phase B** -- Ties into the the third step of the Wyckoff five-step approach, which can be referenced in our previous article> [An Overview of the Wyckoff Method: Part 1](https://www.killerwhalecrypto.com/article/an-overview-of-the-wyckoff-method-part-1). In Phase B, large institutions and professional interests are accumulating relatively low priced assets, in anticipation of future price markup. This can take up to a year, or possibly even longer. In this instance, the large institutions and professional interests are likely putting price advances in check by way of short sales.

**Phase C**-- This phase is the point at which the remaining supply of an asset is decisively tested. A successful test of a supply at this juncture is represented by an upwards price correction, which is indicative of a high-probability for opportunistic trades.

**Phase D** This Phase indicates a consistent ascendancy of demand over supply. This is indicated by a widening of price spreads and an increase in trading volume. The last point of support (LPS) within this phase is traditionally considered to be a beneficial place to initiate new assets, or add finances to an already existing successful asset.

**Phase E**-- In the final phase of accumulation, the asset is fully controlled by demand. Shakeouts and other reactions are likely to be short-lived. Higher-level trading ranges can occur at any point within this phase. These trading ranges often indicate potentially higher target prices.

 

In this article, we have taken a close look at Wycoff accumulation events and phases, however there is still much more to cover! Part 3 of our overview of the Wyckoff method will focus on Wyckoff Distribution events and phases! 

Killer Whale Crypto

An Overview of the Wyckoff Method: Part 2 - Accumulation

### An Overview of the Wyckoff Method: Part 1

 

**Richard D. Wyckoff**

 


Richard D. Wyckoff, was born in 1873, and died at the age of 61 in 1934. He is known as one of the five Titans of technical analysis along with Charles Dow, W.D. Gann, R.N. Elliot, and Charles E. Merrill. Wyckoff was successful in the stock market at a young age. He started off as a stock runner when he was fifteen years old and was operating his own firm in his twenties. Wycoff founded *The Magazine of Wall Street* – a publication boasting 200,000 peak subscribers – which he wrote and edited for two decades.

Wycoff – being a dedicated study of the stock market – was fortunate to regularly observe and interview historical traders such as J.P. Morgan and Jessie Livermore. Wyckoff began collating the best practices he had observed while studying the greats, into a collection of principles, techniques, and laws. He then dedicated the rest of his career to educating and instructing the public on matters of money management, mental discipline, and the principles and techniques of trading. He often referred to these subjects as “the rules of the game.”

 

**The Wyckoff five-step approach**

The first step is always to determine the probable future trend of the market as a whole and determining the present position of the market. Is the market either consolidating or trending? In other words, is the market moving in a bullish or bearish direction? This information will help you decide if you should be taking long or short positions, or if its even the right time to enter the market in the first place. This can be achieved by price action charts.

The second step is to select assets and positions which are moving harmoniously with the trend. The ideal assets are ones that demonstrate greater percentage gains than those expressed by the market as a whole during times of rally, as well as smaller decreases during reactions or corrections. You can determine this by comparing charts against the most relevant market index for the situation.

The third step referred to as the fundamental law of “cause and effect” is one of the most critical components to Wyckoff’s unique approach to selecting and managing trades. This is the concept of selecting assets with a “cause” that – at the very least – equals your minimum trade objectives. Wyckoff achieved this using the horizontal point and figure count within the trading range of individual assets as the “cause” and the subsequent price movement being the “effect.” As an example, it is best to take long positions during times of accumulation, or re-accumulation. We will go further into detail regarding accumulation and distribution events in part 2 of Wyckoff Method.

The fourth step is to determine the asset's readiness to move by applying the following tests to the asset in question:

- Is the downside or upside price objective accomplished?
- Is there preliminary supply or demand for the buying/selling climax?
- Is the activity bullish or bearish?
- Has the support or supply line been broken?
- Is the asset expressing higher-highs, or lower-highs?
- Is the asset expressing higher-lows or lower-lows?
- Is there a crown or base horizontal line forming?


 

Lastly, step five is about picking assets which are synonymous with current market situations. Essentially you will have better odds of a position being successful by picking an asset that has the power of the market behind it.

 

The Wyckoff method is quite a bit to take in, however its importance within the world of trading is second to none! Thank you for reading along with us!

 

Killer Whale Crypto

In this article we will go over a brief history of Richard D. Wyckoff and we will also be taking a look at the Wyckoff five-step approach to the stock market, in part 1 of this editorial series!

An Overview of the Wyckoff Method: Part 1

![Nov 19.jpg](https://duj27fxoqhxbb.cloudfront.net/Nov_19_42f2f49e2d.jpg)

If you want to make Killer Whale cry tears of joy this is how you do it. A Spinning Top Candle involves a single candle indicating uncertainty in the market. The candlestick itself is defined by a short body surrounded by long wicks (approximately the same length) on either side. The Spinning Top can be either bullish or bearish at the candle close. This candlestick pattern is often located within an uptrend, downtrend and/or consolidation. Now while Spinning Top Candles often signal a Trend Reversal this particular Spinning Top candle that I posted about the other day on BTC was a Bullish Spinning Top Candle at Major Resistance (bubble on the bottom left). Now yesterdays Bullish Spinning Top Candle (bubble on the top right) is actually quite amazing for the fact that even in a moment of indecision at the local top of major psychological resistance ($18k).... the bulls were strong enough to push the indecision to the upside thus leading to todays price action! Wow

What is a spinning top in TA? Learn how that works with crypto trading. 

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