Seems like everything was in the red today. I didn’t take a lot of time looking at the markets today, but it seems that everything was down significantly. $BTC broke below $10K, and took everything with it, it seems.
The losses that got stopped out in the last week or two, like $BAT and $CVC, were actually good in that they preserved some capital. And since I only deployed two percent on the other orders I placed, I’ve managed to avoid taking losses on $ZEN and $SOL. I’m still waiting for my COSMOS/$ATOM order to hit, and if Aave’s $LEND token has another flat day I may pick up some of that as well when it hits a nine on the TD Sequential.
I’m also keeping an eye on the IDEX-ETH price. If it spikes I may trade some; I’m still open to the possibility of providing liquidity on Uniswap. We’ll see.
I read a lot of Mastering Ethereum. The cryptography chapter managed to put me back to sleep this morning, but I’m actually getting to the smart contract part and am looking forward to trying my hand at Ethernaut right after I get done with this. I’m really looking forward to writing some programs to watch what happens with these liquidity pools.
$BTC was up to $11.9k this morning and has been edging on either side of $12k all day, but most of my attention was on ETH and DeFi tokens. I entered positions in Horizon ($ZEN) and Grayscale’s Ethereum Trust ($ETHE).
DPW Holdings
I started a value averaging protol with DPW Holdings ($DPW) back in June of last year. I believe they were on a list I pulled together for autonomous or aerial vehicles or something and is one of those stock pics that I threw a minimal amount of capital at without too much thought. Within a week they went from a dollar to six, and I thought I was a damn genius. It fell right back down, thankfully I sold some during this and a subsequent spike in mid-July. The protocol ended early last month, and my position is a bit underwater, but it’s less than half a percent of my total portfolio.
DPW Holdings
I set a contingent order to set a trailing stop should the price exceed five dollars. It’s my first time doing this with my brokerage, but I think I’m going to be putting them to use in the future.
Horizen
Horizen came up in my notes yesterday while I was feeding off of CryptoPanic. I was looking a running a node, actually, but discounted the one percent returns on the “Secure” node as weak, while the capital required for the 14% APR “Super” nodes as too steep. And mining the coins seemed completely out of the question as well. Still, the ticker price was trending as a nine on the TD Sequential for most of the day, so I broke out my trade calculator and took out a two percent position.
Horizen ($ZEN) chart
The price recovered after my order, so the nine actually turned into a one by close, so that might actually make a good strategy. My stop is set at the last entry signal, and I’ll raise the stop if it hits the exit target.
Grayscale Ethereum Trust
I’ve been heavily invested in Grayscale’s Bitcoin Trust ($GBTC) for at least a year or more, and right now it makes up about a fifth of the holdings in my managed IRA. And while I hold a special place in my heart for Ethereum, I’ve refrained from participating in Grayscale’s Ethereum Trust ($ETHE), mainly due to the insane premiums that have been attached to it since it was made available through my brokerage.
Since all the madness in DeFi and yield farming has taken off, ETH has become extremely lucrative, jumping to the top of the mining calculators over the past couple days. I switched my rig over last weekend, and at last check I’m making close to three times mining revenue than I was six months ago. And while the price of ETH has risen four times since last March’s lows, ETHE’s premium over NAV (the ratio between actual assets and number of shares,) is actually at the lowest level in a year.
The ETHE premium (ETHE/ETHUSD/NAV; NAV = 0.0934346 ETHE/ETHE) on the candlesticks. ETHE (falling) in blue, while ETH (rising) in red.
To me this seems like the best time to enter into an ETHE position. There’s not a lot of chatter about it on Twitter, but I did find the following thread which thinks that the premium could go even lower, and the price down to $40. Given what’s happening in DeFi right now, I don’t think it’s likely, especially given that price computes below NAV, but I set a stink bid regardless and opened a small position (0.5% capital) before the end of the day. Taking these nominal positions relieves my FOMO and gives me some breathing room.
It’s just crazy to think that just back in June, ETHE was $220, ETH was $240, and now ETHE is $60 and $ETH is $470. I’ll scale in from here and keep an eye on the premium. The closer things go to NAV, the better a deal we’ve got here.
