Holiday Q&A 🎄

I put out a poll back in the Spring asking what the communities' biggest questions were. This is a comprehensive list of the questions with answers to the best of my ability. Categories: ⋆ Collaborations

⋆ Liquidity

⋆ Market Psychology

⋆ Portfolio Allocation

⋆ HEX Statistics

⋆ Chain Analysis

⋆ Profit Taking

⋆ Market Cycle Theory

⋆ Blockchain Happy Holidays and ENJOY! 🎄

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⍟ Collabs: ⬩ Ꝗ: When can we see a collaboration with @WatersAbve? ⬩ α: Done. https://youtube.com/watch?v=Xk40Guw1h-o… ⬩ Ꝗ: When Sommi Collab?

⬩ α: I have reached out to Sommi. Most we can hope for is 2024. In the meantime, you can catch us bantering on x.com with regular market updates and data analysis.

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⍟ Liquidity: ⬩ Ꝗ: Liquidity - how to read, add, remove? ⬩ α: Using Liquidity comes in two forms.   1. Dual-Sided Liquidity on an infinite range such as Uniswap version 2 or http://app.pulsex.com.

2. Single-Sided Liquidity in a defined range such as http://app.uniswap.org on #Ethereum or  http://9mm.pro on #PulseChain.

You can add and remove liquidity on the dApps by clicking the pool button and selecting your assets, then choosing the amount you wish to provide. This process will differ depending on which application and method of liquidity you are providing.

Reading Liquidity Pools is hard to grasp, initially, but will make more sense over time. LP Charts are bar charts composed of "ticks". Each tick represents a certain amount of coins at a price. The taller bands represent more value locked in the tick. Shorter bands represent less value locked in the tick. Anyone can add or remove ticks of liquidity at any time. ⬩ Ꝗ: Liquidity and market making in general?

⬩ α: Market Making in DeFi is done by large holders of cryptocurrencies. You can think of market making as a game of chess where big players play the game of markets. Market Makers set Liquidity on the board at certain prices to service the market and get compensated with fees and volume.

⬩ Ꝗ: How providing liquidity actually works and the pitfalls that no one talks about. I could use the dumbed down version on reading liquidity of token/coin. Understanding the ranges… what happens when one buys and sells in that range, etc.?

⬩ α: Each instance and market circumstance is unique, so there is not a one-size-fits-all approach to understanding market dynamics. However, you can know that by observing Total Values Locked for an asset and by noting the relevant pairings, where the market's mind is at. When looking at a Single-Sided Liquidity pool prices tend to coagulate around the thickest bands of liquidity. When the price approaches the edges of where the current liquidity is conglomerated, the market tends to move in that direction and forces market makers to shift their liquidity into a new active range.

⬩ Ꝗ: Liquidity, liquidity, liquidity. Providing (proper/realistic amounts to provide with, exiting or entering the market with it, correlation of it with bottoms and tops of the market and what to look for in both cases)?

⬩ α: Generally speaking, there is not a single answer to what is the proper amount of liquidity to provide for a pair. One thing that might be helpful is to identify whether a pair is "established" or "exotic".

Established pairs are your typical, most popular and deepest pairs such as #Ethereum/ $USDC and Exotic pairs are new or riskier pairs with mid to low liquidity. Established Pairs are usually less fruitful unless you can provide a large amount of liquidity into that pool. Fees will be less and the price will tend to move slowly over months of time instead of days.

Exotic Pairs are high-risk, high-reward plays that require active management and usually move rapidly in either direction due to low liquidity and higher slippage.

⬩ Ꝗ: Basic TA, liquidity, what are pairs. Liquidity and how it affects price and how to provide and make money on liquidity.

⬩ α: Technical Analysis for cryptocurrency is different than that of traditional markets because of the wide range of assets, each with their own fundamental traits.

Liquidity is how much of one asset can I get for another and how much is available to trade on the market. Making Money by Liquidity Providing is a long term and highly refined skill set that requires lots of experimentation with small amounts and years of practice.

⬩ Ꝗ: I’ve been trying to find time to understand these liquidity charts people are posting. A. How to understand what the chart is showing. B. Where to find the charts/information.

⬩ α: You can find liquidity charts for Ethereum here: https://info.uniswap.org and for PulseChain here: http://app.pulsex.com under the info tab.

⬩ Ꝗ: Liquidity pools & how they protect price that benefits asset price & the seller. We’ll need this when profit taking is upon us...

⬩ α: Liquidity Pools don't protect prices from falling, market makers do. By strategically shifting liquidity into a highly traded zones, market makers can better protect price levels. The strategies are numerous and there is not one specific way to accomplish plunge protection.

By adding liquidity in at a low point a user is able to realize profits by removing liquidity at a high point without hitting the sell button. This works to give the market something to trade but also reduces sell pressure on the chart.

⬩ Ꝗ: The importance of DCA. How in 6 months of dip can easily be eradicated within a week or two?

⬩ α: Imagine you bought $1,000 of $HEX at 50 cents and then bought an additional $1,000 of #HEX at a half of a cent (0.005 USD). You would have received 2000 HEX the first buy and 200,000 HEX the second buy which brings your total to 202,000 HEX for a total of $2,000. This means that you paid an average price of 1 penny per HEX.

Math: $2,000/202,000 HEX = average price of $0.0099!

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⍟ Market Psychology: ⬩ Ꝗ: How to develop long term vision, understand flow of money, importance of monetary policy, learn what crypto really is?

⬩ α: In order to be comfortable in your investments, it is important to nail down your understanding of the thing you are investing into. Learn about the founder, the tokenomics, the supply distribution and how your investment is affected by other events happening in the world around it.

To understand the flow of money it is good to start with a strong understanding of the credit/ debt cycle so I recommend you watch this:

https://youtube.com/watch?v=xguam0TKMw8…

Understanding the effects of inflation and deflation on the economy are a huge part of understanding what sets cryptocurrencies apart from traditional finance (TradFi). This is especially true of coins like Bitcoin, Ethereum and HEX.

⬩ Ꝗ: How to view your life from “3rd person” and realize where you are at on your path, and where you are going?

⬩ α: Define what your likes and dislikes are.

Don't react emotionally to things that happen to you in the world.

Help others and be of service wherever possible.

Work hard to accomplish your goals. If you can't seem to see a way forward, disconnect and go get some exercise, socialize or go out into nature for a bit. When you come back you will be present with fresh eyes and a new perspective on how to tackle the challenges you face.

Build out a network of people. As you grow, old connections that no longer suit you will die off and stronger-better ones will step into frame.

Stay true to yourself and always lead with your intuition. If your intuition gets something wrong once, it won't get it wrong again as long as you stay on course.

Zoom out! Life is short and we are all just a bunch of little skin sacks on a rock hurling through space. Tap into the higher mind and spirit, it is always with you, no matter what!

⬩ Ꝗ: How to change our mentality to buy in a bear or a dip and not FOMO in. It’s like our minds work in the complete opposite

⬩ α: This bear market has been extra difficult to manage because of the hyper-inflation of the first years of HEX, the launch of PulseChain mainnet and hundreds of sacrifice phases over the past couple of years. This was NOT a typical market cycle which made it even more treacherous than past cycles. Understanding some simple technical analysis such as "divergences" or how to read the RSI or MACD on longer time frames would have given you very good buying opportunities with an opportunity to take profit in the short term. The one thing I can not teach you but is the most important is PATIENCE. Markets are a game of attrition and waiting for the best prices to buy until the bull market comes back online.

⬩ Ꝗ: Thoughts on RH’s many great teachings “don’t trade”, “volatility is the price you pay for best performing asset” “not your keys…” etc. it’s proven to help people succeed in crypto. Most won’t go back and watch 100+ hours of RH videos (tho they should) but they can learn from you.

⬩ α: Day Trading as a primary investment method is a fool's errand. Long term swing trades and staking with HEX are some of the better methods for earning income with less risk of complete blowout.

If you pick the right asset that has product-market fit and first mover advantage - a booming community, and some of the biggest whales in crypto participating, you will be positioned well.

Eat the volatility and employ a solid Dollar-Cost Averaging strategy to conquer the markets over a 5 to 10 year timeframe. Capitalizing on other's volatile emotions is a sure way to score more units of your favorite assets in a bear market and scoring more dollars by handing them off at the top!

Don't chase shiny objects with your whole stack right up front and without doing due diligence on it. Many a fortune has been lost simply by not holding out long enough.

Not Your Keys, Not Your Coins. Whenever transacting on the blockchain, house your long term holdings in a cold storage wallet that you and only you know the private keys (seedwords) to. Come up with an extra security measure such as shamir or Multi- Signature wallets to strengthen your resistance to hacks or thieves. Always seek cryptocurrencies that have no admin keys or backdoors. Limit your exposure to centralized exchanges and counterparties.

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⍟ Portfolio Allocation:

⬩ Ꝗ: Understanding when, for instance, hex is valued against Bitcoin. Or ETH against BTC. And determining whether to swap from one to the other based on the ratio…The ratios of value are a bit confusing to me. You are fantastic!! I look forward to learning from you more, YOU ROCK!

⬩ α: Ratio trading is the O.G. way of earning more cryptocurrency. Because of the massive divestment out of $eHEX in favor of other shiny new things, the price of #HEX against BTC and ETH is insanely cheap currently. Most folks never thought the ratio would come back down this low and so what once seemed like a great buying opportunity has now been superseded by current prices.

Based on current valuations, BTC and ETH are overperforming HEX by a staggering amount. When HEX starts to move while the overall crypto market is either stagnant or falling would be a signal to start slowly rotating profits back into of your favorite blue chips.

⬩ Ꝗ: To calculate the perfect ratio between liquid and staked HEX, ladder dynamics to storm over bear mkt. Doing a thumb math now, but I am sure there is a better way..?

⬩ α: There is not a single strategy for the most optimal HEX allocation. By defining your crypto goals into strict allocations to meet those goals, may you more easily be able to find what's right for you.

If you own a few hundred thousand HEX and plan to buy more over the next few months, perhaps you would stake that amount out into 2 or 3 stakes that go out farther than five years in order to maximize your returns and use newly purchased HEX to hold liquid for the bull run.

If you own tens or hundreds of millions of HEX you may decide to ladder out your stakes or roll a large portion into a 30 day rolling stake and harvest the yield to either sell or push out ten to fifteen years as a risk free moon bag. This keeps the opportunity cost of capitalizing on bull market prices nice and close to home but also allows you to earn and create a long term income stream.

There are literally endless possible strategies to staking and each is dependent on what actions you make take and on what time horizon.

⬩ Ꝗ: I would like to understand if it’s best to buy hex, com, hedron, or Icosa? I would like to understand if one is a better deal than another?

⬩ α: HEX is the core asset and T-shares are the yielding mechanism. They should be the main focus at the core of a DeFi portfolio. Once you are happy with those two elements then you could look to some of the derivatives plays for opportunities.

COM is just starting to find its place as the automatic marketing and instant rebate component to long term HEX staking.

Icosa + Hedron are extremely undervalued due to hyper inflation from the first few years and limited use in the auction house. There is tremendous opportunity as the new dApp is deployed.

⬩ Ꝗ: I'm struggling to keep my 22% liquid hex, I keep wanting to stake it but so many mixed thoughts especially with gas fees and the thought of keeping some for pulse chain launch. But then I remember the power of t shares.

⬩ α: When in doubt, do a rolling stake so that you are earning something. If you don't like ETH fees, bridge that $eHEX into PulseChain and swap it for HEX on Pulse.

⬩ Ꝗ: How the Hedron/Icosa ecosystem is a benefit for HEX?

⬩ α: Although it is hard to see now, tradable and transferrable stakes will get extremely popular toward the end of the bull market because of their locked in t-share rates and bonus multipliers. In addition, the new v2 IcosaHedron contract will merge the ETH and PLS sides into one system to simplify and bridge the contracts together in a way we haven't experienced before.

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⍟ HEX Statistics:

⬩ Ꝗ: Accurate estimates of OA % ownership?

⬩ α: Somewhere around ~95%.

⬩ Ꝗ: Forced Parity of eHEX to pHEX?

⬩ α: Unlikely to ever occur. However, the prices of the HEXes may oscillate and trend in and out of premiums/discounts against each other depending on fundamental improvements to either native blockchain.

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⍟ Chainalysis:

⬩ Ꝗ: How to do proper on-chain analysis and maybe the so called 'due diligence'/own research.

⬩ α: http://DEXSCREENER.COM has a really neat feature on the bottom of the chart display which allows you to sort and filter buyers and sellers based on chain activity. This has rapidly increased the rate at which chain analysis can be accomplished and visualized.

https://platform.arkhamintelligence.com also provide a free and easy-to-use chain explorer.

https://debank.com/ is useful for capturing folks LP positions and stakes on other assets.

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⍟ Profit-Taking:

⬩ Ꝗ: How to scale out (not 100%) and realize profits?

⬩ α: Set LP at a low and remove it at a high. DCA out as prices rise.

⬩ Ꝗ: When to Buy high and Sell low?

⬩ α: Find a few good analysts you like that have made accurate calls before and learn their process. Over time you will manifest your own methods for discovering buying opportunities.

Listen to Sentiment. If everything you read is super duper negative, chances are prices are about to go up. If all you hear is euphoria and we are gonna build a space nation in Mars orbit, it is time to start relinquishing your positions.

Play longer multi-year timeframes not days or weeks.

⬩ Ꝗ: Lack of funds…?

⬩ α: Get creative, find another job or look for work online. Learn a new skill. I promise things get better after you start.

⬩ Ꝗ: Taking profits on time?

⬩ α: Read the sentiment that is going on around you. Find solid technical indicators that have a consistency of creating a similar pattern on monthly or yearly timeframes. Learn about Market Cycle theory from myself and hexfire.io.

⬩ Ꝗ: How do you buy expensive things like a house/fancy car when you become stupid rich without dumping the price or your bags?

⬩ α: Stick your PLS or ETH in a @liquidloansio vault and borrow some Stablecoins against it near the bottom of the bear market. Provide Liquidity during the bull market on stablecoin pairs so that as the millions start to pour into the coins you hold, they are converted into stables automatically without having to hit the sell button. If you have to hit sell, transact in small batches with low slippage so you don't destroy the value of your bags. Liquidate over days or weeks NOT hours or minutes.

⬩ Ꝗ: What’s the minimum amount you would stake and for how long for it to even make sense.

⬩ α: I would not stake less than 100,000 HEX for less than two years.

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⍟ Market Cycle Theory:

⬩ Ꝗ: Understanding when the trend is changing?

⬩ α: The bull market started for #bitcoin in January of 2023. HEX and PulseChain are experiencing an extended bear market because of the massive divestment into the new chain and hundreds of other projects.

Use tools like the Golden Ratio Charts, Mayer Multiple and Historical Volatility to predict trend changes as they occur. Don't fight the trend. Understand the future market supply and user behaviors of those ending stakes.

⬩ Ꝗ: Do you think there are more institutional investors looking to get in this cycle?

⬩ α: Absolutely. Gradually, then SUDDENLY. Don't underestimate the power of private high net-worths.

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⍟ Blockchain:

⬩ Ꝗ: Wanted to ask if you could provide some education/talking points on how PulseChain will be better than BSC, CRO, polygon, as those chains are also low fees as a selling point?

⬩ α: Faster, Cheaper and booming community backing it up. Launched off the heels of a coin that did a 10,000X last cycle. Full system-state copy of Ethereum with all the bells and whistles with added improvements. Vertically integrated DEX and Bridge. Hundreds of projects have launched on $PLS with more on the way.

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⍟ Master Evolving Markets with us at http://AXiSALiVE.COM/Services and participate in the premiere community on #PulseChain.