How to make money during this recision 💸📝

What up, family, 👨‍👩‍👧‍👦,

Seedphrase Daily here 👋, where we look at you straight in the eyes and tell you the facts about Crypto and NFTs.

Today’s estimated research time is 5 hours and 10 minutes condensed into a read time of 3 minutes and 44 seconds. Stay tuned to where we talk about:

• 🧨 How to make money during a crisis

• 📉 Why are Bitcoin Miners struggling now?

• 🎉 9-year-old makes 14Ξ with her NFT collections!

• 🙀 100x profits on 1 NFT

• 👨‍🏫 RISK MANAGEMENT

How to make money during a crisis🧨

Ethereum, within the past few weeks, has seen a strong resistance of $2,000 and support of roughly $1,700. On June 5th, we saw Bitcoin test this support zone again but with over $670M of short contracts.

The exchange Bitfinex, which has a 99.5% short rate on Ethereum, saw nearly $670 million in liquidations in the past four hours, all of their short positions.

Did these traders make money?

The crypto markets are currently punishing over-eager leverage traders.

The liquidations came amid relatively modest upward price action, with ETH trading within a roughly 6.5% price range from $1,805 to $1,920. The price of Ether rebounded by 10% over three days, causing these traders to get their money liquidated. Did these people have the right idea?

Leveraged positions may seem like an excellent opportunity to make money, but it’s a gamble for any inexperienced trader.

But, in every crisis, there’s opportunity.🧐

And with how things are now, if we see Ethereum break that support line of 1,700, things will go bad fast. So that begs the question. Is now the perfect opportunity to plan short trades to make money on the way down?

Why are Bitcoin Miners struggling now? 📉

Yup, more analysis today, the smart glasses are on. With crypto prices struggling, BTC and ETH are currently at new 2022 lows, and miners have been suffering.

In November 2021, BTC miners made $1.7B as BTC approached ATHs! In May, BTC miners made $906M, down 47% in revenue for the month.

Before we can dig deeper, we have to explain how Bitcoin mining works.

Bitcoin is currently a proof-of-work: an essential part of adding new blocks to the Bitcoin blockchain. Blocks are created by miners, the people in the ecosystem who execute proof-of-work. Each time a miner comes up with a new winning proof-of-work, a new block is accepted by the network.

Mining has a magnetic appeal for many investors interested in cryptocurrencies because they’re able to receive relatively passive rewards for their work with crypto tokens.

To put it simply, 🙆‍♂️

Miners contribute to the network by giving it more blocks, thus rewarding them for making the code more complicated and secure.

BTC mining hash price

The hash price represents all-time lows of returns. Bitcoin miners can expect per tera hash basis (how much they contribute). In other words, it is the average value in fiat currency of the daily rewards a miner gets per each tera hash calculation (USD/THs per day).

The chart above signals the behaviour of the miners. During the first drawdown from the ATH, Bitcoin accumulated around 12k. In response to the market crash in May and the LUNA foundation selling over 80k BTC. In addition, miners distributed 10k BTC adding to the selling pressure to a total of $3B!

Demand

With tremendous amounts of fear in the market, Bitcoin is struggling to thrive in these conditions bringing miners along. The flow of Bitcoin to crypto exchanges is down 37.4%, indicating the reduced demand for BTC amongst investors. The main focus of investors seems to be elsewhere, leaving miners under stress.

Is the Crypto bottom here?

These past months have felt like years. 🙁

Looking at the chart above, it’s safe to say 250-500 days from the ATH is usually the bottom! The current state of the market is only about 200 days from the ATH. Which leaves us with the question, when is the bottom? Not anytime soon LOL.

Reply and let us know if we should gather some more info for you on how to start mining? 🤔

Stay strapped for tomorrow’s email where we discuss why BTC & ETH energy consumption forced ETH to transition into Proof of stake! 👀

9-year-old makes 14Ξ with her NFT collections! 🎉

On a lighter note.

9-year-old Amelia launched her own NFT collection Ami's Cats, inspired by her cat Molly. She raised over $2,000 for charities supporting animal welfare and Ukraine child refugees. The collection currently has 98 holders with a total volume of 14Ξ.

Original Tweet

This proves that anyone could make a change if they just tried. 🙌 Now if you have kids, and you're like us, you know what to do :)

100x profits on 1 NFT 🙀

NFT flip of the week!

Otherside #95607 was minted for 2.65Ξ($2.65k) and sold for 135Ξ($250k), almost 100x profits! Diamond handing pays off sometimes. 💎 You may call it luck, NFT people call it ALPHA.

Lesson of the week! 👨‍🏫

Time for some free game that if you apply to yourself could make you tons of profits and save you a lot of money! 💰💸

RISK MANAGEMENT ‼️

And how to manage it while trading.

This is probably one of the most fundamental things when it comes to making money so pay attention:

1/ Learn to cut your losses before they result in more significant losses. The key to Risk Management is never putting yourself in a position where you cannot live to fight another day.

2/ Stick to your Trading Plans and refine your stop losses so that even if hit, the odds are in your favour if we look at the bigger picture.

3/ Avoid Overleveradging. Don't be stupid, and don't trade what you don't have. It will only result in emotional decisions.

4/ PLAN YOUR TRADE AND TRADE YOUR PLAN. Plan your entries, exits and stop losses on each trade before you make them and try your best to follow that. For example, if I buy an NFT for 1Ξ and I want 5Ξ, I will list it right away, so I'm not acting with greed. If it does hit 5Ξ floor, and I don't sell, then the project crashes. I would have wished I sold. Do better than that, be happy with what you made, unless you really believe in that project.

5/ Run comprehensive research on any trade you plan to take on any project you want to invest in. There are indicators behind every pump, every dump and every rug. Never be blind to RED FLAGS.

Do you use any of these already?

That’s a wrap for today! Make sure to follow us on Instagram and Twitter for more up-to-date content! And If you’re looking to find early opportunities to make money, tune in daily! It only takes 5 minutes. Also, don't forget to refer one friend and gain access to our Ebook that has all the ALPHA on NFT flipping! (scroll down)

See you tomorrow. ✌️ 💎

Meme of the Day

Disclaimer

None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!