Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy! During my last update “Bitcoin - Forex Combo Strategy: Bitcoin 10K Before Plunge?”, I talked about the potential for Bitcoin to tackle 10K before reversing. Price action stalled around 9K before retreating. Some blame the spreading of the latest coronavirus, but I like to point out that we remain in a massive bearish trend, which was established over the past seven months. A move lower from current levels will most likely result in a move below 6K, and I urge caution.
According to the Chainalysis 2020 Crypto Crime Report, 2019 featured eleven major cryptocurrency-exchange hacks in 2019 totaling $283 million. On the bright side, the hacks resulted in significantly smaller losses. Remember the 2014 Mt. Gox hack, worth $473 million or the 2018 Coincheck hack worth $534 million. Despite 2019’s smaller monetary value, the frequency of hacks has increased. This is a worrisome trend, especially if it continues in 2020, and shows that security-focused companies serving the cryptocurrency industry have ample of work ahead of them.
The preferred avenue hackers use to transfer coins from a compromised address is to another exchange. A growing tool for hackers is the utilization of third-party mixers, where various addresses are mixed. This allows hackers to clean stolen coins before moving them, for a small fee. Patience is another way for hackers to access funds. After the hack, the funds are kept in a wallet for twelve to eighteen months, then are moved to a smaller exchange, and then slowly withdrawn to the final destination. Mixing assets from various wallets is expected to grow further in 2020, and so are smaller hacks, which make moving funds easier.
The biggest hack occurred at Coinbene, where $105,000,000 worth of 109 different ERC-20 tokens were stolen. Upbit was the victim of a hot wallet hack, where $49,000,000 worth of Ethereum was stolen. Binance wasn’t spared, and cost the exchange $40,000,000 worth of Bitcoin that came out of its hot wallet. BITPoint was hacked for a total of $32,000,000, and completing the Top 5 list is the $19,000,000 Bithumb hack the exchange blames on an insider.
My cryptocurrency portfolio remains unchanged from last week. I currently hodl 1,000 Bitcoins, at an average entry price of $7,950, 60,000,000 Ripples, which carry an average entry price of $0.3015, and 100,000 Litecoins with an average entry price of $52.80. I also maintain my 20,000 Ether short-position, which I took at $135.00. The four charts below show my Bitcoin, Ripple, Litecoin, and Ethereum holdings.
I continue to hold my 250 lots long Gold position, that I took on October 18th 2019 at $1,485.00 for a margin requirement of $372,798, with a pip value of $250. I expect a volatile advance towards $2,000 to unfold this year and into next. The chart below shows my open Gold trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $8,439,750, 60,000,000 Ripple worth $12,696,000 and 100,000 Litecoin worth $5,417,000. I also have a 20,000 Ethereum short position worth $2,038,600 plus a total cash portfolio worth $2,823,503. I have the following positions in my forex portfolio: a 250 lots Gold long position worth $2,527,798. My total Bitcoin - Forex Combo portfolio is worth $33,942,651, down $1,539,130 from last week’s all-time high of $35,481,781 and at a new all-time high. Are you ready to grow your account? Take your first step now, open your PaxForex Trading Account today, and follow my Bitcoin - Forex Combo Strategy! Comment below with any questions you may have, and I will be happy to help you get started!
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