Decentralized Finance or DeFi is taking the market by storm offering promises of profit and exponential growth for investors. Many people are wary of this sort of messaging, labeling these sorts of activities as akin to pyramid or Ponzi schemes. Since developers of Ethereum figured out that all they need to do is issue a DeFi token and investors start pouring in GAS fees for the Ethereum network have skyrocketed.

Image for post
Image for post

When compared to the traditional stock market, cryptocurrency is both similar and different in many ways. The world finds itself in a form of crossover with one foot in the traditional financial realm and one in cryptocurrency. Much like the traditional financial world, the components of the industry exist at the mercy of those who control them, and there is no way to control the moral or ethical behaviors these individuals possess. …


All markets behave in the same manor, where there is rapid growth there is rapid declines.

Image for post
Image for post

When an entire market collapses, your portfolio will be left broken and maimed. Wealth management isn’t simply diversifying, but comes from experience and is not something you can learn from a book.

“A well-diversified portfolio would comprise, ideally assets whose returns move in the opposite direction”. — Fidelity

The market bloodbath of 2008 should have taught investors how poorly the diversifying strategy really is. …


Image for post
Image for post

Supply and demand is at the heart of business itself, without both commerce would cease to exist. If only there was a way to see both supply and demand for a particular asset. Well, a depth chart provides just that info!

A depth chart is a visual representation of buy and sell orders for a particular asset at varied prices. This kind of chart illustrates both sides of supply and demand to show exactly how much of an asset you can sell at a particular price point.

Image for post
Image for post

On the left side in green we have bids/buy orders which are displayed between a range of prices located on the x-axis. On the right side we have ask/sell orders which are displayed in red with their respective values on the x-axis. …

About

Dreamscape Capital

Quantitative Investment Strategies in the Blockchain Sector

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store