Crypto Market Musing: ZCash Dip Buy - ZenCash Nose Dives.
Hi traders, I bought some more ZCash today.
Here's why.
ZCash.
ZCash is a project I've had my eyes on for a while now, in fact I even predicted that ZCash would see a Coinbase listing soon in the wake of its listing on Gemini, one of the most regulated crypto exchanges in the USA.
There is a great deal of things I like about ZCash: its selective privacy features, its world class team of developers, its soon-coming Sapling network upgrade, the robustness of its network, its technology partnership with JP Morgan Chase, its Grayscale-sponsored investment fund... and its price:
Most the volume on this market comes from the BTC/ZEC pair:
BTC/ZEC Chart:
BTC/USD Chart:
As you can see there is a bit of downside risk on the BTC/USD chart where the price is trading above its ideal accumulation zone; nonetheless I've decided to add to my long-tail trade. I intend to keep this trade open until September when the Sapling upgrade will release.
My risk management strategy on this trade is very simple: I am watching Bitcoin for a potential breakdown. I BTC starts nose-diving, then I'll probably exit this added position (I am keeping my initial entry because I bought in very low) with the intention to buy back in at a lower price.
Another potential risk on this trade is the hypothtical threat of a 51% attack similar to the one on Binance's ZenCash wallet which happened a couple of days ago. ZCash's network is much more robust and expensive to attack than ZenCash's though and its likely exchanges have already implemented countermeasures to prevent double-spend attacks on their wallets but it's something to be aware of anyways.
Trade Safe!
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