Premium Daily Crypto NewsletterJanuary 15, 2018
Watch this video to see how to use this newsletter. Click the square in the lower right to expand the view.
Check Out Doc's Trading Book
Have You Read Our Free Ebook?
Crypto Market Commentary
Bitcoin Halts Week-Long Drop But Struggles With Regulatory Stress
South Korean Ban Confirmed False
We’re seeing consolidation across the board. This is the market’s reaction to government oversight and a perceived regulatory stranglehold on future blockchain proliferation.
Primarily this is tied to the perceived South Korean ban of cryptocurrencies. However, in an official announcement, the spokesperson for the president’s office emphasized that there will be no cryptocurrency trading ban in the near future. They noted that the cryptocurrency regulation task force created by the government will improve and alter the original proposal by the Justice Ministry to ban cryptocurrency trading and introduce practical regulations to foster the cryptocurrency market. You can read the full statement in the fundamental analysis section below.
Despite the tone suggesting otherwise,it was an extremely positive conclusion to this The South Korean cryptocurrency exchange market along with major trading platforms within it such as Bithumb and Korbit are optimistic about the new approach the government is taking to regulate and foster the local market. A likely development in 2018 is that the South Koreans will continue to rise in cryptocurrency prominence.
This is why we recommend considering an investment in ICON, ticker ICX, which is Korea’s first major ICO and will soon be available for korean’s to trade given this announcement.
We anticipate that without any more major news coming out, the market will continue sideways for a bit, but as Doc notes in the technical analysis section below, a markout breakout is in the works.
Before I go further, I just want to genuinely say thank you. As you’re one of our first premium subscribers, you’re willing to help us realize this dream of a high quality cryptocurrency analysis platform. We would not be able to make that happen if it were not for you. Expect to see massive changes as we continue to work hard every day to bring you the very best we can, and we look forward to helping you achieve your goals through cryptocurrency. Thanks again.
In the “Technical” section below, Doc talks about how many of the “blue chip” coins are in triangle consolidations. Statistically, these favor a breakout to the upside (from “whence they came”) but over the past year in Crypto, they have been first breaking to the downside before violently reversing. These might offer a very nice buy point in the near future, one which most retail traders will be unable to take due to the “scary” nature of the entry. As a matter of fact, most retail traders will be busy “puking” their coins out.
Technical analysis is really the study of herd behavior, or the actions of the masses. They tend to function in a manner that causes the greatest amount of pain to the largest sample of investors. We will talk at length about this aspect of trading in the coming weeks and months, as we’ve found that this most elusive of skills runs completely counter to what most of us have learned since birth.
Offense – Adding Trades
Offensive Actions for the next trading day:
- Nothing specific for Tuesday; please follow Doc’s comments re: triangle breaks in the technical section below.
- Let WTC consolidate first before entering; see alt-coin technical section below.
Defense – Managing Risk
Defensive Actions for the next trading day:
- Nothing specific for Tuesday; please see comments in holdings below.
ReadySetCrypto’s 7 Categories Of CryptoCurrency
Tier 1 coins are those coins which we have considerable assets invested, are firm believers in the project direction and execution, and have very little reason to sell within short to mid term. These are coins which we risk evaluated to be very solid, and have a high probability of existence duration.
NEO ($NEO) is classified as a Dividend and Platform coin. As our largest holding, we believe NEO has the potential to become a dominant smart contract and DApp platform in 2018. It’s four most compelling features are:
- An innovative consensus algorithm which will allow for greater TPS (transactions per second) over its competitors.
- A dividend structure for holders, incentivizing coin retention and network stability / diversity.
- SE Asia location, enabling NEO to break into markets more easily than competitors.
- Agnostic smart contract language, allowing for smart contract developers to use existing mainstream programming languages, which allows for cheaper smart contract implementation as compared to Ethereum who’s proprietary smart contract language, Solidity, can be a barrier to integration.
NEO is best acquired through Binance. Storing NEO on the Binance exchange will result in a GAS distribution once a month on the first. We recommend the NEON wallet for safe storage. GAS will be distributed on the NEON wallet daily.
WaltonChain ($WTC) is classified as a Dividend and Utility coin. Waltonchain is on the cutting edge of using RFID hardware to enable supply chain management 2.0. We believe Walton has the potential to become a dominant IoT blockchain solution
Waltonchain is the only truly decentralized platform combining blockchain with the Internet of Things (IoT) via patent pending RFID (Radio Frequency Identification) technology.
The custom RFID chips are able to digitally sign and verify transactions at the integrated circuit level, automatically and instantly reading and writing data to the chain without human intervention.
This unique implementation of blockchain + IoT facilitates the true interconnection of all things in the real world with the virtual world, creating a genuine, trustworthy and traceable business ecosystem with complete data sharing and absolute information transparency.
Walton has two major competitive advantages:
- A recently confirmed (to be signed) partnership with China Mobile’s IoT Alliance. China Mobile is the largest mobile telecommunications service in the world as well as the world’s largest mobile phone operator by total number of subscribers. Walton’s Management system is set to be implemented through mobile communication networks, and China Mobile is the largest one. Waltonchain is positioning themselves to be the single connector of the entire Internet of Things initiative put forward by the China Mobile IoT Alliance.
- They implement the blockchain through the RFIDs at the foundational layer. Their technology is patent-pending and gives Waltonchain a solid claim as the only blockchain that connects the physical world with the virtual world with truly reliable data. This is because all other IoT solutions tag items through API, and this means all the data is first passed through a centralized intermediate, a potential point of vulnerability.
Ethereum ($ETH) is an open blockchain Platform that lets anyone build and use decentralized applications that run on blockchain technology. Like Bitcoin, no one controls or owns Ethereum – it is an open-source project built by many people around the world. But unlike the Bitcoin protocol, Ethereum was designed to be adaptable and flexible. It is easy to create new applications on the Ethereum platform, and with the Homestead release, it is now safe for anyone to use those applications.
Tier 2 coins are those coins which have performed extremely well, we have a large amount of assets with, and we believe will continue to operate with high marks. What separates these coins from our Tier 1 status is a flaw or they haven’t yet proven their defining feature, though we believe they will.
OmiseGO ($OMG) is classified as a Dividend and Utility coin.
OmiseGO is a Southeast Asia-based company creating an e-wallet that will make transfer of assets and currencies possible. Merchants and users of the wallet can transfer whatever asset or currency they desire. For example, you could use your ethereum, bitcoin, international fiat, or even your airline points to buy groceries using the e-wallet app on your mobile phone. Transfers can happen across borders, or even while traveling abroad. Unlike Western Union or PayPal for example, the fees are almost negligible, and the transfer is instant. Because it’s based on a blockchain, there are no intermediary banks necessary and users don’t need bank accounts to access those funds. This is especially good for migrant workers who send money home and often don’t have bank accounts and are forced to use expensive wire services instead.
NAVcoin ($NAV) is a Privacy coin with upcoming Platform features. NAVcoin has been around for 3 years. It is not minable, instead being based on a Proof of Stake system in which stakers earn 5% annual returns. Theoretically this means there could be 5% inflation on the supply, however, that would require every coin holder to stake, so likely there will be very marginal inflation between 1 and 3% year over year. It is a currency originally based off of Bitcoin version 0.13, which should tell you it’s got a good foundation from which to build its feature set. Being based off Bitcoin, it currently is a method of transaction, with notable upgrades in the form of Segwit (with possible lightning network integration in the future) and 30 transaction times with extremely marginal fees. That’s great but a lot of coins have that going for them, so thankfully we’re just getting started with the real interesting pieces of NAV. The first and currently only implemented feature, NavTech is a unique dual blockchain technology. Essentially, NAV runs on these two blockchains in order to completely disconnect the sending wallet (your wallet), to the receiving wallet (where the money is getting sent). Think of it like a VPN, NavTech completely strips the sender’s details so the transaction is completely anonymous. The anonymous transaction space has really gotten big lately, with Monero’s recent price action and Ethereum’s implementation of ZKSnarks being two big examples that come to mind.Moving on to the roadmap, there are two big upcoming features for NAV:
- The first is Polymorph, which is a really cool blend of Nav’s anonymous transactions and Changeally’s instant exchange. What this means is that, for example, I wanted to pay someone in Bitcoin but I wanted to do it anonymously. Polymorph would take my bitcoin, turn it into navcoin in order to be processed and sent anonymously using the Navtech dual blockchain, then turned back into bitcoin at the to be sent to the receiving wallet. This will certainly set NAV apart, as it guarantees anonymous transaction for all of the coins on changeally. This is huge for exposure, and a great opportunity for NAVcoin to gain trust, which is absolutely critical anonymous transaction coins.
- The second big upcoming feature is ADApps, or Anonymized Decentralized Apps. This is also a huge potential win for Nav as there is already a huge amount of interest in the crypto space surrounding Dapps, such as Ethereum and Omni. Adding in the anonymous layer would attract projects that would value the anonymity. Nav is still in the planning stages for this project so it could still be awhile before it comes to fruition, but we should see the whitepaper for it soon, and if they could be first to market with ADapps that could prove to be a killer feature for them as it would give them first access to the interested demographics.
Simply put, ICON ($ICX) is a massive scale blockchain Platform that allows
- Decentralized Application (DAPPS) – Build DAPPS on ICON Platform like on Ethereum and NEO. Yes, soon, you will see ICOs happening on ICON platform for different DAPPS
- Interchain (Interoperability with Blockchains) – Allows different blockchains connecting to one another through their protocol. ICON is fully compatible with traditional blockchains like Bitcoin and Ethereum and in future can bridge other public blockchains such as Qtum, NEO and many others to achieve their mission statement – “Hyperconnect the world”
- Artificial Intelligence (AI) – Use of AI to ensure all nodes contributing to ICON Republic/platform are rewarded fairly and not to have certain powers over distribution policies. AI will continue to learn a variety of variables to determine optimal distribution policies and achieve complete decentralization.
- Decentralized Exchange (DEX) – ICON will integrate different DEX protocols on their platform to facilitate exchange of ICX and other future ICON platform currencies. Bancor protocol will be their first DEX protocol when mainent launches this month end and Kyber and others will follow. Not just throwing Kyber’s name out there, it was confirmed they are working with each other, official partnership yet to be announced.
Ripple ($XRP) is a real-time Payment protocol for anything of value. It’s a shared public database, with a built-in distributed currency exchange, that operates as the worlds first universal translator for money. Ripple is currency agnostic and has a foreign exchange component built right into the protocol. Ripple acts as a pathfinding algorithm to find the best route for a dollar to become a euro or airline miles to become Bitcoin. It will look at all the orders in the global order book. The case for XRP comes down to the following: 1) Payment systems work best with bridge assets to focus liquidity. 2) There are good reasons to expect a cryptocurrency to be the most popular bridge asset. 3) There are good reasons to expect that cryptocurrency to be XRP.
- Open, decentralized payments will have lots and lots of assets, including national currencies of all kinds and cryptos. A significant fraction of payments will be among assets that aren’t the most popular. Using intermediary assets to settle those payments concentrates liquidity and reduces spreads.
- National currencies are always tied to jurisdictions and can’t be universal. Systems built around them will never be as open and inclusive as systems that aren’t.
- XRP settles faster than any other major crypto. It higher transaction rates than other major cryptos. It is beat by others only by the amount of liquidity available today. And, most importantly, XRP has a company that is devoted to making sure XRP succeeds for this specific use case.
Fundamental Currency Research
“First, the South Korean government will pursue the crackdown on anonymous cryptocurrency trading accounts and will punish market manipulation, money laundering, and fraudulent transactions through joint investigations participated by the local law enforcement and financial authorities.
Second, the cryptocurrency trading ban proposal introduced by Justice Minister Park Sang-ki was a suggestion made by the Justice Ministry on December 28 to bring speculation within the cryptocurrency market under control. The proposal will be discussed and changed by the task force participated by the Ministry of Strategy and Finance, central bank, Fair Trade Commission, and other agencies.
Third, excessive speculation and fraudulent activities will be met with severe consequences. But, the government will support and even finance blockchain technology development.”
This has not been enough to correct the market’s pullback, as sentiments of a bear market had percolated the collective consciousness. However, we believe that this is a short respite before we return to bull market sentiments. Historically, the total cryptocurrency market has always performed strong going from Q1 to Q2. While regulation is certainly on the horizon, we do not believe that the majority of sovereign nations possess the motivation or the methods to outright ban cryptocurrencies. Furthermore, regulation is a harbinger to mainstream acceptance and institutional investment, which is necessary for continued development and prosperity.
In this section we’ll feature a daily ICO we think you should check out. Based on your country, you may not be able to participate in the ICO, but you will be able to trade the coin once it is listed on an exchange following its ICO (usually only a couple of weeks). ICOs are where a lot of money in crypto is made. Here’s proof. That said, we should warn you: ICOs are highly risky endeavours and you need to mitigate any potential losses. Treat it as money you’ve lost the moment you contribute to the ICO. We are not responsible for the ICO’s performance.
Today’s featured ICO is:
The Bee Token
The Future of Home Sharing
ICO date: Jan 31st
Price 1 BEE = 0.14 USD
Soft cap 5,000,000 USD
Hard cap 15,000,000 USD
Restricted areas China, USA, Canada, Taiwan, Hong Kong
Employees from Google, Facebook, Uber and Civic have come together to create Bee Token, which sets out to be ‘the future of home sharing’.
Users can list their homes, guests can find accommodation, and users are rewarded with network incentives, commission-free transactions and, as per the website, ‘security unrivaled in the home sharing industry’.
With a pre-sale that closed in five minutes on Jan 2nd, they are currently building Beenest and Bee Protocols on the Ethereum blockchain.
Join the Bee Token mailing list to get notified when the Bee ICO starts.
Technical Analysis Research
- Bitcoin Cash
Nearly all of these coins are in a strong consolidation pattern. As I discuss in Monday’s video, we should see a strong move out of a symmetrical triangle pattern like this, however there is a strong tendency in the crypto market for the initial break to be to the downside first to a support level (building maximum negativity as well as a point at where weak hands fold) where it rebounds in “slingshot” fashion.
A good technique might be to determine a level of support below where the current prices are, and establish a “good til cancelled” order in your broker so that you don’t need to “be there” to establish your position. Your challenge with a coin that does not trade in Fiat currency is to estimate what that level would be in Bitcoin, Ethereum, or Litecoin should the drop occur.
One of our favorite alt-coins here at ReadySetCrypto is Walton (WTC) and it’s put on quite a move lately. This is a well-defined base that the price is trying to break from, so I would expect it to consolidate at this level for at least a week or two and digest these gains before building energy back up and preparing for the next leg. Investors can either start to nibble at this level now, or wait until the Chop Index “energy” has restored to provide more confirmation prior to entry.
I am doing the majority of my Technical Analysis work on TradingView and Coinigy, and I have a BitFinex app on both my iPad and Android smartphone. All of these charting platforms call a TradingView API. TradingView is the 800 lb. gorilla in the Crypto charting space until the “established” players want to make a go at Crypto, like Ninjatrader, Tradestation, eSignal, Sierra charts, etc. My sense is that TradingView has such a head start that it will be very difficult for the big boys to make a dent in this space for a while. Until that point, TradingView has almost a monopoly in this space.
If you have a particular tool that you think is superior, please let me know. You can access the BitFinex and TradingView platforms for free, however there are some paid features that you might want to consider depending on your needs, such as expanded watchlists, different study sets, account alerts, etc.
Coinigy is a great tool for determining prices on each exchange, however I may not have access to the full suite of tools on TradingView charts. I am currently not using it as a front-end GUI for my exchanges, which it supports.
I also use Blockfolio to give me a quick snapshot of my holdings, and find that it does an excellent job to aggregate all of my holdings into one easy-to-read snapshot of my cryptocurrencies, which are typically located in many different places.