Premium Daily Crypto NewsletterAugust 30, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Fade Without Volume
Slow Market As We Head Into September
Today’s market had us drifting downward as we struggled to maintain the momentum we saw at the beginning of the week. Thankfully, we were able to ricochet off the 220 Billion level to end the day at 225, a net loss of 5 Billion for the day.
One of the more interesting pieces of news from the past day was the revelation that Bitcoin now processes more annual transaction volume than Paypal or Discover. With 1.3 Trillion changing hands on the Bitcoin network, it’s easy to see the significance of a decentralized network beating these large centralized players at their own game.
That being said, the Bitcoin network has a long ways to go to overtake VISA at around 10 Trillion in annual transaction volume.
Still, the momentum is clearly with Bitcoin and so long as it continues to serve as the default base currency for the cryptocurrency market, it will continue to grow as a means of exchange.
Meanwhile the #2 cryptocurrency, Ethereum, also has a big hurdle to overcome in October as it looks to implement its latest upgrade, Constantinople. This upgrade will make the Ethereum network more efficient and reduce the cost of fees, both of which are badly needed at a time when competitors are making progress.
Without getting into a lot of the details, there are currently four potential proposals on the table that the Ethereum community is deciding between.
They’ll need to find a balance between all the different interests at stake and do it quickly, as they’ll need to upgrade by November at the latest.
Importantly, it’s the tone set by having such a community focused discussion. WIth centralized systems, and even some other blockchain projects, the users are left out of improvement discussions.
Let’s hope they can find consensus.
Last for today, according to Bloomberg, economic and financial affairs ministers from the EU’s 28 member states will hold an informal meeting next month on the challenges posed by cryptocurrencies and the possibility of tightening regulations. We hope this helps improve transparency while also better defining regulations.
So hopefully this highlights today’s takeaways: iterative improvements yield the best results. We want things to progress at a measured rate. Too fast or slow and we’ll lose focus. We need to show the world what this space is capable of, and then continue to do so over and over.
Subscriber Notice: Monday is a Holiday in the United States and as such we’re going to take one of our eight days off a year. There will be no Premium Newsletter produced on Monday. The Weekend newsletter will come out at some point over the weekend as usual, when Mav returns from his Philly conference. The next Premium Newsletter after this weekend’s will be produced on Tuesday.
If you missed Mav’s webinar “Top Ten Ways to Create Passive Income With Crypto” then you can watch the webinar at this link.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Eleven is now available. Episode Eleven is an interview with Adam Todd of Digitex Futures which we’ll be looking to employ as soon as it’s live. Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop!
See you over the weekend!
Doc's Daily Commentary
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Offense – Adding Trades
Offensive Actions for the next trading day:
- None today.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
- ETH/USD 2% added 8/10/2018 @ $363.14. (12% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (6% more to add)
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
I’m trying to remain as patient as possible while markets slowly drift lower. I know that people are excited and impatient to see markets move higher, but the one thing that I will say with regard to financial markets is that there is zero correlation between the price movement and today’s news; normally it’s already priced into the mix.
In today’s video I talked a little about Deribit and BitMEX after discussing Digitex and their offering this week; these are great signs that movement is afoot to add more professional trading options. Trading is more than buy and hold.
In August we introduced a new “fund” project that we’ll be creating over the next few months, in piecemeal form. I will be slowly and methodically creating a “fund” with (currently) 23 assets that we will do “live” or at least very plainly indicate where we intend to enter portions of assets. As long as the market continues grinding down in a bear, we will use sentiment-based entries to hopefully secure a better entry. All that I saw were bear flags tonight; we are close to some good entries on coins showing positive divergence on the RSI. Going forward into the end of this year my plan is to do a LOT more swing trading; what would really help is a decent derivatives exchange. I am looking for big things from Digitex in this regard, which will be a commission-free futures platform however all trades must be made in DGTX as the base currency. Put yourself on the waitlist for this platform by clicking here. I have started to acquire DGTX tokens at Mercatox in anticipation of them turning up their platform, and this looks to be a good candidate for a pump prior to the production event. Here are the recent swings that we’re tracking in the portfolio below; :
- DGB/BTC – long @ .00000608 (7/23). My target exit is .000008BTC.
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
- ONT/BTC – long @ .0008905 (5/20) My target is .0013BTC.
Please keep in mind that if you want to follow these trades, I am using FIXED RISK POSITION SIZING. This means that I am using a fixed amount of risk capital that is based on my account size, like 2%. I am assuming that the trade will burn to the ground and that I will lose that entire capital position! Only in this manner can one effectively manage a position the way that you have to. If you’ve every checked your blockfolio nervously every 5 minutes when you’re underwater, this will prevent that. I will track these positions in this area and not in the main portfolio section. I will use a public portfolio tool to do so, which you can access by clicking below:
I hope you all got a chance to catch my webinar class from earlier this year; if not, the replay is available here. If you missed my earlier webinar, “More Profits in 2018; Ten Ways to Chart Like a Pro.” then you can catch the replay here. My new class “Introduction to Technical Analysis” is now available via our online store.
If you go to buy any of our courses at our online “store” you can receive $10 off the street price with your member’s “coupon code” of member18crypto..
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 and/or Delta 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.
I am also trialing the Profit Trailer and CryptoHopper trading apps which are working well in this choppy market.
Fundamental Currency Research
For flipping Good.
For long-term holding Neutral.
What is it?
What is our verdict?
What we like: Supernodes are very interesting. No trading commissions for users.
What we don’t like: There are many exchanges already on the market. Transaction mining isn’t currently solvent.
- Project name: Bgogo Exchange
- Token symbol: BGG
- Website: https://bgogo.com
- White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
- Hard cap: 17,000 ETH (15,000 ETH during private sale and to supernodes, 2,000 ETH during public sale) for 10% of total tokens
- Conversion rate: Private sale: 1 ETH = 66,666 BGG; public sale: 1 ETH = 69,999.3 BGG.
- Maximum market cap at ICO on a fully diluted basis: $51 million based on current ETH price of $300
- Bonus structure: Whitelisted public sale participants have a 5% bonus over the private sale price, with no lockup period.
- Private sale: The private sale has already been completed with 10,500 ETH raised from 21 supernodes and 4,500 ETH from strategic investors.
- White list: Bgogo’s public sale will be a Genesis Mining event (exact date to be confirmed) that will start 24 hours before mining is officially opened to the public. Only whitelisted users can participate. Details on the Genesis Mining event can be found here: https://bgogo.com/announcement?link=mining.
- ERC20 token: Yes (will be switched to native tokens when the mainnet is launched)
- Countries excluded: TBA
- Timeline: TBA
- Token distribution date: TBA
2017- 2018Q2 Portfolio (Discontinued)
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.