Premium Daily Crypto NewsletterOctober 14, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Week In Review
All Large Caps Become Stablecoins Except For Tether
This week was one of the least volatile in recent memory and certainly has had the market speculating as to where we’ll go from here.
Despite a drop of 20 Billion mid-week, things have never been so quiet on the charts.
However, there’s been quite a lot of noise in other fronts.
As reported by the Block, NASDAQ is exploring the possibility of opening its own securities token exchange.
“U.S. exchange operator Nasdaq could gatecrash the crypto market with a new platform, according to people familiar with the situation.
Nasdaq is speaking with a number of firms as part of its efforts, including blockchain startup Symbiont. The people said the platform would issue tokenized securities as well as trade them. If such a platform were to successfully come to market it would join a number of firms offering such services including Polymath, tZero, and TrustToken.”
The big takeaway from this is that security tokens are quickly becoming the safest bet in crypto. After all, they’re essentially just an infrastructure upgrade to our current settlement and exchange system.
The key is betting on infrastructure plays. Bitcoin and Ethereum were both groundbreaking infrastructure players, and soon we’ll see who plays a similar role in the security token space.
What we’ll likely see in the coming year is the fight between established players, like ICE and NASDAQ, versus startups like Polymath, tZero, and Preflogic.
The traditional institutions will likely win the exchange-building race, but the start-ups have a head start on capturing market share in the issuance of security tokens.
Whatever the case, there are likely big fish ahead for the well-prepared, so continue to watch the development of this new space.
The news about NASDAQ was timed nicely with comments made by CFTC Chairman, Christopher Giancarlo, who commented on the role of institutional investors in the crypto space, saying:
“We’ve still got a long way to go, there’s a lot of issues in some of these spot exchanges, a lack of transparency, a lot of conflict of interest, a lack of systems and systems safeguards, and that’s a concern. But you know, like all things, it takes time to mature, and with the movement of more institutional investors into the space, I think we’ll see that [maturation].”
He went on further to describe the role that the Bitcoin Futures had played, saying that they, “actually sapped the bitcoin bubble that emerged at the end of 2017 and we’ve seen bitcoin, perhaps, in some people’s view, achieve a more sustainable level than it was during the bubble period last year.”
I’m not sure I would agree that it was solely the futures that deflated the bubble and led to a 10-month bear market, especially given the lack of volume on them, but they could have certainly contributed.
If this is truly how the CFTC feels about futures contracts, then the rumored Ethereum Futures are likely not far away.
This could also influence how the SEC views the role of a potential Bitcoin ETF, but it should be noted that they are quite different.
Still, it is positive to see that government officials are taking this space seriously and working with a “do no harm” approach, even if that’s an unrealistic goal.
A few more news items I want to cover:
- Ethereum’s main test network, Ropsten, is currently at a standstill. Code for ethereum’s upcoming hard fork, dubbed Constantinople, was set to be activated on Ropsten at block number 4,230,000. However, according to blockchain explorer sites such as Etherscan and Blockscout, the current Ropsten network is stalled at block 4,299,999.
- Kim Byung-gun, a prominent plastic surgeon and blockchain investor, finalized the deal between BK Global Consortium and Bithumb, officially acquiring the leading cryptocurrency trading platform at a valuation of $350 million.
- There’s an unconfirmed report that TRON has actually partnered with a Chinese Internet giant Baidu. Tron has a history of overhyping rumors, so I’d remain skeptical on this one.
- Investors are now able to trade litecoin on the Winklevoss brothers-founded cryptocurrency exchange Gemini. The exchange announced Friday that it would soon enable deposits and trading for litecoin (LTC), adding the early Bitcoin spin-off to its existing offerings of bitcoin, ethereum and zcash.
- Tether is currently trading at $0.98 as people panic following the Bitfinex announcement that fiat deposits are temporarily disabled.
Overall the market is holding steady and we are still in the same mindset we began this month with: cautiously optimistic.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). 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 tomorrow!
Doc's Daily Commentary
Doc Is On The Road This Weekend And Will Return Monday, October 15th!
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Offense – Adding Trades
Offensive Actions for the next trading day:
- No entries tomorrow. We are starting to notice a lot of “stealth” alt-coin breakouts, and will track them in our swing portfolio.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
How to read this portfolio: Please read through the FAQ tab
- ETH/USD 2% added 8/10/2018 @ $363.14
- ETH/USD 2% added 9/9/2018 @ $200.50 (10% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (5% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
I’m seeing some relatively weak bear flag action after last week’s initial drop. Watch to see if these confirm with a break of the intraday trendline. We’re also seeing MODBTC break out as the next Altcoin to offer a stealth rally.
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.
- ETP/BTC – long @ .000522BTC (9/21) My target is .00072BTC
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.