Premium Daily Crypto NewsletterApril 3, 2018
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Crypto Market Commentary
Reversal Or Bull Trap?
After a gain of 20 Billion and a nice rise in volume, it’s important to keep perspective in mind. It’s immature to declare that “we’re back!”, but at the same time, it’s clear to us that this market moves much faster than traditional markets. Where the stock market might go through years in the depression phase, that might just be months in crypto. Needless to say, we dream of spring.
As we’ve been very adamant about from the beginning, listening to the loudest voices in this space will get you in trouble.
John McAfee, known for the anti-virus company, has been on a warpath of bad advice since the beginning of the year. To make a long story shorter, he has been paid to actively promote coins, something that we’ve actively avoided doing since the inception of our channel. He recently revealed that he has an asking price of $105,000 to promote a coin.
In a similar manner, last year the professional boxer Floyd Mayweather was actively promoting an ICO that has been labelled as a scam by the SEC.
While we don’t often discuss scams on our channel or this newsletter, the Bitconnect Ponzi scheme that blew up earlier this year had its own group of Youtube charlatans. For professional reasons, we won’t name them, but it’s very telling to us that many of them have gone radio silent or even admitted to being named in lawsuits.
Just today Binance issued a warning about the Centra coin, CTR. “This is a special announcement about the high risk associated with the CTR token in light of the information released earlier today relating to the controversial and fraudulent acts by members associated with the Centra Tech team.” A certain Youtuber who we will not name was the one primarily supporting this coin. He has a history of promoting coins of questionable nature and it’s not a stretch to say he earns paychecks at the misfortune of his followers.
We could go on, but the point here is that you need to be diversify your news sources and where you find your coins. Above all, do not listen to celebrities when they give ICO or crypto advice.
One of the areas we’re intransigent about in crypto is how you need to diversify your income in order to maximize your yield. Airdrop, ICOs, swing trading, mining, staking, etc.
One of the strategies we like best is masternodes. We made a video on them here.
The key to masternodes is that you need a lot of a coin before it grows in popularity and makes the price of a masternode unobtainable for most. The only solid strategy here is to constantly be on the hunt for coins that will offer utility value. Oftentimes coins will launch and add masternodes after they have been around for a little while. The benefit of masternodes to the network is that they provide rock-solid nodes that don’t often sell, which makes the network more resilient to attack. In order to encourage masternodes not to sell, coins will often make the masternodes have great incentives. Upgraded staking rates, an automatic percentage of all transaction fees, automatic airdrops, etc., it’s possible when you have a good coin with a masternode.
One of our largest holdings, WaltonChain, just released details of their masternode reward structure today. Right off the bat, the guardian masternodes, which are masternodes that had 5,000 WTC in a wallet before December 8th, 2017, and haven’t dipped below 5,000 at any point, are being airdropped 700 WTC, or roughly $7,500 at today’s prices. What’s even better is they get double the mining reward of a normal miner, and automatic airdrops every 6 months. So, just in the first year alone, they’ll net $12,500 at today’s prices for doing nothing other than not selling. Let’s assume Walton rebounds and its price goes to $100 a coin, putting it within the top 15. That means having a gaurdian masternode would eventually net you $80,000 a year with having to do anything and without taking into consideration staking or mining rewards, which would easily put it over 100k.
Unfortunately, you can’t get a gaurdian masternode anymore. You still get better mining rewards if you have 5,000 WTC and thus get a regular masternode, but the point in sharing this is to show how longevity is sometimes more important than short term gains. We could have sold our masternode for $225,000 back in January and have forfeited its gaurdian status, but we instead held through a brutal downturn which currently has our masternode valued at only $60,000. We believed that the long term prospects could be better than trying to sell at the high and buy at the low. Now we’ll have a guaranteed income coming in which we can either use to gain even better staking rewards, or sell to chase other coins. Based on your own strategy, you might value short term trading over long term investment, and that’s completely legitimate, but we’re in favor of diversifying your strategies just like you would diversify investments.
Talk to you tomorrow.
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Offense – Adding Trades
Offensive Actions for the next trading day:
Defense – Managing Risk
Defensive Actions for the next trading day:
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.
ReadySetCrypto’s 7 Categories Of CryptoCurrency
Tier 1 coins are those coins which we have considerable assets invested, are firm believers in the project direction and execution, and have very little reason to sell within short to mid term. These are coins which we risk evaluated to be very solid, and have a high probability of existence duration.
NEO ($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.
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.
Ripple ($XRP) is a real-time Payment protocol for anything of value. It’s a shared public database, with a built-in distributed currency exchange, that operates as the worlds first universal translator for money. Ripple is currency agnostic and has a foreign exchange component built right into the protocol. Ripple acts as a pathfinding algorithm to find the best route for a dollar to become a euro or airline miles to become Bitcoin. It will look at all the orders in the global order book. The case for XRP comes down to the following: 1) Payment systems work best with bridge assets to focus liquidity. 2) There are good reasons to expect a cryptocurrency to be the most popular bridge asset. 3) There are good reasons to expect that cryptocurrency to be XRP.
- Open, decentralized payments will have lots and lots of assets, including national currencies of all kinds and cryptos. A significant fraction of payments will be among assets that aren’t the most popular. Using intermediary assets to settle those payments concentrates liquidity and reduces spreads.
- National currencies are always tied to jurisdictions and can’t be universal. Systems built around them will never be as open and inclusive as systems that aren’t.
- XRP settles faster than any other major crypto. It higher transaction rates than other major cryptos. It is beat by others only by the amount of liquidity available today. And, most importantly, XRP has a company that is devoted to making sure XRP succeeds for this specific use case.
Simply put, ICON ($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.
Fundamental Currency Research
- Q2 2018 — Launch of QRC20 trading
- Q3 2018 — Launch of ERC20 trading
- Q4 2018 — Cross-swap feature using SWH and Wanchain
- 2019 — Launch of trading for top 5 chains
We think a healthy competitor to Ethereum is extremely good for the long term prospects of crypto, and we’re not just saying that because we’re invested in NEO. We think it’s inevitable for Ethereum to overtake Bitcoin as the top crypto, and when that happens people will look for alternative smart contract and dApp platforms to invest in. We think NEO is the stand-out winner. We’ve seen a comical reference to the “NEP-5 booster pack” which is N.E.O., or NEO, Elastos ($ELA), and Ontology ($ONT), as these are the three most promising projects in the NEP-5 ecosystem right now. That being said, we like the potential of Qlink ($QLC) and Trinity ($TNC) as well.
For flipping Neutral.
For long-term holding Neutral.
What is it?
Concierge.io (CGE) is a travel booking platform based on the NEO blockchain. The platform itself operates both a centralised front-end allowing suppliers to easily edit their listings, whilst operating a decentralised backend incorporating the NEO blockchain governing the CGE engine. Thus, building a trusted, transparent and secure travel booking platform reducing costs associated with the travel industry. CGE aims to disrupt the travel industry and provides multiple benefits over potential competitors within the market. A free business model, 0% booking and commission fees for the suppliers with no hidden fees. The incorporation of a peer-to-peer chat function between supplier and consumer along with ability to pay with CGE, other crypto and Fiat-currency payment options.
What is our verdict?
What we like: NEO project and an interesting take on a crowded industry
What we don’t like: Very little edge over existing businesses
Technical Analysis Research
If you go to buy any of our courses at our online “store” you can receive $10 off the $59 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 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 will also be experimenting with the Profit Trailer app which might be useful in this choppy market. I hope to share results and tips/tricks with you in here once I get this bot up and running.