Premium Daily Crypto NewsletterApril 22, 2018
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Crypto Market Commentary
Market Looking To Pass 400 Billion
The market continues to give us positive indicators as it continues its slow climb up to nearly 400 Billion this weekend. We saw a brief bearish trend as the market fell to 368 Billion but it was able to turn it around and continue to the upside once again. What’s really exciting is that the 27 Billion / 24hr trading volume we saw this weekend is some of the highest we’ve seen all year. This is officially the longest sustained bull market of this year, and that’s thrilling to see.
But, with that bearish reversal, and the volume now declining, we could be in danger of seeing some bearish movements this week. The market has recovered nicely but we’d be kidding ourselves if we believed that it could keep this up forever. Regardless, this has been a nice rebuttal to those that believed that, “crypto is dead,” and that we’d never see the highs we saw at the beginning of this year. True, we’re only at half of what that was, but this is certainly not the first time that crypto has been in this situation and circumstance, and every time it has proven its detractors wrong.
What’s been interesting to us is how this rally began with a short squeeze and how quickly were turned around this depression and fear into optimism and hope. With tax season largely over for many of the countries around the world, investors are of a belief that capital will now be freed up to invest in cryptocurrency. After all, it was during this time period last year that we saw the first of three tremendous bull moves, and the first was by far the longest.
Again, we’re seeing a similar market to what we saw in October: a slowly climbing market, increasing volume, and Bitcoin losing its market dominance.
Some of the big news this week was in regard to acquisitions, partnerships, and inquisitions.
Coinbase, in their fifth acquisition to date, acquired Earn.com for an undisclosed amount. Coinbase is certainly on a shopping spree as they acquired the decentralized app browser and Ethereum wallet Cipher Browser last week.
Earn.com allows users to monetize their email and social media channels and be paid in Bitcoin.
Coinbase also seems to have acquired them for the talent. Coinbase made Earn.com co-founder and CEO Balaji Srinivasan its first CTO, signifying the move was not only for expanding Coinbase’s reach in services but also for expanding Coinbase’s ability to be competitive in a technical sense.
In other news, some the largest partnerships in crypto’s history were announced this week.
Verge, the privacy currency, announced a partnership with Mindgeek, one of the largest adult entertainment companies on the internet. While we’ve been highly skeptical of the Verge team’s actions of late and if this was really even a partnership or just a purchased exclusivity contract, but regardless it certainly brings headlines and gets people’s attention, which is good for crypto as a whole.
Also, in a rather surprising announcement, Basic Attention Token (BAT) revealed they had partnered with Dow Jones.
“The two companies also aim to collaborate on and experiment with blockchain-based technology in media and advertising. They plan to test a number of innovative solutions in the news and information space, including delivering content via Brave’s blockchain-based digital advertising and services platform [Basic Attention Token].”
Dow Jones aims to use BAT’s blockchain based advertising platform, which is certainly a big win for blockchain based advertising.
Lastly, the New York Attorney General launched a non-compulsory investigation into cryptocurrency exchanges. To us, it sounds like a volunteer effort to improve transparency and protect New York’s investors. Most importantly it’s not an investigation into illegality but instead looks to be an effort to better understand cryptocurrency in order to better inform newcomers.
Surprisingly, the exchange Kraken outright refused to volunteer any information. The CEO was quoted as saying, “I realized that we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet.”
The office of the NY Attorney General responded by saying, “Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on hand.”
One last thing we want to share is that $99 million-worth of litecoin was sent between two cryptocurrency wallets in a single trade on Thursday. What’s important about this is that the transaction cost just $0.40. This is a perfect example of the power of cryptocurrency with regard to transmission and cross-country payments. Try sending 99 MIllion dollars worth of USD to someone on the other side of world and see if you can do it for just $0.40.
Talk to you tomorrow.
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Offense – Adding Trades
Offensive Actions for the next trading day:
Defense – Managing Risk
Defensive Actions for the next trading day:
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.
ReadySetCrypto’s 7 Categories Of CryptoCurrency
Tier 1 coins are those coins which we have considerable assets invested, are firm believers in the project direction and execution, and have very little reason to sell within short to mid term. These are coins which we risk evaluated to be very solid, and have a high probability of existence duration.
NEO ($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 ($OMG) is classified as a Dividend and Utility coin. OmiseGO is a Southeast Asia-based company creating an e-wallet that will make transfer of assets and currencies possible. Merchants and users of the wallet can transfer whatever asset or currency they desire. For example, you could use your ethereum, bitcoin, international fiat, or even your airline points to buy groceries using the e-wallet app on your mobile phone. Transfers can happen across borders, or even while traveling abroad. Unlike Western Union or PayPal for example, the fees are almost negligible, and the transfer is instant. Because it’s based on a blockchain, there are no intermediary banks necessary and users don’t need bank accounts to access those funds. This is especially good for migrant workers who send money home and often don’t have bank accounts and are forced to use expensive wire services instead.
Tier 2 coins are those coins which have performed extremely well, we have a large amount of assets with, and we believe will continue to operate with high marks. What separates these coins from our Tier 1 status is a flaw or they haven’t yet proven their defining feature, though we believe they will.
NAVcoin ($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.
Tier 3 coins are those coins which we have moderate investments and we believe have a possibility of high performance in the future, but as of yet have not shown enough performance to reduce their risk profile. Tier 3 coins are coins which are moderately risky, but due to our risk analysis of the project and team we believe have minimal chance of failure.
Tier 4 coins are coins which we have minimal stake in and are highly risky. These coins represent the outer fringe of our risk analysis, in that we have little information to work with, have little insight into the coin’s performance, and at the very best we are making an educated guess that they will be successful. If a coin performs well and proves that it has a commitment to its compelling feature, it will be moved to the Tier 3 status.
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
For flipping Neutral.
For long-term holding Neutral.
What is it?
Invacio is working to resolve some of the world’s most complex and recalcitrant problems using our original distributed artificial intelligence systems, and the solutions we are reaching stand to revolutionize areas including big data, communications, research, online privacy, the exchange markets, and even counter-terrorism.
What is our verdict?
What we like: The goal of attacking large complex problems with AI multi-currency conversion is a huge one
What we don’t like: Navigating through various regulatory agencies of different countries will be a huge challenge
Technical Analysis Research
It’s no secret that I come from a more traditional investing/trading background, which normally revolve around the “cash” session which lasts 6.5 hours in the US. Even if I’m trading a 24-hour derivative instrument like a futures contract, the majority of all volume occurs within those 6.5 hours. What this means, then, is that a retail trader has a decent shot at identifying a candidate in the “aftermarket” to be placed the next day. Not so with Crypto, though. There is no aftermarket, there is no downtime.
What this means is that breakouts can occur at any time of the day, so there is just no alternative to using some form of automation to find these trading opportunities. An obvious solution to this is to use a “bot” like Cryptohopper or Profit Trailer. A more manual/discretionary approach is to use a screener and perhaps set alerts on your chart to notify you of breakouts; I’ll show some of this in my video today. My goal is to call out swing trades in our Telegram account but I’m just not sure how realistic/timely that’s going to be.
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 $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.