Premium Daily Crypto NewsletterApril 26, 2018
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Crypto Market Commentary
Back To Greener Pastures
Volume Falls But Interest In Crypto Does Not
After yesterday’s highly technical move, the market seems to be eyeing a restart to the slow moving bull move that’s been prevalent the last two weeks.
Market volume has noticeably tapered off from the over 40 Billion / 24hr high we saw yesterday, but at 30 Billion there’s still a respectable amount of crypto being traded and it’s certainly preferable to the paltry amounts we were seeing in March.
While the volume in the crypto markets has slowed just a little, it has not with Bitcoin futures.
CBOE Options Institute senior instructor Kevin Davitt said that ” average daily volume (ADV) runs about 6,600 in XBT Bitcoin Futures. Yesterday’s volume was nearly three times ADV.”
He continued, “Yesterday was the highest daily volume for bitcoin futures since their introduction here at CBOE nearly five months ago. The lead month May futures traded 18,210 contracts, and across the term structure a total of 19,000 bitcoin futures traded here yesterday. The previous high-volume session was January 17 with just less than 15,500 contracts traded.”
In fact, much of today’s interesting news was centered around crypto’s potential to move markets and its assimilation into existing banking and financial systems.
For example, many large corporations reported Q1 earnings this week. Among those reporting was AMD, who is the manufacturer of many of the graphics cards that run cryptocurrency mining. In Q1 2018 they saw 10% of their revenue attributed to cryptocurrency, and they expect 10% their total revenue in 2018 will due to crypto. Given that their revenue in 2017 was 5.33 billion USD, that’s an absolutely massive demand that will only continue to grow.
Said CEO Lisa Su in the earnings report, “I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology.”
AMD is expected to release new models of their top graphics cards that will help to relieve the demand. After all, many graphics cards are now twice their MSRP due to the increased demand for cryptocurrency mining. In particular, consumers will soon have an option for graphics cards solely devoted to cryptocurrency mining, and those that are more general-purpose for tasks such as computer gaming and professional work. Whether this will help to bring down the prices on the cards is yet to be seen, but we’re hoping it does because we’ve got plans to start our own mining operation (and fill you in on the details of that along the way!)
Another large company that saw a Q1 revenue bump due to crypto was Samsung. Earlier this month is was confirmed they were manufacturing ASIC chips for the Bitcoin miners used by Halong Mining. ASICs are Application Specific Integrated Circuits, and they’re the most efficient miners on the planet. When the latest and greatest Bitcoin ASIC comes out, for example, whoever has the most of them will be able to mine Bitcoin at a rate far and above anyone using older ASICs or especially graphics cards. For this reason, ASICs generally only have a life-cycle of only months before they are barely profitable to run. Combine this with how one company, Bitmain, has largely dominated the ASIC market until now and it has not been an optimal space for some time. Thankfully, with a company like Samsung entering the space, it will inevitably cause better ASIC prices and better service as competition heats up.
Meanwhile, BBVA, the international bank, is testing the waters with loans and blockchain. While details are scarce, a report published by the bank confirms that both the bank and the borrower were able to simultaneously record and update negotiating terms thanks to a private blockchain. In doing so they were able to keep each other informed of the loan’s progress, and the final contract was uploaded to the public Ethereum blockchain for immutability. The use of blockchain technology cut down loan negotiation time from “days to hours”, BBVA said.
BBVA chief executive Carlos Torres Vila stated, “Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, security. It’s another example of how disruptive technology can be used to add value to financial services, something that is central to our strategy.”
Adding to the news of banks and blockchain, the cryptocurrency exchange Binance surpassed Germany’s largest and one of Europe’s biggest banks, Deutsche Bank, in profitability. Deutsche recorded a first quarter profit of 146 Million, while Binance logged an impressive 200 Million. It is certainly a sign of many things that a startup with 200 employees can beat out a banking giant with 100,000 employees.
Adding to this commotion of bullish news, Gil Beyda, managing director of the venture capital arm of Comcast, appeared on CNBC to give some overall bullish statements. His chief points were that cryptocurrency, with its decentralized nature, could really help those who don’t have access to banking services. It could also help to dispel a lot of the election fraud in the world, both real and fabricated. While both of those use cases are excellent uses of cryptocurrency, “blockchain is still waiting for that killer app.” That being said, it could be as soon as a year or two before we see a truly revolutionary application that pushes the boundaries of this technology. Last, he expects the SEC to soon finalize regulations to bring ICOs under its jurisdiction, which will curb some of the “get rich quick” possibility of crypto, but it will push the space forward in much more meaningful ways and open it up to a lot of money on the sidelines.
Certainly, we’re not even halfway through what has already been an exciting year in cryptocurrency, and we look forward to what this market will bring as we start to emerge from the bearish winter.
Talk to you this weekend.
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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
In this section we’ll feature a daily ICO or new coin 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 / New Coin is:
For flipping Neutral.
For long-term holding Good.
What is it?
Senno is the Blockchain’s first sentiment analysis platform with an open API for 3rd party apps. Based on NEO It utilizes distributed sentiment analysis and AI algorithms to create a Real-Time crowd wisdom ecosystem and sophisticated business intelligence analytics. Senno will revolutionize the way decision making is made in the business and private sector.
What is our verdict?
What we like: Big data is huge, and big data with blockchain is even bigger.
What we don’t like: No MVP, and the team even highlighted this as risk in the whitepaper.
Technical Analysis Research
- ONT/BTC – I went long on ONT/BTC @ .00051650BTC. (4/24) I will set a limit order to sell the position at recent highs of .0007BTC
- WTC/BTC – Long @ .00155980BTC (4/23). I’m going to scale back my target profit to 10%.
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:
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 am also trialing the Profit Trailer and CryptoHopper trading apps which are working well in this choppy market.