Premium Daily Crypto NewsletterMarch 1, 2018
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Crypto Market Commentary
Coins mostly hold strong as sideways market continues
Will this boring market ever end?
We end this week a little better off in market cap and a little wiser about the crypto space as a whole.
The big takeaway I’ve seen is how immature this space is.
It shouldn’t surprise anyone that a blossoming sector that is tech focused and is hard for the average person to understand is going to have bad PR. But it goes deeper than that.
There is a real disconnect between the technical core of the space and the retail investor who has no prior technical experience, especially with something as nuanced as cryptocurrency.
PR is meant to be the bridge between these two distinct groups, and yet it seems there is greater confusion and disconnect than ever in the space. This is due to the massive influx of investors who have never invested before, given crypto’s lowered entry barriers compared to traditional markets. It is also due to the explosion of technological diversity in such a short period of time.
Three years ago, the extent of the market was fairly limited, and generally everything centered around Bitcoin, but that’s quickly changed as the market has erupted with options for investors.
We anticipate crypto will become more accessible over time, but currently it struggles with even the most basic questions investors ask. Hopefully together we can begin to change that and make this space more readily available as it will need to be for mainstream adoption.
Speaking of, there was news today that the Liechtenstein-based bank, Bank Frick, has offered direct investment in five separate cryptocurrencies for its customers. Those five are Bitcoin, Bitcoin Cash, Ether, Ripple and Litecoin, which is not surprising given their ubiquity and general use.
What’s interesting is this provides a direct alternative to centralized exchanges such as Binance and Coinbase as what the Bank offers customers is the service to handle all the processing and storage. Certainly this would be a very appealing alternative for those not wanting to deal with the actual handling or security of their cryptoassets.
It begs the question of when a similar service will be offered in places like the United States, but there are serious hurdles to overcome first. For example, does the US follow Germany’s lead in declaring cryptocurrencies as not taxable for purchases (i.e., no capital gains tax) as they did yesterday?
We’ll see, but in the meantime, we’ll continue to watch the market grow and mature, as we expect it will.
Talk to you this weekend.
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Offense – Adding Trades
Offensive Actions for the next trading day:
- Entered HPB position
- Entered CPC position
Defense – Managing Risk
Defensive Actions for the next trading day:
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
Regarding Airdrops, every single one is different, but generally you’re right, Airdrops typically benefit anyone holding a particular coin. This is why we like platforms like ETH and NEO because they are frequently given airdrops just for holding the coin! Regarding NEO’s ONT drop today, if you missed it don’t worry, there will always be more! Here’s a good site for tracking airdrops: https://airdropalert.com/ Please note airdrops are different, but similar, to Hard Forks. Hard Forks are when a coin splits in two, forming two separate coins. For example, back in August we saw Bitcoin Cash hard fork off of Bitcoin, and for every 1 Bitcoin you had, you got 1 Bitcoin Cash for free! Given that 1 Bitcoin Cash is currently worth $1,300, I’d say that’s a pretty good deal! Regarding portfolio tracking, we like using Blockfolio and Delta, and actually Delta just released a Desktop version if you find that more convenient. When you add the coin (in this case OMG) you can specify what exchange you bought it from and the BTC value of you trade. Your trade history in Binance will contain all the information you need. When you get that entered, just swipe down from the top of the main portfolio page on Blockfolio / Delta to have it refresh to see the real-time worth of your investments!
ICX tokens, the ones you currently have, are ERC20 tokens, meaning they’re built off of Ethereum. We’ll call these ICXE tokens. ICON launched their own blockchain that doesn’t use Ethereum, so now they need to issue tokens that don’t use Ethereum as well. We’ll call these ICXI tokens. With me so far? So basically, in the near future, you’ll be able to swap ICXE tokens for ICXI tokens at a 1:1 ratio. You want to do this for two reasons: 1: As long as you have ICXI tokens by a set date (end of March?), you get more ICXI tokens for free (called an airdrop) from the ICON team as thanks for going through this process.
- At some point in the distant future, the ICON team is going to make ICXE tokens worthless in what’s known as a burn. Basically, if you send ICXE tokens (what you have) to a ICXI wallet, you’re going to have a bad time. We’re getting the official instructions on how to do the token swap tomorrow so just sit tight for now and I’ll help tomorrow when we know more.
Today we added CPChain (CPC). Cyber Physical Chain or CPChain is a new Chinese based distributed infrastructure platform for the next generation of Internet of Things (IoT). CPChain’s goal is to deeply integrate Blockchain technology, encryption computation and enhanced scalability via cloud storage, to enable IoT devices to interact with different data sets over cross-chain applications. CPChain will be the transmission vehicle for comprehensive data acquisition, data sharing, storage, and application use in the IoT industry, allowing vendors and suppliers to monetize real time data on the Blockchain.
For flipping Neutral.
For long-term holding Good.
What is it?
HYCON, which stands for Hyper-Connected Coin, is the digital asset built on top of a faster and more scalable blockchain developed by the Infinity Project team in Gangnam, Seoul. Using a DAG (Directed Acyclic Graph) structure, it has the capability to publish several blocks simultaneously with the ability to resolve conflicting transactions and reject double-spends through the SPECTRE consensus algorithm. This makes HYCON a next-generation cryptocurrency which can be used in the real economy.
What is our verdict?
What we like: Very interesting project with a clearly ambitious team.
What we don’t like: Their whitepaper is a bit thin and their project has serious technical hurdles to overcome building their own blockchain with only a few devs.
Starts in 27TokenHYCPreICO Price0.09 USDPrice1 HYC = 0.09 USDBonusAvailablePlatformInfinity BlockchainAcceptingBTC, ETH, LTCMinimum investment50 USDSoft cap13.9 M (Hit)Hard cap60,000,000 USDCountrySouth KoreaWhitelist/KYCKYC & WhitelistRestricted areasUSA, China
Technical Analysis Research
Immaturity…time after time we see how immature this space is. The kids are playing while the “parents” are out. Most investors are concerned by what “regulation” would bring to crypto, but I think that overall it will bring more sanity and better alternatives to the space. The recent example of WaltonChain that Mav talks about in today’s report is at once disappointing but also understandable. For as much grief as we give “corporations” in today’s space, can you imagine even a “Twitter” making such a bad gaff as this?.
As I get time going forward, I’ll continue to develop the short-term swing trades that we can take on the 30 minute chart that I first discussed in last weekend’s report. The key to securing commission-less trades will be to use limit orders in which we are the market-maker on both sides of the trade, in and out. Stop orders are traditionally market orders, so that might introduce a level of noise that we’ll have to work around. Fees are not cheap in this regard at .25% for BTC. If Stops are necessary (vs. mental stops and using limit orders to exit) then perhaps LTC would be a better instrument at .3% taker fees, which if my math is right is $.66 vs. a $26 commission for BTC. If I get more interest I will also also consider securing a license for profit trailer to see if we can set up trades.
Here are the elements that I think that one needs to successfully participate in short-term swings:
- Instrument/Asset to Trade: What you’re trading needs to be liquid enough that your position is just a drop in the pond.
- Timeframe: The timeframe that you’re going to trade needs to match your temperament, your available time, and the opportunities available.
- Fees: minimizing net fees is important to achieve a net positive profit factor.
- Entries: you must define clear, non-negotiable entries with transparent, easy-to-follow rules.
- Exits: must be defined at or before your entry so that there is no guesswork.
- Tracking/Analysis: a huge part of any system, it must learn from errors/mistakes/losses to determine if there is a root cause behind the loss.
- Start small: My preference is that you start these trades with the minimum possible position size, and only through demonstrated performance should you start to lever up to even a fraction of a percent of your account size.
If you go to buy the course at our online “store” you can receive $10 off the $59 street price with your member’s “coupon code” of member18crypto..
I will not place much emphasis on charting Altcoins right now while markets are still working out the eventual bottom. Most coins are in an awful consolidation pattern whose only point now is to encourage investors to give up and toss their “bags.”
I am doing the majority of my Technical Analysis work on TradingView and Coinigy, and I have a BitFinex app on both my iPad and Android smartphone. All of these charting platforms call a TradingView API. TradingView is the 800 lb. gorilla in the Crypto charting space until the “established” players want to make a go at Crypto, like Ninjatrader, Tradestation, eSignal, Sierra charts, etc. My sense is that TradingView has such a head start that it will be very difficult for the big boys to make a dent in this space for a while. Until that point, TradingView has almost a monopoly in this space. If you have a particular tool that you think is superior, please let me know. You can access the BitFinex and TradingView platforms for free, however there are some paid features that you might want to consider depending on your needs, such as expanded watchlists, different study sets, account alerts, etc.
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.