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March 10, 2018

 

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Crypto Market Commentary

Week In Review

Positive News, Negative Price?

It’s been another important week in the history of cryptocurrencies.

We began this week discussing the recent pumps with Monero and Ripple. Monero had a hard fork that, as we said, was a likely scam and would not be worth investing into Monero just to acquire. Ripple was pumping because of Coinbase listing rumors due to the Ripple CEO and Coinbase President appearing on a CNBC interview together. Coinbase was quick to dismiss any rumors of any new listings in the near future, though we still believe Ripple is one of the top candidates.

It seems a big reason they’re shying away from adding anything is that they are now at the center of several lawsuits regarding their business practices. In particular, one suit alleges that they engaged in insider trading surrounding their listing of Bitcoin Cash in December. As such, they’re likely looking to clear that up before they move forward with any new listings.

In addition, they are being targeted with lawsuits for withholding customer funds and for not properly enabling 2FA security measures to prevent theft. In response, they are increasing their legal team. Despite this, they came out to announce a Coinbase Index Fund in the CNBC interview, which is a very important step to legitimizing crypto and attracting mainstream plus institutional investment.

We believe the future is opaque for Coinbase. They are clearly the dominant moving force in crypto right now, and their efforts have enabled many people to enter the space, but their customer service and support continue to aggravate us to the point of suggesting to our subscribers to steer clear of them.

In other news regarding exchanges this week, Japan has expanded their oversight of cryptocurrency exchanges, likely in response to February’s $530 million breach of Japanese exchange Coincheck. All exchanges were ordered to improve security efforts and make efforts to prevent money laundering. We see this as a continuing trend of governmental oversight and intervention of exchanges that operate outside the bounds of the local lawand will continue to be a trend in 2018 as governments look to stop “black market” operations.

One exchange that continues to give us hope that exchanges can be better is Binance. After a database issue in February caused a temporary lock of withdrawals, users were wary of Binance but they had handled it well enough that people were seemingly willing to trust them. That was once again challenged this week as users had their funds stolen from their accounts through a backdoor API breach. The irregular trades were isolated and the culprit seems to have been a coordinated phishing attack. Despite this, Binance refunded the users who had lost their funds and will continue to work to minimize the chance of it happening again.

Regulation was still at the forefront of everyone’s minds this week as the US-based SEC decided that anyone who sells tokens is doing so as an unregistered money transfer business and anyone using an ICO public crowdsale is a money transmitter and subject to the Bank Secrecy Act. Furthermore, according to FinCEN, cryptocurrency exchanges qualify as money services business.

What this all means is that anyone failing to register their ICO in the US and failing to comply with AML / KYC compliance obligations could face prison under a felony conviction.

It’s true these moves and words like regulation, government oversight, subpoena, and big banks trigger paranoia in the crypto market because there is a fear that the legacy system will seek to destroy what the crypto community has worked so hard to create.

In addition, recently we’ve discussed the several banks that have come out saying that crypto is a threat to their business model and bottom line. Despite that, we don’t believe that big banks and government entities want to squash crypto. The SEC’s recent moves are not an attempt to rid the world of distributed ledger technology and crypto investment. Rather, it’s an attempt to curtail the fringe elements and allow the true big investors to enter.

As it stands, crypto just isn’t an investment most traditional investors are willing to consider. The “bubble” of cryptocurrency isn’t likely to burst without those investors playing a role to stabilize the values.

We see the US as starting to take a role in setting the standard of what will and won’t be accepted, but the amorphous nature of the space and the asset itself is proving to be a challenge for potential government action and regulation.

While it’s true that multiple government organizations have different definitions of cryptocurrency, all those things can be legally true at the same time. For example, a bond is a security, property, and money all at the same time.

Once the multiple government organizations looking into this are able to decide how best to move forward, and traditional investors are able to participate, money will be injected into the market. We feel strongly that the aggregation of reasonable regulations and traditional investment will herald a new and unprecedented period of bullish progress.

Although this graphic is somewhat outdated, it’s a great comparison of what it is we’re attempting to go up against, and how far we can go.

As a last note, yes the market is hurting and yes we’re suffering through it right beside you.

As we mentioned in our bear market survival webinar, we anticipate there needs to be a second bottom before we can think about retesting our previous highs. We could easily see this week as a continuation of the short-term downtrend that’s clearly been established. Yesterday’s positive divergences certainly led to a short-lived oversold bounce, but with such major resistance levels keeping us down it may be several days to weeks before we come back up for air.

Have a great weekend everyone.  

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Offense – Adding Trades

Offensive Actions for the next trading day: 

  • Entered ZEN Position (masternode)
  • Entered ICX Position

Defense – Managing Risk

Defensive Actions for the next trading day: 

  • Exited KNC position

Current Portfolio

  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.

Tier 4

ICX

ZEN

None.

 Tier 3

REQ

SUB

LINK

NANO

KNC

Tier 4

BNTY

TAU

WISH

PHR

LOCI

XBY

ELA

ECC

POE

HPB

ICX

BIX

How to read this portfolio: Ticker: Contains the ticker code for the coin. You can search this ticker in Coinmarketcap to learn more about the coin. The color denotes the risk tier by our evaluation. Dark Red = T1, Dark Green = T2, Dark Blue = T3, Light Blue = T4 (Colors in the Ticker column do not interact with the colors in the other columns) Cost Basis = Our average purchase price for this coin. Current price = The average price of the coin based on the exchanges it is listed on. Strategy = What we plan to do with this coin. Staking is receiving dividends for that coin. Master node is also staking, but with a higher return rate for having a (large) number of that coin. Stop = Our exit point, if it exists What do the colors mean? The colors in the ticker column represent the risk profile of that coin. The colors in the other columns reflect what sector(s) that coin belongs to. Some coins belong to multiple sectors, which is indicated by multiple colors. 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 ($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

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

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

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

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

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, are highly risky, and we are contributing no more than 2% of our portfolio to. 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.  

ICON

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

With a general downtrend in place, there’s not much to discuss currently for the top ten coins. What has been interesting has been the recent outcry in the crypto community that we need to separate away from Bitcoin because the market is too intrinsically linked to it. While the idea is novel, it will take several years and a lot of changes before that’s a reality. Bitcoin is the major trading pair on every exchange and with every coin. That alone props up its value more than its intrinsic use as a currency or store of value.

Bitcoin is the lifeblood of the crypto market, and if it is to be replaced, something better needs to take its place, otherwise the whole thing will come down like a house of cards. Even the biggest cryptocurrencies have not been safe from the absolute slaughter over the past two months.     What’s reassuring is that our Tier 1’s have been the best performers over this time period, even if that performance is negative. As we’ve said in the past, this indicates to us that these will be some of the strongest performers once the market returns to the upside. Additionally, we believe it’s a good indicator that they are both platforms, which we’ve said are some of the best types coins to hold long term.

 

We’ve exited Kyber Network ($KNC)after hitting the stop.   We’ve entered ICON ($ICX) with no stop and we’ve also opened up a ZenCash ($ZEN) position with 42 ZEN (~$1000) in order to run a master node. See the guides we followed below.   Two of the strategies we’ve been playing with in order to augment our crypto income are Trading Bots and Masternodes.

 

Both of these are tricky in their own way: the trading bot landscape is flooded with bad advice and people looking to scam you. The masternode landscape is a miasma of speculation with no guarantee of good returns.   With both, we’ve found that you’re often wanting to host the bot / masternode on a wallet (hosted on a computer), and to get the best returns you need to make sure that the computer is constantly running and has a static IP. You could build a computer to accomplish this, especially if the masternode requires mining, but we think that’s overkill if your wallet is just staking.   So that’s where you want to use a VPS, or Virtual Private Server.   What’s nice is that they are always online, have a static IP, and they’re inexpensive.

 

Our favorite is Vultr, which has user-freindly UI and low costs. Other good options are Virmach and Contabo.   While these services might charge you extra to run a Windows server, you can easily get around that by buying a cheap Windows ISO from a site like this one: https://iso.quanlyvps.com/   One thing to note is that setting up a VPS and then a trading bot or masternode is something that requires technical skills. In the future, we will be identifying how we can make this process easier through instruction and coaching, but for now we can only say that there are free guides that will walk you the setup process.  

For example, here is a fantastic guide that we followed to set up our new ZenCash masternode: https://blockoperations.com/build-zencash-secure-node-part-1-prepare-vps/ & https://blockoperations.com/how-to-build-and-operate-a-zencash-secure-node/   Reading through that documentation, it quickly becomes clear that this requires some knowledge of how to run commands, the basics of Linux, and how to use Github to download repos.   Essentially, it is not for the average user and we don’t recommend attempting this unless you can read through both guides and understand everything required.   If that’s not the case, don’t feel as though you’re inept — these are skills that I acquired and honed during my time as a computer programmer. Most people simply don’t need to touch anything this technical.    

 

Crypto is still very unfriendly to the average user in general. That will improve over the years ahead, but we see that as an opportunity to get in before everyone else.   Always remember: The brick walls exist for a reason. They keep those out who don’t want it bad enough.

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:

 

Robotina

For flipping Neutral.

For long-term holding Good.

What is it? 

For the first time in the history, opportunity, technology, as well as legal and social conditions are favourable and ready for the Robotina Platform to step onto the stage. Internet of Things, Blockchain Technology (enabling smart contracts) and Artificial intelligence bring great benefits to users and investors. Connected to the Robotina Platform, an enabling Universe, empowered people will save the electricity by using smart grids in order to save and earn money and reduce the pollution of our planet. We won’t do more, we will just do it smarter! The Robotina Platform will be a vertical, high-tech all-inclusive enabling solution, consisting of connected Internet of Things (IoT) elements (things, processes, data, people) and the Power Platform (PP). It will use Smart Rules, Artificial Intelligence and Blockchain technologies. It will be run in the cloud, available as a service. Robotina Platform and connected IoT will execute thousands of calculations per second. Each calculation will result in a small benefit and a small slice of revenue, which will accumulate every second. At the end of the day, this will become the driving force of the business.

What is our verdict? 

What we like: Emerging blockchain sector plus bringing something new to the table is novel.

What we don’t like: Localised team and it isn’t clear enough how they will benefit from Blockchain.

 

10 days left (PREICO)

Token
ROX/ROX
PreICO Price
0.048 USD = 1 ROX
Price
0.05 USD = 1 ROX
Bonus
Available
Bounty
Available
Platform
Ethereum
Accepting
ETH
Minimum investment
0.5 ETH
Soft cap
10 000 000 USD
Hard cap
28,500,000 USD
Country
Slovenia
Whitelist/KYC
KYC
Restricted areas
USA (only accredited investors can participate)

Website: https://www.robotinaico.com/

Whitepaper: https://www.robotinaico.com/documents/Robotina_WP.pdf

Technical Analysis Research

With a weekly lower high printing and volume rising, it appears that we’re heading for a showdown with capitulation fairly soon. With the majority of crypto articles being negative right now, it’s easy to wallow in negativity and start to wonder if you should just fold your tent and go home. And this reminds me so much of the times around the 2001/2002 stock market lows, as well as the utter depression felt around the 2009 market lows. You could honestly envision markets going to zero back then; now with the S&P near 2800, off of a SPX 666 low, you’re wondering how it could have ever gotten that bad? Hindsight is magic when it comes to bear markets. 

 

Crypto markets are quite different from equity markets in that everything happens faster and to a more extreme level. Bubbles are higher. Sell-offs are deeper, and the eventual recoveries occur much faster. A typical bear market in stocks lasts for 18 months; in crypto it’s normally measured in weeks. There is one thing that will be the salvation of crypto much as it has been the cure for every bear that I’ve ever seen: REVENUE and PROFITS. Yes, I know that many folks involved in crypto turn up their noses at such an impure thought as “profit,” but money is always an engine of growth and actual PROFITS will drive the next crypto boom when they come. Any. Day. Now…guys…

 

In today’s video I discuss how to draw and evaluate trendlines, which have been in play quite a bit lately.

 

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..

With overall crypto markets in a dull corrective market, I’ll continue to focus more on the larger cap coins until they break loose, then it will be a better market for alt-coins. Moves are not sustaining right now.
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.

 

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.

READYSETCRYPTO

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