Premium Daily Crypto NewsletterMay 3, 2018
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Crypto Market Commentary
Bulls Declare,”We’re coming back!”
Crypto has one of the best days of this year
Today we had a tremendous day in the market with us up nearly 25 Billion. This puts us nearly back to where we were at the start of March, ending the second bottom of this double bottom pattern.
What clearly drove prices higher today was the news out of Goldman Sachs that they would start trading Bitcoin futures contracts.
Over the next few weeks, they plan to deploy their own capital to buy and sell bitcoin futures contracts on behalf of their institutional clients.
For those unaware, futures contracts are binding agreements that allow purchasers to buy or sell assets at a fixed price at a specified time in the future, hence the name. Futures contracts are used to “go long” on an asset if you believe the price will increase.
Bitcoin futures will allow Goldman to trade on the underlying bitcoin cryptocurrency but without being directly exposed to it. Institutions like Goldman are going to stay away from directly interacting with cryptoassets until regulations catch up.
Goldman Sachs specifically said Bitcoin “is not a fraud” and weighing in on the decision was Rana Yared, an executive at the bank, who said they have been “inundated” with client requests regarding crypto.
“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” she said.
“…It is not a new risk that we don’t understand. It is just a heightened risk that we need to be extra aware of here.”
Meanwhile, Google co-founder Sergey Brin had comments of his own about crypto today. He credits Ethereum mining with playing a key role in the recent “boom in computing”, saying that it has helped usher in a new “technology renaissance.”
In a letter to investors, he said, “We are truly in a technology renaissance, an exciting time where we can see applications across nearly every segment of modern society.”
“There are several factors at play in this boom of computing. First, of course, is the steady hum of Moore’s Law…The second factor is greater demand, stemming from advanced graphics in gaming and, surprisingly, from the GPU-friendly proof-of-work algorithms found in some of today’s leading cryptocurrencies, such as Ethereum.”
Meanwhile in South Korea, a move is being made to officially legalize ICOs in an effort to champion blockchain development and research in the country. Rep. Hong Eui-rak of the ruling Democratic Party of Korea is pushing a bill that will do just that.
“The bill is aimed at legalizing ICOs under the government’s supervision,” Hong said during a forum on ICOs and blockchain.
“The primary goal (of the legislation) is helping remove uncertainties facing blockchain-related businesses,” Hong said.
The ICOs will be under stringent supervision by the Financial Services Commission and the Ministry of Science and ICT, according to the bill. We see this as a similar situation to what will play out in the US; tight but fair regulation that will allow ICOs that actually plan to push the space forward, not just make a quick buck.
All in all, it has been a very positive day for a week that certainly had a slow start. We look forward to more days like this one as crypto continues its climb out of the hole.
Subscriber Update: Please note that Mav and Doc are going to be traveling until Sunday so we anticipate that this weekend’s newsletter will probably be sent on Sunday. Apologies in advance for any inconvenience.
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.
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
For flipping Neutral.
For long-term holding Good.
What is it?
The QuarkChain ICO is raising funds toward a multi-layer, peer-to-peer transaction blockchain. The first layer of system contains shards, while the second layer is comprised of a root chain. The architecture of QuarkChain is predicated on finding a balance between security, scalability and decentralization.
What is our verdict?
What we like: Scalability is probably the #1 biggest issue in crypto right now. The project that gets it right will win big.
What we don’t like: Zilliqa is likely a better project, issue of centralization and not enough depth in whitepaper
- Project name: QuarkChain
- Token symbol: QKC
- Website: https://quarkchain.io/
- White paper: https://quarkchain.io/quark.pdf
- Hard cap: $20 million
- Conversion rate: TBA
- Maximum market cap at ICO on a fully diluted basis: TBA
- Bonus structure: TBA
- Private sale / white list: Private sale is overbooked, whitelist TBA
- ERC20 token: Yes (to be swapped on mainnet launch)
- Countries excluded: TBA
- Timeline: Crowdsale to begin late May or early June (please refer to QuarkChain’s website for the most up-to-date information)
- Token distribution date: TBA
Check it out here!: https://payfair.io/ Additionally, for those who have 10,000 PFR, you can set up a trust node in order to earn 0.8% of the daily trading fees! Follow this simple guide to set up your trust node!
Technical Analysis Research
Yesterday we wondered whether the consolidations would break higher or lower from their respective ranges. Good old ETHEREUM might have answered that question today with a really nice 12% break to the upside. I mean, seriously, where else are you going to find assets that break twelve percent a day, and that’s on the low side?
I will not mind seeing the next “higher low” set up because that means that more constructive price movement will follow. Once I am satisfied that the overall market is going higher (and it takes a while to escape an 80% Bear) then I’ll look for more position trades. For now, swings are where it’s at.
Here are the recent swings that we’re tracking in the portfolio below:
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC. Doing just fine.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
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.