Premium Daily Crypto NewsletterOctober 9, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Bitcoin Continues Directionless Trend
Will This Lead To A Massive Move?
We are once again witnessing BTC ranging between $6,500 and $6,700 while volume continues to dry up and volatility is almost nonexistent.
The common rhetoric we’re seeing is the inclination that this stability will precede a major move.
What’s clear is that we’re directionless, and that both the longs and shorts have built up their stops around the $6,500 and $6,700, respectively.
Whichever one of these levels are hit first will indicate the start of the move. My bet is on a price drop without any surprise news or announcements. That said, it’s as good as flipping a coin at this point. The wind can blow either direction.
One piece of news I do want to cover today is the recent explosion of stablecoins entering the market.
Just yesterday it was announced that PricewaterhouseCoopers (PwC), one of the Big Four auditors, is rolling out a partnership with Cred. Cred’s Lend-Borrow-Asset (LBA) token was created to provide affordable and equitable access to credit, but has previously been unknown to most crypto investors.
PwC US Blockchain and Cryptocurrency Lead, Grainne McNamara, commented on the partnership saying:
“We are eager to leverage our proven industry experience to support a quickly developing asset class and its associated market infrastructure components. We believe this exploration of the blockchain infrastructure and associated operational frameworks can help the industry develop an increased level of comfort.”
It’s unclear if this partnership will build out the existing LBA token (which is not a stablecoin), or introduce a completely new token.
What is clear is that stablecoin aims to be part of an asset-backed digital token ecosystem.
As a reminder, there are three types of stablecoins:
Collateralized (MakerDAO, Bitshares)
Fully backed (Tether, Paxos, GUSD)
Algorithmic (Basecoin, Carbon)
With many of these stablecoins only a few months old, it’s rather apparent that only the strong will survive and become accepted within the ecosystem.
In particular, we’ve seen Maker explode over the past few days as it’s shown that its stablecoin, DAI, is working and provably solvent. That latter point is the real area of disruption because the largest stablecoin, Tether, has never satisfied the market with a true audit. For all we know, they could be printing Tether without having adequate reserves, something they’ve been accused of many times.
That came up again when a medium article did some investigation into Tether, but Tether was quite to decry it as “fake news”.
Whatever the case, it is promising to see new stablecoins on the scene that are more open with their books. It makes no sense to have a space built on decentralization and yet the 2nd highest volume coin is not openly transparent.
Remember that stablecoins present a good alternative to the conventional options of going long or short.
Dan Schatt, co-founder of Cred, stated it well:
“If you can get a stablecoin that’s very transparent and tied to USD, for example, that’s a very powerful confidence booster,” he states. “Imagine, also, that you can get out of a rapidly depreciating currency and get into something that’s giving you a return on your money between two and five percent. That’s truly powerful.”
Look forward to stablecoins increasing in relevance in the days ahead, as they’ll often serve as the bridge between fiat and crypto.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop! See you tomorrow!
Doc's Daily Commentary
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Offense – Adding Trades
Offensive Actions for the next trading day:
- Ripple(XRP) is showing positive activity but we don’t want to chase after it unless it moves back into a primary uptrend.
- Same deal for XLM, BTC, and ETH. Volume must accompany breakouts.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
How to read this portfolio: Please read through the FAQ tab
- ETH/USD 2% added 8/10/2018 @ $363.14
- ETH/USD 2% added 9/9/2018 @ $200.50 (10% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (5% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
In today’s video I discussed how quiet markets are, like the calm before the storm. We are starting to see some coins rally hard off the bottom, in “stealth rallies” that fly under the radar.
In August we introduced a new “fund” project that we’ll be creating over the next few months, in piecemeal form. I will be slowly and methodically creating a “fund” with (currently) 23 assets that we will do “live” or at least very plainly indicate where we intend to enter portions of assets. As long as the market continues grinding down in a bear, we will use sentiment-based entries to hopefully secure a better entry. All that I saw were bear flags tonight; we are close to some good entries on coins showing positive divergence on the RSI. Going forward into the end of this year my plan is to do a LOT more swing trading; what would really help is a decent derivatives exchange. I am looking for big things from Digitex in this regard, which will be a commission-free futures platform however all trades must be made in DGTX as the base currency. Put yourself on the waitlist for this platform by clicking here. I have started to acquire DGTX tokens at Mercatox in anticipation of them turning up their platform, and this looks to be a good candidate for a pump prior to the production event. Here are the recent swings that we’re tracking in the portfolio below; :
- DGB/BTC – long @ .00000608 (7/23). My target exit is .000008BTC.
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
- ONT/BTC – long @ .0008905 (5/20) My target is .0013BTC.
- ETP/BTC – long @ .000522BTC (9/21) My target is .00072BTC
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:
I hope you all got a chance to catch my webinar class from earlier this year; if not, the replay is available here. 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 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 and/or Delta 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.
Fundamental Currency Research
For flipping Good.
For long-term holding Neutral.
What is it?
What is our verdict?
What we like: Supernodes are very interesting. No trading commissions for users.
What we don’t like: There are many exchanges already on the market. Transaction mining isn’t currently solvent.
- Project name: Bgogo Exchange
- Token symbol: BGG
- Website: https://bgogo.com
- White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
- Hard cap: 17,000 ETH (15,000 ETH during private sale and to supernodes, 2,000 ETH during public sale) for 10% of total tokens
- Conversion rate: Private sale: 1 ETH = 66,666 BGG; public sale: 1 ETH = 69,999.3 BGG.
- Maximum market cap at ICO on a fully diluted basis: $51 million based on current ETH price of $300
- Bonus structure: Whitelisted public sale participants have a 5% bonus over the private sale price, with no lockup period.
- Private sale: The private sale has already been completed with 10,500 ETH raised from 21 supernodes and 4,500 ETH from strategic investors.
- White list: Bgogo’s public sale will be a Genesis Mining event (exact date to be confirmed) that will start 24 hours before mining is officially opened to the public. Only whitelisted users can participate. Details on the Genesis Mining event can be found here: https://bgogo.com/announcement?link=mining.
- ERC20 token: Yes (will be switched to native tokens when the mainnet is launched)
- Countries excluded: TBA
- Timeline: TBA
- Token distribution date: TBA
2017- 2018Q2 Portfolio (Discontinued)
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.