Premium Daily Crypto NewsletterOctober 11, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Crypto Market Strongly Reacts While US Stock Market Sells Off
Lesson: Be Careful What You Wish For
Late yesterday we saw an absolutely massive sell-off that shaved 15 Billion off the total market cap within the span of hours.
The two competing explanations making the rounds today focused on the descending triangle we’ve been in since February, and that the US Stock Market melted down yesterday.
Whatever the culprit, remember that we’re still in a bear market and at times you don’t need anything other than that to explain why the market dropped.
I will say our warnings about the $6,500 level turned out to be very true: once it broke through that, there wasn’t a floor for BTC to stand on until $6,300.
What’s interesting is that even in the midst of all this chaos, we’re still seeing some optimistic trading occurring.
After months of speculation, 0x (ZRX) was added to Coinbase today, making it the 6th cryptoasset to join the selective list.
Don’t fret if you missed the pump, however. Even if you had bought right before the news, and sold right at the top, you would have only made 23%. Yes, crypto traders are a bit entitled, but understand that it wasn’t earth-shattering.
Now, this draws us to the announcement that Coinbase made in June regarding the 5 assets they were considering for listing: Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX).
Obviously, 0x made the cut, but it begs the question: which one(s) will be next?
Quite frankly, they’re all very solid bets and arguments could be made for any of them. For example, Stellar is looking at legal ICOs and a fee-less peer-to-peer marketplace that lists every asset class, such as crypto, fiat, bonds, and commodities.
Or ZCash which is targeting October 28th for their Sapling network upgrade, a major feature enhancement to the Zcash network. Sapling represents years of engineering and cryptographic breakthroughs designed to improve shielded, private transactions. This represents an important upgrade and technological advancement to Privacy and zk-SNARKS, and Ethereum founder Vitalik Buterin believes that Ethereum can use Zcash’s ZK-SNARKS technology to scale the ETH protocol by more than 3000%. Not to mention, Zcash is already trading on Gemini, Coinbase’s US competitor.
Of course, there’s also coins that weren’t among the 5 listed, such as Ripple. With a conveyor belt of new companies using xRapid, there will likely be a demand to trade Ripple on more platforms in the US. Likely that decision has been delayed due to concerns that XRP constitutes a security, but it could be argued that seeing XRP being used in production as a utility helps its case. We’ll see.
The takeaway from this is that a Coinbase listing does not represent the power it once held. With institutional competition on the horizon in the form of Bakkt, ErisX, and even Goldman-backed Circle acquiring SeedInvest to pursue Security Tokens, Coinbase could soon find itself one among many instead of the dominant power it represented the past couple years.
Add on to that a new report today from Crypto Fund Research that indicates that 90 crypto hedge funds have launched so far in the first nine months of 2018, with an extrapolated projection of 120 new crypto hedge funds in 2018, indicating crypto oriented hedge funds represent 20% of all new hedge funds. This is a solid indication of how the crypto space is becoming relevant to mainstream investors.
But, Coinbase is smart, and they know this game is about more than just money (though it certainly helps).
If we are indeed creating a whole new ecosystem, rather than just a new asset class, then we’ll need companies like Coinbase and Gemini pushing forward the interests of those concerned about the underlying technology.
We’ll need coordinated efforts on all fronts of this space: technology, regulation, market infrastructure, and adoption. It’s going to take a lot more than just new money entering the space to change things. But, thankfully, that’s precisely what the soul of crypto represents: change in the face of unwavering odds.
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:
- No entries tomorrow. We are starting to notice a lot of “stealth” alt-coin breakouts, and will track them in our swing portfolio.
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 discuss one potential outcome that might generate a huge move due to getting “the herd” on the wrong side of the price, especially if too many shorts load up with too weak a hand.
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.