Premium Daily Crypto NewsletterOctober 16, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Market Goes Sideways After Exciting Start To Week
Full-Scale Institutional War Over Crypto On The Horizon
After all of the excitement over the past day regarding stablecoins, the market itself decided to become a stablecoin.
All joking aside, we’re seeing some residual choppiness as the volume and price tapers off after the Tether bomb went off Monday.
Stablecoins continue to make headlines today, with blockchain trust company Paxos announcing it has already issued around $50 million worth of its recently-launched U.S.dollar-backed stablecoin, PAX.
Additionally, the second largest crypto exchange by market cap, OKEx, announced it would be listing four stablecoins – PAX, TrueUSD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Following OKEx another major crypto exchange, Huobi, announced their listing of the same four USD-backed stablecoins today.
This led to Gemini Dollar having the opposite reaction to Tether’s implosion as it rocketed to nearly $1.20.
So you’re probably sick of hearing about stablecoins at this point. After all, how exciting are coins that are pegged to a stable asset? Not very for the average retail investor, but they’re extremely excited for the continued development of the crypto markets. A diversified offering of stablecoins helps make the market healthier and in the process makes sure that it is less susceptible to bad actors like the non-transparent Tether.
Meanwhile, Coinbase today that coinbase.com, Android and iOS app users would be able to trade, buy, sell or store ZRX, after initially announcing that Coinbase Pro would support the token on October 11. ZRX is the first ERC-20 token to be listed by the exchange.
This shows that Coinbase is continuing to advance the space. The question that is increasingly coming to mind, however, is whether or not it will be enough in the face of giants entering the space. As we saw yesterday, Fidelity Investments, the largest 401(k) manager in the US. At the end of Q2 2018, 168,000 people with 401(k)s managed by Fidelity Investments had at least $1 million in their accounts, a rise of 50,000 people from a year earlier. As the stock market starts to show signs of instability, this could manifest with people allocating a portion of their 401(k) retirement accounts towards a new asset class like crypto.
Hunter Horsley, CEO of Bitwise Asset Management, commented on the announcement saying:
“For many institutional investors, a trusted custodian like Fidelity entering the space removes a huge obstacle to investing in cryptoassets. I think we’ll look back on 2018, and particularly this moment, as the time that crypto became cemented as a new asset class.”
I think that drives home just how significant this announcement was.
Not to be outdone, Bakkt came out with several announcements of their own. For one, they will onboard Coinbase employee #5 Adam White as Chief Operating Officer in November.
Additionally, they detailed more about their launch, stating, “We’re taking a transparent approach to engage across the industry as we begin testing and onboarding in November, and trading and warehousing in December, subject to CFTC approval.”
Importantly, they had previously said that they would launch in November pending CFTC approval, so this does represent a setback for them.
That said, we’re still optimistic about Bakkt being approved. Specifically they are seeking approval for the requirement of full pre-funding for all Bitcoin trades, meaning that clearing members won’t be required to handle cryptocurrency themselves, and a new, separate guaranty fund for Bitcoin, fully funded by Bakkt and ICE.
The CEO of Bakkt, Kelly Loeffler, concluded the post saying, “We believe the sooner a regulatory approach to digital assets is determined, the better positioned we are to support healthy markets and innovation within a dynamic global marketplace.”
That’s easily a veiled suggestion to regulators that Bakkt will be able to stabilize and add maturity to what is currently a regulatory black hole. The race for institutional investors is clearly on.
So, while today’s news wasn’t anything mind-blowing, it does set an important precedent for how crypto is heating up in the background. It’s only a matter of time until that is reflected in the price.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Fourteen is now available. Episode Fourteen is entitled “Atomic Habits and the Four Maxims of Trading.” 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
To follow on re: yesterday’s move up to $7800, remember that this was ONLY on Bitfinex, not the other exchanges…so we have to be careful of what we chart until there is a better arbitrage mechanism in this space. Transactions are too slow cross-exchange to arb effectively right now. Still seeing various alts get some bids off the bottom.
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.