Premium Daily Crypto NewsletterOctober 23, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Continue Sideways
Even Most Altcoins Are Flat
Another uneventful day in the market actually had meaning today as US Stocks were hammered yet again. While we might see a delayed reaction to this like we did earlier this month, it is reassuring to see a low correlation between crypto and more traditional markets.
Today’s news had pretty familiar standouts: Coinbase and the Bitcoin ETF.
Coinbase had two separate announcements, neither of which were all that exciting, but certainly were crucial in its bid to maintain relevance in the face of oncoming institutional investors.
Seemingly jumping on the stablecoin bandwagon, they announced their support of Circle’s stablecoin, CUSD.
Commenting on its decision to support the USDC stablecoin, Coinbase said that fiat-based blockchain currencies could contribute to the development of “a more open financial system” and could further the adoption of decentralized applications (dApps):
“The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
Coinbase also noted that stablecoins like USDC are ideal for business purposes and e-commerce applications, as payments denominated in these tokens can be made at any time of day without the inherent risks of price volatility associated with using bitcoin and other cryptocurrencies as working capital.
While this isn’t the most exciting news, it certainly has importance as it shows a continued trend towards enabling stablecoins. They will become the bridge that allows fiat currency to flow in and out of crypto, and are an important building block for more adoption.
Coinbase also announced they received approval from New York regulators to form a qualified custodial firm for cryptocurrencies.
“For our customers, operating under a New York State Trust Company is more than just a new license — it’s an important piece of regulatory clarity that will allow us to compliantly store more assets and add new features like staking.”
All this boils down to one conclusion: Coinbase wants to capture as much of the institutional money as possible. By playing on the forefront of regulatory limits for this space, they clearly aim to play with the big dogs on Wall St. Time will tell if they can follow through.
In other news, the U.S. Securities and Exchange Commission (SEC) has published a memorandum, dated Oct. 9, from a meeting regarding the Bitcoin ETF proposal from VanEck and SolidX.
The new SEC Commissioner, Elad Roisman, met with representatives from VanEck and SolidX to brief him on the Bitcoin ETF. Elad Roisman, in addition to existing commissioner Hester Pierce, have openly stated pro-crypto rhetoric.
The gist of the situation is that there might be a weird period where there are only 3 commissioners in which 2 pro-crypto votes could approve the ETF.
Otherwise with 4 commissioners you still need 3 out of 4 to vote for the rule change, in addition to the chairman,
As we’ve learned, the new chairman is pro-crypto and if it comes down to it he will side with his inherent party (Republican) to avoid a highly criticized and lengthily tied outcome.
What makes this really interesting is that one of the anti-crypto commissioners is required to step down in December. That means that the Commissioners will be 1 against, two for without including the pro-crypto chairman.
This is still speculation, but it is looking more and more probable that we will see approval for the ETF come late December to late February.
Of course, as you’ve heard, that will cause quite a stir. In addition to institutional giants like Fidelity entering the space, this will have resounding effects for the entire industry.
Then again, we’ve been down this road before, so let’s not senselessly get our hopes up.
Instead, we can focus on finishing the year as strong as possible and continuing to add to our positions. We may soon regret we didn’t add more.
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:
- The only thing moving at present are the coins we’re featuring on our Swing watchlist.
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
The best thing that happened today in the crypto world was….nothing. Equity markets world-wide got rocked, yet Crypto barely nudged. That lack of correlation is good, however keep in mind that if a true “crash” comes along, there will be no safe harbor in assets as everything gets sold off to raise cash to satisfy margin calls.
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.