Premium Daily Crypto NewsletterOctober 24, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Crypto Stays Flat While Stocks Fall
Stable Market Enters 10th Day
We have achieved peak stableness.
BTC has only traded between $6550 and $6350 for the past ten days, which is rather unheard of for an asset that used to move $1,000 in a day.
What’s interesting is that since September 14th, Bitcoin’s volatility has been less than NASDAQ, DOW and S&P 500.
Of course, the traditional markets are getting hammered right now with all the uncertainty surrounding trade tariffs, interest rate hikes, and midterm elections in two weeks.
Many have tried to make the argument that BTC’s price movements may be correlated to movements in the traditional financial sector. It’s important to note that while certain signs point toward their correlation, it is not certain that the two markets are correlated because Bitcoin has only existed in a period of consistent gains in the financial sector. We simply have not seen Bitcoin be tested by a wider market recession. We may soon find out.
One piece of news to cover is the recent burn of 500 Million USDT tokens by Tether. This is more than half of the total USDT in circulation, and was explained by a spokesman who said:
“Over the course of the past week, Tether has redeemed a significant amount of USDT from the circulating supply of tokens. In line with this, Tether will destroy 500m USDT from the Tether treasury wallet and will leave the remaining USDT (approx 466m) in the wallet as a preparatory measures for future USDT issuances.
Conceptually, the Tether issuance and redemption process is outlined in the Tether whitepaper, with issuances and redemptions visible through observing the Tether treasury balance on the OMNI blockchain.”
Essentially they are trying to balance out the supply glut from the sell-off last week. Unfortunately, it still does not look like Tether is trading 1:1 across many of the exchanges it’s listed on. This will only hurt Tether more as no one wants a stablecoin that isn’t pegged to the USD as advertised.
Quite simply, Tether’s new competition, such as the Gemini Dollar (GUSD) and USD Coin (USDC) are a new generation of stablecoins. Being based off Ethereum really helps their transparency and programmable nature.
The Coinbase team emphasized that the usage of the Ethereum blockchain network enables developers to program the dollar, allowing fintech companies to develop programs that can easily and securely facilitate stablecoin transactions.
“A programmable dollar. For developers and fintech companies, a digital dollar like USDC is easier to program with. For example, given the private keys for USDC, a program can easily send and receive them back and forth using the public Ethereum blockchain.”
Why that’s important (and cool for nerds like me) is that the tokens are stored in smart contracts. Users can verify and track the amount of USD stored in a particular stablecoin, increasing the overall transparency of the currency.
Gemini had a great take on it for their GUSD launch:
“To date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies.”
So, why do I keep talking about stablecoins? After all, nothing is more boring than something that doesn’t move in price, like today’s market.
Well, for me, stablecoins represent one of the first important steps that the cryptocurrency market is taking into growth and maturity. Of course, we’ve already seen growth, but having mature growth is a very different thing.
The crypto market and industry are in a growth curve. As we’ve seen, cryptocurrency is moving from inefficient and unregulated projects to ones with more practical, transparent, and regulated solutions.
The stablecoin market represents a microcosm of this, as we’ve seen the emergence of new competitors against Tether that are transparent, regulated, and compliant with the existing infrastructure in the market.
I think this is the trend we’ll continue to see play out again and again in 2019 and 2020. By pursuing a more legal and transparent route, projects open themselves up to a vast amount of capital.
The overall stability of the market is indicative of that, and will continue to attract bigger interests to the space, especially with days like today in the stock market.
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
Once again no reaction from crypto as. Equity markets world-wide got rocked for the second day in a row. That lack of correlation is good, as we need crypto to be its own independent monetary system, among other things.
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.