Premium Daily Crypto NewsletterOctober 28, 2018
Watch this video to see how to use this newsletter. Click the square in the lower right to expand the view.
Check Out Doc's Trading Book
Have You Read Our Free Ebook?
Crypto Market Commentary
Mav's Daily Commentary
Week In Review
The Battle Over Blockchain Heats Up
Unsurprisingly, there isn’t much to talk about concerning price this past week. Record low volume, volatility, and a graveyard-silent market make any discussion about what the price is doing simply unforgettable. Not even futures settlement could wake the hibernating market. This marks a stark contrast from only a few months ago, with futures usually sparking losses in the run-up to their settlement date.
In fact, BTC was less volatile the than S&P 500, Nasdaq & DOW this week; a sharp contrast given their recent downturn.
Thankfully, we once again find ourselves in the increasingly-common situation where news far outweighed price.
For one, we finally know when Bakkt will be launching their futures exchange: December 12th.
Importantly, they still have not received approval from the CFTC, but by making their launch date public it does speak to their confidence.
As a reminder, Bakkt is a flagship institutional organization pressing into the this space and has been advertised as a scalable on-ramp for institutional, merchant and consumer participation in digital assets.
Additionally, it aims to be an open platform for digital assets across global markets and commerce, and was, in part, pitched as a solution for day-to-day crypto payments for merchants.
I’ve often said that Bakkt’s launch won’t be some huge shock to the market. It will be gradual, as these things often are. Still, Bakkt will be a source of capital and market movement at a time we could certainly use a catalyst.
On the regulation front, we had a very surprising ruling by the Shenzhen Court of International Arbitration (SCIA) this week. They affirmed that cryptocurrencies, specifically Bitcoin and two of its hard forks, Bitcoin cash and Bitcoin diamond, are considered legal property and Chinese citizens have a right to own and transfer them.
“Bitcoin is not a legal currency, but it is no doubt that it deserves protection by law as property. Bitcoin has property attributes…economic value, and can bring economic benefits,” the court claims.
Now of course this brings into question the strange circumstance of cryptocurrency evolving in China. ICOs and Crypto exchanges are still banned as the Chinese Government is very concerned with capital flight from the country.
Furthermore, it is still very difficult to actually acquire in China. Like all things there, it is a bit of a grey area. The government can very well change its mind on a whim. So, unfortunately, this isn’t much of a win for the space as it is a continued evolution of crypto’s relationship with the Chinese government.
What has been circulated about this news is that the country’s merchants can legally accept crypto as a payment method. As the Shenzhen Court recognized, “CN law does not forbid owning & transferring bitcoin, which should be protected by law because ofits property nature and economic value.”
At the same time, we just saw the Chinese government release an announcement that blockchain-based services must require users to use their real names, register their national identification card numbers, censor certain content, and store user data which authorities would have access to.
Any one of these measures is antithetical to the core principles of how most blockchains work, and yet the Chinese government seems persistent to control decentralized currency in a manner they’re accustomed to.
The Cyberspace Administration of China already requires users to use their real identities/names on any non-blockchain social media service. The new social credit score system is already working. To top it all off, the government also created rules that allow them to show up to any business and seize their data.
The takeaway is pretty clear: non-democratic governments fear what they can’t control.
Meanwhile in the US, we just saw the SEC create a division to help crypto startups navigate securities law while the IRS is pursuing a clearer crypto tax code.
Other countries such as Malta and Cyprus are fully embracing blockchain technology and the industry behind it. Singapore’s sovereign wealth fund just invested in Binance to help them open an exchange in their country.
So, this is what we’ll see over the coming years.
Nearly 10 years to the day Satoshi Nakamoto published the Bitcoin whitepaper, we’re now gearing up to fight for blockchain in a way we’ve never seen before.
The next 10 years will define the limits of this technology and the freedom inherent in its code. We can either embrace the decentralized future or be marginalized by fear.
As it has been before, history will likely be unkind to those who resist technological evolution.
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
Our Weekly Premium-Only Livestream
Our next ReadySetLive session will be this Wednesday evening at 2000ET/0000UTC. See the link below and set a reminder for yourself! Doc’s latest “Trade School” video is also listed below; we announce those with links in the Premium Chat room of the Discord page.
Our Public Livestream
New to Cryptocurrencies? Check out our archived classes “Intro to Cryptocurrency Trading”, “How to Find Your Next Big Cryptocurrency: Intro to Fundamental Analysis,” Mav’s class on “Security and Wallets” and Doc’s classes, “Introduction to Technical Analysis” and “Short Term Trading Strategies” which are now all available for immediate purchase in our Store, and seconds away from viewing in the Premium Member’s Home. View more about them at our online store by CLICKING HERE.
Check out our BLOG for the latest videos, posts, and Podcasts! Click this link and bookmark the page!
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
Check out our new merch store! Simply go into the regular store and select “Merchandise” to pick up some RSC merch!
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
In today’s video I compare the current Bear Market and the lack of volatility to what we saw in mid-2015, and how that market went through a mini-capitulation first before eventually rebounding BTC from $200 to $20k. We may have a similar backdrop to what’s happening with global markets today.
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.