Premium Daily Crypto NewsletterOctober 29, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Turn Red As Some Volume Returns
Is It Fear Once Again?
The volatility gods have answered our prayers.
After seeing Bitcoin achieve a 17-month low volatility rate, recording its highest level of stability since mid-2017, we finally got a 2% break to the downside today.
The US and Shanghai stock markets reacted negatively to news of possible tariffs, which overall had little effect on the crypto market.
Instead, the crypto market was beset by two separate malicious attacks.
The first affected Canadian cryptocurrency exchange MapleChange, which had 913 Bitcoins stolen from it. They claim that they cannot return BTC or LTC funds due to an ongoing investigation. Anything else may be recovered, but they seem inundated. Overall, they were a very small exchange that only had a daily volume of 1-2 BTC.
Meanwhile, we recently learned that OysterPearl (PRL) had a very serious breach in their smart contract. The founder’s account called the transferDirector function, giving themself admin rights. This is only possible with the smart contract creator’s private key, which under any circumstance should be locked down as securely as possible.
The new owner opened the ICO sale function on the contract, sent ETH to the contract, and received PRL tokens at ICO price.
In all, they printed 4 Million PRL tokens and this allowed them to crash the price.
That being said, it is a very perplexing situation. The anonymous founder, Bruno, is most likely behind this attack. They have been distant from the project for a number of months now, and as mentioned this was through Bruno’s account. While it would be possible for someone to steal the creator’s private key, it just isn’t something that logically happens.
That being said, the net profit from this exit scam would be in the neighborhood of $160,000.
Is that really worth absolutely nuking a project? Who knows, but some in the Oyster community already seem persistent and that they won’t let this prevent the project from moving forward.
Whatever the case, both of these unfortunate events tell us something we need constant reminders of: diversify your holds and diversify your security.
Going all-in on a coin, keeping all your crypto on one exchange or one wallet, these are the first steps to disaster.
This space is too immature and unstable for you to keep all your money on one exchange or in one coin.
Instead, find ways to spread out your investments, and even if you are using advanced security measures like a hardware wallet, there’s no shame in having multiple wallets so long as you can manage it.
Once you’re more secure in your investments, it makes it much easier to look at things logically. It’s a pretty cozy feeling knowing you’re insured against loss because you took the time to develop your plan and investments.
It’s a great time to do this, too, as the headlines today really cemented the wave of institutional money coming our way:
- Cryptocurrency exchange Bitstamp has been acquired by Belgium-based investment firm NXMH in an “all cash deal,” Reuters reports today, Oct. 29.
- Blockchain payments startup Ripple Labs has hired former Google executive Amir Sarhangi as its vice president of products.
- Fidelity confirmed it is focused on providing crypto custody solutions for institutional investors.
Ethereum’s Devcon, Malta’s Blockchain Summit, and World Crypto Con (where I’m going!) are all this week. These are all huge events with lots of attendees, so we could really see some good energy coming out of this week.
Overall, I like where the market is right now and I’m excited to talk crypto for four days straight with whoever I can in Vegas. Wish me luck.
As always, I look forward to filling you in on my adventures and the interesting takeaways I have from the event. This will definitely be a week to remember.
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!
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Offense – Adding Trades
Offensive Actions for the next trading day:
- Nothing moving in the right direction lately. Let’s be patient.
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 make the case once again that to go higher in price across the market, we must first go lower.
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.