Premium Daily Crypto Newsletter

September 6, 2018

Crypto Market Commentary

Mav's Daily Commentary

Markets Continue Sell-Off 

Bitcoin Drops $1,000 In Two Days

Today the market fell further, finding equilibrium around 200 Billion.

Interestingly, the news that acted as the catalyst for the initial drop, Goldman dropping their plans to launch a cryptocurrency trading desk, was outed as false today.


“I never thought I would hear myself use this term but I really have to describe that news as fake news,” Goldman Sachs Chief Financial Officer Martin Chavez said.

Instead, the CFO said Goldman is working on a type of derivative for bitcoin because “clients want it.”

“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” Chavez said.

It’s been clear that Goldman has had interest in offering a crypto option for their clients for some time, but it hasn’t been clear just to what extent they were planning to go.

 

This week’s dip, once again predicated on literally nothing other than misconceptions, once again reminds us that this market is manipulated, irrational, and massively speculative. This is the price you must pay in order to ride the potential upswings and long term gains.

 

Still, it was not all bad today.

 

On the ETF front, we received two pieces of news that could really turn the tide ever more in favor of expanded institutional investment.

 

If reports are to be believed, Coinbase has sought help from $6 trillion Wall Street giant BlackRock for its ETF application. As reported, Coinbase has held conversations with BlackRock’s blockchain working group to tap into the firm’s expertise at launching exchange-traded products. BlackRock, an early pioneer of the ETF market, is well known for its iShares division.  It remains unclear whether the talks were a one-off or part of ongoing conversations between Coinbase and BlackRock.


While the development could be positive, one has to remember the independently BlackRock had confirmed it had no interest in being a crypto fund issuer. Furthermore, CEO Larry Fink has said the firm’s clients have expressed zero interest in the $300 billion markets for digital currencies, referring to bitcoin as an “index of money laundering”. We will have to wait and see what comes out of these meetings between Coinbase and Blackrock.

 

The second piece of news is that the Trump administration has made its 4th appointment to the Securities Exchange Commission in form of Elad Roisman a Republican from Maine. In July, Roisman touched on what will be a series of landmark decisions on cryptocurrency made by the Commission, saying:


“…the SEC must examine and re-examine its rules, regulations, and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission. This is most recently manifested in areas such as data protection and cybersecurity, as well as the emergence of new investments and technologies such as initial coin offerings and blockchain. It is essential that the SEC approach these new challenges in a fair and transparent manner, provide clarity and certainty to the markets and investors, and enforce the laws and regulations that hold market participants accountable.”

With Elad Roisman’s appointment the equation at SEC becomes very interesting. The commission now looks like Chairman — Jay Clayton (I), Commissioner — Robert Jackson, Jr. (D), Commissioner — Hester Peirce (R), Commissioner — Elad Roisman (R).

The fifth Commissioner and last holdover from the Obama administration, Kara Stein, can’t serve past December. What’s important to note is that the majority of commissioners are in favor of cryptos and therefore the Bitcoin ETF is conceivably a 3-1 decision with Chairman — Jay Clayton, Commissioner — Hester Peirce and Commissioner — Elad Roisman all favoring cryptocurrencies (based on their present and past statements).

 

I think, based on this perceived shift and the continuously improving market maturity, that there will likely be a Bitcoin ETF sometime in the next year.

 

The effect it will have on the perceived legitimacy of the market, on bringing in institutional money, and ultimately on the price of Bitcoin will be staggering. Time will tell, but it just may begin today with the confirmation of Elad Roisman as SEC Commissioner.

So, what is the takeaway from today’s events? A bleeding market from invisible wounds? More ETF nonsense? Is this really what cryptocurrency is about?

 

No, of course not.

 

We who are among the first to build and propagate this space feel very deeply the need to have a market without such irrational swings, manipulation, and liars.

 

After all, blockchain is inherently a technology that is focused on promoting irrefutable truth. Why then is the market around it filled with nothing but false claims and narratives?

It is a paradoxical state in which we find ourselves. Not wanting a manipulated market, but also not wanting the big players to step in and manipulate it into submission.

 

Ultimately, they’ll win. The institutional players have an enormous market appetite and very little technical knowledge, so investment vehicles like the ETF embody their ideals. After all, an ETF is a multibillion-dollar ‘not-your-keys-not-your-Bitcoin’ vehicle, so you’re giving up what makes Bitcoin compelling in the first place to simply trade a number.

But, that’s always the case with any commodity.

 

Gold is shiny and people have coveted it for centuries, and yet today more people own shares of gold than the physical asset itself. Most people investing their capital in gold have no intention of ever exchanging it for actual bullion; they simply want to park their money in something with perceived value.

 

So, yes, the ETF does represent everything that crypto is not: centralization, forfeiture of freedom, and bending the knee to the big banks who Satoshi clearly had issues with.

But, the beautiful thing about crypto is that it is many things at once. Simply because more money enters the space does not mean that decentralization will die and big money will corrupt the ideals of blockchain. Already we see multiple interpretations of what a blockchain “should” be and multiple iterations of Bitcoin itself.

Just like the Internet before it, blockchain needs the right incubators, both big and small, to allow it to grow and prosper and find unique ways to challenge norms and build upon existing solutions.

 

What a privilege it is that we get to watch it grow into something truly exceptional, and to be a part of history in the making.

If you missed Mav’s webinar “Top Ten Ways to Create Passive Income With Crypto” then you can watch the webinar at this link

We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Eleven is now available. Episode Eleven is an interview with Adam Todd of Digitex Futures which we’ll be looking to employ as soon as it’s live. 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 over the weekend!

Doc's Daily Commentary

Our Weekly Premium-Only Livestream

Our next Premium-Only Livestream is scheduled for 5 September 2018 at 8 PM EDT (UTC/GMT -4 hours). Watch below for new link.

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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.

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Offense – Adding Trades

Offensive Actions for the next trading day: 

  • Note Doc’s comments in today’s video about adding another 2% stake in ETH/USD just above the $200 mark.

Defense – Managing Risk

Defensive Actions for the next trading day: 

  • None.

RSC Managed Crypto Fund

[visualizer id="72847"]
How to read this portfolio: Please read through the FAQ tab

  • ETH/USD 2% added 8/10/2018 @ $363.14. (12% more to add)
  • LTC/USD 2% added 8/10/2018 @ $62.56.  (6% more to add)
What is the RSC Managed Cryptocurrency Fund?: We have one goal: To beat the market. To do this, we aim to balance risk vs. reward. Additionally, we aim to enter positions advantageously and in small increments, not all at once. As such, the pie chart you see above is representative of our “expected” portfolio, but will likely not match our “actual” portfolio. Why don’t you just buy into every position at once?: We aim to not only beat the market, but do so in a way that allows us greater leverage than simply buying in all at once. To do this, we will DCA into our positions to lower the average buy-in, and allow us greater yield from our initial capital seed. This also allows you the flexibility to follow our documented moves or immediately buy in when you want. We expect this will help you follow along easier as our moves are more deliberate. By setting targets for allocation, you know exactly how we intend to diversify our portfolio. Why are you only targeting large caps? Where is ____ coin?: We are targeting large market capitalization coins regardless of our belief in their viability as this enables us to diversify our risk and improve our chances of staying positive. We can hedge our bets by creating a fund that incorporates all of the major assets yet distinguishes between them based on the allocation. For example, we allocated more to Ethereum over its competitors as we feel it has more built-in longevity given its status as the default ICO platform. Of course, that can change, and as such we will be periodically rebalancing this fund as we redetermine viability and yield. Can I invest in this fund / can you manage my funds?: Not at this time. We are looking for ways to legally tokenize a fund such as this, but at this time no avenue exists for US citizens. Will we be adding small caps / ICOs?: It is likely we will be starting a separate fund dedicated solely to small caps / ICOs. We feel that the market simply isn’t showing favorable risk / reward signs for us to be trading them right now, but that will likely change soon. Why was the previous portfolio discontinued?: We felt it wasn’t correctly connecting with our customers as we started it in late 2017 and even during the 2018 bear market we were still very profitable. The same could not be said for customers who joined us during the bear market and tried to replicate our portfolio. Simply put: we wanted a portfolio that was easier to follow along with and less risky for our customers while still aiming for profitability.

Click on image to download the datasheet

RSC Altcoin-Exclusive Crypto Fund

[visualizer id="74717"]
What is this? The RSC Altcoin Fund is meant to replace our V1 portfolio. This portfolio, referred to as Portfolio V3, will represent a portfolio that is built upon more risky assets (assets outside the top 20), and is inherently more risky than Portfolio V2, the RSC Managed Crypto Fund (above). We will NOT be actively entering positions for this fund, but we will be updating the portfolio percentages and contents periodically.

Click on image to download the datasheet

Click on the image to download the TXT file

 

Technical Analysis Research

Today’s video (rant) focused on the need to focus on the PRICE and not the NEWS or other CRAP that passes for news and opinion. It really does not matter what anyone’s opinion is of why the price dropped; PRICE itself is the ultimate arbiter of value. Nothing else matters! Please also note my comments on trying to add a 2% position on ETH/USD close to $200.

 

 

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.

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:

Public Swing Portfolio Link

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..

We’ve started to do some swing trades on alts, tracked in the previous section. I am mostly focusing on the top 10-20 coins for now until we confirm that we’re back into an overall bull market.

I am doing the majority of my Technical Analysis work on TradingView, and I have a BitFinex app on both my iPad and Android smartphone. All of these charting platforms call a TradingView API. TradingView is the 800 lb. gorilla in the Crypto charting space until the “established” players want to make a go at Crypto, like Ninjatrader, Tradestation, eSignal, Sierra charts, etc. My sense is that TradingView has such a head start that it will be very difficult for the big boys to make a dent in this space for a while. Until that point, TradingView has almost a monopoly in this space. If you have a particular tool that you think is superior, please let me know.   You can access the BitFinex and TradingView platforms for free, however there are some paid features that you might want to consider depending on your needs, such as expanded watchlists, different study sets, account alerts, etc.

 

  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

In this section we’ll feature a daily ICO or new coin we think you should check out. Based on your country, you may not be able to participate in the ICO, but you will be able to trade the coin once it is listed on an exchange following its ICO (usually only a couple of weeks). ICOs are where a lot of money in crypto is made. Here’s proof.   That said, we should warn you: ICOs are highly risky endeavours and you need to mitigate any potential losses. Treat it as money you’ve lost the moment you contribute to the ICO. We are not responsible for the ICO’s performance. Today’s featured ICO / New Coin is:

Bgogo Exchange

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

Website: https://bgogo.com

Whitepaper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf

2017- 2018Q2 Portfolio (Discontinued)

Desired Holdings

  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.

Tier 4

ZIL

IAM

FT

DATA

ELEC

None.

Tier 2

MOD

 Tier 3

REQ

SUB

LINK

NANO

KNC

Tier 4

BNTY

TAU

WISH

PHR

LOCI

XBY

ELA

ECC

POE

HPB

BIX

EVE

XVG

NULS

DNA

How to read this portfolio: Ticker: Contains the ticker code for the coin. You can search this ticker in Coinmarketcap to learn more about the coin. The color denotes the risk tier by our evaluation. Dark Red = T1, Dark Green = T2, Dark Blue = T3, Light Blue = T4 (Colors in the Ticker column do not interact with the colors in the other columns) Cost Basis = Our average purchase price for this coin. Current price = The average price of the coin based on the exchanges it is listed on. Strategy = What we plan to do with this coin. Staking is receiving dividends for that coin. Master node is also staking, but with a higher return rate for having a (large) number of that coin. Stop = Our exit point, if it exists What do the colors mean? The colors in the ticker column represent the risk profile of that coin. The colors in the other columns reflect what sector(s) that coin belongs to. Some coins belong to multiple sectors, which is indicated by multiple colors. The colors correspond to our 7 categories in the graphic below

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