Premium Daily Crypto NewsletterSeptember 18, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Rebound As XRP Leads Pack
Still A Very Boring Market
After languishing yesterday, today we saw the market fighting to get back to previous levels, coming just shy of the market cap from Sunday.
The standout winner today was XRP (Ripple), which posted a 19% gain.
So what’s going on?
A Ripple executive hinted that their xRapid product will go live soon.
What’s the big deal about that?
Well, for one, product releases and updates for cryptos in the top 10 are much more likely to move market numbers than smaller numbers. Ripple is the third largest cryptocurrency out there and currently holds 6.45% of the total market. While that doesn’t seem like much compared to the massive 55.2% Bitcoin has, we can see that it stacks up against Ethereum’s 10.79%, Bitcoin Cash’s 3.81%, and Litecoin 1.79%.
So, when one of these coins starts moving, especially in a low-volume, downturn market, it can shake things up. Furthermore, as we covered yesterday, the drop was predicated on overblown fears that have very little effect in the present.
The second thing to note about this announcement is that xRapid is a very different product than xCurrent.
For those unaware, Ripple’s partnership base (and why those in the Ripple community hail it as a surefire winner) is based around their xCurrent product.
xCurrent is an enterprise software solution that enables banks to instantly settle cross-border payments with end-to-end tracking. Using xCurrent, banks message each other in real-time to confirm payment details prior to initiating the transaction and to confirm delivery once it settles.
But here’s the thing: xCurrent does not use XRP, Ripple’s currency.
That’s where xRapid comes in.
Both xRapid and xCurrent are meant to expedite and improve international money transfers, but the key thing to note is that xRapid uses XRP.
The more partnerships Ripple adds to xRapid, the more companies will be using XRP. Ipso facto, XRP’s price goes up as demand and use goes up.
Soon, we could very well see XRP transactions between two international banks. One bank would send fiat, which using xRapid is converted into XRP, sent to the other bank, and converted back into their native currency.
As XRP is sent near instantaneously, the transaction times would come down and help the bank’s bottom line.
“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production,” Ripple’s Sarbhai said of xRapid.
Sarbhai said he believes the tide is changing:
“A couple of years ago the narrative was blockchain good, crypto bad. But I think what we’re now seeing is that more and more regulators are taking the whole space in one conjunction [sic]. You cannot have runways built without airplanes… [T]hat narrative is thankfully changing and policymakers are recognizing there is a strong benefit that digital (crypto) assets bring.”
While Ripple has never been one of my favorite coins due to its heavily centralized nature and possible security status, it cannot be denied that this is a big step for Ripple and crypto as a whole. While Ripple’s future is both promising and potentially troubling, it certainly will help the overall space as a stepping stone towards more institutional adoption.
It’s no wonder why some on the forums refer to XRP as the “gateway drug” for big banks into crypto.
One other thing that I’d like to cover today is a hypothetical.
I’m sure many reading this unfortunately bought in at the high in December and January.
After 9 months, I’m sure it has been a source of frustration, especially when the common rhetoric is motivational speeches, promises of bull markets, and that institutional investment is “inevitable”.
I’ve spoken to many who are just looking to break even on their investments in crypto, or even have sold out at the bottom. It can be bleak to look ahead at our uncertain future and wonder if we’ll ever see this space regain the heights we temporarily achieved.
My purpose here isn’t to sell you “hopium”, it’s to encourage you to have rational thoughts about the multiple possibilities that lay ahead of you. At the minimum, the market will do one of three things: go up, go down, or go sideways. What is the probability that it will go down forever?
Well, if there’s nothing to show for this space, quite likely. But that’s not the case. As we’ve seen even today, there’s progress and work being done. If anything is “inevitable”, it’s that we’ll continue to innovate.
What’s the probability it will go sideways forever? Not likely as that would indicate there is a neutrality between buyers and sellers and that the market is truly dead.
What’s the probability it will go back up? By some simple mathematics, quite likely. The deflationary aspect of Bitcoin compared to the literal infinite supply of fiat currency, combined with an upcoming BTC mining reward halving event, gives us a very likely chance of seeing a rising price of BTC over time.
So, what’s the takeaway?
If we do see BTC at $20,000 again, I won’t be eager to cash out. Instead, I’m more prone to wait and watch. Otherwise, if I sold out just to break even, all my waiting would be in vain.
Doc has started to do a frequent live “Trade School” video; watch for announcements and links in the “Premium Chat” room of our Discord site.
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 Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). 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 scheduled Premium-Only Livestream is scheduled for 19 September 2018 at 8 PM EDT (UTC/GMT -4 hours). Watch below for new link. Doc has also been doing a daily “Trade School” video 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.
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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:
- Potential swing trades showing on ETP/BTC, DOGE/BTC, and ETH/USD; please view today’s video for setup information.
- If the $100 support level holds we’ll look to add XMRUSD to our managed portfolio.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
- 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. (6% more to add)
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
Today was about “framing” in the price action to create decision points for whether the price is going higher or lower in the near term. This is important so that we don’t cop a bias as the “range contraction” of BTC is foreshadowing a relatively big move going forward.
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:
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.