Hi Crypto folks, happy 2018.
Hope you are starting things off on a prosperous note…. also known as rolling in the cryptos. We are excited about what this new year in the crypto space will bring, and look forward to helping everyone become a part of the crypto fireworks.
To kick things off and direct your focus, here are a few things we have been noticing since our last report.
Total Crypto Market Cap is Nearing 1 Trillion USD
At the time of writing this report, we have seen the total crypto market cap jump from 350 billion USD to over 700 billion USD in the last 30 days. This is only 250 billion shy of the 1 trillion mark which will surely catapult crypto into the big time. It is crazy to think that 250 billion USD is what flowed into the market last month alone.
The most noteworthy of all of this is that in this period Bitcoin lost much of its dominance, dropping from 67% to 35%. Most of the major, and crypto’s in general have experienced record gains in December, and it looks like the trend is continuing into January. Historically January sets the trend for the major stock markets for the year. It is also important to note that historically, small stocks usually outperform big stock before February, with February markets being typically slower. We are keeping this in mind as we trade the markets into February.
The Ripple Saga
I don’t want to carry on too much about the Ripple saga, but to put a long story short much of Ripple is (arguably?) owned by the banks. Ethics aside, in my opinion this is not in and of itself a problem, however the ability to print XRP puts it into the same realm as fiat. My advice for anyone wishing to speculate on the Ripple market is to use fiat for this purpose, and not your hard earned (and precious) crypto such as Ethereum, Bitcoin, etc.
The Changing Game
It is also important to keep in mind that as the market cap grows, so too does the game itself change. It seems to me that the market is now comprised of a more serious set of players. Weak hands are being weeded out quite severely, but not to the point where any experienced trader would break a sweat. Dips are getting bought up swiftly and 50% retraces are becoming a rare occurrence.
I think one of the best parts to all this is that the Bitcoin price did not tank below 12 000 USD. While altcoins like Neo and Ethereum (among others, because nowadays there are too many to mention) are pushing for new highs everyday. In trading it has been proven that it is most profitable to trade with the trend. At the moment a big part of the crypto space is bullish. For investors buying to hold for the years to come this is a great place to get in. I am not saying the markets have become immune to volatility, and we can probably expect some dips in the near future. However I am betting my bottom dollar (or tokens.. or cats?) on crypto.
“Investors Should Always Stay Long, and Leave the Shorting to the Pro’s” – Martin S. Swartz
It Pays to Be Adaptable
We have been noticing a bit of a trend with certain exchanges freezing user’s fund, closing registration for new users, or just simply not validating any new users. When this first became apparent, we advised fellow hodlums to become familiar with decentralized exchanges, such as the Waves Platform and EtherDelta, among other. This has helped us avoid this odd situation with some grace.
In the dark times we always get a glimmer of hope, and it seems like a Chinese backed exchange (from what I could gather, don’t quote me) called KuCoin stepped up and started delivering excellent service. I won’t go into too much detail, but it would pay investors to take a look at this new exchange as well as the previously mentioned dEX’s (decentralized exchanges).
Investing in Tokens On the Programmable Blockchains
I would like to share a personal strategy that is working very well for us with our crypto holdings.
I never buy into ICOs these days. Because for the most part the capital is not liquid during the ICO period. Some of these ICOs (usually the badly researched / rumours), dump quite severely after being listed on exchanges initially.
To avoid this horrible sh*tuation, we usually wait for the action on the markets before jumping in.
So instead of fomo’ing your hard earned capital into the next ICO, rather spend your efforts researching and even becoming part of the projects before they get traded. I have found that my best researched picks did not even dump at all after trading started. The ones that did lose value quickly regained value as investors stepped in and the markets corrected themselves.
One main reason for this is that tokens have a limited supply and most big players buying into good projects will not dump away their profits. These are years, or even decade long investments at times, and I have found that it gives great stability to some projects. A real world example of the last few months is Enjincoin. You can take a look at the charts for yourself.
The great thing about investing in good token projects is that you can store them on the wallets of the various blockchains. For example we can easily store tokens that run on the Ethereum blockchain, directly on our Ethereum wallet. Not only is this convenient and lightweight, it also creates a symbiotic investment opportunity. As the old saying goes, so far so good – try it out for yourself.
Privacy Coins Still on the Rise
We will always keep our eyes on the underdogs and invest accordingly.
In my mind Monero has proven itself to a good store of value. It has a great community, is unique in its own way, and has a real world use by offering absolute and total privacy.
Zcash is also still busy with great things and the price is reflecting that by doubling in the last month. It is also important to notice that Zcash is actually being used, and the number of transactions is rising every month, which is a telling sign for Zcash.
There is also an unknown project that I know is close to the Monero community’s heart. They have recently been busy with some changes, and among other things, a very strong community road map. Aeon is the coin’s name, and it has found its way into my bags. When you have some time, take a look at the community, they are awesome.
– That’s all For Now Folks –
Safe trades, happy holds, and remember to do your due research before jumping into trades.
If you have any thoughts, questions or just want to chat, remember you can find us on the Slack channel and now on Discord too.
– the Cryptosignal.trade Team