Trading Crypto: **Friday Morning: Bitcoin Isn’t Your Friend Right Now

Bitcoin has been trending down for the last 20 hours, and as of now has no end in sight for the near-term. Why? Consider that almost every candle on the 4-hour scale for that last 20 hours or so has been red. Supports have been broken with ease, and Rogue* Wave Pattern has played out to perfect harmony with the movement in the last few days.

Looking at the daily chart, we can see the clear cross in MACD to indicate that BTC still had not unleashed it’s true downside. Keep in mind as BTC has had an excellent bull run, this giveback is to be expected and is normal. Where it stops will be key. As shown in the last several days’ charts, the Rogue* Wave Analysis showed BTC attempting to seek out the mid to lower 8k levels at the least. Currently, BTC is trading around 8500. Taking a look at the current Rogue model as well, a clear path is given to the daily candles to test 8800, then 8k. Candle close* is what counts.
Lets take a look at the tech specs.
 MACD has crossed and is ticking negatively on literally every scale. Daily currently shows that downward momentum will continue.
Stochastic levels and getting low daily and seeking oversold(<20) once again, however 4-hour is something to watch as it has been in low levels for a while and seeks to try and bottom. Watch in the next 12-24 hours.
BTC is currently a No Play. Capital Conservation and Risk Management should have been utilized, and should continue to be applied in these market conditions.
Futures Traders – Trade the Trend. The short-term trend is down.

Trading Versus Managing Your Crypto Portfolio; A Lesson In Oxymorons

This week, our staff focuses on the epic battle going on in the heads of financial advisors, and how to analyze what’s going on with Cryptocurrencies, namely Bitcoin.

We took a look at social media first, and what we found was astonishing. The crypto community is completely two-sided, with a higher percentage of individuals convinced that the “to the moon” aspect of cryptos is just getting started. This, of course, means that Bitcoin’s almost 20k high is no match for what is to come. And there’s more…

Over 75% of these individuals right now are under the age of 35. So how can they be so convinced? Simply put, they’re guessing. If they are guessing, then the fact is that so is the financial advisory side. There are a couple of facts to remember here.

First, the fact that bitcoin is so heavily traded on a daily basis is astounding. Two years ago, Binance didn’t exist. No one cared about Bitcoin. But that’s just the issue taking into consideration the brand new concept of speculation of digital assets, it’s a world that no one has ventured before. Financial advisors, computer algorithms, and individual speculators alike have never had any experience trading them. If this is fact, and it is, then no one on the planet has any clue as to how crypto speculation can be properly managed and carried out. This being the case, the “official” side of investing consisting of the institutional players have zero experience to achieve something they are betting on: Higher returns on cryptocurrency investments.

The ICO Journal reported yesterday on why financial advisors continue to question the cryptocurrency markets and the methods used to manage them. It seems that years of success in traditional markets have not taught them well enough to dive into the crypto world. But there are “Bitcoin millionaires” being made daily, aren’t there?

Maybe a few, but from our research, there are very few. However, this does not account for the success that can be attained from the crypto markets, and our resident “Rogue Trader” explains how.

“The crypto markets mathematically are trading very similar to the traditional financial instruments that the advisory side is accustomed to. I have had experience in every corner of trading, and as and fund manager and individual speculator, I have had great success which others have also come to see by using purely technicals. Technicals have and will always work. Period. Math never changes, and that’s why I love them. The only issue that arises with the use of tech specs is that 9 out of 10 times in the crypto world, I’ve noticed that the wild price swings take away a sense of security for most people, even if they go into trades knowing what to expect. They are playing a one candle game in the end, and that means cutting trades after only one incident of volatility. Traditional markets only see this scenario on rare occasions, but Crypto markets experience these all day. This is just one adjustment that needs to be made.” 

“Considering I’ve personally seen(and had myself) many successful trades while being able to cut losses accurately, there is something to be said for bringing more simplicity to the table. Over-complication in trading Cryptos is not the same as traditional markets, whereas the increased noise on an already super-volatile market just magnifies the rollercoaster emotion and whiplash that is experienced within rule-based trades. Even the most experienced traders are having a difficult time, and that’s okay. My belief is what we need to see is a change in the way individuals on the financial management side and individual speculator area learn to simplify the approach to daily involvement while re-thinking the way investments should be made. What I’m also eluding to here is the fact that everyone’s ready for big upside within Cryptos, but the issue is the downside is not treated the same way, and that is a major issue when considering the extreme price moves in any given minute, all on a daily basis.”

A final note to add is the way the financial management side can approach these investments. The outlook needs to change dramatically as far as projections go. Just take a look at where Bitcoin has been already, along with some of the alt-coins.

Let’s forget about the fact that for the year Bitcoin alone is down around 60%. Everyone is looking for the upswing in the near future, when the fact remains that Bitcoin should be seen as a long-term investment because of the belief in the technology behind it, not by looking at weekly/monthly percentage gains.

Bitcoin is in a major bear trend right now that has lasted almost six months, and you can see why the short-term blowout gains that are being asked of the financial advisory side are unrealistic. The realistic fact is you can only get the gains that were seen in 2017 with the buy and hold strategy by trading another new item: Bitcoin Futures – and that’s a different story altogether.

For right now, taking a step back and looking for either long-term investment or using technical entry points with enough downside risk tolerance is key. Forget about the boom that’s already happened and play the market as though it’s going to continue going down….because right now it absolutely is.”

ICO Popularity And Strength Continues, As Regulations Loom

It’s no secret that 2017 turned out to be a fantastic one for ICOs, as a lot of cash flowed into the purchasing of these digital tokens.

We believe there is going to be a better show of prototypes, theories, white papers and conferences in 2018. But, one thing we are definitely sure about is that 2018 is going to see a major change within the technology termed as the ICOs.

With tests carried out along the way and the new development constructs emerging at the forefront for initial coin offerings, beta test nets and iterations are observed surrounding the technology. 2018 brings forth many great events encircling the ICOs and as time takes a leap into the future, we explore some of the trends that push ICO into reshaping the world’s economy.

One of the many outstanding issues barreling towards ICOs is government regulation. Some believe that it is due to a number of investors who have spent a rather large chunk of their finances into purchasing them, while others simply believe that the government seeks its own benefit by withholding regulatory laws.

According to Nicholas Morgan, former SEC enforcement attorney,

“The real news will be actions against non-issuers,”

This statement presents the idea that issuers of the ICO are not recognized as public entities and are not subjected to the PCAOB standards.

While, the government is nowhere near in revealing delegated regulation laws, the investment pipeline is subjected to grow for the ICO technology a bit more dramatically than expected.

According to Wendy Schadek of Northzone,

“Both humongous deals and smaller, faster rounds [are happening now],”

But Wendy is not the only investor who believes that there will be more rounds on the initial coin offerings. There are others on the market who revealed that the future holds more complex deals, well-structured constructs and stronger venture capital.

Another prediction that surrounds the market of blockchain technology discloses that modern day entrepreneurs are more compelled towards launching startups in the cryptocurrency world. Ethereum shows a promising future and that’s what compels them to invest in the technology.

According to Josh Fraser of the Original Protocol,

“Ethereum is still the clear winner today in terms of the community and developer tools that are available. We’re rooting hard for Plasma and the team at OmiseGO as they try and build the first implementation of it,”

The age of decentralized application has arrived. What indicates that is the $100 million ICO, Status, was observed investing a $5 million in New Vector which is basically on organization that backs the idea of the decentralized Slack alternative such as Riot.im. This specifies that the future will be seeing more of decentralized innovations and this will largely benefit the popular cryptocurrency community.

No matter what the regulatory bodies believe of the ICO technology being unregulated and all, but there is something about the ICOs which is compelling Mark Zuckerberg of Facebook to delve in and study the concept in 2018. After the Winklevoss brothers, maybe Mark is planning to start a Facebook coin all of its own.

Time will tell. One this is certain, though, ICO strength is on the rise and hasn’t shown any signs of slowing.

Dear Mom and Dad: Be Very, Very Careful With Cryptocurrency ‘Advice’

Throughout their history, penny stocks have historically had a strange place in speculation. In fact, ‘Pink Sheets’ was used in some of our favorite lines in the movie “Wolf of Wall Street” to describe the least desirable factor in office antics. Even so, it never stopped the masses from joining the movement. Ultra-high returns and stories of riches made overnight by everyday Joe’s drew in an audience for the scheme of all schemes: the “Pump & Dump.”

The pump and dump allow the initial holders of the stock or financial product to make off with big profits, all while maintaining their status in a “grey area.” While pink sheets still trade today, people generally have figured out that their garbage. The promises of overnight riches slowly faded with the pump and dump scheme taking precedence over actual investment purpose. Gone are the days of penny stock informercials, the brainchild of the scheme itself.

How exactly does it work and why does it matter? Because as of recently, a new form of the scheme seems to be taking place in a world where people of all ages are involved: Cryptocurrencies.

The market has exploded, and let gaps for few with the tools to employ proper marketing to draw in masses yet again. The days of the pump and dump have returned, and they’re probably going to keep going unless the entire system shuts down.

Just recently, the CTFC (Commodity Futures Trading Commission – www.ctfc.gov) decided that after congressional hearings showed not all is well in the crypto world, they would warn speculators about cryptos in general. They issued a vague but important statement stating the following:

The U.S. Commodity Futures Trading Commission (CFTC) is advising customers to avoid pump-and-dump schemes that can occur in thinly traded or new “alternative” virtual currencies and digital coins or tokens. Customers should not purchase virtual currencies, digital coins, or tokens based on social media tips or sudden price spikes. Thoroughly research virtual currencies, digital coins, tokens, and the companies or entities behind them in order to separate hype from facts. 

Usually, we don’t much agree with anything they put out verbatim, but absolutely do here. There are currently hundreds, if not thousands of user profiles all over social media “boosting” coins in a totally unregulated, free-spirited manner that draws the likes of the unsophisticated investor more than anything we’ve seen before.

The schemes run like this: a digital coin, token etc. is hyped on social media. You see many followers start to join the conversation, and start following yourself. The conversation then turns to a countdown, almost like you’re at NASA waiting to hit the lift-off button. Users will all follow, buy into the coin, and as the plan begins to unfold, the initial fire starter (the random guy you’re following) begins to dump the colossal amount of shares he or his group owns. First, you pump, then you dump. Simple.

Here’s the issue, you and thousands of others just lost your investment or at least the bulk of it. There lies the issue. There may have been no real cause, no real reason for the token’s existence to begin with, just as the penny stock craze held “companies” that had no real value to them. All they came to the table with was a registration paper and a good marketing pitch. Oh, and the “proprietary” technology you are investing in that could “change the world” with whatever it promises? There is none. It’s all a big game, making someone really rich, really fast. The problem is that someone isn’t you or any investors. This entire scheme just got entirely more dangerous as well. When you cross the line into the crypto world, many regulations that make it difficult for penny stocks to manipulate investors (although it still happens) are simply not in place for cryptos. This double’s the danger factor and makes it easy to take advantage of any age range. That’s the key difference, driving the risk factor far higher than previous pump and dump schemes.

So, how do you protect yourself? Simply by doing your homework. Vet the company and make sure their research is valid. Make sure they have a large media presence. Do not look at percentage gains, they mean nothing. If your idea is pure speculation, take your money and go to the financial markets. Robinhood allows you to do it from anywhere, anytime and skips the fees and complicated registration.

Be smart about the way you invest your dollars, whether only $100 or $1 million. At the end, no pump and dump care who you are, how old, or how much money you are putting in. All they care about is that you listen, and so far they’re getting sold out audiences like a Rolling Stone concert.

Capital Markets Grapple With Defining Cryptocurrencies Within Blockchain Super Structures

Holding a market capitalization of around $251 Billion, Bitcoin has now become a widely accepted digital asset and an active payment system. This makes Bitcoin one of the game-changing cryptocurrencies on the front-line right now. We often find ourselves pondering why organizations believe Bitcoin is a compelling option to invest their funds in?

Why did Barry Silbert of Digital Currency Group sell everything in his portfolio and go all in? Why did the famous Winklevoss twins pour their entire Facebook settlement into cryptocurrency technology?

 

One of the many reasons which make cryptocurrencies a widely accepted investment choice among most modern-day entrepreneurs is that this currency is less volatile and almost tax-free. It was not until the IRS declared blockchain technology as a property and sanctioned a tax payment on it. But, before that happened, Bitcoin was just another cryptocurrency that had zero correlation with the stock market. It’s why the Winklevoss brothers hold almost 1% of the total Bitcoin share on the market right now.

 

One of the many surprising pieces of news that came out back in 2013 was when Federal Reserve Chairman Ben Bernanke explained to the Congress that, “Bitcoin holds a long-term promising future if this innovative technology promotes faster, secure and efficient payment system in the coming days.”

 

As far as all the hype is concerned, it’s pretty obvious why the banks are willing to create a circumference of their own around the cryptocurrency market. Can’t see through it? Allow me to help you understand it.

 

All transactions made through an exchange on cryptocurrencies are going to be public and anyone having an access to these ledgers can easily have the transparency to check on all previous transactions.

 

Banks can make use of that information to analyze and forecast financial trends of individuals and result in calculating the exact amount of tax returns. With the IRS policy of making the blockchain technology an asset, things become a whole lot simpler for the big guns.

 

The technology becomes legit and tax-friendly which overall results in making the cryptocurrency a legal system for organizations to invest in.

 

While the technology itself is of a digital essence, it can be used as a ready cash rather than depositing a credit. It’s like you can make transactions anywhere and there will be no dispute of losing an amount, because one way or another, you are getting paid.

 

With the concepts of ICOs on the rise, things have taken a real turn for the Bitcoin community as more and more investors are pouring in. Multinational firms are putting their trust more in digital contracts and expecting fruitful results as compared to traditional methods of closing down deals.

 

And once the contract fulfills its requirements, there is no investment drain as you can easily cash out on it by selling the ICO’s as blockchain ledgers making it a win-win solution for all.

Tether: Unboxing All The Hype (Yes, Really)

In recent months, there has been much confusion as to whether Tether’s entry to the marketplace will have value and what it would do. We decided to give an absolute rundown on the reality of it all, and what the inner working may bring.

Tether is a cryptocurrency asset made by Tether Limited on top of the Bitcoin blockchain through the “Omni Protocol Layer.” It was designed and built to give individuals a much more stable coin, according to reports. This is shown by Tether’s ability to allow Bitcoin users to easily shift their funds from Bitcoin to Tether much more easily than any other item. This idea was built around the fact that the cryptocurrency market could get choppy and bring much-unwanted volatility when its least expected. For tether, thus far, they have aimed in the right direction considering recent price action. They also have an Ethereum-based token as well, both backed by the USD. This makes its value stand out, considering each USDTether equals one dollar. Convenience? Yes. Smart? Absolutely. There is undeniably a market segment that has been waiting for this type of versatility.

In the last few months, the USD/TETHER has nearly quadrupled, and some concern has grown with it(yes, there is always a reason for concern). As an unknown factor, we want to know that the question at hand is why Tether’s latest large issuance was timed almost perfectly with Bitcoins price action(it being propped up). There are many opinions on why, and our feeling is that the printing is just a response to the market, just like QE works in the financial markets. And there it is- another coin correlation to the financial markets that have run the world historically. Again, the unknown brings these issues.

A final dark side shows that there could be the issue of Tether not having the US dollar reserves it claims to have. In simple fact, this means speculation will divert its current holding into other cryptocurrencies in fear that the original idea behind Tether is not so useful anymore. Tether is meant to be an inter-exchange facilitator. With this idea blasted, again, Houston…we have a problem. This will also cause major problems for Exchanges that heavily rely on the issues, such as Bitfinex. The failure would likely mean the end of these exchanges.

Which brings us to our final option: keeping it simple and believing in the potential use just like any other coin. For most investors, the inner workings and understanding could mean anything at this point, but a return is what is sought. As with any financial instrument, there will always be a risk. Tether’s risk could be great, and with great risk generally comes great reward. What can be said for Tether right now is there is no shortage of believers and no shortage of plans to make their lives easier as well. After all, this is the route of any other digital asset’s life so far, so why not go with Tether? Easy currency swaps were part of the base in building a crypto-world. This is just the upgrade, and for now, we like the sound of it.

IOTA Offers A Unique Story, And Community, In The Crypto Ecosystem

IOTA, parent to MIOTA the cryptocurrency, has recently been making waves as it gains popularity among speculators. As a matter of fact, The ICO Journal regularly scrolls it as one of our main crypto trends. It continues to garner attention in the crypto world, but is their substance behind the chatter?

We decided to dig a little deeper.

A quick breakdown: Started in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov, its based out of Berlin, Germany. These guys started out by mining 1,300 bitcoins (in 2015) and moving on for a couple of years.

In 2017, they made waves again and got busy; creating partnerships with Cisco, Volkswagen, Microsoft, Huwei, and Samsung.

Then, recently (2018) the city of Haarlem, Netherlands, built a proof of concept of a document verification system for it’s residents. And of course, it’s huge as far as market cap goes.

So, after the quick history lesson, what do we need to know about IOTA? How about the $37 million “ITOA Ecosystem” that launched to create an environment for developers to create educational materials and other resources for the IOTA community. Yes, they really are building a digital world of their own – or at least giving people the chance to do it. Think of it like Minecraft for the crypto world. The opportunity to create and build with powerful tools is soon to be available to individuals of any scale for open-source DLT applications built to the IOTA core protocol.

Again, this could be monumental for the company. We speak quite often about long term holdings and value in cryptocurrencies, and frankly, this fits the bill perfectly. Think of it as the next big phase in the life of a small startup to basically launch an R&D department with potential to grow indefinitely.

To give the basic rundown an even more simple approach, compare this to a lab. You support it one of two ways. First, you could fill the room with a few scientists and tell them to get to work. That’s your investment. On the other hand, you could fill the room with cell phones. These connect to every scientist on the planet and allow them to work with each other. Seems basic enough, right?

Now which do you prefer?

Yeah, that really is what IOTA is attempting here, and we like it. As a matter of fact, we love it and stand by their next level thinkers.

Add to all of this, that just recently they launched their “IOTA Marketplace” with over 20 companies that include big titles like Microsoft, amongst other deals they’ve closed. In any case, hoorah to IOTA and the push forward. It couldn’t be any more clear that for coins that claim to be on track for success, these guy are really on their way.

Crypto Hardware Wallets That Are Worth Your Cold Hard Cash

The rise of cryptocurrency is multiplying by the day. As a result, novel and better cryptocurrencies are introduced regularly. With the rise of the Bitcoin and its gain in consideration among many, the need for securing purchased cryptocurrency became imminent.

The Cyberworld is not secure. Hence, keeping your cryptocurrency on an exchange or a software wallet is not the best choice. Observing the dramatic rise in cyber espionage and data theft, the technology experts released more robust options to secure your assets.

Introducing, Hardware Wallets. They help you secure your cryptocurrency at an offline location away from the Internet. But, isn’t cryptocurrency secured on blockchains which are available online only? True that! But to access those blockchains one needs private keys and passcodes.

Your Hardware wallet keeps your transaction data encrypted and keep all your private keys and passwords safe with it. Want to know what is the best part? Even if your wallet gets stolen, you can shift all your data on another hardware wallet without suffering any data loss. Even the hardware wallet requires a set of codes to be accessed.

Today, we are going to discuss some of the best Hardware wallets gaining fame within the cryptocurrency world. So without any further Ado, let’s delve in.

Top Five Hardware Wallet to Keep Your Cryptocurrency Data Secure in 2018

Trezor Bitcoin Wallet

One of the best hardware wallets by far is the Trezor Bitcoin Wallet. Don’t go on its name as it supports a number of cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), Ethereum Classic (ETC), Dash (DASH), Zcash (ZEC), Namecoin (NMC), Dogecoin (DOGE), ERC-20 Tokens. The best thing about this wallet is that even when you plug-in this wallet in a malware infected system, the wallet keeps your private keys and data safe. It handles all your transactions smoothly and it is the best wallet for non-techies out there.

Ledger Nano S Wallet

If you are looking for a user-friendly solution for Bitcoin and other alternative cryptocurrencies, then nothing works better than the Ledger Nano S. This device includes a screen that can help you navigate through all your transactions easily. The device encrypts your private keys and keeps your cryptocurrency data safe. This device supports all of the following currencies: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Ark (ARK), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Expanse (EXP), Dash (DASH), Digibyte (DGB), Dogecoin (DOGE), Komodo (KMD), Litecoin (LTC), NEO (NEO), Pivx (PIVX), Posw Coin (POSW), Qtum(QTUM), Stealthcoin (XST), Stellar Lumens (XLM), Stratis (STRAT), Ubiq (UBQ), Vertcoin (VTC), Viacoin (VIA), Ripple (XRP), Zcash (ZEC).

CoolWallet Bitcoin

Do you live in areas where it rains all around the year? Don’t worry, we have the perfect solution for your cryptocurrency. Keep the CoolWallet with you as this wallet is completely waterproof. You can keep all your cryptocurrency data safe and secure within this wallet. The best thing about this Wallet is that you can sign your transactions offline, which means that as soon as you connect to the Internet your transactions will automatically take place. The device is slim like a credit card and can easily fit into your wallet. However, this wallet only supports Bitcoin (BTC).

Digital BitBox 

The brainchild of the Swiss-based organization, Shift devices AG, the digital bitbox is the perfect solution for adjusting multiple cryptocurrencies. This device includes native software which excludes the association of browser-based extensions. It works on private keys which are stored within the device itself rather than some other computer device. This Bitcoin wallet is capable of storing Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), and ERC20 tokens. You can perform multiple signatures and you can set two-factor authentication using your smartphone with it.

So, these are our top picks of the day on the best four hardware wallets for cryptocurrencies. None of these are actual endorsements, but rather thoughts we’ve collected from dozens of user reviews and conversations within the industry. As always, be careful and do as much of your own due diligence as possible. It is your cryptocurrency that is at stake.

Bitcoin Bull Run Strengthens Overnight; Pushes Past 8,600

Bitcoin’s muscular rebound held overnight and even pushed higher than most traders has predicted – pushing past 8,600 in the wee hours. The price action looks short term bullish for the cryptocurrency, and other cryptos are following right along.

On the GDAX exchange, BTC clocked a high of $8,650 yesterday before a technical failure at key trendline resistance pushed prices back to $7,535. However, the dip was short-lived and the cryptocurrency moved back above the $8,000 mark this morning and was last seen changing hands at $8,280.

The positive price action indicates the investors continue to cheer the conciliatory tone adopted by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission at Senate hearing on Tuesday.

The last 4-hour candle closed above the descending trendline (1), signaling a bullish breakout. The move adds credence to the bullish price-RSI divergence indicated on Tuesday and the bullish higher lows pattern (as indicated by rising trendline).

View

  • BTC looks set to test yesterday’s high of $8,650 and could make a move towards the $9,000 mark.
  • A slight cause of concern is the drop in volumes seen on the 4-hour chart, which puts a question mark on the sustainability of the breakout.

Further, BTC may find it hard to hold on to gains above $8,572 (10-day moving average), given the 5-day and 10-day MAs are still sloping downwards, indicating bearish setup.

  • A daily close (as per UTC) above the 10-day MA would validate the argument that BTC has bottomed out at $5,873 (Feb. 6 low).
  • Bearish scenario: Failure to hold above trendline (1) followed by a drop below $7,535 could yield re-test of the recent low of $5,873.

As always, with respect to volatility, keep your head on a swivel!