Archive for 'bitcoin'

Crypto Currency Basics- How to not Lose Your Shirt

The Crypto Currency market has been around for several years now and although it’s not considered by some as part of the mainstream markets, there’s plenty of money to be made. One of the main attractions of this market is that you can be a player for only a small investment,  as low as $500. But on the negative side, this market is known for it’s extreme volatility and you really need to educate yourself before you jump in up to your ears.

Cryptos are volatile

In our previous article, we briefly described, in layman’s terms, the technology underlying cryptocurrency. Then we described how to get started with your first cryptocurrency purchase. In this article we want to characterize the crypto trade so you can begin a journey toward successful trading. Cryptocurrency is a very volatile asset and perhaps the most volatile asset we have seen. We expect it to remain this way for some time.

On any given day, we might see certain cryptos move 100% or more. 10% moves in small cap coin are quite pedestrian. 3-5% daily moves in the larger coins are common. Therefore, the returns, both positive and negative, outstrip the stock market by many fold.

Furthermore, it is a market that never shuts down due to automation, as exchanges trade 24 hours a day, 7 days a week. There is nothing like waking up one morning to find out traders in another country had pushed the market more than you expected- for a gain or a loss.

Contrary to the ‘get rich quick with crypto’ talk pervading the media, we suggest that most traders put very little of their overall asset value at risk in this market.

Accelerated Pace

We also characterize the crypto market as operating on an accelerated time scale. While using our Fibonacci Pinball method works quite well through all time frames, it simply moves much faster than any other market.

To put the speed of this market in context, Coinbase founder, Fred Ehrsam, gave an interesting perspective in a recent interview. During the interview, he was asked whether cryptos were in a bubble. In response, he said he’s seen several boom and bust cycles in only his seven years in the business.

That’s right. Several boom and bust cycles in seven years.

Looking over the chart of Bitcoin, which started in 2010, we find two bear market drops of over 90%. 30% to 50% drops over a month or more have been very common.

 

Ryan got his feet wet trading Ether very early in its history. Within months of his first trade in early 2016 it was three multiples higher. Yet, by December 2016, it lost 60% in a six month bear market . Ryan exited his positions at the time after it broke bull market support. Ryan re-entered the market in the $7 to $10 dollar region after it presented with a new impulsive structure. It is now hovering around $300.

Through the lens of the Elliott Wave Principle we call the current rally under way in Ether the third wave, based upon our Fibonacci Pinball method.

Let’s compare the third wave in Ethereum, still in progress, to the great bull run of the stock market. We are comparing 84 years in the S+P to just over six months in Ether. And, in that six months, as you can see, Ether has outperformed the S+P500 by many fold. This evidences the accelerated return in time, but one must realize that also means the ‘busts’ come with similar acceleration.

How You can Succeed

Ryan learned early that the best to way to manage this volatility is to start small. He personally started with $500 and readily recommend new subscribers to our service consider a similar modest start. If you can manage the trade well, you can grow that immensely. More is not needed, but one may choose to add as they develop a comfort with the market.

 

Elliott Wave and CryptoCurrency

The key to trading this market well is to identify points where the market may turn. We use Elliott Wave analysis to do this in cryptos just as in any other asset.

Sentiment rules all markets and Elliott Wave is the best discerner of market sentiment I have come across. If you believe there is no fundamental value in cryptocurrencies, then you must believe that these markets are purely sentiment driven. Furthermore, the Fibonacci Pinball rules we use have worked quite well identifying support and resistance levels in cryptocurrency.

Of course, newer assets have little price history to build the most confident count, but we’re tracking many older large cap coins with very reliable counts.

Among the smaller cap coins, Ryan is seeking out the next coin that can enter a massive third wave to rival that of Ether’s and Bitcoin’s monstrous climbs. He has identified a few candidates we are tracking them in our small cap portfolio. Once the chart is ripe enough for higher confidence, we will consider writing a public article on the specific coin.

 

More on Crypto Currency with Avi Gilburt

Bitcoin Jumps 11+% Higher

 Earlier reports that the Chinese would be clamping down on the Crypto currency seems to be unfounded as new speculation by the Chinese seems to be going in the opposite direction resulting in a new all time high for bitcoin. See more below:

Bitcoin price rose to a new all-time high on Thursday due to increasing investor interest in the cryptocurrency. The price of bitcoin jumped 11.28 percent to $5,375.72 during Thursday’s session, according to data from CoinDesk. The new record surpassed its previous high of $5,013.91 on September 2nd. The recent rally in Bitcoin brings its market capitalization to about 89 billion. Bitcoin is the biggest digital currency by market cap, accounting for over 54 percent of the total cryptocurrency market. Bitcoin was up about 23 percent this month and has gained over 430 percent year-to-date. Chineseinvestors.com, Inc. (OTC: CIIX), Bitcoin Investment Trust (OTC: GBTC), Riot Blockchain Inc. (NASDAQ: BIOP), Overstock.com, Inc. (NASDAQ: OSTK), Global Arena Holding Inc. (OTC: GAHC)

Speculation that China may resume cryptocurrency trading and increasing trading volumes in other Asian countries such as Japan and South Korea boosted bitcoin prices. According to a report from Cryptocoinnews.com, the Chinese government is considering licensing exchanges for cryptocurrencies. Last month, the world’s second largest economy banned initial coin offerings (ICOs) and shut down operation of cryptocurrency exchanges, which caused a bitcoin price drop to a low of $2,980 in mid-September. “Speculators are bullish on bitcoin’s value with the anticipation of China’s reintegration with global crypto markets,” Aurelien Menant, CEO of cryptocurrency exchange Gatecoin, said in a CNBC report on Thursday.

Chineseinvestors.com, Inc. (OTCQB: CIIX) announced earlier this week that, “the Company has launched the first cryptocurrency daily video newscast in the Chinese language, entitled Bitcoin Multimillionaire, broadcast from the NYSE. The video newscast covers timely information and analysis regarding all aspects of the emerging digital currency world, including specific cryptocurrencies, such as Bitcoin and Ethereum, industry trends, price movement, blockchain technology, and sector-related stocks and ETFs listed on major exchanges and the OTC market.”

“Many Chinese investors are seeking information and education related to the cryptocurrency sector,” says Warren Wang, Founder and CEO of CIIX. “Moreover, in response to the growing popularity of cryptocurrencies and ICOs, governments around the world, including but not limited to, the United States, China, Japan, South Korea and Switzerland are weighing in and/or enacting regulatory policies regarding cryptocurrencies and ICOs. In the United States, Goldman Sachs Group Inc. recently announced that it is considering a new trading operation dedicated to bitcoin and other digital currencies.”

In addition, CIIX also has plans to launch a new cryptocurrency website under the domain name newcoin168.com to serve Chinese cryptocurrency investors. The site, expected to launch next month, will endeavor to be a leader in digital media and cryptocurrency and blockchain technology education providing straightforward explanations of cryptocurrency basics, trading guidelines, real-time market commentary and analysis regarding currency mining, blockchain technology, industry hotspots, sector-related stock trends and ETFs, and other strategies and opportunities to capitalize on the bitcoin market.

“After the recent launch of our Bitcoin Multimillionaire daily video newscast, the Company has decided to further expand its presence in the digital currency sector,” says Wang. “Similar to U.S. stocks, as the price of digital currency, such as Bitcoin, continues to increase, Chinese people all over the world are taking notice and seeking access to timely information regarding market trends, news, and analysis. We look forward to being the premier source for this information.”

Bitcoin Investment Trust (OTCQX: GBTC) is a publicly-quoted security that is solely invested in and originating value from the price of bitcoin. The BIT exposes the value and price movement of bitcoin to investors through a traditional investment vehicle, without requiring the purchase, storing and safekeeping of bitcoins. The Bitcoin Investment Trust tracks the bitcoin market price, fees and expenses.

Riot Blockchain Inc. (NASDAQ: BIOP) leverages its expertise and network to build and support blockchain technology companies. Recently, the company announced it has made a strategic investment in Coinsquare Ltd., one of Canada’s leading exchanges for trading digital currencies. This investment into a blockchain-focused company is indicative of similar opportunities Riot Blockchain plans to pursue, including possible acquisitions of businesses serving the blockchain ecosystem. Blockchain protocols offer a secure way to store and relay information without the need for middlemen. It uses a decentralized and encrypted ledger that offers a secure, efficient, verifiable, and permanent way of storing records and other information. Blockchain protocols are the backbone of numerous digital cryptocurrencies including Bitcoin, Ethereum and Litecoin.

Overstock.com, Inc. (NASDAQ: OSTK) is the first major retailer to accept multiple cryptocurrencies as payment. On August 8, 2017, the company announced an integration with ShapeShift, the world’s leading instant digital asset exchange, that allows customers to use all the major cryptocurrencies, including Ethereum, Litecoin, Dash, Monero, and the new Bitcoin Cash, to buy online from Overstock’s selection of nearly 4 million products, including, furniture, accessories, bedding, décor, rugs, DIY, and more. ShapeShift allows digital currencies to be easily converted between different coin types in a matter of seconds, all without any account setup or personal data required. Instead, the funds are sent to a specific address, with the blockchain record of the transaction acting as both the order and the receipt.

Global Arena Holding Inc. (OTC: GAHC) is a holding and technology development company. The company is focused on acquiring technologies, patents and companies having the ability to leverage the blockchain crypto technology. GAHC incorporated GAHI Acquisition Corp. to be the merger subsidiary for the acquisition of Blockchain Technologies Corporation (“BTC”). Currently, GAHC and BTC have entered into an acquisition arrangement where BTC will merge with GAHI Acquisition Corp. BTC is a technology company which leverages the underlying crypto technology of Bitcoin [Blockchain], acting as a seed accelerator. BTC currently features a number of innovative startups utilizing the Blockchain and operating within the crypto technology field.

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