Hello and thanks again for tuning into our very first Newsletter. Our aim with this newsletter is to update you monthly on all things relevant impacting this new space, as well as some technical analysis. (The content is purposely kept short, we want to provide information in contained soundbites)
YOU DON’T HAVE TO GO HOME BUT YOU GOTTA GET THE HELL OUT OF HERE
Capital One, Discover, Bank of America, JPMorgan Chase and Citi decided to halt purchases of Bitcoin and other cryptocurrencies on credit cards. You can still purchase your tokens or coins if you have a debit card issued by one of the above banks.
Facebook also decided to get on board and ban all crypto-currency related ads on its website. You can read more about their decision here.
WHERE ARE MY COINS?
If you’re like most coin investors, you have them stored on an online wallet such as: Coinbase or other crypto-currency exchanges like: Binance or Kraken. Due to millions of dollars being stolen from online wallets; you may want to consider storing yours offline. If you’re like me and feel crypto-currencies are here to stay, Take a look at offline wallets such as:
After about two-three Youtube videos; I was able to successfully transfer all my coins with ease. I don’t know much about Trezor but from what I’ve heard; it’s a reliable wallet. Thus far, I’ve had no problems with my Nano S.
PS: I purchased my Nano S for a little over $100 (including shipping and handling).
DID YOU SAY FREE?
Robinhood has entered the Crypto space.
Sick and tired of those massive fees just to purchase a coin? Well, Robinhood heard your cries and decided to offer you this: Click Here.
PSS: How dope is that home page? Apparently in the first two days of announcing their plans to go live; over one million investors signed up to trade cryptos on Robinhood!
Technical Analysis
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BTC/USD
Since trading around 14k; I 'forecasted' a drop in Bitcoin. Indicating you would have a chance to pick some up between $5k-$8k. Truth be told; my 'real' projection based on the charts were $3k-$5k. And those projections stand (for now).
Take note that since hitting a high of $19k-$20k (depending on the exchange); Bitcoin has put in a series of lower highs and lower lows. (Which is the epitome of a downtrend).
Based on the chart and my projections; the bottom 'should' be in around late February to early March/2018.
I will begin purchasing once the coin shows signs of bottoming out; knowing that on a real capitulation (think mass exodus), this can potentially even hit $1k (OUCH).
As much as I despise this; majority of the coins on the market follow Bitcoin's lead. Meaning, if Bitcoin is in a downtrend; majority of your other coins are also in a downtrend. When Bitcoin pops; you'll find a pop with the other cryptos.
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ETH/USD
By far the 'messiest' chart out of them all but there are areas of 'consistency'.
$400-$460 are the clearest levels of entry from this stand point.
Ethereum has tested and retested the $400 area (depicted by the blue arrows) numerous times.
It's about a 50% drop from current levels and it may never get there but I am willing to hold out and purchase as close to those levels as possible.
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LTC/USD
Took 3 months to form the rounding bottom and subsequent break-out.
Break out area of ($100) was retested recently and got a 'bump'. This signals to me; that there are buyers (aka support) willing to step in at $100.
If $100 breaks, you have minor support around $70-$90
Current hurdles to overcome are: $150-$160 and $220-ish
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XRP/USD
Of all the tokens out there; Ripple's fall seems to be the worse.
Tested .50 and found a bit of support. If it continues to test .50 cents; I'd expect a break of those levels and a free fall to .20 cents (where it hovered right before the run-up).
Scary and trying times indeed; especially if you were one of those that bought at the top.
Game Plan
Decide what I can actually afford to invest in the space without becoming homeless (this protects me if the Crypto market turns out to be nothing but hog wash).
As a general rule of thumb; I wouldn't invest more than 10% of my savings. For example; if I had $250k saved in the bank; $25,000 would be the MAX commitment. That way if the market goes south and all my coins become worthless; I still have $225,000 to roll with.
Continue deploying money into the crypto currency space in phases. Phase 1 started around November/2017.
Deployment of capital will take place as coins near their support areas (hoping to complete my total purchases in 4 phases).
If this is anything like the stock market (which I've participated in for almost 2 decades); the more negative the press, the more likely these coins have a chance of succeeding.
Remind myself to stay away from calling 'tops' or 'bottoms'.
Add to position in phases; take some off the top as I see fit (this depends on your profit targets).
Remind myself to Hodl!
Remind myself, this is a new space and the kinks will continue to get worked out.
Feedback is so crucial to our community, let us know what you want to hear in the next Newsletter!
DISCLAIMER: Nothing on this site shall be constituted as investment advice. Cryptocurrency is a highly, note, HIGHLY speculative market. The returns are great but so are the risks! As with investing; I never invest with money I can not afford to lose.