I had a thought the other day about what investment will be my best over the next five years. If I was to forget about it all and come back years down the road would crypto be dead or makeup 5% of the Forex market. I’m what is known as a ‘Hodler’ so I don’t ever trade but I do pound the table when discounts happen.
We are seeing a great discount right now in prices which I love. I start scooping up assets by the hundreds in tokens because my risk is smaller than buying at the top. So let me get to what tokens will succeed…
My favorite investment by far is Ethereum which makes up the bulk of my portfolio. For some other people, it is Bitcoin but those two cryptos are the least volatile. The reason is they have more support and money trading in comparison to a random ICO. I look at address growth everyday on Etherscan and that confirms to me that the Ethereum blockchain will be huge. Additionally, new coins are being built as ERC20 which show support for Ethereum.
Another prospect I started buying at $6 was OmiseGo. I wish I would have loaded the boat more than I did at the time but it was when I was just starting to dip my feet into other assets than Ethereum. I will also get the airdrop money because I owned Ethereum when the block happened.
I think it is important to have some money in your portfolio go toward an asset that has a debit card behind it. This is really the future because it allows people to spend the crypto they accumulate. My choice was to buy TenX because I like their iphone app so far and the team is strong. But there is other choices which include Monero or Monaco. I choose TenX over these two because they are positioned better and have a huge card company working with them. They haven’t revealed the name but it looks promising.
Now remember that the nature of crypto will probably make your stomach twist and turn day to day. It is not an easy industry to be in but nothing is when it is just starting out. The reason you will stick out the hard falls is because you know that there is more value in the asset than any short term thinker can see. If you stay with it you will be one of few that actually makes it long term.
Many people ask me why I don’t short on these pullbacks and the answer is because its absurd. Why would you short an asset that has value long term? It has skew to the upside and can go down near term but eventually shorts will get caught off guard by a huge squeeze. They will only get burned out of the market over time.
I learned this lesson the hard way in the stock market. I went short the market with all I had in 2015 and it worked for awhile until it didn’t. So now I just hold and average down when I see discounts. By doing this, I have made way more than I could have imagined any other way.
My journey this year in crypto has been nothing short of what I imagined. I started with the dream in my head to make it. I don’t care about the money but building something from the ground up and making it succeed is quite amazing.
I started in May when I originally put in a couple thousand into Coinbase. Why did I choose Coinbase? One of the main reasons was security (two-factor authentication) and the background the company had as being legitimate. I saw a couple horror story reviews online at first but decided to take the risk.
Ever since I haven’t had any issues with Coinbase in terms of buying crypto. Of course, it takes awhile once you buy Ethereum, Bitcoin, or Litecoin to actually get it in your wallet. Also, at times their site does go down. But these are normal problems to deal with when you are in at the beginning stages of a paradigm shift.
In addition, Coinbase is one of few exchanges that actually let you deposit USD from a bank account. So once I have it in the account I can move it around. I’m going to move some into the Ledger Nano S once it ships to store some crypto for a long period of time. The rest will stay on exchanges and be moved around. Below is what the interface looks like for adding your bank account so you can buy crypto.
Generally, it will take a couple days once you add the bank account for them to verify it. The fees you will pay on trades are 1% but you can avoid the fee by going through this process.
In case you are skeptical, I have also tested selling crypto on Coinbase and it showed up in my bank account within a couple days without any issues. Most people I think will continue to be on the sidelines until the point of Bitcoin passing $10,000 and Ethereum going above $500. However, the longer you wait the longer you are potentially missing out on one of the greatest opportunities in finance that I have ever seen.
I don’t say these things as a pitch….I could care less if you get a Coinbase account. I own plenty of crypto so what you do doesn’t affect me. I’m just trying to provide the general public an opportunity to make more than the average 5% they make in a 401k.
You might be wondering how to move money from one crypto asset to another. Coinbase doesn’t offer this flexibility and is one of the most popular exchanges. However, there is a very easy process for buying Ethereum with Bitcoin.
Create a Bittrex Account
The first thing I did after I had money in Coinbase was create a Bittrex account. I store most of my value in Coinbase as more of my long term portfolio (I’m going to move it into the Ledger Nano S wallet soon). Then, I utilize some profits and move it into Bittrex. The cool thing is that this process isn’t challenging and you won’t have to jump through hoops.
The first thing you will want to do is figure out what your btc address is on Bittrex. If you click on wallets at the top you should see a plus sign button which will allow you to deposit btc. After clicking that, you will see the screen above. This address is needed when you go onto Coinbase and go to the send/receive screen.
Next, login to Coinbase to send money from your btc wallet to the Bittrex btc wallet. On the send/receive screen it will ask you for the address you got above. Paste the address in and confirm how much Bitcoin you are sending.
Once you have the Bitcoin on Bittrex (takes a few hours) you will want to move it into Eth. The screen above is what you will see on Bittrex to exchange and transfer money into Eth. The key thing to remember is to click the dropdown where it says price and select ‘last’. This will make sure you put in a order for whatever the last price Eth was sold at. Since the markets are liquid the order should go through instantly and you should get a good price.
This technique allows me to also move money into altcoins because Bittrex has wide array of options when it comes to trading. I have utilized the platform to pick up some OmiseGo,TenX, and Status which are all ERC20 tokens. I like to invest in the Ethereum ecosystem because I believe it has so much to offer in the future.
Insane volatility is among us…I’m sure you know what I’m talking about. One day you own an altcoin that goes up 50% and the next week plummets down. The fate of engaging in altcoin trading is not easy by any measure.
This is due to liquidity and the amount of money being traded into these coins. More volume equals more liquidity. That’s the law of mathematics.
A market node is based on sellers being able to get out and buyers being able to get in. They find equilibrium and price tends to hover around it until demands grows over time. These forces have had a role since the beginning of markets but only few people can resist the urge of emotion when the time comes around.
What I mean is that people will sell when they see price moving down and buy when it is going up significantly. The way our brains are wired makes this a normal act of human nature. The only way to beat it is to program ourselves to think differently when the time comes around.
In the beginning of my trading career, I didn’t have this key skill. But over time I learned it and now I live by it. The reason is based on ‘probability’. If an asset falls 10% what is the probability that it falls another 10%? On the flip side, after an asset rises 10% what is the probability it goes up another 10%.
In each of the above two questions, you will notice that you have less risk on the table after certain moves of distribution happen. Typically, the furthest I have seen most assets go is around 50-60% lower. In most cases, you will just see corrections which are between the 10-20% range. This is exactly the reason to buy after something goes down 10-15%.
Now keep in mind that you should understand the product you buy. NEVER trade something you have no clue about. Always find things with value and follow these simple rules. I guarantee you will make profit nearly 90% of the time.
I’m excited to see what OmiseGo could bring to the future of transactions…
OmiseGo is using blockchain technology and the Ethereum network to bring finance to every part of the world. The biggest point is that you do not need a bank account. All you need is a connection to the blockchain. One of the goals the team has is to achieve ‘instant settlements’ on transactions. This would be huge and the cost would be low compared to current industry standards.
On the website, they state that the technology has not been launched yet. However, it will be launching in Q4 of 2017 so I think the price has room to rise significantly. We can forward to an optimistic launch on this token very soon.
They’ve got an actual team behind them making sure the technology will be delivered on schedule. One thing they have been doing is tackling Asian markets but they have also been trying to grow the platform for everyone.
The SDK that OmiseGo offers has the ability to do cross wallet transactions. This means people can go out and develop their own wallet and it will be able to talk with another persons wallet that is setup differently.
What is the OmiseGo Airdrop?
According to their website, the airdrop is expected to begin on Monday, 4 September, and is expected to take about a week to finish (depending on Ethereum traffic conditions). 5% of the total supply of OMG has been set aside for the airdrop. Addresses on the Ethereum blockchain that held a balance over (not ‘over or equal to’) a minimum threshold of 0.1 ETH at block height 3988888 will receive a share of the airdrop allocation that is proportionate to their share of ETH.
This is incredibly exciting and I believe the exchanges will support this. I know Bittrex has done airdrops successfully before and Coinbase has decided to implement support to give people Bitcoin Cash since the split happened. I don’t see there being a difference this time and they should give the community the OmiseGo without an issue.
The theory for everything that is happening is that Antpool is sabotaging the system…
Antpool isn’t confirming a lot of peoples transactions, causing transactions to take a long time to go through and costing people more in transaction fees.
Normally miners will confirm as many transactions as they can, because when they confirm one they earn the transaction fees from that transaction. Antpool has given up $100,000+ in transaction fees in the last 24 hours alone by not confirming as many transactions as they can.
Why would they do this? Many suspect it is the use of covert ASICBOOST, which is a mining shortcut that was confirmed to be implemented in hardware on Bitmain’s (AntPool’s) ASIC chips and gives them a huge advantage.
When confronted, Bitmain claimed not to use this functionality because it is bad for Bitcoin (their words). Because it is covert it is difficult to tell if it’s happening or not, but some side-effects of it include empty blocks or blocks with very few transactions, like what we are seeing now.
Even though Segwit2x was just released nothing about Bitcoin has actually changed, the underlying system is exactly the same. This is why the FUD around Segwit pissed me off so much, if you don’t like it don’t use it.
ASICBOOST isn’t possible on blocks that contain segwit transactions, however, miners do not have to include segwit transactions.
The activation of segwit does 2 things: it makes it much more obvious who is using ASICBOOST as those miners will never mine segwit transactions.
Segwit also allows for a lot more transactions, when use of it grows it is possible that the extra revenue miners make by using ASICBOOST will be less than the fee revenue they would get by mining segwit transactions so they would have to turn off ASICBOOST to make maximum profit.
I know many of you have heard the line “the party is just getting started”. You normally say it when something great is still in its beginning stages. Well, big investors across the board have been on the side lines for awhile now when it comes to crypto. Though, over the last few months I have seen a different trend take place.
When I watch CNBC, the traders are starting to dip their feet into these technologies. I think finally after watching price skyrocket they feel the need to get in the market. I mean who wants to miss out on potential waterfall gains.
Even Goldman Sach’s has recently warned investors not to ignore Bitcoin any longer. This is a huge step in the right direction and the CBOE even has been working to offer trading for Bitcoin futures. I think this is just the beginning and the start of a new era.
This new era will take time but in the next couple of years big money will pour into the crypto space. Right now the crypto space has largely been funded by individual investors and not institutions. How much money do I foresee coming into the space? A fair statement would be to see roughly a trillion dollars enter crypto in 2018.
You as a reader of this article most likely know more than institutions about crypto currently. To that, I say ‘cheers’ because this is the beginning of the largest technological advancement we have seen since the internet. I believe it can stretch far beyond the capabilities of the internet.
Speed, security, and power is what people will have with their money and that is game-changing. Most people I talk to don’t have a clue what it could do for the world. But then again they are 91% and you are the 9% in this transfer of wealth that will occur.