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$GUP Entry

Hello friends. Tonight I am entering Matchpool (GUP). GUP has a couple product releases this month and the TA is lining up well. It is also being shilled pretty actively on Twitter. Here is the 1 hour chart:

gup1hr

As you can see, we are resting on a potential support. The 1 hour RSI is near the floor. If we fall through this support, I will keep my position and add more on the lower, more established support. Because I am unsure if we will see an immediate bounce, I am going lighter into this trade than I usually do in case I need to add more on a decrease.

Here’s the 4 hour chart:

gup4hr

As you can see, the 4 hour RSI is also near-floored.

My first GUP entry is .000089 BTC. If we break support, my second entry will be .000080 BTC.

 

$SALT Update

Last night I made the call to enter $SALT, a coin issued by a lending platform. Since then, it is up more than 10%. As you can see on the chart, we broke out of the falling wedge/channel very nicely and now it appears to be bouncing up and down. Hopefully, we will start forming a bull flag or just consolidate and continue up. I don’t have an established goal for this coin yet. At the moment, it seems as though it could go either way. What may be the determining factor is what Bitcoin does today. If Bitcoin makes a run, all alts will suffer. For now, we are looking good but I’m watching closely.

saltchartupdate.png

$SALT Entry

For the past few days, I’ve been accumulating $SALT. SALT is a token issued by a company that gives loans to crypto holders who use their assets as collateral. It has huge potential, as a lot of the traders in this space have plenty of crypto assets, but not USD holdings. There are a couple reasons for this, but those aren’t important right now. I predict that crypto traders will be using SALT to pay for houses, cars, and other personal loans because of the convenience that using crypto for collateral offers to them. Not only does this idea have potential as a business, there’s also an arbitrage opportunity here.

On the SALT platform, SALT tokens can be used to pay off loans. 1 SALT has a fixed rate of $27.50 on the platform.  At the moment, you can buy these tokens for around $10. Do you see where I’m going with this? Stocking up on these right now is smart because there will be upward pressure on the price of this token once more people start using the SALT platform. When people realize that they can buy a $10 token to pay $27.50 of their debt, the buy volume will increase and the price will rise. This will most likely be a steady rise, as the SALT lenders sift through the millions of dollars in loan applications that flooded them immediately as their platform opened.

As for the Technical Analysis, things look bleak right now, but for the near future I think we should see a pop soon.

saltchart.pngAs you can see, we have a couple possibilities here. This downswing could be either a falling wedge (very bullish) or a downward channel. My guess is that we bounce off the bottom support line and start to break up past resistance from the channel/wedge. I began buying this a couple days ago when I realized the arbitrage opportunity, but since then the price has decreased. I am adding more as it goes down. If we touch that bottom support, I will add much more to really average out my entry. As you can see on the 4 hour chart, the RSI is also very low and has been for a while.

saltdailyHere is the daily chart. It shows essentially the same thing as the 4 hour, but the reason I’m posting this is to show that the 1 day RSI is also near the bottom and appears ready to curve up.

There are a lot of great ideas in the cryptocurrency market, but there are few that have completely delivered a product that solves a real problem. SALT has a great idea and so far, they have a great product. It’s a very solid buy.

Trading: Exiting a Trade

In the last post, I talked about how important getting good entries are to trades. Exiting a trade properly is also important. How you exit a trade will depend on a few things:

  • How good your entry was
  • How the chart has developed
  • What your profit goals are for the coin
  • What remaining news the coin has in the near future

Most of my trades are catalyst trades, meaning that the coins I buy have big events coming up. Depending on the event, the price may actually dump on the day of, so be very wary of that. I like to unload some of my purchased coin within 24 hours of the event actually happening. Again, this depends on what the event actually is. The anticipation and buildup to the event will always drive the price up. My favorite strategy is selling to cover my investment. A lot of you will hear me on social media talking about this, but won’t understand what I’m saying.

Let’s use an example. I purchase .1 BTC for $1300 at a rate of $13000USD/BTC. The next day, BTC goes to $16000USD/BTC. So, my .1 BTC that I purchased yesterday is now worth $1600. I could sell everything right now and take the USD profit. However, BTC is an asset that I am bullish on, so I want to keep some of it. I think it’s going to keep going up, so I want to leave some skin in the game. So what I would do in this situation is sell enough BTC to cover my original $1300 purchase, and keep the rest of my BTC to benefit from the price rising. This way, if I’m wrong about the price rise, I am still guaranteed profit. If I am right, I still make profit.

I use this strategy with almost every coin I buy, unless I am doing very quick short-term day trading on the fly. I’m going to go over one more example.

A few days ago, I purchased a coin called ClearPoll (POLL) at the price .0001 BTC for .1 BTC. Today, it is double the price: .0002 BTC. My investment is now worth .2 BTC. So what I will do is sell half of my POLL to cover my original investment of .1 BTC, and let the rest of it increase in value (or decrease, doesn’t matter since I have already secured my original investment back). Because I know that POLL still has events coming up, I want to make sure that I still have some coins in case it pumps more.

Another strategy that I use occasionally is to set my profit goals ahead of time and take scheduled profits along the way. For example, If I entered a trade and set my profit goal at 50%, I might take profits at 15%, 25%, and 35% before reaching my actual goal and selling the remainder of what I have. Taking profits along the way is helpful and can even help you hone your TA skills by allowing you to pick good spots to take profits. Spotting a good time to take profits is just as artful as picking a good spot to enter a trade. If the 4 hour, 1 hour RSIs are both at the top and the price is near a resistance, that’s a good time to take profits. If you’re in an altcoin and you think BTC is about to pump, that’s a good time to take profits. If the coin is pumping hard on good news but is clearly unsustainable, that’s a good time to take profits.

Getting a feel for how the market is moving really is something that can only be taught by watching them move. A lot of times I will watch a chart for hours and not act until I feel confident in pulling the trigger. You have to apply the same focus to your exits. Believe me, there is almost no worse feeling than missing an exit and then watching your coin get dumped to hell. To know that you were in the profit but didn’t take it because you didn’t spot an exit or you got greedy is terrible. That brings me to my next point. Never, ever be ashamed of taking profits too early. Do not get down on yourself because you took a 20% profit and then the coin pumped 100%. Sometimes in crypto, stuff just happens that way. Sometimes a coin will pump with absolutely no explanation. That’s just how it goes. Thinking about the profits that could have been will just eat you inside. Instead, think about how you did the right thing. You did the thing that professional traders do and you secured your profits.

If you are still following along, good for you. Crypto changed my life and through this trading strategy it could change yours as well. I have found these methods to be incredibly sound and each day they keep working I feel more secure in my future and my ability to trade these markets. Keep watching charts, prices, and reading everything you can about crypto. Practice trades by writing down your entries and exits in a notebook and calculating your hypothetical profit.

Tomorrow I’ll be going over some risk management practices and also giving you a look into my portfolio and what it’s comprised of. Hope you enjoy!

My Portfolio

Today I want to share with you all the coins that I’m holding and what portion of my portfolio they represent. I know some of you are curious about this, so I’m dedicating a post to it. I have made a pie chart which illustrates my position sizing. If you have a question about one of the coins I’m holding, feel free to ask me about it on social media or via the contact form on this site.

chart

Trading: Entering a Trade

Knowing how to effectively enter a trade is a crucial skill. Having good and thorough technical analysis is crucial for this to work. Whenever I am eyeing a purchase, I always try to think of all the possibilities. Of course I know what I think the price will do, but you always need a backup plan for if things go south (they will sometimes, I promise).

Getting a good entry starts in the analysis phase. If you’ve done solid TA on all timeframes, you should be able to see the levels of support and what will happen if the price breaks a lower support. You should know if there’s a support below it, how far down that is, and roughly where the RSI levels will be when it touches that support. If a coin doesn’t quite bounce the way that you think it will after your entry, the first step is to be patient and calm. As long as the price is still above support, you’re fine. If the price drops below support, that’s when you need to start reevaluating the situation. In the event that your coin is crashing, you have essentially three options:

  1. Choose to cut the coin loose and give up on the trade. I try to avoid this at all costs. When I decide to enter a coin, I am confident that it will go up eventually due to whatever news I’m speculating on. I’ve already done research on the team and the project, so I know that it has potential. If the TA fails and it does opposite of what I think it is going to do and there is no support in sight, I may choose to terminate the trade if I am less than 10% down. At this point I will redraw lines and see what went wrong. Usually I only have to take this route if bad news comes out about the coin or a Bitcoin bull run pushes all of the altcoins down.
  2. Wait for a bounce, and then sell the coin. If you see your coin break support and it’s not looking good, you could wait for a short bounce and unload it at the best price possible before it continues down. This is an art. Generally this happens to me when TA fails, the price falls through support, but the 1 hour RSI is on the floor. In this situation, I would wait for the 1 hour RSI to recover a bit and if the trade still looks bad, I’ll dump the coin and reevaluate.
  3. Buy more as the price goes down and average out your entry. This is what I do most of the time if things don’t go my way. This one is a bit tougher to understand so I’ll use an example. Let’s say I buy a stock at $10. A day later, it goes down to $8. Well, that means I’m 20% down from my original position. However, if I buy an equal amount at $8 as I did at $10, my average entry price will now be $9. This means that I only need the stock to bounce to $9 for me to breakeven, not $10. I use this when I’m able to justify doing so with the technical analysis and I believe a lot in the project and don’t mind holding a lot of the coin. Averaging down has saved me plenty of times. You really need to be careful with this though because if it’s really not looking good and you just keep adding more, you’re going to lose a lot of money very quickly. Knowing when to cut a coin loose is a skill that has to be developed. After a while, you’ll kind of just get a gut feeling. It’s tough to explain.

Some other stuff you need to know about entering a trade:

  • Exercise risk management. Don’t go 100% into any one trade. Control your funds responsibly. We’ll talk more about this in a later post.
  • Don’t market buy unless you really need to enter the coin quickly. Set an order for exactly where you want to enter and just wait for it to get filled. Only market buy in urgent situations.
  • Don’t FOMO. DON’T FOMO. Never buy a random coin just because you saw it mentioned on twitter or reddit. Do your research and stick to your plan. As soon as you start getting disorganized and entering any coin that people shill, you’re no longer trading. You are gambling. If a coin pumps in price and goes on some insane run, that does not mean you should buy it. Coins pump every day. There will always be another one. Take a breath, look at the chart, and trade like a professional, not a noob.

Buying a coin sounds simple enough, but these guidelines will make sure that you aren’t throwing money out the window. The basics are crucial. In the next post I’m going to cover how I exit trades!

Trading: Basic Technical Analysis

In the last blog post, I explained the process I go through to identify the coins that I trade. In this post, I’ll be going over how I filter those down to only coins that have a favorable chart. To do this, you’ll need an account with TradingView and Coinigy.

To give you a visual, I’ll be walking you through one of my recent trades. Recently, I found a coin called ClearPoll (POLL). The reason I identified it as being a potential buy was because it had a mobile app release on December 29th, and is scheduled for a platform release on January 17th. I also did some basic research on the fundamentals of the coin. It has a very low supply–only 7 million coins if I remember correctly. The project also has a devoted and active developer team and a loyal following from their community. About a week before the app release, I bought a small amount of these coins (I tend to go lighter on coins that are less well known). After determining that that POLL would be a good candidate for decent accumulation due to upcoming catalysts, I began to look at the chart.

The first thing I do when I pull up a chart is set the timeframe to 4 hours. This means that each candlestick will represent 4 hours of time. A candlestick are the bars on the chart that show you which way the price is moving. If a candlestick is red, that means the price moved down during that timeframe. If it is green, the price increased. After I set the timeframe to 4 hours, I zoom the chart out to get a good overview of what the price has done in the past few weeks. This is useful for spotting large trends and also identifying an all-time-high or low.

Next, I draw very basic support and resistance lines. Basically the goal of this is to draw a line along the bottom of the chart, connecting as many candles as you can to establish a trend. You do the same along the top. You should also draw lines on smaller timeframes. Don’t worry if you’re confused, I’ll attach a couple examples at the end of this post.

After I have some lines drawn, I apply only one indicator to the chart: Stochastic RSI. This is an indicator that helps you tell if the coin is overbought or oversold. It’s very helpful for understanding the ebbs and flows of the market. An RSI under 20 means that the coin is oversold, and an RSI over 80 means that it is being overbought. For short-term day trading, you should pay attention to both the 4 hour and 1 hour RSI levels. For longer-term swing trading, you’ll want to trade according to the 4 hour and 1 day RSI levels.

When I looked at the POLL chart, I spotted that the price was near a long term support line, and the 4 hour and 1 day RSI was near the floor. I also knew that they had two big releases coming up within the next month. It was a perfect setup. I added to my position and waited.

pollchart

In the chart above, the yellow circles represent where I purchased this coin. As you can see, as of today I am 80% up on this trade. I would have sold after the app release, but the app got great feedback and drove the price even higher. Since the market sentiment of this coin is really positive, I’m going to continue to hold it until the platform release on the 17th. If we break top resistance in the rising channel, the price could really fly. If we get rejected at the top resistance, I’ll be looking to possibly exit my position.

This was a very clear-cut trade and an easy one to pull the trigger on for me. Not every trade will be so easy, but I wanted to give you guys an idea of what it looks like when everything aligns just right.

In my next post, I’m going to explain how to properly enter a position. This is incredibly important. This is the kind of stuff that separates good traders from sloppy ones. Getting good entries and exits on your trades will ensure that you don’t leave any profit on the table. As always, if you have any questions please don’t hesitate to ask me via social media or the contact form on this site.

In this post, I mentioned some services that I use: TradingView and Coinigy. I have talked about needing these accounts in the past. You can find links to almost every tool I use as a trader on the “Links” page. Using charts is extremely important, so having accounts with those websites will be crucial to your success in trading.

Trading: Coin Research

Up to this point, we’ve gone over what Bitcoin is, how to buy and transact it, and how to buy altcoins on Bittrex. Now, I’m going to tell you all exactly how I trade with success. This process is extremely tedious and I will spread it out throughout multiple posts, so that you have time to process the lessons and practice in between my postings.

The first thing I do every morning after checking all of my balances and charts on coins I already own is try to find the next trade. To do this, I go to CoinMarketCal and sift through all of the upcoming news and events. This is an incredibly valuable tool which organizes events in chronological order and gives you the information that you need. The community can then vote on the events to validate that the event is actually happening. They do this to keep the website credible. When I’m looking for events, I’m typically looking for catalysts that are going to occur at least 7 days from now. Most coins that have a major event within the next week will have already increased in price because of the expectation of something big happening. So to get ahead of the game, I look for events that are further out in the future.

Some good examples of catalysts are:

  • Coin reward halving
  • Service launching
  • App launching
  • Partnership announcement
  • Exchange announcement

The key is finding something that will get people excited about the coin. Once you think that you’ve found something good, the next step is to analyze the team, the project, and the technology. This can be challenging, especially if you don’t know that much about crypto. I generally don’t go into that much depth with this, but some basic guidelines for me are:

  • Professional and easy-to-navigate website
  • Developer team is not anonymous
  • The project aims to solve an actual problem
  • The community is active in their chat room (slack or telegram)
  • The total supply of the coin is relatively low (under 100million is preferable)

Obviously not every one of these conditions need to be met for me to make a trade, but they are each positive properties that you should be looking for.

 

That is going to wrap up part 1 of my trading strategy. If you are following along in real time, I would recommend starting a trading journal and looking for coins that fit the criteria that I’ve already outlined and narrowing it down as more lessons are published. Also, if you are planning on actively trading and haven’t done so already, you’ll want to get a free account at TradingView and a free trial with Coinigy. You’ll also want to make sure that you have exchange accounts set up with Cryptopia, Bittrex, and Binance. Store your account information securely on a flash drive AND a piece of paper. I store all of my passwords in a locked fire safe as a last resort if for some reason I lose my electronic records of them. You will want to also enable 2 Factor Authentication for your exchange accounts, so that even if your account is compromised, it will be very difficult for anybody to access your account without possessing your phone. It is important that you have all of these accounts set up and organized before we begin actually conducting trades every day.

In the next post, I’ll be moving on to charts. Once I find a coin that has an upcoming event, I do some basic technical analysis on the coin and determine if it is worth a buy. I will show you what indicators I use and how exactly I start drawing a chart.

Trading: Bittrex

Once you understand what cryptocurrency is, how it is sent and received, and how to responsibly store it, you are ready to begin trading. For those of you who have no interest in actively trading: stick with me. In this blog I’m going to cover new topics each day and hopefully you’ll learn a lot about crypto. It will still be helpful for you to understand the process of sending your coins to an exchange and buying/selling them.

The exchange that I do most of my trading on is Bittrex. Bittrex offers USDT pairs, ETH pairs, and BTC pairs. You can trade using any of these but BTC pairs is what I usually trade in and there are more BTC pairs than ETH pairs or USDT pairs. What this means is that the coin that you’re buying is measured against one of those. For example, if I wanted to look up the price of BTC in USD, I would type into my charting tool: “BTCUSD”. If I wanted to buy Litecoin with Bitcoin, I would type “LTCBTC”. If I wanted to buy Litecoin with Ethereum, I would lookup “LTCETH”. For USD, it would be “LTCUSD”. Before we move on, I should explain the difference between “USD” and “USDT”. USD is your standard US Dollar. USDT stands for United States Dollar Tether. Tether is a cryptocurrency that is pegged to the value of 1 USD (or as close as possible). The reason that tether exists is so that you can easily transfer your USD balance between crypto exchanges as a coin. Doing this through the traditional system of withdrawing to a bank account, then redepositing to a different exchange would take weeks. Using USDT allows it to happen in minutes. There are some drawbacks, though. Though the Tether team claims that for each Tether they print, they have an actual US Dollar in their bank account. This would ensure that each Tether is backed by actual currency. There is some speculation as to whether that’s really the case, though. I don’t have an official position on that debate, but I do use Tether because it is stable and I like to think in terms of USD sometimes, not just BTC. I keep some Tethers around at all times in case the markets dip dramatically and I want to pick up some cheap crypto. Most of the time, I trade in BTC pairs with the ultimate goal being to accumulate more BTC. Trading against a currency that also fluctuates wildly in price can be tricky. The best time for trading altcoins is when Bitcoin is going sideways and not moving dramatically in either direction. When Bitcoin goes on a bull run, altcoins tend to dump hard. There are other patterns that will be made clear just by watching the markets for a while, but we will go over those at a later time.

Opening a Bittrex Account and Making a Deposit:

  1. Go the official, secure Bittrex website
  2. Open a new account using your email and a secure password
  3. Once you have opened your account, navigate to the “wallet” page using the button at the top of the page
  4. In the small search bar on the wallets page, type “btc”
  5. You should see this: Screen Shot 2017-12-30 at 2.55.26 PM
  6. The “+” is the button you should use to deposit. Click the “+”.
  7. It will give you an address to deposit to. It should look like this: Screen Shot 2017-12-30 at 2.57.05 PM
  8. Copy the address.
  9. Now go to your Bitcoin wallet. For most of you, this will be your Coinbase wallet.
  10. Click “send”. Paste the address that we just got from Bittrex into the “To:” or “Address:” field.
  11. Specify an amount to send.
  12. Send the transaction.
  13. Go back to Bittrex and wait for the transaction to appear in your “Pending Deposits”. To see your pending deposits, stay on your “wallet” page. Scroll down. You should see this: Screen Shot 2017-12-30 at 3.02.17 PM
  14. When the Bittrex detects your incoming deposit, it will show in “Pending Deposits” along with how many confirmations it has. Confirmations are the amount of times your transaction has been approved by the network. For Bitcoin deposits, Bittrex requires 3 confirmations before the deposit is approved in your account. Depending on how busy the network is at the time of sending, this could take anywhere from twenty minutes to a couple hours.

Making a Purchase on Bittrex: 

  1. Once your deposit is credited to your account, you should see your balance now reflecting in the “Account Balances” section on the “Wallets” page.
  2. When you are ready to purchase a coin, you can use the search bar to look it up quickly.
  3. At the top of the page on the left side, you’ll see two buttons. They both say markets, but one has a USD symbol next to it, and the other has a Bitcoin symbol next to it. Click the button with the Bitcoin symbol.                                                                                                                                                Screen Shot 2017-12-30 at 3.11.04 PM
  4. Next, you’ll have to search for the coin you want to buy. Let’s use Litecoin (LTC) as an example. Screen Shot 2017-12-30 at 3.12.04 PM
  5. Now that you’ve found Litecoin, you just need to click on “LTC”. That link will bring you to an area where you can place a purchase or sell order. *This is where stuff can get confusing* Screen Shot 2017-12-30 at 3.13.39 PM
  6. The form to purchase Litecoin is on the left side. The top field is how many LTC you want to buy. The middle field is at what price you want to buy at. The bottom field is how much BTC it’s going to cost. Usually when I’m filling in an order, I will first put in how much BTC I am spending, then a price, and the top amount auto-calculates. When you place an order, it will either purchase it from the right side (Asks), or it will be placed on the left side (Bids). If you want to place an order that is lower than the current market price, make your price less than the lowest price on the “Ask” side. If you do that, your order will be placed in the “Bids”, and it will wait to get filled. If you want to purchase the coin immediately at market price, you can make your price equal to or greater than the cheapest price on the “Ask” side (if your price is greater than market price, it will automatically purchase at the cheapest price possible). If you do that, your order will get filled immediately and the coin that you purchased will reflect in your “Account Balances” on the “Wallets” page.
  7. To sell a coin, the same process applies, except that you will need to fill the form on the right side of the page.

Most exchanges follow this simple format. The three exchanges that I almost exclusively use are Cryptopia, Bittrex, and Binance.

My next post will be the first in a series of posts that will describe how I trade. I will go over what I look for in a coin, how I find coins to buy, and what kind of research I do. When I find a suitable coin.

From here on out, I may be making multiple posts a day. There is a lot to cover and time is incredibly valuable when trading these markets.

For those of you not looking to actively trade, you should have enough knowledge to make an informed decision on which of the major coins to buy and hold for the long term. If you still feel like you need help with the basics, please feel free to stay tuned in. I hope to cover a wide range of topics in this space. If you’d like to request an explanation for something that you don’t understand, DM me on twitter, message me on facebook, or simply fill out the contact form on this site.

 

Thank you!

Large-Cap Alternate Coins (Altcoins)

While Bitcoin is clearly the poster-child for cryptocurrency, there are a lot of other cryptos that serve a purpose. The application of blockchain technology is not limited to just sending and receiving money. There are many industries that can benefit from this system of storing information and transactions. Obviously Bitcoin is the most famous of all the cryptocurrencies, but that also means that it has the most outdated tech. Today, we’re going to cover the other major cryptocurrencies, what purpose they serve, and what expectations I have for them going forward.

  • Ethereum (ETH)

Ethereum is listed third on Coinmarketcap in terms of market cap. It is a platform for developers to build decentralized applications on top of. There are a lot of popular coins actually built on Ethereum. It can also create smart contracts and introduce new coins into the system. The coins that fuel the network are Ether. Ether is worth about $700 at the moment and is currently my largest holding. Aside from the amazing technology, I think that when ordinary people discover that crypto can do a lot more than just transact coins there will be a huge rush to accumulate anything that looks promising. Ethereum is a natural benefactor of this, as it is already established and used commonly for people to participate in ICOs (Initial Coin Offerings), which can be highly profitable and appealing to investors new to these markets. Because of that alone, I am extremely bullish on the price of this coin. It is my belief that once people realize that Bitcoin is no longer that practical for sending/receiving money, Ethereum will become the coin of choice. A bonus to this coin is that it is commonly used as a trading pair on the major exchanges, so if you are aiming to trade alternate cryptocurrencies and not use Bitcoin, this would be basically your only option. My portfolio is currently ~30% Ether.

Ethereum Website

  • Ripple (XRP)

Ripple is a very controversial token. It is listed second on Coinmarketcap and the price is currently hovering around $2. The Ripple Network aims to send money very quickly and very efficiently. In this capacity, it is excellent. It is faster or just as fast as any coin out there. It also has the benefit of being a professionally run company with real partnerships, real-world application, and real leadership. Unfortunately, this also happens to be its downfall. The crypto community is very torn on how they feel about this coin because of how it is centralized, has a large supply, and is aiming to work with banks. If you remember from my earlier post, one of the reasons that cryptocurrency is appealing is that it lets you be free from banks. This does the opposite. It connects blockchain and banks to make banks even stronger. There is also speculation as to how exactly the Ripple token will be used. Some seem to think that banks will really only need 20 XRP to power their transactions and that XRP won’t be the store of value, it will just be the fuel for the network. For the crypto community, Ripple represents everything that we hate. That being said, this coin has a decent price outlook. Despite its enormous supply (100 billion), the price has spiked in the past weeks due to speculation that it will get added to Coinbase, giving thousands of new investors with new money the chance to purchase a cheap coin, which they are likely to drool over. Because I saw this coming, I stockpiled this coin when it was 20 to 30 cents. Since then I have sold enough to cover my original investment and I am going to let the profits ride. If/when it gets added to Coinbase and we experience another dramatic increase, I will reevaluate and probably sell off more. This started off as about 3% of my portfolio but has since increased to 7%.

Ripple Website

  • Bitcoin Cash (BCC or BCH)

Bitcoin Cash is fourth on Coinmarketcap and has a current price of $2900. This coin is a fork of Bitcoin (If you ask Roger Ver, Bitcoin is a fork of Bitcoin Cash). Basically, a coin will fork when there is a disagreement on how the coin is to proceed with scaling and development. When that happens, sometimes one group of developers will fork the coin and create their own which has all of the properties that they think it should have. Bitcoin Cash is faster and costs less to send. At the moment, it is superior to Bitcoin. Bitcoin does have some upcoming developments that could usurp Bitcoin Cash, but for now Bitcoin Cash is clearly the better option for sending money. However, that doesn’t mean that Bitcoin Cash is the better investment. It is much more centralized. Roger Ver is essentially the “leader” of this coin. He and Bitcoin Cash are both hated by a lot of the community, and that makes Bitcoin Cash a risky investment. Bitcoin Cash could completely replace Bitcoin, or it could completely crash to the ground. Both are possible with this coin, and I only like to swing at things that I know that I can hit. Bitcoin Cash currently represents 0% of my portfolio.

Bitcoin Cash Website

  • Litecoin (LTC)

Litecoin is sixth on Coinmarketcap and has a current price of $213. Litecoin is very similar to both Bitcoin and Bitcoin Cash. Its primary use is to send money quickly and inexpensively. It is seen as the “silver” to Bitcoin’s “gold” and is a direct competitor to Bitcoin Cash. While Bitcoin is now regarded as primarily a store of value, Litecoin is used for transactions. It is lightweight and easy to use. The developer of this coin is Charlie Lee. He is mostly liked by the community and does a decent job of representing the coin and communicating the benefits of using LTC. This coin has a cult following and has been around for years, so it has the benefit of being established. I began accumulation of this coin at around $60 and sold all of it between the prices of $250 and $350. I like LTC a lot, but it currently represents 0% of my portfolio. Though LTC serves very well in its capacity, it doesn’t have much use other than to send money. For that reason, I’ve moved on to better things. I’m out for now, but if the technical analysis ever lines up again, I could definitely see myself entering again.

Litecoin Website

 

We have now covered the five most popular cryptocurrencies. The goal of this post was to communicate that there are coins that compete with Bitcoin and there are coins that serve a completely different purpose than Bitcoin. We have barely scratched the surface. There are cryptos out there truly doing amazing things. If you are looking to do some research, Coinmarketcap is a great place to poke around. They have a list ordered by market cap and within the individual listings they give links to websites, chat rooms, and other important resources that you should use to understand how these markets work. The more talking and networking that you can do, the better. In my next post, I will be showing you how to sign up for Bittrex, deposit a cryptocurrency, and execute trades.