Bitcoin is Better Than Banks

Through my conversations with friends, family, and strangers about cryptocurrency, it is clear to me that most people do not fully understand the potential that Bitcoin and other cryptocurrencies have. That isn’t their fault–the Bitcoin community hasn’t done the best job of communicating the problems that cryptocurrencies can solves, the potential benefits of implementing a system with digital currency, or why we even need to replace the system that we have.

Let’s start with the problems that the current system has and how digital currency can fix them.

Oversupply/Susceptibility to Inflation and Devaluation

Currency as we know it comes in the form of bills and coins. These can be issued at any time without any limit or hard cap on the total supply. If corruption infiltrates our government and decides to print as much currency as they want, there’s not much there to stop them. We don’t vote on the currency supply–we don’t even really pay attention to it as members of the general population. Think about it: if the US government suddenly prints $100 million, doesn’t that make the dollar bill in your hand more common? Less valuable?

Bitcoin has a fixed supply. There will only ever exist 21 million Bitcoin in total. Most cryptocurrencies have a fixed supply. This can only ever be changed through a voting system that would change the code to allow for a larger supply. This ensures that the people using the currency have control over the supply and can prevent oversupply and inflation.

 

Privacy/Security Vulnerability

Privacy issues occur every day in the financial world. You may have even experienced this yourself. Every time you buy something online you have to put in numbers that if compromised, could affect your ability to purchase essentials like food, rent, and electricity. Credit card numbers cannot be easily guessed but they can be easily skimmed. This can be done through a physical device placed on the reader or hidden in a malicious website. It’s insane that we trust our financial security to numbers that we have to enter and expose daily.

Bitcoin transactions are completely secure. You do not need to give any personal information to send a Bitcoin transaction. You need only enter the wallet address of the receiver and specify the amount. No numbers, names, or any other private information that people can steal. Nobody but you can spend your Bitcoin from your private secure wallet. You can complete a Bitcoin transaction online with somebody looking over your shoulder and still not worry about security.

 

Durability

Paper and metal money undergo a tremendous amount of wear and tear on a daily basis. A paper bill takes a beating just from being in a wallet. It gets folded and creased possibly dozens of times a day. Metal coins are more durable but still can corrode. Perhaps the biggest problems with coins is that they are a waste of resources and can be quite a nuisance. Carrying change in your pocket or car is flat out annoying. Coins can be lost or even thrown away before they ever get spent.

Bitcoin is electronic. There is no wear on a Bitcoin. They will always be usable. We will not have to use taxpayer money to put infrastructure in place to replace or repair it. It will never get lost. All small amounts will remain in the wallet. There is no change to keep track of and we can divert all the resources dedicated to designing, minting, and replacing our current currency to other much-needed areas of our government.

 

Transparency

We do not know exactly how many dollars are in existence. We don’t know where they are located. We don’t know when our government moves large sums to obscure locations. We know very little about our money supply.

Cryptocurrency can enable us to understand more about our money supply. We will be able to tell exactly how much of our currency exists and where it is concentrated. Complete anonymity is possible with crypto, but we will still know if large amounts are being hoarded or accumulated with the purpose of manipulation. This is something that we desperately need in a time where there is very little distrust in our government and the massively wealthy.

 

Digital currency is not the only application for blockchain technology. There are so many industries that can be helped with this technology and we are just barely scratching the surface of the potential for this revolution. As always, if you have questions or comments on anything I’ve written or you’re looking for a place to start, feel free to DM me on whichever social media platform you desire.

 

Market Update

Hello everyone! It’s been a crazy couple of weeks in cryptocurrency. Hopefully the damage done to the market has had a minimal effect on you and you’ve been able to mitigate risk by getting great entries and practicing risk management. I haven’t updated you in a while on my strategies for this type of market, so today I want to tell you what I’ve been up to.

 

Passive Income

A couple of weeks ago I told you all that I would be trying to set up passive income streams via masternodes. Well, a short time after that I was able to set up my very first one. It is a SMART node, and it earns somewhere in the neighborhood of $10 a day without me doing anything. Though the passive income will be nice, the value of SMART has decreased by almost half since I set it up. So I am down 50% on my original investment. I do anticipate SMART rebounding in price when people start to reenter the crypto/altcoin markets that they exited out of fear over the past couple weeks. In the meantime, I will just sit back and collect my SMART rewards.

 

New Trading Strategies

Since I have been unable to trade alts and the volatility is low in the USD markets, I have been exploring new strategies on different timeframes. I have learned a couple of new indicators that have so far really been helping me get a better picture when I look at a chart. Currently I am experimenting with trading on a 5 minute timeframe instead of my usual 1 hour timeframe. If I am able to master this, I will be able to do several, quick trades per day. This is more fun, but also more tedious. I’ll keep you updated.

 

Trading In USD

When BTC goes down, everything else tends to go down with it. Altcoins don’t experience that much volatility or even general increase during a BTC bear market. Though I believe this is temporary, I had to find something to do while it was happening, since I specialize in altcoins. Whenever BTC slumps like this, I like to use tether and USD in my exchange accounts to trade the larger cap coins. I actually find it really refreshing to think in terms of USD when I’m trading instead of BTC because when I trade using USD I only have to think about one market. When trading alts, you have to always be watching not only that market but also the BTC market because every move that BTC makes will affect your altcoins. Trading in USD is way more calm and for me it’s even a little easier.

 

Trading on Margin (Experienced Only)

Though I have found that I enjoy trading in USD, the gains are slower and smaller than trades in BTC. This can be remedied by using leverage on your exchange of choice. I prefer to use Bitmex and trade BTC on the 5 minute timeframe. I’m usually able to do 5-10 trades per day using a few indicators. Trading on margin can be very dangerous to anybody who doesn’t know what they are doing. You should only try this once you have had success trading in USD consistently and you know how to use risk management strategies. I enjoy margin trading because it is high-speed and it enables you to make large gains from small movements.

 

Open Positions

During the crash, I sold some of my assets to USD to ensure that if crypto completely crashed, I would have enough to pay for expenses and to begin trading again. Fortunately, crypto did not die. So, about 20% of my portfolio is in USD right now. I have about 25% in ETH, 20% in ETC and the rest is spread out between various alts. My average entry on ETC is $32 and I’m looking for at the very least a 2x on that money. ETC has an airdrop coming up and if history has told us anything, it’s that coins with airdrops pump hard. That’s what I’m counting on. I won’t be sticking around for the actual airdrop. I will take profits long before that and short ETC on the way down to make money on the downside as well. Right now I’m waiting to reenter the altcoin markets until BTC decides what it is going to do.

 

BTC Outlook

What BTC does is very important to the rest of the market because the direction of the market tends to follow the direction of BTC. At the moment, it seems that we are recovering better than a lot of people expected. I am on high alert until Chinese New Year, though. Historically, BTC sees its worst days of the year in the days leading up to CNY with a nice recovery on CNY itself. I will be ready to exit any open positions if things start to drop, and you should be too. I will be buying up stuff at the bottom if that scenario plays out.

 

 

I hope you are enjoying your crypto journey. As always, questions and comments can be DM’d to me on social media or through the site.

Passive Income In Crypto: Part 1

Everybody wants to make money while they sleep, right? I do too. It’s always been a dream of mine to live off of passive income while I do whatever I please with my time. There are a lot of ways to do this, but they are all either extremely difficult to get started or require a massive amount of capital. Let’s look at the ways by which you can accomplish passive income in your everyday life:

Interest

Mutual Funds

Mutual funds can be great–for preserving already existing wealth. A good solid mutual fund will be lucky to get 8-10% a year, which is awesome if you’re looking for a solid way to store wealth while also making some gains. Is it a practical way to pay expenses and generate income, though? Let’s say you have $100,000. You put it on a mutual fund and it gets you 10% over the course of a year. Congrats, you’ve made $10,000. Take some taxes and brokerage fees out and you’ve got a cool $7,500 in your pocket. It might pay your rent for a year, but after you’ve done that you still have $100,000 sitting in the account and it’s going to generate close to the same amount every year. So, even assuming that you have $100,000 free cash, it’s not a great source of passive income for the average person who wants to use that money to better their lifestyle.

High Yield Checking/Savings Accounts

Again, these are great for people who need to store wealth, but not so great for those that want to generate substantial income passively. My credit union offers 2% APY on their checking accounts. I’d rather keep my money in crypto (any crypto).

Bonds/CDs

The interest rates on these are dismal. Last I checked CDs were under 2%, and you need to lock up your money for a lengthy period of time. You’re kind of getting the point here, right?

 

Businesses

Rental Properties

Buying a rental property was one of the first options I explored. It seemed like real estate was the business to be in if you wanted to be wealthy and property also happens to be an excellent, tangible asset in my opinion. This option obviously comes with some drawbacks. Again, you’ll have high overhead costs because you’ll either have to shell out a massive amount (to the average consumer) in cash to purchase a property or you’ll have mortgage payments if you choose to finance the purchase. You’ll also need a knowledge of home improvement and basic construction as you’ll definitely be dealing with repairs, unless you want to pay somebody to handle all of it. Finally, the tenants. I’ve only lived in two apartment buildings in my life and I can confidently tell you that I now have absolutely no interest in being a landlord. It sounds passive. I can just buy a property and collect the rent every month. Hell no, man. You can’t. It’s way more trouble than it’s worth unless you have several properties in a high-rent area and you really know what you’re doing. Finding good tenants, ensuring they pay, fixing the property when they inevitably destroy it, etc. Does it all sound worth it to you? Because it doesn’t to me.

Opening A Business

Awesome! If you either have a great idea, lots of money (or the ability to raise the money), or some really great connections in a niche market. You’re looking at high overhead, massive startup costs, and a really high risk in most industries. You’ll probably have to quit your job and go without steady income for a few months while you get things up and running. Assuming you make it past that, you’ll need to find some great staff that you trust to run things while you’re away. The only way this option becomes at least a little passive is if your business really takes off and you end up being able to leave the store alone with your staff all day. Most people don’t make it that far.

Opening An Online Business

This is probably the most feasible out of all the options I’ve outlined so far. Opening an online business is fairly easy. You can do it in an hour if you’re comfortable using the computer. The real struggle here is marketing the business. You need to know at the very least, how to use SEO and Facebook ads incredibly well in order for you to have a chance at success. It will also help you to know how to code in HTML, JavaScript, and CSS at the very least. This will take some trial and error. You will burn through a couple thousand dollars to get it started and it will not come easy immediately. There are huge success stories, though. It can work and it’s probably your best option if you’re looking to open a business. In the beginning it won’t be passive, but if you’re able to figure it out it can definitely become passive.

 

So, here’s the problem. Almost all of these options require a massive amount of startup money to be viable sources of income independently. Our financial system and economy is currently set up in a way that benefits the already wealthy. If you $2 million and you are in a mutual fund that earns even 8%, you’re sitting on a yearly income that is 4x that of the average American. All because you already have a lot of money. Examples like this are the reason that crypto is so appealing to the younger generations who have less money. They know that there is a better way to live. They know that our economy can be better and our financial system is completely rigged.

Cryptocurrency opens doors to a world that was previously out-of-reach for the impoverished, unbanked, and underpriveleged. It makes living a life not filled with 40-hour work weeks possible. There are ways to make viable passive income that will actually make a difference in your life by using cryptocurrency. I have exclusively used trading as a way to make money, but this year I want to build passive income that will ensure I have more time to spend with family and do the things that I want to do without worrying about money. In part two, I am going to outline my plan for how I plan to achieve this.

 

 

 

$GUP Update

GUP has been scraping along my drawn support line while the 1 day and 4 hour RSIs reset. On those timeframes, we definitely look ready to pop off in a big way.

gup4hr.png

The 4 hour RSI is on the bottom and has started to curve up.

gup1d.png

The 1 day RSI also looks phenomenal. It has been floored for several days and I think it’s unlikely that we don’t see a major jump pretty soon.

GUP has product launches on both the 18th and 22nd. We are approaching those dates quickly and the technical analysis for GUP has set us up for hopefully some great gains with GUP.

The only foreseeable scenario in which I see GUP going down in the short-term would be if we see a BTC bull run tomorrow, which is very possible. However, lately it seems as though alts actually pump with Bitcoin, so that could create a very interesting scenario. Either way, tomorrow I’ll be watching all my holdings closely as I think we will see some great price movement.

$GUP Update

GUP has been filling out this triangle exactly as I had predicted.

gup1hr.png

As expected, we bounced off of support. I have a feeling we will head down again to retest. If we break the support, I’ll be looking to unload what I have for a profit and buy in at a better entry. From here, I expect to see some upward price movement to meet the resistance again. In my opinion we will have a couple more days until we break out of this formation.

$CAPP Update: We Have Liftoff

CAPP experienced a 20-30% price increase today. I am not getting close to a selling point yet, as I still think this coin has some room to run. Here’s a 4 hour chart:

capp4hr.png

As you can see, the 4 hour RSI is getting close to the top, but I believe this is the beginning of a sustained run. I’ll be watching closely. If it pumps really hard, I will try to sell and catch the top and then reevaluate for a potential reentry.

Diversification

One of my goals for this year is to diversify my portfolio in a way that protects it from the volatility from cryptocurrency. Although I fully expect cryptocurrency to continue its uptrend for this year, it is important to be safe when dealing with such volatile assets. There are three ways I plan on doing this. Today, I’m going to tell you how I expect to execute this shift.

  1. Buying Precious Metals 

Diversifying into something stable is really important to me. I buy my gold and silver using Bitcoin from JMBullion. They ship quickly and are able to get pretty close to spot price.

2. Learning the Stock Market

I am able to trade stocks, commodities, and forex using Bitcoin at 1Broker. You can go long or short and also use leverage. Learning these markets is important to me, because crypto likely won’t be so lucrative forever.

3. Investing Using Robo-Advisors

Let the computer do the work. I will be shopping several automated investing platforms such as Wealthfront.  This way, I’ll earn passive income and growth on my investments and be able to start building a retirement and savings fund.

 

2017 was all about accumulation. 2018 for me is going to be about diversification and making sure that anything I earn will benefit my future in an efficient way while also being protected.

$POLL TA/Outlook

POLL has been one of my favorite coins for a couple weeks. I entered it when I spotted some upcoming events and a great TA entry. I am up more than 600% since my entry on this coin but I believe it will still go up.

The chart is forming a bull pennant and the 4 hour RSI has cooled off considerably. There are upcoming events on January 17 (Clearify launch and a major partnership announcement).

poll4hr.png

I have sold enough of this coin to cover my original investment and I’m holding the rest. This coin has huge potential and I think it is still bullish.

$ZCL Update

ZCL has been gradually making its way upwards. The 4 hour RSI needs to cool down in my opinion. zcl4hr.png

I think worst case scenario–we bounce back off support on a 4 hour retrace. The daily chart is still very bullish though so any kind of dip won’t last long in my opinion.zcl1day.png

Despite a long period of growth, the 1 day RSI is still floored. I think we are going to see some more major moves leading up to the fork date announcement and ultimately the fork itself.

BTG and BCD both experienced sharp increases today, so that bodes really well for the BTCP fork.

Still holding ZCL.

$CAPP Update

CAPP has been moving sideways for days. I am up 10% on my entry, but I’m looking for a little more here.

capp4hr.png

CAPP has news this month and a conference as well. I expect us to go for another leg up relatively soon, but CAPP is taking its sweet time as you can see. The price has held up well and the 4 hour RSI is floored, so we are still looking great. I love this coin and I love the buzz around it. Holding this until further notice.