5 Ways to Short Bitcoin - Investopedia

FI on my birthday!

I did it today. On my 47th birthday, I reached $3 million in cash & investments, a paid off house & 2 cars. I have reached my FI target of $100k @ 3.3% SWR. I knew it was going to be close with the markets, payday, and my company's equity coming in today.
Plan is to FIRE in 3 months. $3 million was a symbolic number, I could have FIREd 2 months ago at $2.95 million and lived pretty much the same life. However, I am getting another ~$70k in equity in 3 months and would like a bit of a buffer especially with the volatile markets. Also, the plan was to take a nice trip to Europe in August - I don't see that happening.
It is crazy, I know of many people who are laid off, working reduced hours, worried about their job or tapping into debt. And I am making plans to quit working.

Mega edit:
Asset allocation
Cash & short term investments: 25% (increased 10% from equities due to C19)
Employer's Equity: 10%
Equity ETFs: 45% (down 10% - sold in early march, will buy back in later)
Bond ETFs: 10%
Crypto: 10%
Please bring on the flames for timing the market, but I sold early-ish, it helps me sleep at night, and right now I am trying to be more conservative vs. aggressive.
The crypto is a flyer. I bought casino level bitcoin in 2012 at $18, then sold a bunch when it went up to $150. Then bought a bunch more at $1000, and have been selling little bits for a few years. Total investment: $45k, total value sold and still held: $500k. I would like to sell more, but it has a capital gains tax liability, so FIRE with no income next year would help reduce taxes.

About my journey
Grew up middle class. Money was tight from time to time, but I never really saw that.
Part time job when I was 16 for spending cash. Never went into debt. Saved a little.
Went into a good college for STEM, received $8000 total for tuition from family and received a student loan for $1000. Did a few paid internships while in college. Paid off the loan with my first post-school paycheck.
Graduated in the tech industry in 97. Started full time at the last internship. $40k base. Stayed there for 2 more years, increased base by 20%. $48k base. Left (co-worker left and pulled me), for a ~100% increase. $90k base. Stayed there 6 months (dying ship), left for ~10% increase. $100k base. Stayed there for 2 years (all of my managers up to CEO left in 2 weeks), left for a 0% change. $100k base. Stayed there for 1.5 years, was let go, started consulting at +50% (but no benefits). $150k consulting. Consulted for 8 months, left when project was wrapping up for -40% (+10% from previous full time) $110k base. Stayed there for 11 years (company was acquired 3 after years), increased pay by ~20% in 11 years. $133k base. Left for 5% increase. $141k base. Worked there for 6 months (bad fit), left for 5% increase. $150k base. Here now. Making about 4x after 20 years. Did not include any bonus (or not), benefits (health/retirement/etc...) stock options, quality of life, etc..

Current investments
Canadian ETF / funds I invest in in decreasing amounts.
XGRO VCN VXC VAB VT TDB900 TDB902 TDB909 TDB911 Tangerine Balanced (part of emergency fund) TDB661 CDZ

submitted by throwaway_canada1 to financialindependence [link] [comments]

25 Tools and Resources for Crypto Investors: Guide to how to create a winning strategy

Lots of people have PM'd me asking me the same questions on where to find information and how to put together their portfolio so I decided to put a guide for crypto investors, especially those who have only been in a few months and are still confused.
This is going to be Part 1 and will deal with research resources, risk and returns. In Part 2 I'll post a systematic approach to valuation and picking individual assets with derived price targets.

Getting started: Tools and resources

You don't have to be a programmer or techie to invest in crypto, but you should first learn the basics of how it functions. I find that this video by 3Blue1Brown is the best introduction to what a blockchain actually is and how it functions, because it explains it clearly and simply with visuals while not dumbing it down too much. If you want a more ELI5 version with cute cartoons, then Upfolio has a nice beginner's intro to the blockchain concept and quick descriptions of top 100 cryptocurrencies. I also recommend simply going to Wikipedia and reading the blockchain and cryptocurrency page and clicking onto a few links in, read about POS vs POW...etc. Later on you'll need this information to understand why a specific use case may or may not benefit from a blockchain structure. Here is a quick summary of the common terms you should know.
Next you should arm yourself with some informational resources. I compiled a convenient list of useful tools and sites that I've used and find to be worthy of bookmarking:
Market information
Analysis tools
Portfolio Tracking
Youtube
I generally don't follow much on Youtube because it's dominated by idiocy like Trevon James and CryptoNick, but there are some that I think are worthy of following:

Constructing a Investment Strategy

I can't stress enough how important it is to construct an actual investment strategy. Organize what your goals are, what your risk tolerance is and how you plan to construct a portfolio to achieve those goals rather than just chasing the flavor of the week.
Why? Because it will force you to slow down and make decisions based on rational thinking rather than emotion, and will also inevitably lead you to think long term.

Setting ROI targets

Bluntly put, a lot of young investors who are in crypto have really unrealistic expectations about returns and risk.
A lot of them have never invested in any other type of financial asset, and hence many seem to consider a 10% ROI in a month to be unexciting, even though that is roughly what they should be aiming for.
I see a ton of people now on this sub and on other sites making their decisions with the expectation to double their money every month. This has lead a worrying amount of newbies putting in way too much money way too quickly into anything on the front page of CoinMarketCap with a low dollar value per coin hoping that crypto get them out of their debt or a life of drudgery in a cubicle. And all in the next year or two!
But its important to temper your hype about returns and realize why we had this exponential growth in the last year. Its not because we are seeing any mass increase in adoption, if anything adoption among eCommerce sites is decreasing. The only reason we saw so much upward price action is because of fiat monetary base expansion from people FOMO-ing in due to media coverage of previous price action. People are hoping to ride the bubble and sell to a greater fool in a few months, it is classic Greater Fool Theory. That's it. We passed the $1,000 psychological marker again for Bitcoin which we hadn't seen since right before the Mt.Gox disaster, and it just snowballed the positivity as headline after headline came out about the price growth. However those unexciting returns of 10% a month are not only the norm, but much more healthy for an alternative investment class. Here are the annual returns for Bitcoin for the last few years:
Year BTC Return
2017 1,300%
2016 120%
2015 35%
2014 -60%
2013 5300%
2012 150 %
Keep in mind that a 10% monthly increase when compounded equals a 313% annual return, or over 3x your money. That may not sound exciting to those who entered recently and saw their money go 20x in a month on something like Tron before it crashed back down, but that 3X annual return is better than Bitcoin's return every year except the year right before the last market meltdown and 2017. I have been saying for a while now that we are due for a major correction and every investor now should be planning for that possibility through proper allocation and setting return expectations that are reasonable.

Risk Management

Quanitifying risk in crypto is surprisingly difficult because the historical returns aren't normally distributed, meaning that tools like Sharpe Ratio and other risk metrics can't really be used as intended. Instead you'll have to think of your own risk tolerance and qualitatively evaluate how risky each crypto is based on the team, the use case prospects, the amount of competition and the general market risk.
You can think of each crypto having a risk factor that is the summation of the general crypto market risk (Rm) as ultimately everything is tied to how Bitcoin does, but also its own inherent risk specific to its own goals (Ri).
Rt = Rm +Ri
The market risk is something you cannot avoid, if some China FUD comes out about regulations on Bitcoin then your investment in solid altcoin picks will go down too along with Bitcoin. This (Rm) return is essentially what risk you undertake to have a market ROI of 385% I talked about above. What you can minimize though is the Ri, the aset specific risks with the team, the likelihood they will actually deliver, the likelihood that their solution will be adopted. Unfortunately there is no one way to do this, you simply have to take the time to research and form your own opinion on how risky it really is before allocating a certain percentage to it. Consider the individual risk of each crypto and start looking for red flags:
  • guaranteed promises of large returns (protip: that's a Ponzi)
  • float allocations that give way too much to the founder
  • vague whitepapers
  • vague timelines
  • no clear use case
  • Github with no useful code and sparse activity
  • a team that is difficult to find information on or even worse anonymous
While all cryptocurrencies are a risky investments but generally you can break down cryptos into "low" risk core, medium risk speculative and high risk speculative
  • Low Risk Core - This is the exchange pairing cryptos and those that are well established. These are almost sure to be around in 5 years, and will recover after any bear market. Bitcoin, Litecoin and Ethereum are in this class of risk, and I would also argue Monero.
  • Medium Risk Speculative - These would be cryptos which generally have at least some product and are reasonably established, but higher risk than Core. Things like ZCash, Ripple, NEO..etc.
  • High Risk Speculative - This is anything created within the last few months, low caps, shillcoins, ICOs...etc. Most cryptos are in this category, most of them will be essentially worthless in 5 years.
How much risk should you take on? That depends on your own life situation but also it should be proportional to how much expertise you have in both financial analysis and technology. If you're a newbie who doesn't understand the tech and has no idea how to value assets, your risk tolerance should be lower than a programmer who understand the tech or a financial analyst who is experienced in valuation metrics.
Right now the trio of BTC-ETH-LTC account for 55% of the market cap, so between 50-70% of your portfolio in low Risk Core for newbies is a great starting point. Then you can go down to 25-30% as you gain confidence and experience. But always try to keep about 1/3rd in safe core positions. Don't go all in on speculative picks.
Core principles to minimize risk
  • Have the majority of your holdings in things you feel good holding for at least 2 years. Don't use the majority of your investment for day trading or short term investing.
  • Consider using dollar cost averaging to enter a position. This generally means investing a X amount over several periods, instead of at once. You can also use downward biased dollar cost averaging to mitigate against downward risk. For example instead of investing $1000 at once in a position at market price, you can buy $500 at the market price today then set several limit orders at slightly lower intervals (for example $250 at 5% lower than market price, $250 at 10% lower than market price). This way your average cost of acquisition will be lower if the crypto happens to decline over the short term.
  • Never chase a pump. Its simply too risky as its such an inefficient and unregulated market. If you continue to do it, most of your money losing decisions will be because you emotionally FOMO-ed into gambling on a symbol.
  • Invest what you can afford to lose. Don't have more than 5-10% of your net worth in crypto.
  • Consider what level of loss you can't accept in a position with a high risk factor, and use stop-limit orders to hedge against sudden crashes. Set you stop price at about 5-10% above your lowest limit. Stop-limit orders aren't perfect but they're better than having no hedging strategy for a risky microcap in case of some meltdown. Only you can determine what bags you are unwilling to hold.
  • Diversify across sectors and rebalance your allocations periodically. Keep about 1/3rd in low risk core holdings.
  • Have some fiat in reserve at a FDIC-insured exchange (ex. Gemini), and be ready to add to your winning positions on a pullback.
  • Remember you didn't actually make any money until you take some profits, so take do some profits when everyone else is at peak FOMO-ing bubble mode. You will also sleep much more comfortably once you take out the equivalent of your principal.

Portfolio Allocation

Along with thinking about your portfolio in terms of risk categories described above, I really find it helpful to think about the segments you are in. OnChainFX has some segment categorization to think about:
  • Currency
  • General Purpose Platform
  • Advertising
  • Crowdfunding Platform
  • Lending Platform
  • Privacy
  • Distributed Computing/Storage
  • Prediction Markets
  • IOT (Internet of Things)
  • Asset Management
  • Content Creation
  • Exchange Platform
I generally like to simplify these down to these 7 segments:
  • Core holdings - essentially the Low Risk Core segment
  • Platform segment
  • Privacy segment
  • Finance/Bank settlement segment
  • Enterprise Blockchain solutions segment
  • Promising/Innovative Tech segment
This is merely what I use, but I'm sure you can think of your own. The key point I have is to try to invest your medium and high risk picks in a segment you understand well, and in which you can relatively accurately judge risk. If you don't understand anything about how banking works or SWIFT or international settlement layers, don't invest in Stellar. If you have no idea how a supply chain functions, avoid investing in VeChain (even if it's being shilled to death on Reddit at the moment just like XRB was last month). Buffet calls this "circle of competence", he invests in sectors he understands and avoids those he doesn't like tech. I think doing the same thing in crypto is a wise move.
What's interesting is that often we see like-coin movement, for example when a coin from one segment pumps we will frequently see another similar coin in the same segment go up (think Stellar following after Ripple).
Consider the historic correlations between your holdings. Generally when Bitcoin pumps, altcoins dump but at what rate depends on the coin. When Bitcoin goes sideways we tend to see pumping in altcoins, while when Bitcoin goes down, everything goes down.
You should set price targets for each of your holdings, which is a whole separate discussion I'll go in Part 2 of the guide.

Summing it up

This was meant to get you think about what return targets you should set for your portfolio and how much risk you are willing to take and what strategies you can follow to mitigate that risk.
Returns around 385% (average crypto market CAGR over the last 3 years) would be a good target to aim for while remaining realistic, you can tweak it a bit based on your own risk tolerance. What category of risk your individual crypto picks should be will be determined by how much more greed you have for above average market return. A portfolio of 50% core holdings, 30% medium risk in a sector you understand well and 20% in high risk speculative is probably what the average portfolio should look like, with newbies going more towards 70% core and only 5% high risk speculative.
Just by thinking about these things you'll likely do better than most crypto investors, because most don't think about this stuff, to their own detriment.
submitted by arsonbunny to CryptoCurrency [link] [comments]

Calling the Bottom in this latest bitcoin sell off

I'm resubmitting this here, hopefully there are less bitcoin pessimists and we can have an interesting discussion. I think most well informed bitcoin traders/holders understand by now that this price drop is mostly manipulation by a handful of big whales. I don't have unequivocal proof of this, but that's my opinion and I've heard many other prominent bitcoiners in the community state the same. There are many other lessor factors that are exacerbating the problem too such as people who have had their spirits broken and just wan't to get some of their investment back for fear that the price could drop below $100 again, but those people wouldn't exist if not for these devious price manipulators who are most likely looking to re-enter at a lower price.
The positive news and fundamentals of bitcoin are arguably the best they've ever been with increased VC investments and what seems like accelerated merchant adoption. We still have a couple big catalysts supposedly going to come to fruition this fourth quarter like the Winklevoss $COIN ETF and Barry Silbert opening up his trust to non-accredited investors.
So here's my point: At some point, these whales who are making money off of shorting and artificially lowering the price stand to make MUCH MORE money from another parabolic move up than they do from completely destroying all faith in bitcoin by shorting it down to $50 or whatever concrete bottom there is for illicit drug use.
I guess, theoretically, the lower they can drop the price the more they will make on the eventual parabolic move up, but in my opinion at some point they've done too much psychological damage and it's not worth it to have it sub $100. So going along with this theory, the big question is: At what price will they be satisfied at re-entering?
I don't like envisioning it since I'm pretty heavily invested, but we could see $250-300 in a hurry before the ETF launches which is, in my opinion, going to be the start of the next move up.
I met some of the founders of Ethereum not too long ago and one of the bitcoin price related things that one of them said that stuck with me was that it's hard to picture the price not appreciating from a Nasdaq backed ETF launching. Market cap now is only 4.5 billion. That could easily double in a short time from a few dozen big time investors speculating with 1-5% of their trading capital. I mean look at the GoPro IPO. A camera on a stick has a $12 billion dollar market cap after 3 months of being publicly traded. A 5% sell off in Alibaba is enough money to double the market cap of bitcoin. Imagine if you could sell your Alibaba shares and instantly throw those proceeds into a Bitcoin ETF.
TL;DR - The bottom might not be in just yet, but there's not really any solid reasons to fully panic yet as the fundamentals are great and we should be seeing some big investors jump in before year-end.
submitted by chrisguns521 to BitcoinMarkets [link] [comments]

Crypto Investing Guide: Useful resources and tools, and how to create an investment strategy

Lots of people have PM'd me asking me the same questions on where to find information and how to put together their portfolio so I decided to put a guide for crypto investors, especially those who have only been in a few months and are still confused.
Many people entered recently at a time when the market was rewarding the very worst type of investment behavior. Unfortunately there aren't many guides and a lot of people end up looking at things like Twitter or the trending Youtube crypto videos, which is dominated by "How to make $1,00,000 by daytrading crypto" and influencers like CryptoNick.
So I'll try to put together a guide from what I've learned and some tips, on how to invest in this asset class. This is going to be Part 1, in another post later I'll post a systematic approach to valuation and picking individual assets.

Getting started: Tools and resources

You don't have to be a programmer or techie to invest in crypto, but you should first learn the basics of how it functions. I find that this video by 3Blue1Brown is the best introduction to what a blockchain actually is and how it functions, because it explains it clearly and simply with visuals while not dumbing it down too much. If you want a more ELI5 version with cute cartoons, then Upfolio has a nice beginner's intro to the blockchain concept and quick descriptions of top 100 cryptocurrencies. I also recommend simply going to Wikipedia and reading the blockchain and cryptocurrency page and clicking onto a few links in, read about POS vs POW...etc. Later on you'll need this information to understand why a specific use case may or may not benefit from a blockchain structure. Here is a quick summary of the common terms you should know.
Next you should arm yourself with some informational resources. I compiled a convenient list of useful tools and sites that I've used and find to be worthy of bookmarking:
Market information
Analysis tools
Portfolio Tracking
Youtube
I generally don't follow much on Youtube because it's dominated by idiocy like Trevon James and CryptoNick, but there are some that I think are worthy of following:

Constructing a Investment Strategy

I can't stress enough how important it is to construct an actual investment strategy. Organize what your goals are, what your risk tolerance is and how you plan to construct a portfolio to achieve those goals rather than just chasing the flavor of the week.
Why? Because it will force you to slow down and make decisions based on rational thinking rather than emotion, and will also inevitably lead you to think long term.

Setting ROI targets

Bluntly put, a lot of young investors who are in crypto have really unrealistic expectations about returns and risk.
A lot of them have never invested in any other type of financial asset, and hence many seem to consider a 10% ROI in a month to be unexciting, even though that is roughly what they should be aiming for.
I see a ton of people now on this sub and on other sites making their decisions with the expectation to double their money every month. This has lead a worrying amount of newbies putting in way too much money way too quickly into anything on the front page of CoinMarketCap with a low dollar value per coin hoping that crypto get them out of their debt or a life of drudgery in a cubicle. And all in the next year or two!
But its important to temper your hype about returns and realize why we had this exponential growth in the last year. The only reason we saw so much upward price action is because of fiat monetary base expansion from people FOMO-ing in due to media coverage. People are hoping to ride the bubble and sell to a greater fool in a few months, it is classic Greater Fool Theory. That's it. Its not because we are seeing any mass increase in adoption or actual widespread utility with cryptocurrency. We passed the $1,000 psychological marker again for Bitcoin which we hadn't seen since right before the Mt.Gox disaster, and it just snowballed the positivity as headline after headline came out about the price growth. However those unexciting returns of 10% a month are not only the norm, but much more healthy for an alternative investment class. Here are the annual returns for Bitcoin for the last few years:
Year BTC Return
2017 1,300%
2016 120%
2015 35%
2014 -60%
2013 5300%
2012 150 %
Keep in mind that a 10% monthly increase when compounded equals a 313% annual return, or over 3x your money. That may not sound exciting to those who entered recently and saw their money go 20x in a month on something like Tron before it crashed back down, but that 3X annual return is better than Bitcoin's return every year except the year right before the last market meltdown and 2017. I have been saying for a while now that we are due for a major correction and every investor now should be planning for that possibility through proper allocation and setting return expectations that are reasonable.
How to set a realistic ROI target
How do I set my own personal return target?
Basically I aim to achieve a portfolio return of roughly 385% annually (3.85X increase per year) or about 11.89% monthly return when compounded. How did I come up with that target? I base it on the average compounded annual growth return (CAGR) over the last 3 years on the entire market:
Year Total Crypto Market Cap
Jan 1, 2014: $10.73 billion
Jan 1, 2017: $615 billion
Compounded annual growth return (CAGR): (615/10.73)1/3 = 385%
My personal strategy is to sell my portfolio every December then buy back into the market at around the beginning of February and I intend to hold on average for 3 years, so this works for me but you may choose to do it a different way for your own reasons. I think this is a good average to aim for as a general guideline because it includes both the good years (2017) and the bad (2014). Once you have a target you can construct your risk profile (low risk vs. high risk category coins) in your portfolio. If you want to try for a higher CAGR than about 385% then you will likely need to go into more highly speculative picks. I can't tell you what return target you should set for yourself, but just make sure its not depended on you needing to achieve continual near vertical parabolic price action in small cap shillcoins because that isn't sustainable.
As the recent January dip showed while the core cryptos like Bitcoin and Ethereum would dip an X percentage, the altcoins would often drop double or triple that amount. Its a very fragile market, and the type of dumb behavior that people were engaging in that was profitable in a bull market (chasing pumps, going all in on a microcap shillcoin, having an attention span of a squirrel...etc) will lead to consequences. Just like they jumped on the crypto bandwagon without thinking about risk adjusted returns, they will just as quickly jump on whatever bandwagon will be used to blame for the deflation of the bubble, whether the blame is assigned to Wall Steet and Bitcoin futures or Asians or some government.
Nobody who pumped money into garbage without any use case or utility will accept that they themselves and their own unreasonable expectations for returns were the reason for the gross mispricing of most cryptocurrencies.

Risk Management

Quanitifying risk in crypto is surprisingly difficult because the historical returns aren't normally distributed, meaning that tools like Sharpe Ratio and other risk metrics can't really be used as intended. Instead you'll have to think of your own risk tolerance and qualitatively evaluate how risky each crypto is based on the team, the use case prospects, the amount of competition and the general market risk.
You can think of each crypto having a risk factor that is the summation of the general crypto market risk (Rm) as ultimately everything is tied to how Bitcoin does, but also its own inherent risk specific to its own goals (Ri).
Rt = Rm +Ri
The market risk is something you cannot avoid, if some China FUD comes out about regulations on Bitcoin then your investment in solid altcoin picks will go down too along with Bitcoin. This (Rm) return is essentially what risk you undertake to have a market ROI of 385% I talked about above. What you can minimize though is the Ri, the aset specific risks with the team, the likelihood they will actually deliver, the likelihood that their solution will be adopted. Unfortunately there is no one way to do this, you simply have to take the time to research and form your own opinion on how risky it really is before allocating a certain percentage to it. Consider the individual risk of each crypto and start looking for red flags:
  • guaranteed promises of large returns (protip: that's a Ponzi)
  • float allocations that give way too much to the founder
  • vague whitepapers
  • vague timelines
  • no clear use case
  • Github with no useful code and sparse activity
  • a team that is difficult to find information on or even worse anonymous
While all cryptocurrencies are a risky investments but generally you can break down cryptos into "low" risk core, medium risk speculative and high risk speculative
  • Low Risk Core - This is the exchange pairing cryptos and those that are well established. These are almost sure to be around in 5 years, and will recover after any bear market. Bitcoin, Litecoin and Ethereum are in this class of risk, and I would also argue Monero.
  • Medium Risk Speculative - These would be cryptos which generally have at least some product and are reasonably established, but higher risk than Core. Things like ZCash, Ripple, NEO..etc.
  • High Risk Speculative - This is anything created within the last few months, low caps, shillcoins, ICOs...etc. Most cryptos are in this category, most of them will be essentially worthless in 5 years.
How much risk should you take on? That depends on your own life situation but also it should be proportional to how much expertise you have in both financial analysis and technology. If you're a newbie who doesn't understand the tech and has no idea how to value assets, your risk tolerance should be lower than a programmer who understand the tech or a financial analyst who is experienced in valuation metrics.
Right now the trio of BTC-ETH-LTC account for 55% of the market cap, so between 50-70% of your portfolio in low Risk Core for newbies is a great starting point. Then you can go down to 25-30% as you gain confidence and experience. But always try to keep about 1/3rd in safe core positions. Don't go all in on speculative picks.
Core principles to minimize risk
  • Have the majority of your holdings in things you feel good holding for at least 2 years. Don't use the majority of your investment for day trading or short term investing.
  • Consider using dollar cost averaging to enter a position. This generally means investing a X amount over several periods, instead of at once. You can also use downward biased dollar cost averaging to mitigate against downward risk. For example instead of investing $1000 at once in a position at market price, you can buy $500 at the market price today then set several limit orders at slightly lower intervals (for example $250 at 5% lower than market price, $250 at 10% lower than market price). This way your average cost of acquisition will be lower if the crypto happens to decline over the short term.
  • Never chase a pump. Its simply too risky as its such an inefficient and unregulated market. If you continue to do it, most of your money losing decisions will be because you emotionally FOMO-ed into gambling on a symbol.
  • Invest what you can afford to lose. Don't have more than 5-10% of your net worth in crypto.
  • Consider what level of loss you can't accept in a position with a high risk factor, and use stop-limit orders to hedge against sudden crashes. Set you stop price at about 5-10% above your lowest limit. Stop-limit orders aren't perfect but they're better than having no hedging strategy for a risky microcap in case of some meltdown. Only you can determine what bags you are unwilling to hold.
  • Diversify across sectors and rebalance your allocations periodically. Keep about 1/3rd in low risk core holdings.
  • Have some fiat in reserve at a FDIC-insured exchange (ex. Gemini), and be ready to add to your winning positions on a pullback.
  • Remember you didn't actually make any money until you take some profits, so take do some profits when everyone else is at peak FOMO-ing bubble mode. You will also sleep much more comfortably once you take out the equivalent of your principal.

Portfolio Allocation

Along with thinking about your portfolio in terms of risk categories described above, I really find it helpful to think about the segments you are in. OnChainFX has some segment categorization but I generally like to bring it down to:
  • Core holdings - essentially the Low Risk Core segment
  • Platform segment
  • Privacy segment
  • Finance/Bank settlement segment
  • Enterprise Blockchain solutions segment
  • Promising/Innovative Tech segment
This is merely what I use, but I'm sure you can think of your own. The key point I have is to try to invest your medium and high risk picks in a segment you understand well, and in which you can relatively accurately judge risk. If you don't understand anything about how banking works or SWIFT or international settlement layers, don't invest in Stellar. If you have no idea how a supply chain functions, avoid investing in VeChain (even if it's being shilled to death on Reddit at the moment just like XRB was last month).
What's interesting is that often we see like-coin movement, for example when a coin from one segment pumps we will frequently see another similar coin in the same segment go up (think Stellar following after Ripple).
Consider the historic correlations between your holdings. Generally when Bitcoin pumps, altcoins dump but at what rate depends on the coin. When Bitcoin goes sideways we tend to see pumping in altcoins, while when Bitcoin goes down, everything goes down.
You should set price targets for each of your holdings, which is a whole separate discussion I'll go in Part 2 of the guide.

Summing it up

This was meant to get you think about what return targets you should set for your portfolio and how much risk you are willing to take and what strategies you can follow to mitigate that risk.
Returns around 385% (average crypto market CAGR over the last 3 years) would be a good target to aim for while remaining realistic, you can tweak it a bit based on your own risk tolerance. What category of risk your individual crypto picks should be will be determined by how much more greed you have for above average market return. A portfolio of 50% core holdings, 30% medium risk in a sector you understand well and 20% in high risk speculative is probably what the average portfolio should look like, with newbies going more towards 70% core and only 5% high risk speculative.
Just by thinking about these things you'll likely do better than most crypto investors, because most don't think about this stuff, to their own detriment.
submitted by arsonbunny to CryptoMarkets [link] [comments]

BTC pré ETF

BTC pré ETF
Bom dia.

O grafico bitcoin está claramente em uma pequena range nesse fundo, onde o preço é negociado entre um suporte e resistência fortes como zonas de interesse da maior parte dos players, entre US$6200~US$6760. É importante ressaltar que mesmo em tendência majoritariamente de baixa e sem pivot de reversão em lugar algum, poderemos ter testes nas resistências fixas e móveis.

Tenho a impressão de alta com viés de correção por três fatores muito simples:
  • Mesmo em tendência de baixa, por conta da consolidação, o preço buscou a zona de demanda no suporte em US$6200 e encontrou força compradora ali, todos os players que tem olhar para longo prazo veem essa zona como a de maior interesse e provavelmente esse é o ponto definido para compra de HOLD. Por conta disso temos um suporte muito forte, por conta do reteste verificamos (mini) DB, poderemos testar a resistência (US$6700) no mínimo.
  • Há uma pequena divergência entre o CCI e a movimentação do preço, em sobrevenda o preço deve buscar valores mais altos para encontrar o equilíbrio econômico de curto prazo, isso significa uma breve alta.
  • Podemos verificar a quantidade extremamente alta em zona de saturação de shorts no BTC, pelo indicador de BTCUSDSHORTS, onde encontra-se em queda mesmo que o indicador de Longs esteja performando alta . O que significa que as pessoas diminuiriam posições vendedoras e permanecem liquidas. Nessa ótica, o Bitcoin não deve subir muito, mas sim o suficiente pela diminuição de resistência vendedora.
https://preview.redd.it/rq90d9kec0n11.png?width=1426&format=png&auto=webp&s=a6948334d9ba3fd3facbeb9e2159b60240809ab4
Penso em preços acima de US$6700 são bem prováveis bem como a falsa sensação do mercado esquentando pré decisões fundamentais no Bitcoin, como do ETF. Ainda assim a tendência permanecerá de baixa e provavelmente não superaremos o topo de US$7400.

Não posso deixar de mencionar o suporte tracejado em US$5800, a última esperança dos compradores, se não segurar ali, não segura nunca mais.
https://preview.redd.it/00zeztjgc0n11.png?width=1426&format=png&auto=webp&s=95a80bd3bab8d5ed281b83e8aface085dad151dc
Gráfico dinâmico aqui
Falaí, o que você acha?
submitted by bibis8 to BrasilBitcoin [link] [comments]

How to Trade Bitcoin Part 1: Getting Ready to Trade

The first part of our bitcoin trading guide series explains the basics of bitcoin and trading terminology. Instructions are also provided for buying bitcoin and getting ready to trade on BTC.sx. We originally produced the first part of this guide for our own traders to get started with our platform. However, after some really good feedback we thought we should share it publicly too. So please bear with us if it is quite orientated to our own platform. Future parts will be much more applicable to trading in general.
Here is what we have planned for the series:
1) Getting ready to trade (this post)
2) Making your first trade
3) Basics of technical analysis
4) Advanced TA
5) Developing a sustainable strategy
Please let us know if there are any topics you would like specifically covered and whether or not articles are the best format for learning.
Why should you listen to what we have to say?
Our CEO turned $100 into $200k by trading bitcoin, our COO previosuly worked at senior management level at Deutsche Bank and UBS, and one of our advisers has a Wall Street background as a Portfolio Manager and is a Chartered Market Technician.
http://i.imgur.com/G06P306.png
This article begins with an overview of bitcoin, how to buy bitcoin and how to manage risk. The remainder of the article focuses on understanding trading terminology and creating a bitcoin trading account on BTC.sx.
What is bitcoin?
Bitcoin is a digital currency that uses encryption, rules of mathematics and a decentralized network to control the creation of more bitcoins and verify transactions. Bitcoin was designed to operate as ‘digital gold’ — it resembles a commodity but can be used as a currency. Bitcoin can be traded for fiat currency, like dollars or pounds, creating opportunities to profit from trading price fluctuations.
http://i.imgur.com/hNnKxGE.png
Why is bitcoin so volatile?
Compared to the price of gold, the price of bitcoin has exhibited much larger price swings. Typically the price of gold will change by just a few percent each week, but bitcoin’s price often changes by 10% or more — even in a ‘flat’ market.
Volatility is generally considered a good thing by bitcoin traders because it creates opportunities to buy lower and sell higher than flat markets.
The primary reason why bitcoin is volatile is because it has a small market cap and low trading volume. Market cap is the number of units (bitcoin here) in circulation multiplied by the value (bitcoin price here).
For example, bitcoin has a market cap of about $3 billion vs $31 billion for the a gold ETF (GLD is the most popular American gold investment vehicle). Additionally, the daily average trading volume for bitcoin is about $12 million vs approximately $939 million for the gold ETF.
The result of this small market cap and low trading volume is that less trading less money is required to make a large difference in supply and demand.
For instance, if a trader wants to buy $3 million worth of bitcoin this represents 33% of the daily trading volume and would push the price up approximately 14%, at the time of writing. However, buying $3 million worth of the gold ETF is just 0.3% of the daily trading volume and is nothing compared to the hundreds of millions of trades that influence gold’s price.
http://i.imgur.com/NLtgVrX.png
Further information
The information we have provided about bitcoin is only the bare essentials a trader needs to know. If you are completely new to bitcoin, also consider exploring these external resources:
We Use Coins
Bitcoin.org
Bitcoin Wiki
2. How to Manage Risk
Risk of buying bitcoin
As discussed above, bitcoin is an extremely volatile asset. Besides increasing in value, bitcoin’s price can also dramatically fall. When buying bitcoin, never invest more than you can afford to lose.
You cannot lose more than you put in, so don’t put in more than you can afford to lose and you’ll be all right, even in the most negative case. - Rpietila, Bitcoin and commodity investor
Risk of trading bitcoin
Furthermore, investing more than one can afford to lose reduces a trader’s ability to make good decisions. In particular, there is a risk of ‘panic selling’ when the market declines slightly. Instead of holding throughout a market dip, someone who is over-invested may panic and sell-off their holdings for a low price — attempting to cut their losses. This tends to lead to losing more money when the market recovers and the trader buys back at a higher price.
http://i.imgur.com/yrQbCsI.png
Simply, the best way to manage your risk is to not invest more than you can afford to lose. At BTC.sx, losses cannot exceed your deposit — so simply make sure this is a comfortable amount for you to trade with.
3. Understand Basic Bitcoin Trading Terminology
Trading
Trading is the act of buying, selling or exchanging one asset for another. Exchanging Bitcoin for US dollars, for instance, is trading.
Position
A position is similar a trade, which can either be long (buying bitcoin) or short (selling bitcoin). Like a trade you profit from a long/buy position when the price rises; and you profit from a short/sell position when the price falls.
Unlike a trade, a position has an open and close. At BTC.sx you begin by depositing bitcoin. Then you may acquire more bitcoin or US dollars by opening a position. When the position is closed you are left with just more or less bitcoin than the value deposited — this depends on how profitable your position was.
Trading platform
A trading platform, like BTC.sx, is a place where traders go to enter positions. Unlike an exchange, it is uncommon for to use platforms for exchanging one asset for another. Typically trading platforms also include more advanced features, such as leverage.
Leverage
http://i.imgur.com/Aik56aI.jpg
Leverage is borrowing assets for the purposes of increasing potential trading returns. This is also known as margin trading.
Trading with 10x leverage on BTC.sx, allows you to deposit 1 bitcoin and trade with 10 bitcoins. When you are done trading (closing a position) you return the 10 bitcoin and keep any profits made.
For example, let’s say your trading has been going well and you are consistently making a 10% return each week. Trading with 1 bitcoin, your profit is 0.1 bitcoin. However, with 10 bitcoins your profit is 1 bitcoin — this is the power of leverage when used correctly.
Although leverage does also increase trading risk exposure, your losses can never exceed your deposit at BTC.sx. Furthermore, your risk of an exchange failure is reduced because you are trading with 9 bitcoins that belong to BTC.sx and only 1 bitcoin of your own.
Exchange
Unlike trading platforms, investors use exchanges to swap an asset for another. For example, Bitstamp allows investors to trade their local currency for Bitcoin, or vice versa. Exchanges are the main determinants of bitcoin’s price because they contain an order book.
At an exchange you can either be a market maker or a market taker.
Market maker
A market maker sets the price they wish to buy or sell at and waits for a market taker who agrees to that price.
Market taker
A market taker finds a market maker that is offering a desirable price and quantity then immediately trades with them.
Order book
An order book is a list investors wanting to buy and sell an asset at specified quantities and prices. These are the market makers. Below is an annotated explanation of a bitcoin exchange order book. Picture the order book as a very hectic auction and the concept should be easier to understand.
http://i.imgur.com/DuRYrnx.png
Sell orders: “Asks”
This part of the order book lists the prices and quantities investors wish to sell bitcoin at. Here the cheapest seller is offering 2.3467 bitcoin at a price of $244.58. As these investors are asking for a price to sell at, these are called asks.
Buy orders: “Bids”
This part of the order book lists the prices and quantities investors wish to buy bitcoin at. Here the most expensive buyer is willing to purchase 0.5 bitcoin at a price of $244.43. As these investors are bidding for a price to buy at, these are called bids.
Current bitcoin price
This is the last price at which bitcoin was exchanged for US dollars. Given that buyers will fulfill the cheapest ask, and sellers will fulfill the most expensive bid, the price will always fall between the the cheapest ask and most expensive bid.
In this example, the price is $244.39 — the same as the most expensive bid. This means that the last bitcoin trade was a market taker selling to a market maker. This is also a demonstration of a seller always wanting to sell to the highest bidder.
Order book depth
This depth graph visualizes the amount of asks and bids at various prices. The more bitcoins that are available at a price, the ‘deeper’ the graph is. Naturally, as sellers do not want to ask for cheap prices and buyers do not want to buy for expensive prices, the graph is normally shallow in the middle.
If the chart is one-sided, it suggests that the market may be feeling bullish or bearish. In the above example, a lot of investors want to sell at $245 which would make it difficult for the price to rise beyond that. Conversely, the shallow graph on the bid side shows not many people want to buy bitcoin at these prices. This is typical of a bearish market.
Order book execution
An important feature of BTC.sx is that the positions our users open/close make buys and sells on exchange order books. In practice, when our users click buy, US dollars is used to buy bitcoin from the order book bids. Conversely, when our users click sell, bitcoin is sold for US dollars from the order book asks.
http://i.imgur.com/1Dk8G0t.jpg
Why is this important?
Firstly, when you trade on BTC.sx you do so with leverage. This means you can have a larger impact in the market and move the price in your favour. In the above example using just 1.3 bitcoin at 10x leverage would create buy 13 bitcoin from the asks. This helps drives the price up because now the cheapest ask is $244.61. If the market sees this as a bullish sign then others may follow, sparking a price rally.
Secondly, order book execution means that BTC.sx does not trade against our users. Trading platforms that do not offer this execution are acting as market makers and stand to profit from their traders losing money. At BTC.sx we want our traders to be profitable so they can keep trading.
*4. How to Buy Bitcoin * As a bitcoin-only trading platform, BTC.sx only accepts bitcoin deposits. This allows you to begin trading in minutes and without verifying your identity.
If you do not yet own any bitcoin there are a number of places that bitcoin can be bought from, including:
Circle
Coinbase
LocalBitcoins
Click here to see other ways to buy bitcoin in each region of the world.
To store your bitcoin you will also need a wallet, such as MultiBit or Blockchain.info.
5. Create an Account on BTC.sx
Once you have bitcoin, you are ready to start trading. Head over to BTC.sx to begin the registration process.
1. Click ‘Sign Up’
http://i.imgur.com/Fikj8Nd.png
2. Enter your details and read and agree with the terms of service
http://i.imgur.com/AjnKzRY.png
3. Click on the email activation code
http://i.imgur.com/lz5yBqK.png
4. Login to your account
http://i.imgur.com/P6VJ0xm.png
5. Visit trade screen
http://i.imgur.com/WjGockR.png
6. Send a deposit to BTC.sx
You are now one step away from being ready to trade bitcoin. All that is required is to send a deposit by following these instructions:
1. Click on ‘Deposit’ in the trading screen
http://i.imgur.com/1TxpgUh.png
2. Send bitcoin to your wallet address
http://i.imgur.com/cTZim5t.png
If you do not know how to send bitcoin please contact your wallet provider for assistance.
Conclusion** ** You should now be in a position where you understand the basics of bitcoin, trading terminology and have an account on BTC.sx to begin trading.
In part 2 we will be covering fundamental analysis, the basics of technical analysis and how to make your first trade. Like us on Facebook or follow us on Twitter for future updates.
If you have not yet signed up for an account on BTC.sx click here. The registration process takes just two minutes and does not require any identity verification documents
submitted by BTC_sx to BitcoinMarkets [link] [comments]

5 Reasons The Winklevoss ETF Will Send Bitcoin over 10,000+

http://bitcoinpricelive.com/bitcoin-etf-5-reasons-the-winklevoss-bitcoin-etf-will-send-bitcoin-to-10000/
The Winklevoss Bitcoin ETF is set to go online at the end of 2014. You might remember the Winklevoss twin brothers from the movie The Social Network where they sued Mark Zuckerburg and Facebook to win 50 million dollars. Since then the twins have moved on to start a Bitcoin ETF named the Winklevoss Bitcoin Trust. Once it begins trading, expect the price of Bitcoin to soar to over $10,000.
Here’s 5 reasons why:
  1. Wall Street Money Will Flow Into The Bitcoin ETF. As soon as a person can go to their brokerage account, type in the symbol COIN and buy now, it will put upwards pressure on the price of Bitcoin. There are many wealthy investors who would like to get into Bitcoin but they feel uncomfortable that Bitcoin is not in their name, that they need to backup a wallet, and they need to keep their computer virus free. The Winklevoss ETF will allow the average wealthy investor who is a not technology expert to put large amounts of money into Bitcoin.
  2. The Winklevoss ETF will be promoted as currency diversification on Wall Street Bitcoin is already being regarded by Wall Street as a new currency. The US dollar, Euro, and Yen have been undermined as a store of value. It will be advertised to clients as a high risk, high reward alternative currency.
  3. Trading of the ETF will only be open during stock market hours The COIN ETF can only be bought or sold during the NASDAQ market is open in the United States. This means that the Wall Street investor will only be able to access Bitcoin trading from 9:30 AM EST to 4:30 PM. During this time period, there will be increased volume and more news released about Bitcoin. In the downtime there will be massive speculation about where the Bitcoin ETF will open and for what price. There will be discrepancies of the price between Bitcoin exchanges and the Bitcoin ETF.
  4. Liquidity in Bitcoin markets will increase dramatically. There will be many more Bitcoins trading hands on a daily basis as the Bitcoin ETF will be required to allow shorting as well. This means that investors can bet that Bitcoin will go down as well. When the Bitcoin ETF opens, it will be much easier for Bitcoin Bears to bet that the price will go down. However, this is good for the price of Bitcoin as it will allow investors to bet both sides of the Bitcoin, increasing Bitcoin transactions
  5. The Bitcoin ETF is required to buy additional Bitcoins Details of the Winklevoss ETF reveal that as more money flows into their trust, they are required to buy Bitcoins. Since the supply of Bitcoins is limited, this means they will have to buy from exchanges or over the counter purchases. Recently, the Winklevoss Twins announced they would pay in Bitcoin to go to space via Richard Branson’s Virgin Galatic.
Expect the price of Bitcoin to go space as well!
submitted by rampageEesti to BitcoinMarkets [link] [comments]

What is Wandx Marketplace?

“If you can’t explain it simply, you don’t understand it well enough” — Albert Einstein.
We’re testing the WandX prototype Dapp on a private Ethereum network across 4 user types:
Eric, who is familiar with cryptocurrencies and ICOs, and has invested in them earlier as well.
Lisa, who owns Bitcoins and Ether, but doesn’t know too much about ICOs or other altcoins.
Kate, who doesn’t own any cryptocurrencies but has heard of Bitcoin and Blockchain.
Joshua, who has spent a lot of time in financial services and heard of Bitcoin, but hasn’t invested in it yet.
We showed the 4 groups our website, whitepaper, articles, and prototype. The aim was to keep the prototype as user friendly as possible; all four groups understood how the prototype worked and could play around with it, however the articles weren’t understood by everyone, and this is what we want to fix.
I will skip over the concept of a blockchain and how it works (two great references are given here and here). Ethereum is a blockchain on which decentralized applications can be built. Most applications are written using the Solidity language which is then deployed to the Ethereum blockchain. The solidity code constitutes a smart contract; these smart contracts run on every node in the Ethereum blockchain, and hence derives the benefits of decentralization — no single point of control or failure. Ethereum allows users to create their own custom tokens which can then be used in the users’ applications.
The WandX platform aims to be the wall street for Ethereum. If you assume that all the tokens on Ethereum are stocks, then exchanges such as Coinbase (analogous to the NYSE) allow you to buy stocks as well as trade between stocks. However these exchanges are centralized services enabling you to trade in cryptocurrencies that are designed to be decentralized, both in creation and distribution of the cryptocurrencies. Hence there are decentralized exchanges such as the 0x protocol and EtherDelta. Now if you want to trade a basket of cryptocurrencies, or if you want to create/trade a cryptocurrency future or option, you could go to https://www.deribit.com/ which offers these services. However, if you want to trade these derivatives (futures and options) in a decentralized manner, you can do that on WandX. In the real world, derivatives are traded on commodities exchanges and the NYSE.
Through the various WandX APIs, you can potentially create and trade in an ETF (exchange traded fund), Derivatives, portfolios, or any financial instrument on cryptocurrencies. I sometimes interchange cryptocurrencies and crypto-assets — a cryptocurrency is not backed by an asset, eg: Bitcoin, while a crypto-asset could be a cryptocurrency or a cryptocurrency backed by an asset such as loyalty points. WandX provides users with the tools to create and trade in financial instruments on cryptocurrencies (and later when regulation becomes , similar to how a brokerage account allows you to trade in stocks and derivatives, .
The stock exchanges in the real world are secondary markets which were created to enable easy trade of stocks/assets as well as to enable accurate discovery of prices for these stocks. Futures and options on stocks were created to hedge risk against price movements. Other instruments such as shorting stocks were created to bet on falling stock price.
WandX enables accurate price discovery of ERC20 tokens, as well as increased liquidity for trading these tokens and derivatives on the tokens. Hedging against price movements of tokens can be made through futures contracts, and investment in a variety of tokens can be done through investing in the WandX index. Thus, the WandX platform acts as the decentralized equivalent of a stock exchange for the cryptocurrency world.
Appendix:
Ethereum — a blockchain based on the Ether cryptocurrency (symbol of ETH). New cryptocurrencies or tokens can be created on the Ethereum platform by writing smart contracts (pieces of code that run on a blockchain).
Token/cryptocurrency/crypto-asset — In this article I mainly refer to tokens created on the Ethereum platform.
Derivatives — Financial instruments whose value is derived from the value of a more basic underlying variable. eg: futures and options.
Decentralized — As the name indicates, not governed by a central party.
ERC20 token — a token created on the Ethereum platform.
ETF — An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, currencies) and divides ownership of those assets into shares.
Financial instrument — They are assets that can be traded. These assets can be stock/bonds or derivatives.
Check out the Wandx marketplace here https://www.wandx.co/
submitted by WandXDapp to wandX [link] [comments]

ICO review: Bankera. Your opinion?

Bankera will be a fully-digital bank without costly brick and mortar branches based on technology to reduce the number of counterparties, thus lowering the cost of banking for the end consumer. Bankera will support multiple cryptocurrencies like Bitcoin, Ethereum, Dash and others and will also offer low-cost investment products, such as exchange traded funds (ETFs) and crypto-funds denominated in “baskets,” as proposed by the Nobel prize-winning economist Robert J. Shiller. Bankera is operating within SpectroCoin economical umbrella Token Symbol: BNK Token supply: 7.5 billion tokens during ICO stage Total supply: 25 billion tokens Price: 0.017 Euro per token (first Softcap of 1bn) ICO Start date: 27. Nov 2017 ICO End date: 28 February 2018
Strong sides:

- Decent media coverage.

Weak sides:
submitted by ICOandCryptoNews to icocrypto [link] [comments]

What is Wandx Marketplace?

“If you can’t explain it simply, you don’t understand it well enough” — Albert Einstein.
We’re testing the WandX prototype Dapp on a private Ethereum network across 4 user types:
Eric, who is familiar with cryptocurrencies and ICOs, and has invested in them earlier as well.
Lisa, who owns Bitcoins and Ether, but doesn’t know too much about ICOs or other altcoins.
Kate, who doesn’t own any cryptocurrencies but has heard of Bitcoin and Blockchain.
Joshua, who has spent a lot of time in financial services and heard of Bitcoin, but hasn’t invested in it yet.
We showed the 4 groups our website, whitepaper, articles, and prototype. The aim was to keep the prototype as user friendly as possible; all four groups understood how the prototype worked and could play around with it, however the articles weren’t understood by everyone, and this is what we want to fix.
I will skip over the concept of a blockchain and how it works (two great references are given here and here). Ethereum is a blockchain on which decentralized applications can be built. Most applications are written using the Solidity language which is then deployed to the Ethereum blockchain. The solidity code constitutes a smart contract; these smart contracts run on every node in the Ethereum blockchain, and hence derives the benefits of decentralization — no single point of control or failure. Ethereum allows users to create their own custom tokens which can then be used in the users’ applications.
The WandX platform aims to be the wall street for Ethereum. If you assume that all the tokens on Ethereum are stocks, then exchanges such as Coinbase (analogous to the NYSE) allow you to buy stocks as well as trade between stocks. However these exchanges are centralized services enabling you to trade in cryptocurrencies that are designed to be decentralized, both in creation and distribution of the cryptocurrencies. Hence there are decentralized exchanges such as the 0x protocol and EtherDelta. Now if you want to trade a basket of cryptocurrencies, or if you want to create/trade a cryptocurrency future or option, you could go to https://www.deribit.com/ which offers these services. However, if you want to trade these derivatives (futures and options) in a decentralized manner, you can do that on WandX. In the real world, derivatives are traded on commodities exchanges and the NYSE.
Through the various WandX APIs, you can potentially create and trade in an ETF (exchange traded fund), Derivatives, portfolios, or any financial instrument on cryptocurrencies. I sometimes interchange cryptocurrencies and crypto-assets — a cryptocurrency is not backed by an asset, eg: Bitcoin, while a crypto-asset could be a cryptocurrency or a cryptocurrency backed by an asset such as loyalty points. WandX provides users with the tools to create and trade in financial instruments on cryptocurrencies (and later when regulation becomes , similar to how a brokerage account allows you to trade in stocks and derivatives, .
The stock exchanges in the real world are secondary markets which were created to enable easy trade of stocks/assets as well as to enable accurate discovery of prices for these stocks. Futures and options on stocks were created to hedge risk against price movements. Other instruments such as shorting stocks were created to bet on falling stock price.
WandX enables accurate price discovery of ERC20 tokens, as well as increased liquidity for trading these tokens and derivatives on the tokens. Hedging against price movements of tokens can be made through futures contracts, and investment in a variety of tokens can be done through investing in the WandX index. Thus, the WandX platform acts as the decentralized equivalent of a stock exchange for the cryptocurrency world.
Appendix:
Ethereum — a blockchain based on the Ether cryptocurrency (symbol of ETH). New cryptocurrencies or tokens can be created on the Ethereum platform by writing smart contracts (pieces of code that run on a blockchain).
Token/cryptocurrency/crypto-asset — In this article I mainly refer to tokens created on the Ethereum platform.
Derivatives — Financial instruments whose value is derived from the value of a more basic underlying variable. eg: futures and options.
Decentralized — As the name indicates, not governed by a central party.
ERC20 token — a token created on the Ethereum platform.
ETF — An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, currencies) and divides ownership of those assets into shares.
Financial instrument — They are assets that can be traded. These assets can be stock/bonds or derivatives.
Check out the Wandx marketplace here https://www.wandx.co/
submitted by WandXDapp to wandX [link] [comments]

ІCO review: Bankera. Your opinion?

Bankera will be a fully-digital bank without costly brick and mortar branches based on technology to reduce the number of counterparties, thus lowering the cost of banking for the end consumer. Bankera will support multiple cryptocurrencies like Bitcoin, Ethereum, Dash and others and will also offer low-cost investment products, such as exchange traded funds (ETFs) and crypto-funds denominated in “baskets,” as proposed by the Nobel prize-winning economist Robert J. Shiller. Bankera is operating within SpectroCoin economical umbrella Token Symbol: BNK Token supply: 7.5 billion tokens during ICO stage Total supply: 25 billion tokens Price: 0.017 Euro per token (first Softcap of 1bn) ICO Start date: 27. Nov 2017 ICO End date: 28 February 2018
Strong sides:
Bankera’s founding team already owns and operates a successful cryptocurrency exchange, e-wallet, prepaid card provider and payment processor under the brand name SpectroCoin. Since SpectroCoin already gives positive gross profits they re-invest capital into their second project to increase the scale by having more capital to meet capital adequacy requirements. The ICO will help Bankera to increase their loan portfolio potentially worth near a billion EUR. Bankera can relay on an existing client base. Bankera claims to have client base with over 535.300+ existing users. Holders of Bankera tokens on Spectrocoin and Bankera platforms will receive 20% of net transactional revenue share. Competent team and strong advisory board. For example: Long Wong The President of NEM.io members and Eva Kaili - a member of the European Parliament. Decent media coverage.
Weak sides:
Coin will be first listed on SpectroCoin exchange. It might negatively influence on the volume and result in a slow price growth in the short and mid-term. This problem will be solved within few days after ICO , once the token will be listed on exchanges with large daily volumes. Some countries and exchanges might consider this token as security which can become an obstacle and significant problem for the Bankera team. Large supply of 25 billion tokens. Some investors get scared by large supply numbers. Bankera's ICO already has a community of 16000+ pre-ICO and 14000+ ICO contributors, so people who are interested in quick cash-out and in dumping tokens as soon as they hit the exchanges will not have a huge impact on our long-term goal. Significant amount of competitors in the market. Legal vulnerability of the project. While some countries might allow operations with Bankera – other countries will enforce restrictions with blockchain banks. This problem might be resolved in the nearest several years though. +++++++
Our verdict: This is an interesting project that solves an existing market problem and offers original solution. Bankera has strong and experienced team with influential advisory team. In our opinion this project stands out among other blockchain-banks due to an existing customers base, financial ecosystem and competent team. We have some concerns over large token supply, existing competitors and legal part of the project. However, all these problems are solves if addressed correctly. We would recommend this project for those who look for long-term investments.
submitted by ICOandCryptoNews to icoreviews [link] [comments]

WandX in plain english

“If you can’t explain it simply, you don’t understand it well enough” — Albert Einstein.
We’re testing the WandX prototype Dapp on a private Ethereum network across 4 user types:
Rahul, who is familiar with cryptocurrencies and ICOs, and has invested in them earlier as well. Kirthana, who owns Bitcoins and Ether, but doesn’t know too much about ICOs or other altcoins. Prerna, who doesn’t own any cryptocurrencies but has heard of Bitcoin and Blockchain. Joshua, who has spent a lot of time in financial services and heard of Bitcoin, but hasn’t invested in it yet. We showed the 4 groups our website, whitepaper, articles, and prototype. The aim was to keep the prototype as user friendly as possible; all four groups understood how the prototype worked and could play around with it, however the articles weren’t understood by everyone, and this is what we want to fix.
I will skip over the concept of a blockchain and how it works (two great references are given here and here). Ethereum is a blockchain on which decentralized applications can be built. Most applications are written using the Solidity language which is then deployed to the Ethereum blockchain. The solidity code constitutes a smart contract; these smart contracts run on every node in the Ethereum blockchain, and hence derives the benefits of decentralization — no single point of control or failure. Ethereum allows users to create their own custom tokens which can then be used in the users’ applications.
The WandX platform aims to be the wall street for Ethereum. If you assume that all the tokens on Ethereum are stocks, then exchanges such as Coinbase (analogous to the NYSE) allow you to buy stocks as well as trade between stocks. However these exchanges are centralized services enabling you to trade in cryptocurrencies that are designed to be decentralized, both in creation and distribution of the cryptocurrencies. Hence there are decentralized exchanges such as the 0x protocol and EtherDelta. Now if you want to trade a basket of cryptocurrencies, or if you want to create/trade a cryptocurrency future or option, you could go to https://www.deribit.com/ which offers these services. However, if you want to trade these derivatives (futures and options) in a decentralized manner, you can do that on WandX. In the real world, derivatives are traded on commodities exchanges and the NYSE.
Through the various WandX APIs, you can potentially create and trade in an ETF (exchange traded fund), Derivatives, portfolios, or any financial instrument on cryptocurrencies. I sometimes interchange cryptocurrencies and crypto-assets — a cryptocurrency is not backed by an asset, eg: Bitcoin, while a crypto-asset could be a cryptocurrency or a cryptocurrency backed by an asset such as loyalty points. WandX provides users with the tools to create and trade in financial instruments on cryptocurrencies (and later when regulation becomes , similar to how a brokerage account allows you to trade in stocks and derivatives.
The stock exchanges in the real world are secondary markets which were created to enable easy trade of stocks/assets as well as to enable accurate discovery of prices for these stocks. Futures and options on stocks were created to hedge risk against price movements. Other instruments such as shorting stocks were created to bet on falling stock price.
WandX enables accurate price discovery of ERC20 tokens, as well as increased liquidity for trading these tokens and derivatives on the tokens. Hedging against price movements of tokens can be made through futures contracts, and investment in a variety of tokens can be done through investing in the WandX index. Thus, the WandX platform acts as the decentralized equivalent of a stock exchange for the cryptocurrency world.

Appendix:

Ethereum — a blockchain based on the Ether cryptocurrency (symbol of ETH). New cryptocurrencies or tokens can be created on the Ethereum platform by writing smart contracts (pieces of code that run on a blockchain).
Token/cryptocurrency/crypto-asset — In this article I mainly refer to tokens created on the Ethereum platform.
Derivatives — Financial instruments whose value is derived from the value of a more basic underlying variable. eg: futures and options.
Decentralized — As the name indicates, not governed by a central party.
ERC20 token — a token created on the Ethereum platform.
ETF — An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, currencies) and divides ownership of those assets into shares.
Financial instrument — They are assets that can be traded. These assets can be stock/bonds or derivatives.
submitted by WandXDapp to wandX [link] [comments]

Wandx marketplace

“If you can’t explain it simply, you don’t understand it well enough” — Albert Einstein.
We’re testing the WandX prototype Dapp on a private Ethereum network across 4 user types:
Eric, who is familiar with cryptocurrencies and ICOs, and has invested in them earlier as well.
Lisa, who owns Bitcoins and Ether, but doesn’t know too much about ICOs or other altcoins.
Kate, who doesn’t own any cryptocurrencies but has heard of Bitcoin and Blockchain.
Joshua, who has spent a lot of time in financial services and heard of Bitcoin, but hasn’t invested in it yet.
We showed the 4 groups our website, whitepaper, articles, and prototype. The aim was to keep the prototype as user friendly as possible; all four groups understood how the prototype worked and could play around with it, however the articles weren’t understood by everyone, and this is what we want to fix.
I will skip over the concept of a blockchain and how it works (two great references are given here and here). Ethereum is a blockchain on which decentralized applications can be built. Most applications are written using the Solidity language which is then deployed to the Ethereum blockchain. The solidity code constitutes a smart contract; these smart contracts run on every node in the Ethereum blockchain, and hence derives the benefits of decentralization — no single point of control or failure. Ethereum allows users to create their own custom tokens which can then be used in the users’ applications.
The WandX platform aims to be the wall street for Ethereum. If you assume that all the tokens on Ethereum are stocks, then exchanges such as Coinbase (analogous to the NYSE) allow you to buy stocks as well as trade between stocks. However these exchanges are centralized services enabling you to trade in cryptocurrencies that are designed to be decentralized, both in creation and distribution of the cryptocurrencies. Hence there are decentralized exchanges such as the 0x protocol and EtherDelta. Now if you want to trade a basket of cryptocurrencies, or if you want to create/trade a cryptocurrency future or option, you could go to https://www.deribit.com/ which offers these services. However, if you want to trade these derivatives (futures and options) in a decentralized manner, you can do that on WandX. In the real world, derivatives are traded on commodities exchanges and the NYSE.
Through the various WandX APIs, you can potentially create and trade in an ETF (exchange traded fund), Derivatives, portfolios, or any financial instrument on cryptocurrencies. I sometimes interchange cryptocurrencies and crypto-assets — a cryptocurrency is not backed by an asset, eg: Bitcoin, while a crypto-asset could be a cryptocurrency or a cryptocurrency backed by an asset such as loyalty points. WandX provides users with the tools to create and trade in financial instruments on cryptocurrencies (and later when regulation becomes , similar to how a brokerage account allows you to trade in stocks and derivatives, .
The stock exchanges in the real world are secondary markets which were created to enable easy trade of stocks/assets as well as to enable accurate discovery of prices for these stocks. Futures and options on stocks were created to hedge risk against price movements. Other instruments such as shorting stocks were created to bet on falling stock price.
WandX enables accurate price discovery of ERC20 tokens, as well as increased liquidity for trading these tokens and derivatives on the tokens. Hedging against price movements of tokens can be made through futures contracts, and investment in a variety of tokens can be done through investing in the WandX index. Thus, the WandX platform acts as the decentralized equivalent of a stock exchange for the cryptocurrency world.
Appendix:
Ethereum — a blockchain based on the Ether cryptocurrency (symbol of ETH). New cryptocurrencies or tokens can be created on the Ethereum platform by writing smart contracts (pieces of code that run on a blockchain).
Token/cryptocurrency/crypto-asset — In this article I mainly refer to tokens created on the Ethereum platform.
Derivatives — Financial instruments whose value is derived from the value of a more basic underlying variable. eg: futures and options.
Decentralized — As the name indicates, not governed by a central party.
ERC20 token — a token created on the Ethereum platform.
ETF — An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, currencies) and divides ownership of those assets into shares.
Financial instrument — They are assets that can be traded. These assets can be stock/bonds or derivatives.
Check out the Wandx marketplace here https://www.wandx.co/
submitted by WandXDapp to wandX [link] [comments]

The Case for Bitcoin

In March of 2017, eight years after it was brought "online", a friend mentioned Bitcoin. I knew nothing. So, I bought $50 worth. By then, there were already multiple millionaires in existence from it's rise. At that time, just 9 months ago, BTC (Bitcoin) was $900. Today, December 11, 2017, it is at $16,600. Needless to say, I regret not being more aggressive. Is it a bubble now? Why would it be now? They've been saying that off and on for 8 years. Keep in mind that those previous 8 years were BEFORE CBOE or CME even mentioned offering futures contracts. IF you've already read my articles; "What is the Blockchain?" and "What is Bitcoin?" - then you have a greater understanding that what we are facing here isn't about Bitcoin alone. If you haven't, then you'll likely finish this article just as apprehensive and confused as you might be already (assuming you are new to this subject). There's not enough space to repeat everything here, so I'm going to condense the important points. Your questions about hacking; EMP's; not being backed were already answered in the other articles. I think if I draw parallels between blockchain/internet; and cryptocurrencies/domain names - you'll get the idea.
Why the focus on BTC? It is simply because it was the FIRST blockchain-associated currency mined and put into use (2009). It is NOT controlled by any government or single entity. Today, there are over 1,000 various blockchain tokens & coins available. Some are absolutely pointless and worthless - while others are going to revolutionize currency exchange, data storage, records transmission and security. IF you know what the blockchain is - then you know that it is the real value. It is further streamlining, securing, and bringing another level of data and currency utility to the world. All of the cryptocurrencies and tokens are the equivalent of what domain names & websites where to the internet when it was introduced. Without the internet, there would be no domains or websites. So, the blockchain could be thought of as "Internet 2.0". Many scoffed at the internet when it was becoming semi-mainstream in the late 80's. The first domain name was registered in 1985. The first commercial ISP (internet service provider) was formed in 1989. It was dial-up. Look at us now…
If you are familiar with the dot-com bubble of 2000-2002, you've got a big red flag going up in your head while watching the meteoric rise in BTC. If you bought into the internet investments when they came out (early 90's), you likely bought domain names, internet stocks, online shopping stocks, etc. Internet stocks bubbled and burst by 2003. So, from 1990-2000 (ten years) was the adaptation phase of the internet. Then the mainstream investment interest was 2000-2002. Those at the end of the rally (13 years after internet intro) lost big. I was one of them. I bought Microsoft when I thought it couldn't go any lower. I did the same thing with oil in 2009. There's no doubt in my mind there will be a few mini-bubbles in BTC. There might also be a big bubble at some point that will burst. Nobody can guess when it will be. Me personally, I expect a plateau - not a bubble. Irregardless, the stage is set right now. Bitcoin, altcoins, tokens, and the blockchain is just now BECOMING mainstream. It's on the news. It's just started trading in futures (12/10/17). What should be envisioned next? All the research, listening, watching the big banks & the chatter points me to some conclusions and expectations of my own. Could I be wrong? Yes. But I try to use logic, because I got in early enough to where I don't feel like I have much risk.
Futures trading just started. The thing with futures is that you don't have to own anything to place an order. While it spreads awareness of BTC, it doesn't neccessarily infuse a ton of investment market share. As a comparison, gold has about a 7 Trillion USD market share vs. BTC's 70 Billion USD. Lot's of room to grow. Not only that, I'd be willing to bet most futures traders are betting on a rise - not a fall in price. Here's something that I DO think will help BTC's stability and momentum at the same time: both VanEck and REX have each filed for introduction of a BTC ETF. That is big news. An ETF doesn't "short" a property. Futures can short a property. So, here we have another injection of "mainstream" into BTC. If you own BTC, you know that there are all sorts of pitfalls associated with wallets, buying it, and tax concerns. The ETF takes all the headache out of it. I believe that the futures and ETF markets will spread awareness, bring in investors, increase demand and raise the price. You may not know this - but the banking industry is implementing blockchain tokens as we speak. Those tokens are the little guys - not worth much... yet.
What about regulation? One word... TAX. The countries that are on-board will have a tax windfall on the gains. The IRS is already digging into the exchanges to reveal investors from the last two years. They also have their talons into the miners - calling BTC a taxable income - even though the SEC won't all it a currency. They want their piece. It's like marijuana. It's going to be a huge tax revenue base when it's all legalized and regulated at the federal level. There's no reason for Washington to try to hide the dollar signs in their eyes... Score another reason for BTC's support.
Bitcoin's algorithm (SHA-256) has a built in cap of 21 million coins. As mainstream investors, especially the wealthy who want a "whole" bitcoin or more, put in demand - the price goes up. It's like gold - but you can't hold it. Did I mention that the dollar isn't backed by ANYTHING? The discussion on intrinsic value is written in another article. Can't they change the cap? Yes, but the economic majority (who hold coins) would have to collectively agree to it. Why would you? You want it to go down? No. A hard fork has happened - but all it did was create an offshoot coin with a different symbol. It didn't change the cap on the original BTC. Also, those who held BTC were GIVEN some free portion of the new forked coins.
After the rush is over (hopefully not a bubble) - where does BTC go from here? To that, I direct your attention to the other tokens, coins, and cryptocurrencies out there. Let's say BTC plateau in value -after all the ETF's have been around for a couple years and everyone has a piece. What will all the little altcoins do? If you have been watching the charts of all the less-known-but-useful alt's out there - you'll see they all tracked BTC for the most part. They didn't gain as much - but they all went UP. Over these next couple years, I expect that people will take notice of the alt's and want them in the ETF's and futures as well. Some of these altcoins and tokens are worth just 5 cents right now. Needless to say, there's room to grow. Not likely they will be as meteoric as BTC - but nonetheless, still a good way to diversify and get some gains. Amazon has purchased several cryptocurrency-related domain names. Well, that's about all I have to say at this point. I just wanted to point out some thoughts. However, there are at least 20 other reasons that support the usefulness (hence value) of this "new thing" they call the blockchain & it's associated parts that give us a new opportunity to beat the stock market. Not investing advice here - just my opinion for my personal investing. Talk to a tax advisor, certified investment advisor, and do your own due diligence - don't take my word for it. I'm not a financial advisor. Good Luck!
submitted by sporte77 to u/sporte77 [link] [comments]

ERC20 marketplace and portfolio trading with Wandx

The WandX platform aims to be the wall street for Ethereum. If you assume that all the tokens on Ethereum are stocks, then exchanges such as Coinbase (analogous to the NYSE) allow you to buy stocks as well as trade between stocks. However these exchanges are centralized services enabling you to trade in cryptocurrencies that are designed to be decentralized, both in creation and distribution of the cryptocurrencies. Hence there are decentralized exchanges such as the 0x protocol and EtherDelta. Now if you want to trade a basket of cryptocurrencies, or if you want to create/trade a cryptocurrency future or option, you could go to https://www.deribit.com/ which offers these services. However, if you want to trade these derivatives (futures and options) in a decentralized manner, you can do that on WandX. In the real world, derivatives are traded on commodities exchanges and the NYSE.
Through the various WandX APIs, you can potentially create and trade in an ETF (exchange traded fund), Derivatives, portfolios, or any financial instrument on cryptocurrencies. I sometimes interchange cryptocurrencies and crypto-assets — a cryptocurrency is not backed by an asset, eg: Bitcoin, while a crypto-asset could be a cryptocurrency or a cryptocurrency backed by an asset such as loyalty points. WandX provides users with the tools to create and trade in financial instruments on cryptocurrencies (and later when regulation becomes , similar to how a brokerage account allows you to trade in stocks and derivatives.
The stock exchanges in the real world are secondary markets which were created to enable easy trade of stocks/assets as well as to enable accurate discovery of prices for these stocks. Futures and options on stocks were created to hedge risk against price movements. Other instruments such as shorting stocks were created to bet on falling stock price.
Wandx enables accurate price discovery of ERC20 tokens, as well as increased liquidity for trading these tokens and derivatives on the tokens. Hedging against price movements of tokens can be made through futures contracts, and investment in a variety of tokens can be done through investing in the WandX index. Thus, the WandX platform acts as the decentralized equivalent of a stock exchange for the cryptocurrency world.
Appendix:
Ethereum — a blockchain based on the Ether cryptocurrency (symbol of ETH). New cryptocurrencies or tokens can be created on the Ethereum platform by writing smart contracts (pieces of code that run on a blockchain).
Token/cryptocurrency/crypto-asset — In this article I mainly refer to tokens created on the Ethereum platform.
Derivatives — Financial instruments whose value is derived from the value of a more basic underlying variable. eg: futures and options.
Decentralized — As the name indicates, not governed by a central party.
ERC20 token — a token created on the Ethereum platform.
ETF — An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, currencies) and divides ownership of those assets into shares.
Financial instrument — They are assets that can be traded. These assets can be stock/bonds or derivatives.
The first version of Wandx app is live. Visit wandx.co to have a look.
submitted by WandXDapp to CryptoCurrencies [link] [comments]

#TradeTalks: Will a Bitcoin ETF Launch? A Bitcoin ETF Leading Indicator? Altcoins bleed out to BTC The man behind two gold ETFs says this about bitcoin - YouTube How to SHORT or LONG Bitcoin with Leverage  BINANCE FUTURES TUTORIAL  EXPLAINED for Beginners BITCOIN PUMPING!  VanEck Bitcoin ETF LAUNCHING!?  Bitcoin Dominance Over 70%!!

The Bitcoin ETF list is short but expected to grow rapidly as there are at least 10 new ETFs waiting for SEC approval right now. Why ETFs instead of buying the cryptocurrency? ETFs are listed on regulated public equities exchanges, protected by government oversight, can be held in tax-advantaged accounts (IRAs) and are less susceptible to loss, theft and fraud. The Grayscale Bitcoin Investment Trust (OTCMKTS:GBTC) was one of the first vehicles using the fund structure to give investors exposure to bitcoin, but to be clear, GBTC is not structured as an ETF. It hasn’t been a good year so far for bitcoin ETF hopefuls. Year-to-date, a total of 10 potential bitcoin products were prevented from listing on U.S. exchanges by the Securities and Exchange ... The Bitcoin ETF Saga Continues but with ‘Crypto Mum’ on Our Side. After the SEC Commission did not approve the listing of the long-awaited Winklevoss Bitcoin Trust in mid-2018, SEC Commissioner Hester Peirce, which has since been dubbed ‘Crypto Mum’, published a letter of dissent stating that she believes that the market is ready for a Bitcoin ETF and that she does not agree with her ... Bitcoin Tracker One ETN, is now quoted in U.S. dollars under the ticker CXBTF, helping brokerages offer it to all American investors without the hustle of going to NASDAQ Stockholm and buying in Euros or Swedish Krona.. If you can’t wait for the Bitcoin ETF to be approved and want to take opportunity of the current low BTC price there is an option that just became available thanks to an ...

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#TradeTalks: Will a Bitcoin ETF Launch?

CNBC's Bob Pisani reports the SEC has rejected Bitwise's bitcoin ETF. With CNBC's Melissa Lee and the Fast Money traders, Brian Kelly, Dan Nathan, Karen Finerman and Guy Adami. Bitcoin Price Analysis Incoming ProShares ETF Announcement + Short Squeeze Short Squeeze Articles: 8/13/8 Medium Post, 5 reasons to be bullish https://medium... Bitcoin Technical Analysis & Bitcoin News Today: Also, I'll use technical analysis on the Bitcoin price to make a Bitcoin price prediction. Watch the video to learn more! Watch the video to learn ... Bitcoin has been slowly but surely gaining positive momentum recently, with altcoins bleeding out in BTC ratios. How long will Bitcoin continue to regain dom... Jan Van Eck of Van Eck Associates talks gold and the possibility of a bitcoin ETF with CNBC's Bob Pisani. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC Ab...

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