Last year was a great year for cryptocurrencies, which moved from being a niche interest to the talk of the town. Bitcoin alone saw its market capitalisation grow by over 1,400%, from $15 billion to $221 billion, while other digital currencies have far outpaced this increase. However, there were also virtual currencies that simply disappeared, like Swiscoin. All this tremendous volatility has caused some pretty impressive projects to emerge and much more to fail completely. The cryptocurrency bubble cost a lot of people a lot of money so I can definitely relate to everyone who is starting to have their doubts about the altcoin market.
So what should you do? Is it all over? Should you just quit trading altcoins altogether or is there a silver lining to be found amidst all the market noise? As someone who made $2 million from crypto trading last year alone I can tell you that the bubble is nothing but a sign that the altcoin market is starting to mature and is in the process of spitting out all of the low-quality, bullshit projects. It’s time to wise up. If you are looking to win consistently on the crypto markets you need a systematic process which will allow you to weed out the bad trades and focus on the real opportunities to make money. Some say that winning consistently on the markets is impossible… Well how the heck am I doing it then? Time for you to find out.
Learning How To Trade From a Master
The Golden Question: Why Even Invest in Cryptocurrencies?
Forget about other people. There are three main reasons why YOU should invest in cryptocurrencies.
- To make money. Remember – volatility equals opportunity.
- To make use of a genuine blockchain-based application.
- To avoid middlemen and useless transaction fees.
You need to learn how to understand the markets to avoid falling victim to the hype machine surrounding every digital currency bubble. More oftne than not, people get caught up in a FOMO frenzy and try to make quick money by buying in massively at the peak of the bubble. This is not the way to do this.
Never Break These 6 Golden Rules of Crypto Trading
Rule #1: Choose Projects that have Zero Reliance on Third Parties
Imagine you have a company which relies on Twitter’s API to function. One day Twitter decides to close their API. What do you think will happen to your company? This happens all the time in the crypto world. Additionally there are projects which will only succeed if other companies take the risk to integrate their model within. Personally I would never count on that hapenning consistently. A lot of projects are built on top of other ecosystems and are dependent on them. This is a recipe for disaster. Always look for projects which own their infrastructure 100%.
Rule #2: Look for a Specific Road Map and a Retail Product
A poorly written road map is almost always an early sign of imminent failure. Examples include vague goals, big gaps and also reframing the same step over and over to appear as if the team is doing something significant when in reality they are not. Investing in such projects will cause you to lose money for sure so tread carefully. Also make sure there’s a real product already available to the investors. A real product validates the value of the service.
Rule #3: Investigate the Team Like It’s Your Girlfriend’s Family
Rule #4: The Project Must Have a Very Limited Token Supply
Rule #5: Forget It Unless It’s Already Listed on At Least Two Exchanges
Rule #6: Run Away From Tokens Which Could Face Legal Action
Is There a Good Time to Buy?
Although there is no general rule when to buy altcoins, it is usually a bad idea to do so at the peak of a bubble. Likewise, it is a bad practice to buy when the crypto is crashing. “Don’t try to catch a falling knife” is what they say. So, the best time to buy is when the price is at a relatively low level and has not experienced major fluctuations for quite some time.
The big question is how can you tell whether a crypto has reached rock bottom after a fall, or if it is in bubble mode. We see virtual coins rise and fall within days or even hours. Sometimes, an altcoin skyrockets and after it passes a mark that everyone believes to be the peak of the bubble, the real rally starts. This is exactly what happened a while ago, when the price of bitcoin reached $1,000. At that time, it seemed hugely expensive and many people did not buy bitcoins for that reason. Some months later, it became clear that these bitcoin prices were a good moment to start.
Tips About Timing:
- Traditional financial bubbles and crypto bubbles are nothing alike so don’t compare the two. For example, a 10% increase in the price of a crypto is most likely daily volatility rather than a bubble. A 100% up could be a bubble; however, it is often the start of it. But, 1000% up is probably a bubble, although there is no guarantee that it will pop.
- Don’t rush into buying just because there was a dip. Take your time and watch the market. Another dip may follow soon. And, don’t buy in out of fear that the price will spike tomorrow. The best advice is to buy meaningful tokens and hold them for at least 3-6 months. Do not sell too early. Being a weak hand will not open your full potential as a crypto trader or investor.
Following is (what I feel is) a list of the best altcoins that may even change the world a little bit. These projects fit my 6 golden rules and I have invested in all of them.
The 5 Top Cryptocurrency to Invest in 2018 – The Rising Stars
1. LockChain (LOC)
LockChain is a decentralised open source, free-to-use bookings ecosystem built on the Ethereum VM that allows property owners and end customers to deal with one another on the LockChain platform commission-free, as opposed to existing (centralised) platforms like Airbnb and Booking.com, which take fees from either the end customer or the property owner. This makes renting private properties, hotel rooms, and accommodation on average 20% cheaper. Note: This is a good example of a project with actual product value. As a crypto investor you need to learn to identify value as quickly as possible.
Property owners are provided with a user-friendly interface to add their listings on the decentralised LOC Ledger. To make the transfer from other platforms easier, LockChain offers one-click solutions. Customers, on the other hand, can use LockChain’s web or mobile apps to browse for the best property and know that they are indeed presented with the lowest rates, given that the middlemen have been eliminated and there are no commission fees to be paid.
As for payment methods, the LockChain.co marketplace has a built-in algorithm that supports all traditional payment methods, like PayPal and credit cards (all external currencies are automatically converted into the LOC utility token). Note: A lot of altcoins have nothing to offer but a whitelist and a ton of promises. In this case there is a real functioning product. This is a major indicator of long-term value.
Backed with a team that has decades of combined experience in the fields of travel industry, digital marketing, software development, legal, fintech, and politics, LOC is definitely one of the best altcoins right now and a fast-growing cryptocurrency that is expected to make headlines soon, as it rearranges the face of the travel industry, and not only. Without a doubt, it has rightfully earned #1 place in the Top Cryptocurrencies to Invest in 2018 list. Note: Statistics show that most startups fail before they even finish their prototype mainly because the team is weak. Therefore a good team is of paramount importance for the success of the coin.
- In my opinion this is the only project out of the 1450 Cryptocurrenceis on CMC that have an actual impact on our current lifes – they have 100,000 hotels which you can book at.
- 20% lower prices when compared to Booking.com. Simple as that.
- Aggressive Road map – live product with retail user focus.
- Zero dependency on third parties – unlike most other projects which are building a technology that can be used by another technology with unknown retail adoption.
- The only project backed by a president of a country.
- Completely organic community (no airdrops, no bounties). You will find real discussion going on in their telegram from industry professionals and travel lovers.
- Not yet listed on major exchange (this is also an opportunity, since listing on an major exchange is likely to increase the token value).
- They could improve their website.
2. Request Network (REQ)
Request is a decentralised network that allows people to request an invoice (a payment) for which the recipient can proceed to making a payment in a safe and secure way. The fact that a decentralised authentic ledger stores all of the information makes payments not only more secure but also easier and cheaper. Plus, it allows for a broad array of automation possibilities. Note: Again, there’s a working prototype.
The transparent and regular updates (not something commonly found in the cryptosphere) and the fact that the masterminds behind Request have an impressive background and previous experiences (they have created a money transfer company called Moneytis) – backed by one of the largest accelerators in Silicon Valley (Y Combinator) – have made Request gain a lot of credibility.
Note: Request is more than just another payment processing method. There are added benefits to using the cryptocurrency, including the cross-currency transactions (you get to pay in the currency of your likes and the recipient received the currency they wish), identity protection, automated invoicing, and cheap (and fast) value exchange. Notice how there’s actual value in the product – unlike Dogecoin for example.
- Working prototype
- Experienced team
- Strong competition from OmiseGo, Pillar and more.
3. IOTA (MIOTA)
The mission of IOTA is to better the problems of blockchain solutions via a transaction validation network that is not reliant on PoS (Proof of Stake), PoI (Proof of Importance), or PoW (Proof of Work) algorithms while eliminating scalability issues. The latter is achieved by getting faster as more people use the digital currency, which is the exact opposite of what we have seen with crypto coins like ETH (Ethereum) and BTC (Bitcoin).
In a nutshell, IOTA is an open-source distributed ledger protocol that already counts 2 years into existence. The change IOTA brings to the table is that it cuts the need to outsource the validation of transactions to miners, which demands a tremendous amount of computer power anyway. Instead, when someone issues a transaction in IOTA, they validate the two transactions made previous to theirs. At the moment of this writing, IOTA has already partnered with several big names.
- Innovative – will help speed up transactions.
- No transaction fees.
- Still takes too long to confirm transactions.
- Enormous competition which does not allow the currency to reach its potential.
4. Cool Cousin (CUZ)
Cool Cousin is a blockchain-based travel app. The idea behind its creation is to enhance the efficiency of the services offered in the travel industry and create a global community of local experts (called Cool Cousins), whom travellers may refer to for treasured and in-depth travel information about the place they are planning to visit. As a result, the overall travel experience is enhanced with travellers being provided with unbiased and relevant details about the desired destination. From cheap tickets to a football match to a great pool bar in town, travellers may ask Cool Cousins anything.
The app is used by more than 500,000 travellers and 1,000 Cool Cousins already, who use a tokenised, P2P (peer-to-peer) system of communication and a smart contract-based platform that is built on the Ethereum blockchain, which ensures the transparency and security of information.
The CUZ token is the company’s means to incentivise the Cousins’ community and add an extra layer of functionality to the ecosystem. Travellers may use the CUZ coin to get access to a broad array of services (i.e. booking Airbnb space) while Cousins can monetise their CUZ tokens to receive rewards and bonuses, and accept payments from the people they help with their travel tips.
- Allows for better use of money and time when traveling with personalised guidance from like-minded locals.
- Working application.
- Reasonable hard cap (17,500 ETH).
- No high-valued crypto names in the team.
5. Ark (ARK)
Ark’s vision is to bridge the gap between the various cryptocurrencies of this world, most of which are not designed to be compatible with one another and run on different technologies. Ark’s creation, SmartBridge technology is, in fact, a small strand of code that is added into the blockchain and allows Ark to communicate with it directly. As of now, Ark has not yet achieved its goal and there are voices speaking of its potential inability to provide a one-stop solution for all blockchains. Not to mention the fierce competition it has from projects like Request which could penetrate the market faster with an efficient product that comes with low fee cross-currency transactions. However, if Ark manages to deliver on their vision, it will surely play a significant role in the future.
- Users send transactions via the ARK Anonymous Network Integration – ensures privacy.
- Speedy transactions.
- Implements bridging technology that is expected to connect the blockchain ecosystem.
- The ARKShield programme adds an extra layer of protection.
- Requires a substantial amount of computing power to process and validate the various mathematical solutions.
- Government regulations are not in favour of ARK’s vision.
Over and out…
~ Albert Murphy
- The Golden Question: Why Even Invest in Cryptocurrencies?
- Never Break These 6 Golden Rules of Crypto Trading
- Rule #1: Choose Projects that have Zero Reliance on Third Parties
- Rule #2: Look for a Specific Road Map and a Retail Product
- Rule #3: Investigate the Team Like It’s Your Girlfriend’s Family
- Rule #4: The Project Must Have a Very Limited Token Supply
- Rule #5: Forget It Unless It’s Already Listed on At Least Two Exchanges
- Rule #6: Run Away From Tokens Which Could Face Legal Action
- Is There a Good Time to Buy?
- The 5 Top Cryptocurrency to Invest in 2018 – The Rising Stars