Experiment on Sub 1 USD Cryptocurrencies – Week 2

Where was the Week 1 Update?

I totally forgot to provide an update last week for my experiment! I blame DOTA. Valve recently released the Compendium for this year’s The International so I got hooked playing a couple of games again. I was able to squeeze a bit of time today to update my google sheet price tracker and update the graphs sheet which you can find here. In this post, I’ll quickly run through some high level statistics on the coins/tokens I purchased. I will also be mentioning some items I’m currently working on.

Quick Statistics

Zilliqa (ZIL) is performing quite well with a ~40% increase in price from two weeks ago. Substratum (SUB) on the other hand is performing horribly, losing ~28% of its original value. As of writing, only two out of the ten coins/tokens I purchased are in the green. Five out of eight coins/tokens I purchased are in the double digit loss (14%-28%).

Look at how Substratum slowly goes down…

I’m not surprised with the movement of coins/tokens price in general as BTC has been moving sideways a bit which gradually turned to a downtrend. Most of us are quite familiar with how this affects the ALTs market as clearly seen in the graph above. I’m not sure if this will continue in the next few weeks but hopefully everything turns around so that I can profit from this little experiment.

Future Posts

As mentioned before, I’ll be reviewing each of the coins/tokens I purchased just so that I can get familiar with them. I’ll be starting of with Zilliqa and will be posting about it by the end of this week. I’m also currently working on a review about Quarkchain as I’m very interested in joining its ICO. Outside cryptocurrency, I’m working on setting up some CI/CD with SharePoint and Team Services for Visual Studio. Once I make it work then I’ll write a post about it.

Wrap Up

That’s it for now! If you have no idea what this post is about, I suggest you read my first post in this series here. Take note that this is just an experiment. The money I used here was from the money I got from the ONT airdrop I received a few weeks back. Cryptocurrency market is very volatile and I’m aware that there is a chance that I might lose most of my investments. Do your own diligence prior to investing.

Experiment on Sub 1 USD Cryptocurrencies

Background

The market had a great bull run last year. We saw Bitcoin and many altcoins reaching all time highs last year. There was even a post on Reddit showing an investment of $100 each in the top 10 coins on coinmarketcap.com at the start of 2017 will yield $42,700 of profit. Given my great luck with Ontology ($ONT) and the profit I had because of it, I decided to do the an experiment on sub 1 USD cryptocurrencies.

Experiment on Sub 1 USD Cryptocurrencies

Why sub 1 USD you ask? In my experience, these coins have more room for growth price wise compared to coins with higher price. A good example here would be Ripple ($XRP) from last year. A friend asked me if Ripple was a good investment because of its low price then. I told him no and my reason was because of the high market supply of $XRP. I even told him I doubt the price could go beyond $1.00. Those words haunted me few months later when $XRP’s mooned.

In this experiment, I’ll be purchasing roughly 0.01 BTC of each coin/token from Binance. I will also download their respective wallets and store the coins/tokens there for at least a year. I’ll be monitoring their prices and will provide a Google Sheet and a weekly blog update. I’ll also be updating both Telegram and Twitter for any relevant events or updates on the coins/tokens I’ll be investing in.

Cryptocurrency Choices

To make things more interesting for me, I chose 9 crypto at random which I have no idea with and 1 crypto which I am very fond of which still meets the sub 1 USD criteria. The 9 coins/tokens I randomly picked are the following:

  1. Zilliqa ($ZIL) – 0.00001167 BTC each
  2. Status ($SNT) – 0.00001411 BTC each
  3. IOSToekn ($IOST) – 0.00000617 BTC each
  4. Storm ($STORM) – 0.00000705 BTC each
  5. Substratum ($SUB) – 0.00009302 BTC each
  6. FunFair ($FUN) – 0.00000524 BTC each
  7. Nucleus Vision ($NCASH) – 0.00000524 BTC each
  8. Enjin Coin ($ENJ) – 0.00and 001705 BTC each
  9. Time New Bank ($TNB) – 0.00000688 BTC each

Out of all these 9 cryptocurrencies, I only have traded $FUN and $NCASH for a very short period of time because of some events I saw at coinmarketcal.com. Other than that, I almost have no idea what some of these crypto are for. Since I invested on them already, I’ll dedicate some of my time to these cryptocurrencies and create a least one post for each one.

I chose Cardano ($ADA) as the last cryptocurrency in this list. I consider $ADA as great project with good fundamentals and a solid project team. Their scientific approach with regards to their development and their regular monthly updates gives me a sense of security on how they handle things. The whiteboard discussions presented by the team is also very helpful in understanding the fundamentals in their very complex project. I’m bullish for $ADA in the long term.

Wrap Up

Investing in a very volatile market such as cryptocurrencies is very high risk. As a constant reminder, only invest what you can afford to lose. For this experiment, I invested a total of 0.09815364 BTC or roughly 891.50 USD based on current Bitcoin price.

I’m not expecting anything great out of this experiment. I could either end up being richer by a few hundred dollars or I could end up losing all of my initial investment. Either way, this should be an interesting year for me.

My Simple Trading Indicators

Quick Update

It’s been more than two months since my last post mainly because of two things. First, I’ve been drained for having sleepless nights the past weeks in my day job. Second, the bear market made it harder for me to look at my portfolio to find motivation to continuously do trading. I left my current company and will be joining a new one soon so that should give me a few days for writing something up. And since I went back to trading, I’ll be sharing my simple trading indicators I use which have worked out for me so far.

My Simple Trading Indicators

I’ve been reading posts and watching videos for the past few weeks already but so far I really loved the approach of Philakone. I follow him on twitter and his YouTube channel videos were very helpful. He also has a steemit account you can checkout here. Most of the items I’ll be talking about will be based on some of the things I learned from watching and reading his stuff online.

Exponential Moving Average (EMA)

Moving averages have been a staple indicator in the tools used by multiple Technical Analysts. Some traders use Simple Moving Average while others use the Exponential Moving Average. The main difference between the two is that the Exponential Moving Average gives more weight to the recent data. This means EMAs provide a more reactive approach to recent price changes which is very good for a volatile market like Cryptocrurrencies.

MACD (Moving Average Convergence Divergence)

Since I’m already using EMA, I also include MACD as one of my indicators. MACD uses both then 26-day and 12-day EMA coupled with the 9-day EMA to use for signals. I tend use MACD to check for crossovers which can be a signal for buying or selling.

RSI (Relative Strength Index)

One of the more popular indicators among traders is the RSI. This indicator helps traders check if an asset is already in an “Overbought” or “Oversold” state. I still use the traditional approach for RSI in my indicators where if the  RSI is > 80 it means an asset is overbought and its price may go down soon and if RSI < 20 it means an assest is oversold and its may go up soon.

Tying the Three Together

So how do I use these indicators for trading? Let’s take it step by step. Let’s first start off with the EMA. For the EMA, I used the suggestion mentioned by Philakone and primarily use the 55-period EMA. From what I picked up from one of Philakone’s video, you need to check the last two candles and its relationship to the 55-period EMA. These two candles should satisfy the following:

  1. The first candle should be a green candle whose lower wick or body touches or passes the 55-period EMA
  2. The second candle should be a green candle who has higher low and higher high than the first candle

Once I see this indicator in my 55-period EMA, I then check both MACD and RSI.  When both the MACD moves above its 9-day EMA and when the RSI is near the oversold range I use it to as a signal to buy. I then use the “Long Position” tool in tradingview to setup my Risk/Reward ratio. This last part varies from trader to trader as we have varying Risk Management/Appetite.

Wrap Up

I have managed to increase my $BTC holdings with the use of this trading practice. It doesn’t always yield positive results but it has given me more gains than losses. As always, please remember that using Technical Analysis doesn’t mean that you’re certain that the price can go up or go down. It just helps traders better manage their risks. That’s it for now and I should be posting a long overdue update to my 10 mBTC challenge soon!

January Update and the Market Crash

I’m Still Here!

It’s been 3 weeks since I last posted and provided an update to my 10mBTC challenge. My day job required a lot of focus for the past few weeks because of some tight deadlines I had to finish but it looks like I’ll have more time in the coming days to blog again. This post will mostly revolve around my January update and the market crash.

Note: Trading cryptocurrency is very risky due to the volatility of the market. Only invest what you can afford to lose.

January Update

I started this challenge with the goal of reaching 1 BTC eventually through event driven trading. As of February 12, 2018, my 10 mBTC is now at ~30 mBTC. A 300% profit in a month is not bad considering I’m mostly doing this during my spare time. I learned a lot during the first month of this challenge and will be using that knowledge to my advantage moving forward.

Some statistics for those interested:

Quick Analysis

The biggest gain I had this month came from eBoost. The reason I bought eBoost then was because of an upcoming new token announcement which will result from a hardfork. As expected, the hardfork factor contributed a lot to my gains here. If I just placed some trailing stop loss then I could’ve gained much more as eBoost more than doubled in price during this period.

On the other hand, my biggest loss came from Edgeless. My reasoning behind purchasing Edgeless was because they were about to release their new platform. It was a great update for the coin itself, unfortunately this is the time when the market really started going down. The mistake I made here was that I didn’t properly set a stop loss which led to me losing more than expected.

In the 11 trades I made for January, the average length of open trade I have is roughly 2 days. Looking closer at the difference between the length of open trades I have, it seems like most of my shorter trades gained much more compared to the longer ones.

Another thing I noticed is that out of the 11 trades I made last January, 3 of them involved Edgeless. Looking back, it seems like there were just too many good events for Edgeless which made me choose it over the other coins. Unfortunately, Edgeless also made me lose the most this month. Something I’ll consider in my future trades.

Market Crash

I won’t pretend that I expected a market crash this huge. I knew that the growth of the cryptocurrency market was not sustainable especially in the early days of December. However this big market crash or correction or whatever you like to call it can be considered a wake up call for most investors who went in during Bitcoin’s all time high.

There were a lot of news that affected this crash. The usual China banning bitcoin, trading and all sorts of stuff related to cryptocurrency is one of them. Actually I’m surprised that the market still reacts negatively to China’s “ban” since most of the time, they just go back on their word. There were also some negative news from South Korea like market manipulation and rumors of cryptocurrency trading ban. India also contributed to the crash with some miscommunication/misinterpretation of some speech delivered regarding cryptocurrency. And of course, we should not forget and discount the still looming Tether issue which up until now is still unclear.

The great thing though is that somehow, it looks like the market is stabilizing around the $8000 range. Some folks are still expecting it to crash down to $4000-$5000 while others are already expecting a bull run right after the Chinese New Year expecting that new money should be flowing in the market. The recent SEC and CFTC hearings also helped pump up the market with some good news. Cryptocurrency is still quite new and as seen from the recent events, news and events still greatly affect the price of the market.

Updates

In my last post, I mentioned that I’ll be looking for ways to easily communicate my trades other than my blog. I decided to go with both approach. I created a telegram channel dedicated for my 10 mBTC challenge. I’ll also be tweeting all updates in my blog as well as all trades I’ll be doing for my 10 mBTC challenge. If you’re interested, you can follow me on twitter here.

Wrap Up

This wraps up the first month of my 10 mBTC challenge. There were lots of missed opportunities and but there were lots of learning as well. Hopefully the market starts to turn around so that I can reach my 1 BTC goal earlier. I’ll post the details of my latest trade tomorrow.

That’s it for now and as always, happy trading!

Other Details

You can find my previous posts related to this challenge here:

You can find my updated trade history in my google sheets here.

For tracking events, I use the Cryptocurrency Calendar at coinmarketcal.com and Coindar.

Lastly, if you are new to trading cryptocurrencies, you can try reading my overview post and how to start doing it, here.

10 mBTC Challenge – Past Trades and Event Updates

Updates

It’s been almost two weeks since my last post. My day job demanded a lot of time recently and as a result I was not able to do a regular post on my trades. I still managed to put in some buy and sell orders for some coins but I was unable to blog about it. Past Trades and Event Updates will be my focus on this post to make sure everything is as transparent as possible in my 10 mBTC challenge. It was hard to catch some nice profits in the past few days because of BTC’s movements. With the market somewhat recovering, I can hopefully get back on track to my road to 1 BTC.

Past Trades

After a very nice profit from $EBST, I decided to try my luck with $GUP. It didn’t turn out quite well because of the market crash that happened during that time. Since there were some more upcoming events around that time, I decided to cut losses and move my funds to a new coin.  I lost about 1.1 mBTC in that trade which is roughly 3.4% of my total coins for this challenge.

With the market going down, I tried my best to look for an event which can still result in a price increase despite of what is happening. I was looking at Syscoin ($SYS), and Edgeless ($EDG) then. $SYS was going to release a wallet with a built-in exchange so I thought it was a good choice. $EDG on the other hand was going to release a new version of their platform which I thought was also good.

I only had two choices so I just did a coin flip. That led to me buying $EDG. I earned almost 3 mBTC from my trade in $EDG which roughly 10% translates to an almost 10% profit. What made me feel good about this trade was that despite the market being down, I managed to pull out at the right time and still made a small profit.

Right now, my coins are with $LBC. They will be releasing a new website which I think may not be that great in terms of driving the price up. However there is something in my gut telling me that I can still earn a few coins from this trade. Hopefully this trade turns out well so I can move on to other coins with events which I think can really drive their prices up.

Future Events

With the first month of the year coming to an end, different coins are scrambling to catch up and deliver their promises made from last year. This can be seen with the vast number of events going to happen as the month closes. I’m still thinking of how to maximize my gains with those many events. I might divide my stake to multiple coins or I might still stay with just one single coin.

At the start of my challenge, I mentioned that I will be basing my events from coinmarketcal but a friend of mine recently introduced me to coindar which I think is also a good source to compare information across different crypto calendars. Both calendars are community driven so most of the time, news or events found there are often reliable.

I aggregated a collection of future events this January which I think will help drive the price of the coin up. You can find that list below:

$SC – Jan 21: Hardfork for difficulty update. NOTE: No new coins!
$TRX – Jan 22: game.com partnership/possible Kucoin listing
$GUP – Jan 22: New product launch
$EOS – Jan 23: First partnership announcement
$ICX – Jan 24: ICX Mainnet launch
$EDG – Jan 24: Platform updates (new games, updated UI)
$XLM – Jan 25: 2018 Roadmap
$THC – Jan 26: New website, whitepaper and fork updates
$ETC – Jan 29: A2A Messaging System release
$NEO – Jan 30: Developers’ Conference
$ADX – Jan 31: Beta Release
$BTG – Jan 31: Roadmap update
$TRX – Jan 31: Multiple events
$SYS – Jan 31: Blockmarket Web 1.0 and Desktop 1.x release
$FUN – Jan 31: January Updates
$ICX – Jan 31: ICON Annual Summit
$BNB – Jan 31: Coinburn

Wrap Up

I guess that wraps up everything I wanted to share so far. I’ll try my best to provide updates as much as I can but I may not be able to always blog about it. However I always make sure that I update my google sheet to properly reflect what I buy and sell. I’m still thinking of ways to properly update folks outside my blog. I’m thinking of setting up a telegram channel just for updates as well as tweeting my trades. I should be able to setup something right before January ends.

That’s it for now and as always, happy trading!

Other Details

You can find my previous posts related to this challenge here:

You can find my updated trade history in my google sheets here.

For tracking events, I use the Cryptocurrency Calendar at coinmarketcal.com and Coindar.

Lastly, if you are new to trading cryptocurrencies, you can try reading my overview post and how to start doing it, here.

10 mBTC Challenge – Trade #5 eBoost ($EBST)

Updates

Trade #4 was a bit disappointing. $BTC suddenly went up causing some alts to bleed, $EDG included. I tried holding for a bit but decided to just sell at a loss in order to ride the next trade. The following weeks have tons of good events to choose from so it’s better to get in a good position as early as possible. For my 5th trade, I went with eBoost ($EBST).

Note: Trading cryptocurrency is very risky due to the volatility of the market. Only invest what you can afford to lose.

What is eBoost and Why I Chose it

eBoost is a coin created for eSports. Users will have a “universal ledger” which they can use to hold coins for store of value. Users can then later use their eBoost tokens for wagering on eSports events. Like other coins, they also claim to be a decentralized platform. What sets it apart from other eSports based coin is that instead of choosing to run of top of Ethereum, eBoost decided to use its own platform. This makes sure that even the other blockchains get congested due to multiple and different uses, eBoost will run smoothly on its own dedicated network.

For this trade, I was choosing between $MUSIC and $EBST. Music Coin has a big announcement scheduled for January 10 while eBoost has a scheduled Token Announcement on Jan 12. Lot’s of folks got disappointed with $EMC2’s mind blowing announcement last year so I decided not to go down that path with $MUSIC. I’m also an avid eSports fan so investing on something I love made the decision easier. To add to this, eBoost also has two more events scheduled this month. This could easily help pump up the price a bit more.

Update on Future Trades for January

January has tons of great events we can take advantage of.  Below is a rough outline of my future trades this January. Take note that this is not set in stone and may change due to different reasons.

Coin/Date Event
$EBST – Jan 12

$SYS  – Jan 16

$GUP – Jan 18

$POWR – Jan 23

$ETC – Jan 29

New Token Annoucnement

In-Wallet Exchange Release

Product Launch

World Economic Forum

A2A Messaging System

There will be times where I’ll be positioning early to setup for these events and exit as soon as I reach my target profit and move on to a different coin. That way I can maximize my profit with the multiple events happening this month. I’ll make sure to post it here whenever I enter a new trade.

Wrap Up

The first week of January flew by so fast. Starting with 10 mBTC, I now at ~20 mBTC (according to Blockfolio). I managed to double my starting capital in about 4 trades. Lost a bit in my last trade but I learned something from it. Now I move on to the next one which hopefully will bring me more coins! As always, happy trading!

Other Details

You can find my previous posts related to this challenge here:

You can find my updated trade history in my google sheets here.

For tracking events, I use the Cryptocurrency Calendar at coinmarketcal.com.

Lastly, if you are new to trading cryptocurrencies, you can try reading my overview post and how to start doing it, here.

10 mBTC Challenge – Trade #3 $TRIG and Trade #4 $EDG

Updates

This is my 3rd post for my 10 mBTC Challenge series. I will link Posts 1 and 2 at the end of this page. In my previous post, I mentioned that I will be going back to $TRIG after selling my $ADA. The buildup of Cardano’s roadmap updated propelled $ADA past $1.00 today and helped me take some nice profit. $TRIG’s price movement also helped me gain about 30% more in profit. That wraps up my 2nd and 3rd trade for this week. Now, we will pursue Edgeless in my Trade #4 $EDG.

Note: Trading cryptocurrency is very risky due to the volatility of the market. Only invest what you can afford to lose.

Edgeless over NEO

I jumped out of Triggers too early and might have missed some profit. However it gave me more time to choose on what coin to trade next. I quickly checked our handy calendar and I had to choose between $NEO and $EDG. These two coins have two very distinct events so let’s check and see why I chose $EDG over $NEO.

NEO will be having a meetup event in Dublin on the 8th of Jan. Usually there are some price spikes related to meetups due to word of mouth and some surprise announcements. We also need to consider that NEO has multiple meetups right after the G3 event in China. All of this leads up to the dApps competition opening on the 25th of Jan. NEO is also up 9% as of this writing and just passed $100.00 in coinmarketcap. Opportunity for price growth looks small in my opinion.

Edgeless on the other hand recently just got its license. This makes it the first legal blockchain casino so far. That news in itself is quite big. There are lots of gambling related blockchain projects out there but so far $EDG is the only blockchain officially approved by legal authorities. The event registration on the 9th of Jan should give it a little bump in price action. Comparing its current price vs NEO, there’s more room for growth in $EDG. At the time of writing, I currently have a buy order for $EDG at 17.5k sats. I’ll update this post once I have filled my official order.

Future Trades

January has tons of events stored for us. There are still some events not yet officially added in the calendar but for those interested, you can find my possible selection for future trades below:

$NEO – Amsterdam Meetup (Jan 15)

$GUP – QGUP Airdrop (Jan 15)

$EBST – Staking and referral (Jan 15)

$MED – Token Burn (Jan 20)

$GUP – Product Launch (Jan 22)

$POWR – World Economic Forum (Jan 23)

$ICX – Mainnet (Jan 24)

$XRP – Blockchain Conference (Jan 26)

$ETC – A2A Messaging System (Jan 29)

$ADX – Beta Release (Jan 30)

$TRX – New exchange listing (Jan 31)

$STRAT – First ICO (Jan 31)

$SYS – Blockmarket Web & Desktop (Jan 31)

$NEOS – Hard Fork for production (Jan 31)

$ICX – ICON Annual Summit (Jan 31)

As you can see, there are lots of good events that we can surely profit from. The latter part of January is pretty tight too. In my succeeding posts, I’ll try to draft an outline of my plan for January so that folks following me can setup their own entry and exit points.

Wrap Up

We’re doing ok so far. However, we can’t expect the market to be always in our favor. I sound smart specially when the coins I’m choosing is on a bull run but I’ll sound stupid once the coin I choose goes down. Currently we’re at 21 mBtc which is twice the amount of where we started! If we continue on this pace, then we’re all set for 1 BTC sooner than later! That’s it for now folks! I’m unable to post my Blockfolio snapshots today as their servers are down. Once they are back up, I’ll update this post.

Other Details

You can find my previous posts related to this challenge here:

You can find my updated trade history in my google sheets here.

Lastly, if you are new to trading cryptocurrencies, you can try reading my overview post and how to start doing it, here.

10 mBTC Challenge – Trade #2 Cardano ($ADA)

Updates

My first trade revolved around the Masternodes AMA of $TRIG. Before I slept yesterday I decided to put up a sell order which will give me exactly a 20% profit. When I woke up, I did my usual morning routine and went to work. On my way to work I read that the Masternodes for $TRIG will be delayed so I thought to my self I might end up waiting for the listing on January 9 to reach that number. I told my friend about it and he told me his $TRIG was already sold. Quite unsure why (because we almost had the same sell order amount set up), I logged in and checked Bittrex. Luckily, $TRIG went up high enough that it triggered my sell order for a nice 20% profit! That wraps up my first trade for the 10 mBTC Challenge! Next up, Trade #2 Cardano ($ADA)!

Note: Trading cryptocurrency is very risky due to the volatility of the market. Only invest what you can afford to lose.

Trade #2 Cardano ($ADA)

In my initial post in this blog series, I mentioned that I didn’t choose $ADA because I’m already holding it for the long term. After selling my $TRIG, I looked again at the list of events that I’m currently tracking. Nothing else caught my attention in what’s left except Cardano’s ($ADA) Roadmap updates and Triggers’ ($TRIG) Exchange listing. Since I just sold off my $TRIG, I went with Cardano ($ADA) for my second trade.

Reasons for Choosing Cardano

Other than the fact that I love the fundamentals behind Cardano, I considered other things like what will be my next trades after this and what would be the best time for me to exit Cardano. Let’s discuss them in detail.

  1. Cardano will be having its roadmap updates in 3 days time (January 5). I’m looking forward to updates in wallet performance, light client support and of course delegation and staking with Ouroboros!
  2. After buying in at 5171 sats (0.00005171 BTC), and seeing that the support level is at 5500 sats (0.00005500 BTC) as seen in the 30m chart below, I’m convinced that I should be able to wrap up this trade with at least 10% profit. 
  3. Most people in the Cryptocurrency market are getting hyped up with the new coins becoming available. Cardano is attracting lots of attention not just because of Charles and the entire team, but also because of its promises as a 3rd generation Cryptocurrency.
  4. My plan is to sell off the $ADA I bought with all my $BTC from the $TRIG trade prior to the roadmap updates. I know I might miss a big price bump should they announce something big like Ouroboros. However I’m also planning to go back and buy $TRIG in one of its dips to set myself up for the listing event on January 9.

Wrap up

That’s it for this post fellow crypto lovers/traders. Below you can find some screenshots I have from my Blockfolio. I also included a screenshot of the aggregated trades I have from Bittrex for this challenge. Finally, I also updated the google sheet that keeps track of all my trades on our road to 1BTC!

 

 

 

 

 

 

PS: I started talking to some friends because I got interested in participating in some ICOs too. I’ll be writing something about experty.io in the coming days so watch out for it. Happy trading!

10 mBTC Challenge – Introduction and First Trade

Intro

People usually think that in order to start trading Cryptocurrencies they need a large capital. In this series, I’ll be doing what I will call a 10 mBTC challenge. The goal of this challenge is to show that you can profit from trading Cryptocurrencies even with a minimum starting investment. I’ll be following a set of guidelines while doing this challenge which I’ll discuss later.

Note: Trading cryptocurrency is very risky due to the volatility of the market. Only invest what you can afford to lose.

Guidelines

Below are some guidelines that I’ll be using in this challenge:

  • The coin or token that I’ll invest in must be part of coinmarketcap’s top 100.
  • The coin or token that I’ll invest in must be in coinmarketcal’s list of events.
  • Bittrex will be the only trading platform that I will use. Optional trading platforms will be suggested.
  • A shared google sheet will keep track of all my buy and sell orders.
  • Screenshots from Blockfolio and Bittrex will be shared in blog posts to show updates.
  • At least one trade per week will be done.

Event Driven Trading

The cryptocurrency market is a very volatile market. Coins can go from +50% to -20% in a matter of hours. Unlike what most traders do, I won’t be using Technical Analysis for this challenge. I’ll use what I call an Event Driven Trade which I have been using successfully in the past. In my experience in crypto, buy the rumor sell the news works most of the time as long as you set a good entry point and an exit point. I’ll give an example on how I usually do my trades.

I’ll be using Einsteinium ($EMC2) in this example. In the last week of November, I checked coinmarketcal’s list of events and saw that $EMC2 was going to have two events. One event involves a coin burn and the another event involves what they pegged as a mind blowing announcement. I bought some coins at 8100 sats (0.00008100 BTC). I later sold the coins before the coin burn event at 13709 sats (0.00013709 BTC). That’s almost a 70% profit just from one event alone. I later bought some coins again at 8500 sats (0.00008500 BTC) at one of the dips after the coin burn event in anticipation for their mind blowing announcement. A day before the announcement, I sold the coins at 12119 sats (0.00012119 BTC). That’s almost a 43% profit. Later it turned out the mind blowing announcement was a flop and $EMC2’s price went downhill from there.

Assessing a Coin to Invest or Trade

Traders often use Technical Analysis prior to buying or selling a coin. Since I only started learning how to read charts, I always fall back on reading and checking the fundamentals of the coin I’m going to invest in or trade.

For coins that I will hold for long period of time, I prefer reading their white paper first to check if their idea is good and if there are use cases to it in the real world. I also follow their official twitter account and subscribe to their subreddits. Registering on their slack or discord channels is also a good way to interact with the community and the dev team. Finally, I also check the activity in their respective Github repositories. If I’m satisfied with all of these things then I invest on the coin.

However I normally don’t do all those stuff when choosing a coin to trade. I participate in telegram channels from time to time and check recommended coins by some groups. More often that not though I skip them since most of the suggested coins are just pump and dumps and I don’t want to get caught during the dump. What worked for me in the long run is looking out for events or updates from a coin and assess them to see if it will positively impact the price of the coin.

Let’s go back to my example on $EMC2. The first event was a coin burn event. Events like these usually help increase a coins price simply because of the law of supply and demand. Most of the time, coin burn events increase the price of the coin days before the date itself because traders will automatically assume that lower supply often leads to a higher price.

Ethereum Classic ($ETC) for example showed a price increase in the days following the announcement of capping their market supply. Some people thought that it might still go up and still bought in a few days leading to the fork but the price didn’t budge. This is because most people already bought in early anticipating that some folks will buy in late. This is why it is very important to keep yourself updated with news and updates in Crypto as much as possible.

First Trade

Now let’s get on with our first trade for this 10 mBTC challenge! I consulted coinmarketcal again to see which coins or tokens will have an event in the first few days of the year. I came up with the following high level list:

  • Monday, January 1, 2018: $ARDR, $PAY, $XRB, $EXP, $POT
  • Tuesday, January 2, 2018: $ETN, $TRG
  • Wednesday, January 3, 2018: $QTUM
  • Friday, January 5, 2018: $ADA, $GNT, $BTC
  • Sunday, January 7, 2018: $TRX
  • Monday, January 8, 2018: $XLM, $NEO, $EDG
  • Tuesday, January 9, 2018: $POWR, $TRIG

As you can see there are a lot of events and coins to choose from and I had to narrow down my selection. I removed $ADA, and $XLM because I’m a long term investor of these 2 coins and won’t be trading them anytime soon. I even try to buy in more during dips to accumulate more units. Some events were not really noteworthy to me like Bitcoin’s Peer Summit and Neo’s meetup. I also have invested a small amount on $EDG early this week in anticipation of their registration event so that’s also out of the equation.

This narrows the list quite a bit. Now let’s see which have some real world use cases. $PAY seems good but it’s too late for me to invest on it. $GNT’s Blender rendering sounds nice but I don’t think folks need shared processing right now for Blender. $POWR has a good use case but the event doesn’t seem to fit its use. Finally we have $TRIG with two events: an AMA and new exchange listing.

Token Selected

Given the choices above, I ended up choosing and investing my 10 mBTC on $TRIG. One of the reasons is that $TRIG has two events within a week of each other. This historically helps price go up simply because of the hype on succeeding events.

The AMA event may not seem like a big deal but it will help early investors and speculative traders learn more about the tech and concept behind the token. This can lead to more money pouring in as AMA’s usually end up like advertising stints. The AMA for Masternode setup for $TRIG helps satisfy early investors by providing updates on the development updates and shows that their is progress being done on the token’s roadmap.

Being listed in an additional exchange also always help pump up the price of a coin or token. This is because it makes $TRIG accessible to other investors and traders. Take note that as of writing, $TRIG is only traded in Binance (TRIG/BTC, TRIG/ETH, TRIG/BNB) and Bittrex (TRIG/BTC). With Bittrex limiting new registrations, new folks joining are only left with Binance to invest and trade with. Adding an a new exchange will surely help bring in more money to the token.

Details of the First Trade

As I said earlier, I’ll keep everything transparent so folks can see the progress of what I’m doing. Below are some screenshots to show the details of my first trade for the year:

Bittrex Order History:

Blockfoliio Screenshot prior to posting:

And finally, the google sheet to track everything can be found here. That’s it! If you haven’t started trading yet and don’t have any idea how to start, you can check out my previous blog post here.

My Experience with Bitcoin and Why I Now Prefer Bitcoin Cash

Intro

I’m pretty new compared to most folks in the crypto space. I only learned of Bitcoin back in 2013 because of my friend who introduced it to me (thanks Carding! <3). It was around November 2013 when I read about Bitcoin and got interested with how it worked. I skimmed through the whitepaper, watched some videos on YouTube and read more about it in reddit. Four years later, here I am still with my Bitcoins from 2013. This time however, I hold different cryptocurrencies other than Bitcoin. In this blog post, I’ll be sharing my experience with Bitcoin and why I now prefer Bitcoin Cash over it.

Early Days

Bitcoin was very hard to purchase before in Manila. My very first Bitcoin purchase wasn’t straight forward. I created an account in VirWox, an exchange selling Linden Dollars which is a currency used in a game called Second Life. I had to use Skrill to transfer my money from PayPal to the exchange. Once there, I had to buy some SLL with my USD and then convert my SLL to BTC! It was quite painful at first, but once I had my BTC, I transferred it to my BTC wallet at blockchain.info. Bitcoin was trading around ~600USD  per BTC back then.

After that painful experience I had with VirWox, I decided to look for a better way to fund my BTC wallet. My friend introduced me to Bitstamp and I immediately signed up and registered there. After submitting all necessary documents for verification and waiting for a few weeks, my account was verified. I was now able to fund my account easily simply by issuing a wire transfer to Bitstamp. From there, I was able to use BTC for a lot of things.

My Early Bitcoin Usage

My early days with Bitcoin was fun. I opened an account at mtgox and quickly tried my hand at trading (and I sucked at it). Discussions in /r/bitcoin was also fun as folks were very accommodating and eager to teach new comers like me about it. I was able to buy some stuff online with it and it was a great experience.I barely paid attention to the rising price of Bitcoin then.

It was not always that good in my early years with Bitcoin. I had some funds at mt gox when it “collapsed”. Blockchain.info also had issues then and I sometimes had problems using my BTC stored in my wallet. Bistamp also got hacked early in 2015 which caused me to lose some of my funds. With all these things happening in Bitcoin and some work related priorities, I decided to park my coins for a while.

Going Back to Bitcoin

Throughout 2015, I didn’t touch any of my Bitcoins. I login at my Blockchain.info account from time to time to make sure everything is well. Reddit was still a good place to read about anything related to Bitcoin. I read about  a company called Blockstream and that most of the Bitcoin Developers were hired by them. This was also the time where I first heard of the scaling issues of Bitcoin. I didn’t bother with it too much then because I was barely affected.

I can’t remember if it was the later part of 2015 or 2016 when I heard my friends talking about NBA betting and that they were using Bitcoins for it! Due to peer pressure and also being hooked at NBA at the time, I registered at Nitrogen Sports and started betting. It was the first time I felt the issue being discussed in Reddit about scaling. I often had issues with confirmation times when trying to deposit BTC to my nitrogen account. This was the time when I discovered /r/btc when I was trying to find some possible workarounds to my problem.

Bitcoin During 2017

Fast forward to 2017 and I was beginning to feel the inconsistent confirmation times and high transaction fees with Bitcoin. There was even a time that I had to pay about 20USD to move all my payout (less than 300USD) from my Genesis cloud mining contract (you can use E8wgur if you want to signup with Genesis to get 3% off!) to my Exodus wallet! I also experienced slow confirmation times whenever I had to transfer my funds from my Electrum wallet to Bittrex for trading.

I started reading more and more on both /r/bitcoin and /r/btc to get updated on what was happening with Bitcoin. The NYA and SegWit were hot topics back then. Bitcoin was also starting to become more popular in Manila due to the sudden price increase. Good thing there are services like coins.ph which made it easier for everyone at Manila to get their hands on Bitcoin.

Bitcoin Cash Hardfork

I learned about the Bitcoin Cash hardfork in /r/btc. Initially I only focused on the free coins that I will be receiving after the hard fork since I still mainly use Bitcoin during that time. I read about the advantages of Bitcoin Cash over Bitcoin but didn’t consider it to be a threat or alternative to Bitcoin then. After the hard fork, I restored my wallet backup in Bitcoin ABC client, synchronized with Bitcoin Cash’s blockchain and before I know it, I now have a few Bitcoin Cash in my wallet.

I started reading more and more about Bitcoin Cash. I even had some mixed results from my initial tests due to inconsistent block timings. This was also the time when a lot of my other friends started to get into Cryptocurrency. I tried to show one of my friends who was interested in Bitcoin how easy it was to use by sending him 1mbtc. Unfortunately I had to pay 2mbtc just to proceed with that transaction!

Later that night I tried sending 1mbch from my Bitcoin ABC wallet to my Exodus wallet. I immediately got my coins and didn’t even feel the transaction fees! It was at that moment I realized how Bitcoin Cash could be my alternative to Bitcoin.

Bitcoin Cash Today

Bitcoin Cash has already come a long way since it was first released. Initially people thought that it was just a pump and dump coin. There were even some posts in reddit that said it wouldn’t have any value. Some even said that no one would support it. Fast forward to today and Bitcoin Cash is now a better version of Bitcoin.

Sure the EDA caused an issue on both chains resulting to inconsistent block times. Fortunately the new DAA was able to fix that and now we have a much more consistent block timings. Fees are still low despite the growing number of transactions in the blockchain. And more and more members of the community are starting to accept it. I even received a tip from the Bitcoin Cash Santa at reddit because I answered a simple question! It’s like being part of Bitcoin’s early days again!

Why I Prefer Bitcoin Cash over Bitcoin

So why do I prefer Bitcoin Cash over Bitcoin? Below are just some of the reasons why:

  • Low transaction fees. Let’s accept it. This was one of the main selling points of Bitcoin initially. With the way things are going in Bitcoin, I doubt we will see the transaction fees go down soon. With Bitcoin Cash, I can send any amount and pay low fees.
  • Consistent confirmation times. Sure there might still be some hiccup here and there with Bitcoin Cash’s confirmation. Compared to Bitcoin’s however, confirmation times take hours or at worse, days!
  • RBF (replace by fee) completely removed. With the way things are in Bitcoin’s network, it will be possibe to perform double spending because of RBF! Since this is completely removed in Bitcoin Cash, double spending won’t be possible.
  • Replay Protection, fix for the quadratic hashing problem, the new DAA and much more!

Summary

Bitcoin has come a long way since I started using it. However with all the issues surrounding it I decided to just hold it for the long term (it might still have some value later on!). For now, I’m sticking with Bitcoin Cash. It was the Bitcoin I signed up for back in 2013. And man it’s good to be back.