Daily crypto update - the rally continues (8th Aug '17)

I completed a couple of trades this morning:

  • Digibyte: I sold the rest of my position for a profit of +563%, this is on top of the last position I sold during its major spike for a profit of +1,993%. I should have sold the lot back then; it wasn't justifying its price, it was just running up with everything else during the May/June pumps. I am trying to consolidate my portfolio and also ensure I am 25% Fiat. I just can't see anything special which Digibyte is doing right now.
  • Iconomi: I sold 25% of my position for a profit of +64%. I initially had a very small position in Iconomi which I took out in February, which is up significantly, but I have merged my positions so this is based on a few trades. I won't be merging trades in future as I would like to know how each trade works independently.
    While I like Iconomi, it has been trading sideways/down since the platform launched and there are rumours of price manipulation on Reddit. I don't feel like there is much news to support it right now so the future price may now be dependent on platform performance. It is a long term hold for me though. 
  • EOS: I bought my first position with my Iconomi money, so essentially a flip. Though aware of EOS it was brought to my attention again in the blog comments. I paid a slightly toppy price this morning, but I think it is in range for some good growth over the next few months. I am going to sit, hold and watch this.

Note: please do not just copy my trades, this is not financial advice and I can and have been wrong on many occasions. As I have said before I don't know yet if I am smart or lucky. I am just sharing my experience.

I have the following under close watch, and I may sell over the next few days:

  • Litecoin: I can't see how it can now differentiate itself from Bitcoin. It was a good hedge during the scaling issues, but I think it may see a sell-off. I am watching closely though.
  • Antshares/NEO: I am watching to see if this has another wave up. If not I may sell off another chunk of my position as I am expecting it to retrace down.

Regarding the rest of the market, my position remains the same. Everything is quite bubbly, and we now have a global market cap of +$120bn. There is a lot of interesting projects and news with this article particularly standing out for me:

Hedge Funds Investing in Cryptocurrencies ‘Exploding’ – 62 in Pipeline

Compared to other markets the crypto market is relatively small. With the growth of Bitcoin reaching major news/financial news outlets, it is difficult to ignore. Institutional money is flowing in. This is why I believe we may be potentially on the verge of another significant wave up.

The price of Bitcoin keeps rising, as long as we don't hit any significant resistance, we could test $4k this month and $5k within the year. The reality is though; crypto does crazy things, we could easily test $5k in the next couple of months, it could also drop. We never know, we can only watch the charts and make smart decisions, reacting when necessary, locking in profits and not being over greedy.

With regards to my other Tier 1 coins, both Dash (+10%) and Monero (+20% ) are making moves, something I have been patiently waiting for. They are both in range to go further and for me and they are a nice solid hold for when the market is volatile.

With everything else, I am just holding for now. While Bitcoin has recovered to new highs, the global market cap for altcoins hasn't, see the chart below. On June 20th we had a global market cap for altcoins of $72.8bn yet as of today we are at $64.1bn.

Altcoins tend to react to Bitcoin. When Bitcoin is in significant decline then altcoins tend to decline at an accelerated rate as investors either exit the market to Bitcoin or to Fiat. When Bitcoin is on the march then altcoins tend to follow after. My assumption is two things are at play here, confidence returns to altcoins after confidence returns to Bitcoin and profits get liquidated to diversify portfolios.

As such and as I have already mentioned, I am sitting out the next couple of weeks to see how my altcoin investments perform and reacting as and when necessary. I will likely let them ride the wave and take profits into Bitcoin and Fiat, ready for whenever we next face a significant correction.

In other news, the Filecoin ICO has been delayed for a couple of days. I avoid ICOs as they usually dump down when they hit the market but I am fascinated by the Filecoin project and want to be part of it. They have increased the minimum investment to $500 which the market reacted to.

You can read move about Filecoin here.

It was first brought to my attention when listening to a podcast with Polychain Capital founder and CEO, Olaf Carlson-Wee. Polychain capital is a pretty smart crypto hedge fund and worth following.

I have opened up the Facebook group for others to join. To gain access you must complete the questionnaire. We are a positive community and will not tolerate spam or arguments. There will be no warnings, anyone who is given access and acts like a dick will be banned. 

As ever, any questions give me a shout.