Chart Reading 101

Everybody talks about how important technical analysis is but most people have no idea how to conduct it. I have been trading using strictly technical analysis for years now and I believe it is one of the best strategies to use when trading. First and foremost you have to understand two things: 


1. Technical analysis will usually be late. Many times indicators are going to tell you to buy after the large jump happens.If you stick too closely to indicators then it is going to cause you to buy at the top and then take a loss because of it.

2. Use technical analysis as an additional tool. Do not use it on its own because it can be manipulated by social data. Technical analysis is based on numbers. It is not taking into account any “big news” that a company may have. Many times there could be large gains/losses due to social data and your technical analysis may not be accurate because of it. Pay attention to everything and you can be successful.


Basic Technical Analysis

I want to talk about support and resistance lines because they are easy to understand. The support line is the link that is drawn at the low point of a time frame. If the coin price crosses this line, there is a strong belief that the coin will continue to go down.

On the other hand, there is the resistance line which is at the high points for that time frame. When the coin price crosses above this line, there is strong support saying that the price will continue to rise.

That is a little bit of basic technical analysis. I will be covering more of this in the future including specific indicators that I use when I trade.


Evaluating an Initial Coin Offering

Everybody and their brother is coming out with an ICO (Initial Coin Offering) nowadays. If you have no idea what an ICO is, please check out the article we wrote about it here. In that article I talked about how there are many overvalued ICO’s on the market. I talked about how a bubble is forming and how you have to be careful with your money when investing in start-ups. With that being said, not all ICO’s are bad. I am going to go over my top 4 tips to finding the best ICO’s.


Learn About What the Company Plans to Do

We hear a lot of buzzwords in the cryptocurrency community. One of those words is “whitepaper”. The whitepaper is basically an ICO company’s business plan. It will describe the technical aspects of the project and all of the problems that the project plans to solve. Make sure that the company has clear goals. Don’t invest in a company that you do not actually believe in. The best way to think of it is by thinking of yourself as a venture capital investor. Don’t just give your money to anybody. Pick the people with the best ideas and the best team.


Do Research on the Team

When buying ICO’s, you want to find the tech companies that are going to sell out quickly. After doing research, it looks like the best ICO’s are the ones that have team members from other large companies. I think that it makes sense. A good company is going to have a good team behind it. If the team has no experience in the past, it is probably not a good idea to put all of your money into the company. On the other hand, if the top programmers have developed popular applications in the past, they are most likely going to have a better chance at success.


Focus On Long Term Growth

One of the biggest issues I see when people look for good ICO’s is that people look for short term growth. People are more focused on the 50% gain in a day rather than the 5000% gain in a month. ICO’s have a lot of potential if you do your research and pick them out carefully. Pick a company that is going to be sustainable and usable so that you can have a good future with them.


Pay Attention to When the ICO Goes Onto Exchanges

After you pick your ICO, keep yourself in the loop with what the company’s plans are. Many companies have a timeline that show exactly what they plan on doing over the future months. For example, some ICO’s will occur days before the coin is released on exchanges. You are going to notice that the coin is going to be extremely volatile when it hits the exchange. Depending on what your goals are, it might be in your best interest to take the quick gain. You just have to pay attention so that you can sell out if you need to because the price is going to move quickly.


How To Learn To Trade Crypto’s

I think that this article title is a bit arbitrary but I think that it is an important topic to cover. Trading crypto’s can be very confusing and it is not a good idea to start trading before you fully understand the process of trading. Here are a few of our best resources and tips so that you can start making gains as quickly as possible:


Find A Good FREE Guide

A lot of people are trying to charge for information and we hate seeing that. Learning to trade should not be something that you pay for and for that reason here is a foolproof guide. If somebody is asking for money for training then they most likely have no idea what they are doing and they need the money. We believe that you should be able to learn without jumping through hoops or paying. We teach you everything from buying coins through exchanges to using technical analysis when trading.


Practice Practice Practice

It is probably not a great idea to just jump into the market if you have never invested before. You need to take time to actually learn how to trade. The best way to do this is by messing around with demo or practice system. Here are a few different options:

https://currencytycoon.com/
https://whaleclub.co/ (Be careful with this one, I would not use this exchange for anything but practice)

http://cryptocoinview.com/

I would treat these simulators like you are trading real money. The more that you practice, the more that you will learn.


Don’t Listen To Everybody

Whether you listen to me or not, I think that this point is important. You need to find 1 group or community to listen too. It is usually not a good idea to hop around and start trusting everybody’s opinion. Find a few people that you trust and follow their training. You want to become confident and a lot of conflicting ideas can become more scary than anything else.


The 5 Golden Rules of CryptoCurrency Investing

When investing in cryptocurrencies, it’s important that you do so safely so you don’t end up getting burned in the end. We’ve compiled a list of the top 5 rules you should follow when investing in cryptos. I wish I knew of these when I first started, it would have saved me from losing so much!


1. Don’t Invest Money You Can’t Afford To Lose

You are not buying bonds that give you a guaranteed return. The cryptocurrency market is volatile and it contains a lot of risk. If you have to take out a second mortgage on your house in order to buy a coin, DON’T DO IT! Winning in this game comes down to being smart and fighting against the hype.


2. Be Careful With The Coins You Buy

I see so many traders throwing their money around because they think it is invincible. The crazy part about the cryptocurrency industry is that it is full of some of the most intelligent computer scientists out there. This also means that it is full of hackers that want to steal your money. You need to make sure to buy your coins through a reputable exchange and store your coins in a safe wallet. Protecting your coins is vital if you plan on trading.


3. Understand What You Are Buying

Do not buy into a coin that you do not understand. I wrote an article about ICO’s and I talked about how millions of people are buying the hype of these “get rich quick” coins. You should never put your money into something that you do not understand. Although buying into an ICO might have its merits, some ICO’s (like the EOS ICO) do not even give you a coin after you pay. You were basically donating to the tech company. Just be smart and do your research.


4. Buy The Rumor, Sell The News

Once you start becoming a more advanced trader, you are going to learn more about this. You are going to end up losing money because you bought into the hype. Let me give you a secret, you should be buying in when everybody is saying to sell and you should be selling when everyone is saying to buy. Hype causes major crashes. Either buy before the hype even starts, or wait until after the hype to buy at a low point.


5. Never Join Pump and Dump Groups

If you think you are going to become a millionaire overnight, think again. Many people promise crazy returns but all they want is your money. Do not fall into any of these traps. Focus on making steady returns on GOOD currencies. Never trust somebody that claims they are making millions. If they were, they wouldn’t be trying to sell you something.


How to Predict the the Upswings and Downswings of a Coin

I see a lot of the new members of the crypto community always ask about the price of a coin and whether it will go up or down, which is fine at the beginning, but learning how to predict the price for yourself can save a lot of time and headaches! This article is geared more towards the newer crypto members, it will go over a few common methods people often use to check weather a coin will increase or decrease. Also keep in mind that no one knows for sure which way a coin is going to go, you have to follow the below methods and come up with your own conclusion about the coin.

Without wasting anymore of your time, here are the most popular methods people use when determining the price direction of a coin.

Technical Analysis (TA)

The most popular method is Technical Analysis. Basically glorified chart reading. Within the category of technical analysis, there are a lot of different methods that people use. The most basic method is to find the support, resistance and trend lines. If a coin moves past one of those lines, there is a good chance the trend will continue. For a full tutorial, click here. Currently, we have a technical analysis section on our site, and more specifically we have a RSI and EMA/MACDtutorial as well. (Stay tuned for a full technical analysis course… coming soon!)

There are two main sites that can help you with technical analysis: Coinigy and CryptoCompare. Coinigy is much better, but it’s only free for 30 days and then it’s $15/mo. (which is not bad at all, especially if it’s making you money by then.)

Twitter

This one is big. Twitter often has an effect on the price of a coin when someone influential tweets something… shocking. For example, at the end of this article, I mentioned the Founder of Litecoin said that China banned all exchanges. Even though no one else could confirm it at the time, it caused Bitcoin to take a pretty substantial hit.

Another example of how you can use twitter to predict a coin’s direction is by following major exchanges. Usually they’ll tweet a few hours/days before they list a coin on their exchange. If the exchange is a big one, it will most likely increase the coins volume pushing it upwards.

News

Lastly, this one probably has the most effect of the price of a coin. This is great is some conditions and horrible in others. When a coin receives good news, like TenX has a new card issuer, it usually causes a pump in the price of that coin. Shortly after that TenX news was posted, this happened:

News affects the price of coins

News affects the price of coins

On the other hand, when there is bad news, the market usually goes down. For example, when China made all its announcements in September, it caused a major dump in Bitcoin, causing many other Altcoins to fall as well.

Slack/Telegram

Most of the time, a team will have a slack or telegram channel that is open to the community. This is a great place to be if you want to be the first to hear about major developments to the project. Both applications are free to use, so there’s no reason why you shouldn’t join them.


In order to take advantage of these strategies, you need to take action. Make a twitter account if you don’t already have one and follow everyone and everything in the crypto scene. Also make sure you are following crypto news, and the slack/telegram channels of popular coins!

This should be a pretty good start for all those who were uncertain about determining the price of a coin, if you have any questions, ask them in the comment box below and I’ll reply ASAP.


Forget About China (For Now), Japan Just Licensed 11 Cryptocurrency Exchanges!

All eyes have been on China for the past month or so, not many people have been paying attention to other Asian countries! Just yesterday, Japan’s Financial Services Agency (FSA) announced that it has approved 11 cryptocurrency exchanges to operate within the country.

The Japanese government recognized bitcoin as legal tender back in April and required cryptocurrency exchange operators to register with it. The move was aimed at avoiding a repeat of the failure in 2014 of Mt Gox, the world’s largest bitcoin exchange at the time.

There are various requirements in order to be a licensed exchange in Japan, including: building a strong computer system, segregation of customer accounts, and checking the identity of customers (a key issue given concerns cryptocurrency could be used for money-laundering).

Since China has recently cracked down on cryptocurrencies (although, I feel the end is near), Japan has quickly taken their position as the biggest Bitcoin trading hub. Notably, bitFlyer–whose BTC/JPY trading pair regularly ranks as one of bitcoin’s top three highest trading volumes – was one of the exchanges licensed during this first round of approval.

The list of licensed exchanges also includes: QUOINE, Bit Bank Corporation, SBI Virtual Currencies, Bit Trade, BTC Box, Bit point Japan, Fiscal Virtual Currency Exchange, and Tech Bureau.

With the new regulation, Tokyo aims to balance the need to protect investors with the need to support fintech innovations, FSA officials said. Officials this month said they have no plan to ban initial coin offerings (ICOs), although there have been few launches of token-based digital currencies in Japan to date.


Is The Bitcoin Trend More Than Just A Trend?

The Bitcoin trend has become prominent over the past year and it has affected the financial world. About 20 years ago the buzzword was “dotcom”. Everybody was starting technology companies and these companies were able to raise millions of dollars easily.

A lot has changed and we have moved into a complex technological age with the new trend, “Bitcoin”. Bitcoin is starting to infiltrate Wall Street. It is much less of a technology that hackers use, it is a technology that major institutions are starting to use.

The movement from the public into institutions is complex, but not for Bitcoin. Bitcoin is able to stay decentralized no matter who uses it. The various governments around the world will never be able to change that. The only thing that major institutions can do is scare the public.

Jamie Dimon, the CEO of JP Morgan, recently made statements against Bitcoin. Following the statement, Bitcoin’s price reacted negatively.So can it really be just a trend? I do not think so. Bitcoin is here to stay and institutions know that.

Industry Acceptance

Look at all of the major companies that are releasing ICO’s. Recently we had the Kin ICO, which was creating by the popular application company, Kik. We also have recently seen CEO’s, like Patrick Byrne (the CEO of Overstock.com), strongly support Bitcoin.

“The guys who belong to this financial world of debt-based, fiat-money, central-banking Keynesian spending – this magic money tree they all grew up in – they don’t like a form of currency that cannot be controlled by a government. What a surprise.” – Patrick Byrne

So what do you think? Is Bitcoin just a trend like the dotcom bubble? Let me hear your thoughts below…


Dubai Will Soon Be Launching Their Own Cryptocurrency!

A partnership has been set up to develop and implement emCash, an encrypted digital currency, which people can use to pay for various government and non-government services in Dubai.

The partnership is between Emcredit, a subsidiary of Dubai Economy, and the UK-based Object Tech Group Ltd together under the Dubai Economy Accelerators umbrella to develop and implement emCash. emCash will be the digital currency in emPay wallet, launched by Emcredit to support contactless payments. emPay will allow the UAE residents to make varied payments through the near field communication (NFC) option on their phones. With emCash, emPay users will have the option of a secure digital currency, and merchants can receive such payments in real time without going through intermediaries.

Deputy Director General of Dubai Economy, Ali Ibrahim said, the token will be considered legal tender:

for various government and non-government services, from their daily coffee and children’s school fee to utility charges and money transfers.

He then goes on to say,

A digital currency has varied advantages faster processing, improved delivery time, and less complexity and cost. It will change the way people live and do business in Dubai, and mark a giant leap for the city in harnessing game-changing innovations to improve the ease of business and quality of life. We are delighted to have Object Tech as our partner in this initiative and the Dubai Economy Accelerators programme. Obtaining the approval of other UAE authorities will be considered if required,

Muna Al Qassab, CEO, Emcredit Limited, added that emCash also reduces fraud, as well as inflation, since the currency is issued in real time, based on actual demand.

Customers can choose between two payment options on the emPay platform the existing dirham payment or emCash. While the dirham payment goes through normal settlement procedures, intermediaries and costs, emCash payments are settled directly between the user and merchant. emCash thus gives real-time value movement and merchants can pass the cost benefit to the emCash holder. It also reduces fraud, as well as inflation, since the currency is issued in real time, based on actual demand.

There has been no mention on when emCash will be released. We’ll keep you in the loop!


Goldman Sachs Examines Trading Bitcoin For Their Clients

Despite what is happening over at JP Morgan, Goldman Sachs has much more of an open mind towards Bitcoin and other cryptocurrencies. Goldman has been working with some of the top cryptocurrency experts to help create a strategy that they could use with their clients. 

“Goldman’s effort involves both its currency-trading division and the bank’s strategic investment group, the people said. That suggests the firm believes bitcoin’s future is more as a payment method rather than a store of value, like gold” – Wall Street Journal

Earlier this year, Goldman’s chief technician, Sheba Jafari, predicted that Bitcoin would climb to about $4,800 (just like it did). I would be willing to bet that they have an entire team that has been studying Bitcoin for a long time.

Past Acceptance of Bitcoin

Goldman Sachs has already invested in startup Bitcoin companies. They specifically have invested in a company called Axoni. Axoni focuses on bringing Bitcoin technology into the professional financial sector. Investments like this prove that Goldman believes in Bitcoin for the long term.

The acceptance of Bitcoin by financial institutions is what could take Bitcoin to the next level. The cash flow into cryptocurrency would explode when financial institutions start trading it for their clients. As long as the US Government does not try and put strict regulations on the technology, this event is a major step forward for cryptocurrencies.


Russia Plans to Add Cryptocurrencies to the Population’s Financial Literacy Strategy

Russia’s Ministry of Finance has proposed the inclusion of digital currency to the country’s financial literacy strategy for 2017-2023. The strategy was jointly developed by the government and the World Bank. The program will be implemented in two phases, one in 2017-2019 and the other in 2020-2023, with the Finance Ministry overseeing their implementations.

This plan would focus on teaching younger students about cryptocurrencies at school, so they can be better prepared for the future. Recently, news.Bitcoin.com reported on five top educational establishments incorporating cryptocurrency into their traditional banking and finance courses. Moscow State University, Higher School of Economics, St. Petersburg State University of Economics are among them.

In the strategy to increase the financial literacy of Russians, it is necessary to include the topic of cryptocurrency. The question of investing in instruments such as cryptocurrencies will, of course, be discussed, and we now see more risks than recommendations on investing in such instruments. So, explaining the possible consequences of investing in unregulated instruments will be one of the issues with which we will speak for the current year and until 2023.

As of now, cryptocurrencies are not legally regulated yet in Russia. Although the National Settlement Depository (NSD) of the Moscow Stock Exchange is working on building the infrastructure to allow for bitcoin and other digital currency trading on the exchange someday, Russia’s central bankers still think it’s a bad idea.

“Crypto-currencies are issued by an unlimited circle of anonymous entities. Due to the anonymous nature of the issuance of crypto-currency, citizens and legal entities can be involved in illegal activities, including legalization (laundering) of proceeds from crime and financing of terrorism,”

 

“Given the high risks of circulation and use of crypto-currency, the Bank of Russia considers it premature to admit crypto-currencies, as well as any financial instruments nominated or associated with crypto-currencies, to circulation and use at organized trades and in clearing and settlement infrastructure on the territory of the Russian Federation for servicing transactions with crypto-currencies and derivative financial instruments on them.

I think this could go either way. Russia is divided on what they should do about cryptocurrencies. On the one hand, the Bank of Russia is against them, and on the other hand, the ministry of finance wants to add cryptocurrencies into school curriculum. Do you think it’s a good idea to do this? Let us know in the comment box below!


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