Weekly Crypto Update — June 18th, 2018
Tags: Blockchain, Ethereum, Altcoins, Crypto, Bitcoin

Article by Steven Aitchison. Steve first got into the crypto world in 2015 and started trading in 2017 and now wants everyone to know the benefits of crypto with his course and hidden gems newsletter at: Learn About Crypto and Trading and his weekly hidden gems CYT Crypto Monthly he also started his youtube channel 5 months ago at CYT Crypto.

This Week In The Crypto Market

Another choppy week in the crypto markets. The overall market cap was sitting at around $303 Billion on Tuesday and is now sitting at $276 Billion, at the time of writing.

Bitcoin’s dominance has gone up to 40% for the first time in a while which shows us the uncertainty with alts

Top gainers of the week include:

Binance — 17%

Decentraland — 13.39%

Ethereum Classic — 10.01%

Mithril — 7.89%

Basic Attention Token — 4.67%

Dropil — 4.43%

Bytom — 4.04%

Top losers of the week include:

Waykichain: -37.36%

Maker: -26.97%

Qash: -25.06%

Bibox: -23.84%

Syscoin: -21.42%

0x: -21.31%

Ethos: -20.91%

Ark: -20.23%

Bitcoin price this week has fallen from a high of $6,906 to today’s price of around $6,495.

It looks as if Bitcoin has still to fall a little more with support being around $6,400, $6,000 and $5,800. Hopefully we won’t go below the psychological barrier of $6,000, but we will have to wait and see.

The star coin of the week has to be the Binance coin which is going from strength to strength and may have a way to go still. I believe Binance is $100 coin waiting to happen.

Top News Stories

Coinbase Lists Support for Ethereum Classic

Coinbase announced on Tuesday that it will start the process of listing Ethereum Classic to it’s list of cryptocurrencies.

It will take a few months for them to do this as they work on the backend. Coinbase stated:

“Per this process, we will now begin the engineering work (Step 4) for supporting Ethereum Classic. As part of this process, customers can expect to see public-facing APIs and other signs that the asset is being added. When we reach the final testing phase of the technical integration, which we expect to occur over the next few months, we will publicly announce a launch date for trading via our blog and Twitter” (Source: blog.Coinbase.com)

Ethereum is NOT A Security

Some good news for the whole market on Thursday was the announcement from the SECs William Hinman who clarified the SEC’s stance on Etheruem.

In a speech at Yahoo Finance Summit Hinman stated: “[Based] on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value,”

This has obviously been a bone of contention and the news that Bitcoin and Ethereum not being classed as securities is a big deal and the market reacted favourably to this news.

Coinbase Index Fund Is Now Open For Investment

Another piece of news which caught my eye that went relatively under the radar was the fact that Coinbase are now offering their index fund for Accredited US Investors.

This could be huge for the markets overall as it shows us what ETF’s could look like in the future when The SEC gives the go ahead for them to be traded.

Coinbase stated: “Coinbase Index Fund is now open for investments of $250,000 to $20M.

We’ve seen overwhelming interest from investors since we announced the fund earlier this year. At this stage, we have opened the fund to those who wish to invest $250,000 to $20M.

Coinbase Index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization. As we announced yesterday, the fund will be rebalanced to include Ethereum Classic, and more assets when they are listed by Coinbase in the future.” (Source: blog.coinbase.com)

Wells Fargo Bans Crypto Buying

In a move I will never understand, from a business point of view, Wells Fargo has become the latest bank to ban crypto buying with their credit cards.

In an article on Fortune.com they reported that:

“Wells Fargo, America’s third largest bank by assets, said Monday that customers will no longer be able to purchase Bitcoin and its ilk using credit cards issued by the firm. The decision follows on similar announcements made by J.P. Morgan, Citi, Bank of America, as banks and payments processors feared that the asset’s wild price swings could cause buyers to renege on payments back to the bank.” (Source: Fortune.com)

I can understand, to a degree, why they might do this but the credit card companies must be losing out on Millions of dollars in this to move to buy cryptocurrency buying. based on this thinking, why would they not ban the likes of spread betting, stock trading, Fx trading etc. It seems crazy to me.

Mastercard Files Patent For Blockchain System Verification

Although the credit card companies want nothing to do with cryptocurrencies it seems that they are not without foresight with Mastercard applying for a patent for a “method and system for payment card verification via blockchain.”.

The patent seeks rights over “the verification of payment credentials via the use of blockchains or other publicly accessible data sources, specifically the use of encryption and the transmission of data between a computing device and a point of sale to accommodate the retrieval and usage of verified payment credentials without the use of a traditional payment instrument.”

Crypto Trading Tips

Another trading strategy that can be used effectively is based on the crossover, which I spoke about last week, but it is using only 1 signal and that is the 15 EMA.

The key with using a strategy like this is getting used to it: testing it first and then sticking to the strategy. We often use many different strategies when it comes to investing or trading crypto and that’s where we can go wrong.

The 15 EMA Crossover Strategy

Essentially this is a simple strategy that only uses 1 indicator, the 15 EMA.

What we are doing is looking for a crossover of a candle either up or down to tell us when to enter and trade and when to get out of a trade.

Let’s have a look at Binance to illustrate how this would work.

The trade above for Binance is a great example of using this strategy on the daily chart.

What we’re doing is looking for a new trend and in the example above we see our entry position of around 24,000 Satoshi and our exit of the trade at 119,000 Satoshi: an ROI of 319%

All looks too easy doesn’t it. The difficulty trading like this is when we are in a sideways market and the crossovers become too numerous for it to work effectively.

However if we stick to the daily chart and use this strategy there’s a lot less noise to contend with and it becomes slightly easier. You might miss out on bigger moves e.g. switching to the 6 hour chart instead of using the daily chart, but doing this produces more noise and more volatility.

Have a look at trading this way but remember stick to the rules:

Wait on the candle crossing over and wait for another candle to confirm the crossover either to the upside or the downside.