the Tweedle Whopper Crypto Review

Carnage!

 The aggregate value of all crypto currencies tumbled from $700B to $550B today.  This was the worst single day in recent memory.

However the monthly chart doesn’t look so bad:

As with many previous market tumbles, this one was driven by news from China.  The Chinese government announced a plan to block citizens of accessing foreign crypto currency exchanges. I’m sure the panic was exacerbated by profit taking from the recent bull run, as well as the many new investors who entered the market.

The crash was so bad that Tether, a crypto currency supposedly pegged to the dollar rose to $1.02:

Here’s more analysis and basic investing advice from one of the Youtubers I recommend, David Hay:  Did the bubble burst?


Decentralized Exchanges

What I wrote in my previous newsletter was very apropos: “many people have predicted that in 2018 governments will come for their pound of flesh. . . . I think we can reliably predict that people will seek alternatives. Decentralized Exchanges are already here and already working.”

Such bans, like the one that China proposed, will become meaningless when (not if, when) decentralized exchanges take over from their centralized counterparts.

You can invest decentralized exchanges them by buying their tokens.  However there are a lot of projects in this space, and it’s hard to say who the winner(s) will be.

Omisego – seems to have the best user experience.
Cobinhood – no transaction fees
Kyber
Coss
Komodo – uses atomic swaps
Bitshares
Waves – a smart contract platform with a built-in decentralized exchanges (for Waves Tokens only).
Binance Coin – issues by one of the giant centralized exchanges. Currently it can be used for discounts of existing services. They say that it’ll power a yet-to-be-released decentralized exchange.

. . . and many others.


An Example of a Good Crypto Coin Analysis

This is from Crypto Gurus, another source I recommend: What is Populous? Full Investment Review

I would probably pass on Populous, just because it’s already “discovered”.  Market cap is $1.5B.  But the article is an example of good analysis, imo.

Quick summary:

Populous seems like the only player in a really big industry, namely invoice trading.  The team is strangely unknown.  I’m also not sure they can cross the digital – real life barrier.  I assume they need legal leverage all over the world if they want to create a global invoice trading market.  However, if they’re successful, they’ll do great.  This is an example of the sort of boring, real life business problem that makes money.


Beginner Breadcrums – Things to do after buying your first crypto for fiat.

So, let’s say that you purchased Bitcoin or Litecoin on some exchange like Coinbase or Bitstamp.  These are both big retail style exchanges popular because of their ease of use.

What do you do next?

Try to Download the coins to your own wallet so that you don’t have to trust Coinbase/Bitstamp.  (I wouldn’t actually worry about it unless you had a huge amount.  Do it for practice.)

1. For Litecoin, Go to https://litecoin.org/ (or https://litecoin.com/#wallets, they’re both legit).  For Bitcoin, I like the Electrum wallet.
2. Make sure the name of the website is spelled correctly and make sure there’s a little lock symbol beside the URL.
3. Download and install wallet.
4. Maybe create a backup.  Sometimes you can do this by writing down a list of word that acts as a “seed” and then putting that piece of paper in very safe place.  Otherwise, you can find the “wallet.dat” file and put in on a clean flash drive — then store the flash drive somewhere safe.
5. Depending on which wallet you chose, you may have to wait a day or two for the whole blockchain to download.  (The blockchain is the ledger which contains a history of ALL transactions.)
6. In your wallet, find a “receive” address and carefully copy it.
7. Send Bitcoin or Litecoin from the exchange to your wallet.

Try Trading other crypto currencies on other Exchanges

If you want access to other coins, you may need to go to Binance, KuCoin, Kraken, Bittrex.  There are dozens of options.

1. Open an account on another exchange.  If you’re not touching the account with dollars, the procedure is usually as simple as an email verification.

2. (recommended) Enable some sort of 2-factor authentication.

3. On the new exchange, look at “balances” or “deposits” to see the list of coins which you can depot.  Carefully copy your Bitcoin or Litecoin deposit address.

4. From where ever you have your crypto, send your Bitcoin or Litecoin to the new exchange.  You’ll have to paste in the deposit address from the new exchange.  Double check that you’ve copied and pasted correctly.

5. Most exchanges have trading pairs only for BTC and ETH, so if you’re bringing in Litecoin, you may first have to convert it to BTC or ETH before buying something else.

6. If you want to pull your newly purchased crypto coins off the exchange, you’ll have to look into the specifics of how that particular coin works.  It can have its own wallet, or can it be a token that sits on top of one of the smart contract platforms like Ethereum, Waves, Cardano, EOS, NEM, or many other.  In the latter case, you’d download the wallet of the smart contract platform.

Try Shape Shifter

Shapeshift.io is a sort of exchange which doesn’t require you to create an account.  It trades about a dozen different crypto currencies.

You simply select your pair, and provide a receiving address before sending your coins.

Pros:
You don’t have the hassle of registering with another exchange.

Simple.

Cons:
You have to install a wallet of the coins you want to receive.
For better or worse, you’re stuck with their specified rates, rather than competing in a trade book.

Try Decentralized Exchanges

I have yet to explore this, but it’s a cool an exciting possibility that absolves you from registering anywhere.  The drawbacks are low volume and poorer, UI, but they’re getting better.


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