As stated earlier in my tweet, I have three personal trades of the year which I like to share with you in more indepth in this blog post.
#1 Ethereum Classic
First of all, lets not forget. ETC still is the actual ETH. Sometimes I feel this fact got distorted to a degree that new traders believe ETC is a little clone of ETH. It’s not. It is the actual unchanged chain, with all potential of ETH itself. With the difference that ETH trades at 52 $ while ETC still slumbers around 3.40 $, and that ETH decided to bail-out institutional investors in the DAO issue back in time while ETC refused to do so.
I think in their Reddit the ETC community points out pretty well where they place their priority:
We believe in a decentralized, censorship-resistant, permissionless block chain. We believe in the original vision, of Ethereum as a world computer that you cannot shut down, which runs irreversible smart contracts. We believe in a strong separation of concerns, whereby system forks are possible only to correct actual platform bugs or provide functionality upgrades, not to bail out failed smart contracts & associated special interest groups.
We believe in a platform that can actually be trusted — by anyone.
So now we have two equal platforms but two different visions. One is implemented and protected by big institutions and special interest groups. The other is largely independent and wants to ensure that for the future. Still, if both platforms are equally advanced in terms of technology, why the severe undervaluation of ETC?
Eventually I believe ETC will be the biggest hedge for gaining more ETH, just exactly as LTC was for BTC in 2013. Possibly the unintended creation of ETC was the single best thing for ETH investors after all. Imagine now when ETH is at $50 you get a second change to buy ETH at 1 USD, wouldn’t you do it?
ETC is basically this second chance to go long for a technology that already had its pump. This way you can reap twice the profits. And that’s what it all is about, double profits. Basically simple:
If ETC rises against BTC which is past due, the ratio ETC/ETH will very like follow. Consider that ETC and ETH both tend to rise in value at the same time. This means, when you are long in ETC ratio, the higher it goes, the more ETH you will get back per ETC. As both rise in value at the same time, you get more ETH back, which in turn have risen in value as well. This is insane double profits. No matter if you believe in ETH or ETC, this is a very profitable trade.
In terms of technical analysis we have a longterm trendline broken to the upside, building higher highs, higher lows. This is before acceleration phase, compare to the other charts later in this post what happened when they broke the longterm trendline. Early entries have been triggered, any consoldiation now will be used to add up positions until the final breakout, which will again lead new buyers into the market.
This brings me to the conclusion that traders now are increasingly aware of the fact that ETH loses its ground against ETC and start to turn their positions in favor of ETC. At some point, likely when taking out last High, big switchers will enter the game and look for a long position in ETC. The 2013 LTC history might serve us an example what impact those switchers may have:
In short, at some point people start to swap their ETH for ETC, FOMO kicks in, and we will see massive spikes in Daily Charts.
Ethereum will be great in the future. All this smart contract stuff is just at the very beginning of unfolding, and we truly have no idea where this is all going in the long run. Only one thing I know for certain, to be in as early as possible in this unchartered technology will be one of the most life-changing decisions you can possibly make.
Lets go on to Ripple.
Okay folks, lets be clear about Ripple. In all honesty, there is enough evidence, Ripple is the attempt to create a complete new financial system after the old system inevitable has to die. A money system that produces more debt that money that is needed to repay those debts doesn’t even work theoretically. It is doomed to fail. There will be no savior, because there is no solution to the broken existing system we are living in today. You cannot create more money to pay back interest on debts, because when generating new money, new debt is created as well. Vicious cycle. Will be dumped on citizens head eventually. The elite knows that the collapse is past due. Ripple is the new system that will replace the old, eventually connecting the whole world digitally. They control the majority of XRP’s supply aka pre-mine, and will the great benefiter after all. But this the moral issue.
Ripple is a distributed financial technology, enabling banks to send real-time international payments across networks. With Ripple, banks can meet growing demands for faster, low-cost, on-demand globally payment services for any payment size. The result: new revenue opportunities, lower processing costs, and better overall customer experience.
In other words, banks will save tremendous capital enabling worldwide instant transactions to everyone. This is big for banks. Sending money in SWIFT is expensive and slow, there needs to be a transformation. Right now 15 of the 50 biggest banks work with Ripple to create a worldwide network. Every week they are adding more banks to their partnership.
It is nice to have high ambitions. In case of Ripple, they have the resources, network and influence to make this happening more sooner than later.
The International Money Fund (IMF) concluded the first-ever meeting of its High Level Advisory Group on FinTech yesterday. In total 14 participants attended a panel leading up to a closed-door session with IMF managing Director Christine Lagarde.
Of course including Circle, Chain, Digital Asset and Ripple. What that means is that there are plans to implement Ripple on a larger scale with help of the IMF, which is BIG NEWS. Does anybody think Christine Lagarde meets with Ripple without having a clear goal to achieve? It’s just not their style, they know exactly what they are doing: Working on a worldwide, international payment networks.
In terms of technical analysis, the situation is plain simple. We broke the longterm trendline and had a strong spike up on high volume. Right now we are retracing, and hopefully retesting the support zone at 1111, which is likely the last opportunity to add up on your position with high multiplicator. After all you are buying a coin that is the underlying asset of the Ripple Network for about 1 cent. The more successful the Ripple network, the more valuable the underlying asset. If XRP is used to send and convert money in this international payment network, you are good to go to buy some cheap before it reaches mainstream. Enter early if you haven’t already, lower your average entry price, trade to increase your coin amount. Hold longterm, wait for it to be fully implemented into the new banking system. Then reap an abundant financial future.
In terms of LTC, its best to share an earlier article I posted on Steemit, which is a combination of technical and fundamental analysis and is still accurate up to date.
Just a few words to the chart:
We broke the longterm trendline violently with EXTENSIVE volume. Compare it to the rest of the charts, what is going on there? People are really busy finding an early entry into this longterm uptrend that is to follow. After all Litecoin is Bitcoin, just 4x faster, more capable, without political issues. It is also a little younger than its predecessor. When BTC hit $31 in June 2011, it consolidated until November 2011 with a low at $2. Reminds you of something? In December 2013 LTC went up to $48, only to consolidate until $1. However after BTC hit its low at $2, it generated Higher Highs and Higher Lows until it hit $260. What makes anyone think this time is different. This is trading after all. Interest in Litecoin is HUGE, especially with Segwit Development. This one will pop. Be sure you don’t miss the boat.
I am not sure if we see a retest, or if it will be Higher Lows, Higher Highs from here. But if it manages to build another Higher High, things will escalate quickly.
In my next post I will go more indepth into investing in bottoms and riding the whole wave, including several explanations of methods I use to analyze my charts and come to use in the charts I twitter. Stay tuned, thanks for reading, and much success in the market. Stay safe.
May the Golden Age be upon us,