Category Archives: alternative investments

Building a Cryptocurrency Portfolio

I do like cryptocurrencies. I just like the idea of them. I’m a Libertarian and I like economics over centralized governments. I don’t believe all the money printing from the Federal Reserve is going to end well. That’s probably why cryptocurrencies speak to me.

As the market for cryptocurrencies mature, it’s important to bring some of the same fundamentals of investing most people use with stocks and other types of investment. Diversification is a key aspect to investing to reduce your overall risk-adjusted return. When thinking about cryptocurrency, I think it’s important to build a framework for evaluation and then use that framework to build a portfolio.

Investment Criteria

When investing, it’s important to develop a framework for how to evaluate potential investments. Cryptocurrency is a little different than other asset classes. If you want your investments in crypto to go the distance, they’ll need to do well in the following categories:

  • Product / Function — Do they own their functional niche? Do they have a defend
  • Size of Community / Adoption — Do they have a rabid following of users? Do they have an invested and interested community?
  • Technology / Moat— Do they solve a problem with a novel method? Do they implement interesting, defendable technology?
  • Aligned Incentives / Governance — Are the investors systematically aligned with incentives? Is there proper systems and process for governance? Is there mining and/or other incentives or did they generate all the coins at once?
  • Market Opportunity — how big is the problem trying to get solved? What is the total addressable market?

We will use an unscientific rating from 1–10 for each of these to evaluate several currencies below. (P/C/T/I/O) evaluations (e.g 10/4/7/3/7).

Portfolio of Cryptocurrencies

If you’re using cryptocurrencies for broader diversification of asset classes in your investment portfolio, I would look to invest in 3–7 cryptocurrencies. I recommend doing that for the same reason your diversify across many asset classes. It allows you to decrease exposure risk and to improve your risk-adjusted return. If you want to analyze which currencies are non-correlative, check out this table.

Major Currencies: Core Assets

I think every cryptocurrency should start with both bitcoin (BTC) and ether (ETH). Bitcoin is the granddaddy of them all and has first-mover advantage. It’s proved itself to be the currency used as a store of value and it has the most partners/vendors in the market. Ethereum has built in the idea of “smart contracts” will is going to allow for so much of the innovation that’s coming over the next 10 years using blockchain technology. Being at the core, Ethereum has a great chance to capture value. I would have a majority of my crypto investment in these two currencies.

  • Bitcoin (BTC) now at $5,150 (9/10/8/10/10)
  • Ethereum (ETH) now at $306 (10/9/10/9/10)

“Zombie” Currencies

I would be careful with what I call “zombie” currencies. These are currencies where they may have been large or had potential some time in the past, but the market has spoken and they weren’t chosen.

Bring caution to these 3 though because of their lack of a unique value proposition. Bitcoin Cash is trying to be the currency for a medium of exchange with their faster transactions times over Bitcoin. That is a tenuous position and adoption by miners has plateaued. Ethereum Classic (ETC) has been shed to the wayside with Ethereum (ETH) being the winner of that battle. Litecoin is supposed to be “the silver to bitcoin’s gold”, but there are a lot of coins competing for that slot. Until they can prove they’re the dominant coin for being a medium of exchange (or some other unique value), I would not invest in it. Be careful about investing in zombie currencies. They may rise with the total market, but at some point their value may fall precipitously with their lack of a unique value proposition.

Platform Cryptocurrencies

There are a set of cryptocurrencies that are centralized platforms in and of themselves trying to best solve a problem using blockchain technology. Ripple tries to tackle the international payment remittance market. MaidSafe tries to provide decentralized storage and DASH has a community of people trying to solve digital payments in a novel way.

  • Ripple (XRP) at $0.25 (9/9/9/8/7)
  • MaidSafe at $0.40 (9/9/8/8/9)
  • Dash (DASH) at $294 (8/9/6/9/8)

Anonymous Cryptocurrencies

There are several cryptocurrencies devoted to providing more privacy in the transaction. Each of them work a little differently. Since privacy is such a big selling component of why to use cryptocurrency, I think one of these belong in your portfolio.

  • Zcash (ZEC) at $260 (10/8/8/7/8)
  • Monero (XMR) at $63 (9/8/6/8/8)

Protocol / Platform Coins

Since we’re in the early stages of building out our decentralized and blockchain applications, many of the early platforms are focused at the protocol layer. In the future, more coins will be focused at the specific application layer, but since we need the build-out of blockchain infrastructure, I would invest in at least one of these currencies.

  • EOS (EOS) at $0.60 (10/8/9/6/9)
  • IOTA (MIOTA) at $0.55 (10/8/9/8)
  • NEM (NEM) at $33.88 (8/7/8/8/8)

Other Future Coins and Tokens for Your Consideration

In my opinion, the following list of cryptocurrencies are speculative now, but show promise. I would probably hold off investing in these until they mature a little and until you’ve had some time to build a core cryptocurrency portfolio. Keep an eye out on these:

  • Metal at $7.90
  • Steem at $1.22
  • TNT at $0.09
  • Augur at $19.34
  • TenX at $2.15
  • 0x at $0.19
  • SENSE at TBD in November 2017
  • CRYPTO20 at TBD in Jan 2018

More Scrutiny Required

I would not invest in BitConnect because many think it’s a scam. BitConnect still has a market cap $1,100,000,000. It’s hard to believe, but there aren’t really any regulatory bodies enforcing and people are captivated by their guarantee of high returns. All things point to this being a Ponzi scheme. Caveat Emptor.

Model Portfolio

A model portfolio may look something like this:

  • BTC (35%) — Core: Major currency, Tier 1 asset
  • ETH (35%) — Core: Major currency, Tier1 asset
  • XRP (10%) — Tier 2 asset: Platform for Remittance, Diversification
  • ZEC (5%) — Anonymous/Privacy, ZKPs w/ important use case
  • EOS (10%) — Protocol Coin: Building on top of Ether, big market opportunity, long-term wait 1-2 years
  • IOTA (5%) — Protocol Coin: Building for the IoT, big market opportunity, long-term wait 1–2 years

Having a portfolio of 3–9 cryptocurrencies will optimize your risk-adjusted return. Spreading out bets will reduce your risk. Moreover, you’ll get to own some of the coins that haven’t yet had quite the run that bitcoin and ether have. I would probably set a minimum threshold of coin market cap before investing. For example, I wouldn’t invest in any coins with a market cap of $100mm or less.

A final note, this is NOT evergreen content. The model portfolio described here may not be relevant in the future because of the dynamic nature of the market and landscape. This is a very new market and I expect many rapid changes over the next year and beyond. So, make sure to take the principals described here and apply them for the current and future state.

Happy Hunting!

________________________________________________________________

Disclaimer — The above references an opinion and is for information purposes only. It is not intended to be investment advice. Please do your own homework.

If you enjoyed this article “clap” to help others find it! For more, join us on Facebook, Twitter and if you want to receive latest weekly updates on Investing, Entrepreneurship & Personal Finance, feel free to subscribe to our NEWSLETTER.


Building a Cryptocurrency Portfolio was originally published in WealthRituals on Medium, where people are continuing the conversation by highlighting and responding to this story.

Building a Cryptocurrency Portfolio

I do like cryptocurrencies. I just like the idea of them. I’m a Libertarian and I like economics over centralized governments. I don’t believe all the money printing from the Federal Reserve is going to end well. That’s probably why cryptocurrencies speak to me.

As the market for cryptocurrencies mature, it’s important to bring some of the same fundamentals of investing most people use with stocks and other types of investment. Diversification is a key aspect to investing to reduce your overall risk-adjusted return. When thinking about cryptocurrency, I think it’s important to build a framework for evaluation and then use that framework to build a portfolio.

Investment Criteria

When investing, it’s important to develop a framework for how to evaluate potential investments. Cryptocurrency is a little different than other asset classes. If you want your investments in crypto to go the distance, they’ll need to do well in the following categories:

  • Product / Function — Do they own their functional niche? Do they have a defend
  • Size of Community / Adoption — Do they have a rabid following of users? Do they have an invested and interested community?
  • Technology / Moat— Do they solve a problem with a novel method? Do they implement interesting, defendable technology?
  • Aligned Incentives / Governance — Are the investors systematically aligned with incentives? Is there proper systems and process for governance? Is there mining and/or other incentives or did they generate all the coins at once?
  • Market Opportunity — how big is the problem trying to get solved? What is the total addressable market?

We will use an unscientific rating from 1–10 for each of these to evaluate several currencies below. (P/C/T/I/O) evaluations (e.g 10/4/7/3/7).

Portfolio of Cryptocurrencies

If you’re using cryptocurrencies for broader diversification of asset classes in your investment portfolio, I would look to invest in 3–7 cryptocurrencies. I recommend doing that for the same reason your diversify across many asset classes. It allows you to decrease exposure risk and to improve your risk-adjusted return. If you want to analyze which currencies are non-correlative, check out this table.

Major Currencies: Core Assets

I think every cryptocurrency should start with both bitcoin (BTC) and ether (ETH). Bitcoin is the granddaddy of them all and has first-mover advantage. It’s proved itself to be the currency used as a store of value and it has the most partners/vendors in the market. Ethereum has built in the idea of “smart contracts” will is going to allow for so much of the innovation that’s coming over the next 10 years using blockchain technology. Being at the core, Ethereum has a great chance to capture value. I would have a majority of my crypto investment in these two currencies.

  • Bitcoin (BTC) now at $5,150 (9/10/8/10/10)
  • Ethereum (ETH) now at $306 (10/9/10/9/10)

“Zombie” Currencies

I would be careful with what I call “zombie” currencies. These are currencies where they may have been large or had potential some time in the past, but the market has spoken and they weren’t chosen.

Bring caution to these 3 though because of their lack of a unique value proposition. Bitcoin Cash is trying to be the currency for a medium of exchange with their faster transactions times over Bitcoin. That is a tenuous position and adoption by miners has plateaued. Ethereum Classic (ETC) has been shed to the wayside with Ethereum (ETH) being the winner of that battle. Litecoin is supposed to be “the silver to bitcoin’s gold”, but there are a lot of coins competing for that slot. Until they can prove they’re the dominant coin for being a medium of exchange (or some other unique value), I would not invest in it. Be careful about investing in zombie currencies. They may rise with the total market, but at some point their value may fall precipitously with their lack of a unique value proposition.

Platform Cryptocurrencies

There are a set of cryptocurrencies that are centralized platforms in and of themselves trying to best solve a problem using blockchain technology. Ripple tries to tackle the international payment remittance market. MaidSafe tries to provide decentralized storage and DASH has a community of people trying to solve digital payments in a novel way.

  • Ripple (XRP) at $0.25 (9/9/9/8/7)
  • MaidSafe at $0.40 (9/9/8/8/9)
  • Dash (DASH) at $294 (8/9/6/9/8)

Anonymous Cryptocurrencies

There are several cryptocurrencies devoted to providing more privacy in the transaction. Each of them work a little differently. Since privacy is such a big selling component of why to use cryptocurrency, I think one of these belong in your portfolio.

  • Zcash (ZEC) at $260 (10/8/8/7/8)
  • Monero (XMR) at $63 (9/8/6/8/8)

Protocol / Platform Coins

Since we’re in the early stages of building out our decentralized and blockchain applications, many of the early platforms are focused at the protocol layer. In the future, more coins will be focused at the specific application layer, but since we need the build-out of blockchain infrastructure, I would invest in at least one of these currencies.

  • EOS (EOS) at $0.60 (10/8/9/6/9)
  • IOTA (MIOTA) at $0.55 (10/8/9/8)
  • NEM (NEM) at $33.88 (8/7/8/8/8)

Other Future Coins and Tokens for Your Consideration

In my opinion, the following list of cryptocurrencies are speculative now, but show promise. I would probably hold off investing in these until they mature a little and until you’ve had some time to build a core cryptocurrency portfolio. Keep an eye out on these:

  • Metal at $7.90
  • Steem at $1.22
  • TNT at $0.09
  • Augur at $19.34
  • TenX at $2.15
  • 0x at $0.19
  • SENSE at TBD in November 2017
  • CRYPTO20 at TBD in Jan 2018

More Scrutiny Required

I would not invest in BitConnect because many think it’s a scam. BitConnect still has a market cap $1,100,000,000. It’s hard to believe, but there aren’t really any regulatory bodies enforcing and people are captivated by their guarantee of high returns. All things point to this being a Ponzi scheme. Caveat Emptor.

Model Portfolio

A model portfolio may look something like this:

  • BTC (35%) — Core: Major currency, Tier 1 asset
  • ETH (35%) — Core: Major currency, Tier1 asset
  • XRP (10%) — Tier 2 asset: Platform for Remittance, Diversification
  • ZEC (5%) — Anonymous/Privacy, ZKPs w/ important use case
  • EOS (10%) — Protocol Coin: Building on top of Ether, big market opportunity, long-term wait 1-2 years
  • IOTA (5%) — Protocol Coin: Building for the IoT, big market opportunity, long-term wait 1–2 years

Having a portfolio of 3–9 cryptocurrencies will optimize your risk-adjusted return. Spreading out bets will reduce your risk. Moreover, you’ll get to own some of the coins that haven’t yet had quite the run that bitcoin and ether have. I would probably set a minimum threshold of coin market cap before investing. For example, I wouldn’t invest in any coins with a market cap of $100mm or less.

A final note, this is NOT evergreen content. The model portfolio described here may not be relevant in the future because of the dynamic nature of the market and landscape. This is a very new market and I expect many rapid changes over the next year and beyond. So, make sure to take the principals described here and apply them for the current and future state.

Happy Hunting!

________________________________________________________________

Disclaimer — The above references an opinion and is for information purposes only. It is not intended to be investment advice. Please do your own homework.

If you enjoyed this article “clap” to help others find it! For more, join us on Facebook, Twitter and if you want to receive latest weekly updates on Investing, Entrepreneurship & Personal Finance, feel free to subscribe to our NEWSLETTER.


Building a Cryptocurrency Portfolio was originally published in WealthRituals on Medium, where people are continuing the conversation by highlighting and responding to this story.

Not So Normal Investments -I

Maidsafe Logo

I have been investing in Crypto-currencies, since 2 years and now helping people like me invest in order to get high returns (High risk). These are my personal tips and should follow at your own risks (Pretty good risk to take)

I’ll be listing down my top picks which have yielded highest returns for me and believe are going to grow further.

Safe Network (Maidsafe coins- MAID)

Founded in 2006, Maidsafe is aiming to build a new kind of internet. One that is not vulnerable to DDOS attacks. One that natively encrypts consumer data end to end and stores it with redundant distributed security.

Coin Overview
● Marketcap 152 million USD.
● Current MAID supply 52,552,412
● Most popular wallet to hold off exchange https://www.omniwallet.org/wallet
● High volume exchanges: poloniex.com and shapeshift.io.
● Token secured by Bitcoin Blockchain.
● Swap for Safecoin (native network token) speculated to happen towards the end of 2017
● Development roadmap. https://maidsafe.net/roadmap_dev.html
● Main site at https://maidsafe.net

My View

MaidsafeCoin (MAID) has been a very profitable investment for me. Delivering 2.5x ROI in about 4months. It’s a pre launch coin and still under Alpha , should be releasing by end of 2017.

Current trends

Currently trading at all time high but I am willing to hold MAID as the team behind is really committed (Over 11 years of working on this project)

-P.S
We are currently doing a closed Crypto-currency fund and building something really cool, where normal users can invest in different currencies automatically (Click of a button) Message me or Christopher Shen for more info!

Not So Normal Investments -I

Maidsafe Logo

I have been investing in Crypto-currencies, since 2 years and now helping people like me invest in order to get high returns (High risk). These are my personal tips and should follow at your own risks (Pretty good risk to take)

I’ll be listing down my top picks which have yielded highest returns for me and believe are going to grow further.

Safe Network (Maidsafe coins- MAID)

Founded in 2006, Maidsafe is aiming to build a new kind of internet. One that is not vulnerable to DDOS attacks. One that natively encrypts consumer data end to end and stores it with redundant distributed security.

Coin Overview
● Marketcap 152 million USD.
● Current MAID supply 52,552,412
● Most popular wallet to hold off exchange https://www.omniwallet.org/wallet
● High volume exchanges: poloniex.com and shapeshift.io.
● Token secured by Bitcoin Blockchain.
● Swap for Safecoin (native network token) speculated to happen towards the end of 2017
● Development roadmap. https://maidsafe.net/roadmap_dev.html
● Main site at https://maidsafe.net

My View

MaidsafeCoin (MAID) has been a very profitable investment for me. Delivering 2.5x ROI in about 4months. It’s a pre launch coin and still under Alpha , should be releasing by end of 2017.

Current trends

Currently trading at all time high but I am willing to hold MAID as the team behind is really committed (Over 11 years of working on this project)

-P.S
We are currently doing a closed Crypto-currency fund and building something really cool, where normal users can invest in different currencies automatically (Click of a button) Message me or Christopher Shen for more info!

U.S. Colleges Continue to Get Ripped Off by Hedge Funds

This post covers a theme I’ve discussed on many occasions over the past several years, namely how “alternative asset managers” are making enormous sums of money by ripping off public pensions as well as college endowments. Send this to anyone who naively tells you we live in a meritocracy. The sad truth of the matter, is we operate within an economy which incentivizes all of the worst types of behavior, where people can earn millions of dollars a year while failing…

Read the rest here.

Bitcoin Price: Recent Drop a Brief Pause in Larger Rally to $920

Bitcoin Price: Recent Drop a Brief Pause in Larger Rally to $920

Bitcoin price volatility has increased, building building intermediate price levels as support references for the next rally. So, get ready for another ride to the moon, because the bulls are preparing for another stampede.

Also read: Lawnmower: Industry-Grade Information for a Next-Gen Altcoin Exchange

Bitcoin Price Technical Analysis: $920 Rally a Likelihood

Long-Term Analysis

After confirming a strong bullish consensus, prices are building intermediate levels as support references for when the next rise to $820 takes place.

This further upward movement, if confirmed should increase volatility and create confusion, leading to a lot of profit taking action and false signals that could produce a lateral sideways market.

Mid-Term Analysis

Using last June’s bullish movement as a reference, similar bullish signs allow the chance for another climb into an euphoric bubble, which should bitcoin price double quotes again to end this year over $1500.

If this scenario comes to fruition, prices will first take the action higher in another fast rally. Then, the markets will level out in a lateral sideways market at $820 before reaching the next trigger zone at $900.

Short-Term Analysis

Trading activity could increase with new intermediate support and resistance levels, while prices perform a synchronization process recovering their lag against indicators when arriving at the $820 level.

Japanese Candlesticks Analysis reflects the chance of another upward movement, while all theoretical thinking gets over to start the direct observation of price action and their indicators activity.

Staff opinion: Last week, we predicted that the bitcoin price would level out in the $700 range for some time, with further bullish pushes kept in check by profit taking at points above the psychological barrier of $700. This prediction proved to be accurate. The bitcoin price rose well above $700 for a few days, reaching highs of $740. However, a selloff quickly ensued, and the price fell to a low of $685 before returning to the $700 support. Taking this activity into consideration, we believe the $700 price point will continue to persist, with the next significant movement in the markets aligning with the present technical analysis.

What do you think will happen to the bitcoin price? Let us know in the comments below.


Cover image courtesy of Pixabay.

This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.

 

The post Bitcoin Price: Recent Drop a Brief Pause in Larger Rally to $920 appeared first on Bitcoinist.net.

Bitcoin Price Watch: Are We About to Hit $700?

Bitcoin price

The bitcoin price has risen by nearly $30 since our last price piece and is hovering around $650 USD. Many enthusiasts are taking the price jump as a sign that bitcoin is rising back to the top, and that $700 isn’t too far off the mark.

Also read: Bitcoin Price Drops: Where do We Go From Here?

Bitcoin Price to Hit $700 in New Bull Rally?

In our recent examination of bitcoin’s activity, analysts expressed difficulty in determining whether the currency would move up or down. It appears the bulls have taken the lead yet again, as bitcoin broke through resistance levels to rise faster than it has in some time.

One source explains that last week’s drop was a “test” for bitcoin. When a short-term drop occurs, the analyst says, it’s a signal that things are preparing to fire up to the top in what will likely be a lasting trend:

“My warning of a possible short-term fall in Bitcoin price Friday coincided very well with a RISE in price… As my readers likely know, my published long-term forecast is for Bitcoin price to rise for the next several months. Trader’s strategies differ, but I am of the opinion that if the trend is up, one should only trade long and not short. Conversely, if the larger trend is down, only trade short. Scalpers, of course, disregard this logic every day. Sometimes it is profitable to trade against the trend, but in my experience, it hurts you because surprise moves are usually in the direction of the larger trend. Such was the case the other day.”

A separate source attributes bitcoin’s present level of success to a change in attitude among bitcoin traders. News regarding Bitfinex and other events seems to have put everyone in a poor mood, but many seem to be getting over their qualms and investing again as though nothing ever happened:

“The latest recovery in price is partially attributed to stronger liquidity, a sign of improved confidence in the market. Since September 21, more than 80% of speculative positions on bitcoin have been long… Analysts have also noted a major change in market confidence over the past two weeks, as investors looked past a series of negative news headlines involving bitcoin. The currency’s value declined sharply over the summer after nearly 120,000 bitcoins were compromised in a high-profile security breach at Hong Kong-based broker Bitfinex.”

Still, an attitude of caution is suggested, as it is not quite clear if bitcoin is done with its present “drop-fest”:

“I will try to see if bitcoin price can get through the 3×1 angle… If so, I might consider entering another long order with an eye toward caution when price time finally gets to the 2nd arc of the pair again. I can’t shake the feeling that this is still going to test the lows.”

Do you think bitcoin will hit $700 soon? Post your comments below!


Cover image courtesy of Bitcoinist.

The post Bitcoin Price Watch: Are We About to Hit $700? appeared first on Bitcoinist.net.

Technical Analysis: Bitcoin Price to Hit $820 Soon?

bitcoin price

If you thought the ride to $640 was exciting, you might be in for a treat. The little flag pattern currently surfacing on bitcoin price charts could launch prices up from a trigger zone that points $820 as a technical goal.

Also read: A Chinese Perspective: BitKan Visits Ukraine Bitcoin Conference

Bitcoin Price Technical Analysis

Long-Term Analysis

After prices recognized a strong support area at $600, volume indicators reflected professional marketplace activity, suggesting that the next stage could be a breakaway psychological trigger among $620 and $650, pointing a technical goal near 820.

According to Elliott Wave Theory, the current movement should reach a higher scenario through the 5th phase, from where a profit taking would be considered.

Mid-Term Analysis

Mathematical indicators are showing the same bullish signs that were present just before the big rally in late May.

However, current prices react with lag, reflecting some handling activity powered by bigger business players possibly implementing their bullish strategies at this level. This situation could only drive the markets to a technical synchronization to the up side, which would propel the bitcoin price into some kind of euphoric bubble.

Short-Term Analysis

A little flag pattern should be seen on the chart, and by the forecasting of its pole, prices would breakaway to the up side over $650, recovering the technical price objective at the $820 level.

According to Japanese candlestick analysis, the bitcoin price should go up, and the next technical scenario could be a continuous rise backed by fundamental data and political factors.

Staff opinion: We believe the bitcoin price will stay in the $630-$640 range for at least a brief period of time before testing higher levels. As usual, barring an unexpected buying frenzy, profit taking will hamper the rise. However, if current conditions remain constant, the lag caused by profit taking will only serve as a temporary hindrance during a larger trend upwards. 

What do you think will happen to the bitcoin price? Let us know in the comments below.


Cover image courtesy of Hargreaves Lansdown.

This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.

The post Technical Analysis: Bitcoin Price to Hit $820 Soon? appeared first on Bitcoinist.net.

Bitcoin IRA Launches Investment Returns Calculator

Bitcoin IRA

LOS ANGELES — Bitcoin IRA, a company that provides bitcoin-based retirement vehicles, has added a returns calculator to its platform.

Disclaimer: This article is sponsored by Bitcoin PR Buzz. Bitcoinist is not affiliated with the firms represented by Bitcoin PR Buzz and is not responsible for their products and/or services.

The calculator, the company says, lets users figure the potential returns on their bitcoin investments, as well as compare them against returns they could have made on other assets.

The team told press that the “bitcoin investment calculator is designed to help both individuals who already have an IRA or 401(k), as well as new investors looking to start saving for retirement.”

“By comparing potential returns from bitcoin with traditional investments, they can better determine the risks and benefits associated with each option,” the press release said.

This product follows the launch of the company’s free investment guide, available to the public by download.

In June, Bitcoin IRA hit a milestone, reaching $500,000 USD in total investments made on the platform. To celebrate, the company offered a 1 percent rebate in real silver for every new investment account opened on the website.

Bitcoin IRA: BTC a Good Way to Protect Investments From Volatility

In its marketing literature, the company touts bitcoin as a way for investors to build their retirement portfolios while protecting their “savings against market turmoil.”

Bitcoin has seen sustained highs throughout 2016. Most recently, after keeping steady in the $550-$600 range for several weeks, the bitcoin price skyrocketed to levels nearing $640. At press time, the currency’s value sits at $638.

“Bitcoin is one of the most important currency innovations in decades, said Bitcoin IRA chief strategist Ed Moy. “It’s a decentralized, global form of money, so its value isn’t tied to the economy of any one specific country. That makes it an excellent way to diversify your investments.”

What do you think about the new Bitcoin IRA returns calculator? Let us know in the comments below.


Images courtesy of Bitcoin IRA.

The post Bitcoin IRA Launches Investment Returns Calculator appeared first on Bitcoinist.net.

Bitcoin Price: Markets Still Set for Rally After Sustained Highs

finance district

The bitcoin price is approaching a trigger zone at $620 while bullish consensus gets stronger, suggesting that a big rally remains a real possibility in the near future.

Also read: Antshares Raises Millions in ICO, Partners with Microsoft 

Bitcoin Price Technical Analysis

Long-Term Analysis

Prices recognized a strong support area at $600, and while bullish consensus gets stronger on the idea of higher quotes, the action is going back to the old trend line channel started in 2013. This movement reinforces all technical objectives over $820 for the end of 2016.

Volume indicators reflect a professional marketplace activity, suggesting that the next stage could be a breakaway psychological trigger among $620 and $650.

Mid-Term Analysis

Mathematical indicators show several bullish signs, but prices aren’t reacting normally, hinting at some handling activity powered by bigger business players.

This situation could only drive the market to a technical synchronization to the up-side, which should even take prices to some kind of bubble.

Short-Term Analysis

According to Japanese candlestick analysis, prices will go up, and the next technical scenario could be a new rise from the $620-$650 area to the $820 zone.

Such a movement would take prices across the same sized field the quotes had just recovered last August and sustained for the last two months projected into the nearby weeks.

Staff opinion: We believe the markets will sustain current bitcoin prices in the $610-$620 range for the time being, possibly sparking a rally in the next days or weeks that will push the price to a level near current technical indicators. Once that occurs, we expect profit taking to push the price downwards, which could either establish a new floor or act as a temporary lull in a larger bull rally. 

What do you think will happen to the bitcoin price? Let us know in the comments below.


Cover image courtesy of Wikimedia Commons.

This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.

The post Bitcoin Price: Markets Still Set for Rally After Sustained Highs appeared first on Bitcoinist.net.

Bitcoin Price Hits $600, Technical Indicators Bullish

Finance bitcoin

The bitcoin price’s new upward path is set to consolidate to even higher price levels beyond $600, according to technical indicators.

Also read: Apple Removes ShapeShift From App Store

Technical Analysis

Long-Term Analysis

Prices are quoting in a new scenario pointing to higher levels. Bullish consensus allows a sustained movement that can probably ignore every intermediate resistance from the current quotes up to $820, where the technical objective is calculated.

There is not any pattern or well-known formation to mention, but only the forecasting of mixing theories and a lot of lateral thinking. Based on old references in the present chart, the the next stage may drive the action to a lateral market around $1000.

Mid-Term Analysis

Mathematical indicators and prices are approaching differences in an upward path to $820. Furthermore, every oscillator currently reflects buy signals. Mixing together every technical factor, the idea of a rise takes hold without intermediate resistances to consider.

Current support levels still sit at $580-$600. Prices over that resistance will allow a professional buying zone below $650, with profit-taking near the technical goals.

Short-Term Analysis

Every indicator suggests continued bullish activity in the short-run. The bitcoin price currently faces several weak pockets of resistance that shouldn’t stop the climb. and may also became

Weak hands will take profit all the way up, but Japanese candlestick analysis shows a market strong enough to continue pushing bitcoin beyond $820 through any selling activity.

Staff opinion: We expect the bitcoin price to stay in the low $600s for some time before continuing its rise. This is due to profit taking occurring at the $600 level, which may even push the price back into the $500s, delaying the technical patterns. 

What do you think will happen to the bitcoin price? Will it really reach $820 and beyond? Let us know in the comments below.


Cover image courtesy of Bitcoinist.net.

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Bitcoin Price Prepped for ‘Big Game,’ Analysts Expect Bull Rally

bitcoin price

Despite a recent drop — about two dollars since our last article — the bitcoin price has remained relatively still. The sentiment among analysts is that bitcoin is preparing itself for a hefty move in the coming weeks, but still needs a little more time to warm up.

Also read: Bitcoin Price is Preparing for a Monster-Sized Move

Bitcoin Price Still Prepping for Big Move, Analysts Say

One source explains:

“Bitcoin price pulls lower toward horizontal support near $560. The outlook remains that the market is engaged in a sideways base formation prior to advance. Price is returning to the consolidation floor today, and we watch to see if the support zone above $560 holds.”

The strategy bitcoin seems to be following is one of compression. While the price has continued to drop, these falls are quite small in comparison to what occurred following the infamous Bitfinex hack a few weeks ago. Bitcoin has slipped by a few dollars here and there over the course of a few days, but that’s about it, and most are convinced it’s nothing to worry about. After all, short, compressed falls are a tell-tale sign that Bitcoin is reaching a comfortable point. It will likely stay where it is for the time being before embarking on a gradual move upwards. It’s worked this way in the past, and will likely continue to do so.

One source seems to agree, and says that bitcoin’s motions have provided little for people to feel either excited or angry about in recent days:

“Action this week so far has been somewhat lackluster, and… we’ve not had too many opportunities to get in and out according to our standard intraday strategy. We’ve had a few, but some have turned out to be a bit choppy and resulted in a stop loss takeout.”

The same source is predicting “breakout only,” and suggests that things could change as early as the next day or two:

“If price breaks above resistance, we will look for a close above 575 to validate an upside entry towards 560 flat. A stop loss somewhere in the region of 573 looks good from a risk management perspective.”

And still, an age-old attitude of caution is still being promoted:

“Best to sit out until the chart confirms trend by breaching either $600 or $550… The smart strategy in the currency chart is to wait for price to advance above $600 since that will open the way to $680 while allowing the market to go through the motions if it is indeed building a base pattern for advance.”

Where do you see bitcoin in the coming weeks? Post your thoughts below!


Image courtesy  of, Bitcoin.com, CNN Money.

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Analysis: Should You Get a Bitcoin IRA?

Imagine turning your retirement nest egg to Bitcoin. By adding a Bitcoin IRA to their investment portfolio, that’s what many people are doing, literally. The rise of Bitcoin to its current price of $668, sitting at close to 2016 highs, had many people taking a serious look at the popular digital currency. But is this the right move for you?

A Bitcoin IRA is a type of IRA that allows the investor to own Bitcoin, instead of paper-based assets such as cash, stocks and bonds. It is similar to the Gold IRA that was created by Congress in 1997, says Edmund C. Moy, chief strategist for Bitcoin IRA and former United States Mint director, who oversaw the largest production of gold and silver coins in the world.

BItcoin IRA

To qualify as Bitcoin that can be held in an IRA, certain criteria are required. “The Bitcoin must be held by the IRA trustee instead of the IRA owner. The Bitcoin must be stored in an IRS-approved depository,” says Moy. Mainstream investors don’t want to actually store Bitcoin themselves, as security is quite complex.

“All other rules about IRA contributions, disbursements and taxes apply,” Moy adds.

Why Bitcoin?

Bitcoin IRAs appeal to investors who want a diversified retirement portfolio.

Traditional and Roth IRAs invested in stocks or mutual funds are vulnerable to inflation. “Because Bitcoin prices generally move in the opposite direction of paper assets, adding a Bitcoin IRA to a retirement portfolio provides an insurance policy against inflation,” says Moy. “This balanced approach smooths out risk, especially over the long term, which makes it a smart choice for retirement investments like IRAs.”

A Growing Trend

Moy says there is going to be a bit of a learning curve towards Bitcoin IRAs because they involve a very complicated transaction that only the most persistent investor was willing to pursue. “You must find a trustee or custodian for the IRA along with an approved depository. Then, you need to buy the approved Bitcoin and have it transferred to the depository in a way the custodian can account for it,” he explains.

Because of the financial crisis of 2008 and the resulting Great Recession, Bitcoin IRAs are starting to become significantly more popular. BitGo, a leading Bitcoin wallet provider and experts in security have partnered with Bitcoin IRA to simplify the transaction have made investing in a Bitcoin IRA a one-stop shop for a Bitcoin IRA. Result: robust Bitcoin IRA growth.

Then, of course, there’s the impact of economic and world news. “Strong interest in Bitcoin IRAs has continued because of the potential inflationary impact of the Federal Reserve’s stimulus programs and a sharp increase in geopolitical risk,” says Moy.

Finding a Reliable Broker/Custodian

To put IRA funds into Bitcoin, you have to establish a self-directed IRA, a kind of IRA that the investor manages and can be invested in a wider range of products than other types. For a Bitcoin IRA you need a broker (to buy the Bitcoin) and a custodian to create and administer the account. This company will store or hold your actual Bitcoin, says Chris Kline, Chief Operating Officer of Bitcoin IRA, headquartered in Sherman Oaks, California.

Custodians are usually banks, trust companies, credit unions, brokerage firms or savings and loan associations that have been approved by Federal and/or state agencies to provide asset-custody services to individual investors and financial advisors.

Bitcoin’s Special Risks

All investments come with risks and rewards, Bitcoin IRAs included. “In many ways, Bitcoin IRAs have the same risks that any investment has,” says Moy. “The price of Bitcoin can go up or down and have volatility. No one can accurately predict its future.”

But despite the risk, Moy says there is a reason to invest some of your retirement funds in Bitcoin. “Bitcoin may have a short historical track record of being a store of value, but its innovative algorithm and decentralized nature makes it a great asset to hold in any portfolio. Stocks can go to zero as we’ve seen with Lehman Brothers, bonds can default like in Argentina or get big haircuts like in Greece. The value of the dollar has steadily gone down” says Moy.

But there are also some risks specific to investing in physical Bitcoin.

Bitcoin is subject to security risks associated with the private and public keys that control and store it. Those with little experience in Bitcoin should either use a company that stores Bitcoin using the latest multi-sig security or spend the time to learn about security. However, to qualify for Bitcoin IRAs, depositories are required to be insured, which would protect your investment as long as your account doesn’t exceed the custodian’s stated value.

The Bottom Line

bitcoinira-start-today

Bitcoin IRAs are normally defined as “alternative investments,” which means they are not traded on a public exchange and require special expertise to value. While Bitcoin has the potential of a high return, it’s easy to be blinded by its recent growth in price. Bitcoin can be volatile.

If you’re considering a Bitcoin IRA, consult a Bitcoin IRA advisor to determine how Bitcoin would fit with the overall goals of your portfolio. And request a free Bitcoin IRA Rollover Guide for more information.

London-based Startup Receives Seed Investment to Launch Next Generation of Bitcoin Savings

newsbtc.com / Nuno Menezes / October 21, 2015

BSAVE, a London-based startup is trying to introduce a new platform that enables users to profit directly from their bitcoin holdings. The startup just received a $400k Seed investment to start developing profitable saving solution suitable for both short-term and long-term holders.

The startup’s vision is to [...]

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