Musings By Mai

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Monthly Archive: January 2018

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January 2018

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Crypto Portfolio Building – 2. First 20 Crypto Coins Analysed

Written by , Posted in Investing

Ok so what do I mean by “fundamental analysis” in the context of crypto? Well whilst alot of people went crazy on how far up this new unknown store of value called Bitcoin has skyrocketed, most people are just following the fashion and this stuff is a repeat of history. So I totally get why some are saying there is am impending bubble bust and massive correction coming. But what makes this “ponzi scheme” different is how interestingly useful the underling new technology is. Basically, the blockchain is a public (that is open to all), decentralised (that is not controlled by one power or a government body but actually for the people) general ledger (that is an account storing information) immutable (that is can never be changed once recorded) concept.

Thats all it is. Why is this useful? Because in short there are so many world applications for it. At a very basic level I no longer need the middle man of a bank and their associated fees to transfer money from the UK to say Brazil. Its also not hackable because the records are unique and immutable. Getting rid of the middleman is always great for the end consumer because things can happen faster and more cost effectively. You see whilst thats just a basic exchange of value concept, I can use the same technology to build a system to ensure baby food when bought isn’t “fake” by ensuring every digitized code for each product is unique cannot be changed once recorded to the ledger. You can then run an app on top of that so as a consumer you check the ledger to ensure your baby food is authentic and not fake because that code is unique to the ledger of the company you bought it from. Literally you can build ALOT! For this very reason digital currency and blockchain deserves your attention ideally sooner rather than alter. At the moment yes people are using Bitcoin as a speculative (that is gambling like) store of value. Some companies like Amazon are starting to adopt it as a form of payment but one of the biggest problems Bitcoin had is how slow the transactions are. So say I buy a pizza and although the technology is robust and not hackable in itself it takes 3 hours for the pizza company to get conformation I paid before they start making my pizza… you see the issue here. VISA processes thousands of transactions per second whereas Bitcoin is in the one digit range. It has a long way to go and improvements are bing made but in comes Alternative Coins developing better solutions and also a variety of solutions using this same block chain technology.  So fear not if you think you have missed out on THE ultimate crypto as I will do some digging to find some alternative coins that have potential in terms of the underlying problems they try to solve using this block chain technology.

1. Ethereum
Overview – As I write this the top 3 cryptos are Bitcoin, Ethereum and Litecoin. here is the thing, Bitcoin is being used as a store of value and currency of exchange. Litecoin solves some of Bitcoin issues and so is faster. However Ethereum is different (CPU led – we will talk about that later) as you can actually build application on top of its blockchain tech (BTC). Its had corporation adoption and even a little more support (Jamie Dimon CEO of JPMorgan story here).  As I am more of a fundamental kind of girl, I immediately I’m more interested in this coin as it has practical value not just as a basic exchange of value but to build useful applications. It allows smart contracts (that is a digital form of a contract that allows quicker negotiation and transactions WITHOUT a middle man. So bye lawyer, bye bank, bye anyone that wants to make a quick buck on my simple business contract with my customer/supplier.
Why – It has a strong and growing applicable use of Blockchain Tech to industry. It has a fork scheduled 18 Jan (scarcity) so prices likely to hold and/or go up.
Current price – £700
Suggested allocation – £200. I would rather base my portfolio on ETH than BTC. It still has great potential to rise as a major top 3 with more “usefulness” than BTC.
Bitcoin
Overview – Digital money exchanged online.
Why – Its the “gold standard”. Every 4 years the amount mineable reduces, when it does price goes up like in 2013, 2017 e.t.c. Also they just started futures trading on it which means those holding contracts will want to hold underlying asset. Whilst its not as ‘sexy” as ETH application building wise its certainly a worthwhile base given it started the whole thing…
Current price – £10k
Suggested allocation – £100
LiteCoin
Overview – Like Bitcoin but faster. Think this will allow mini transactions like buying coffee etc everyday usecase application.
Why – Growth potential in terms of adoption is strong. However when adoption increases will that drive drive up or down? Honestly not sure about this coin though Charlie Lee (founder) has high hopes. I think IOTA could be a contender for its eventual “usefulness/applicability”
Current price – £170
Suggested allocation – £100
Qtum
Overview – “made ready for business” is the motto. Its basically a better Ethereum build geared towards mobile phone usage.
Why – Huge potential for developing world here I think. Adoption of mobile phone usage even in poorer communities is strong so this has some legacy as well as small business usefulness. Also he is being mentored by Jack Ma founder of Alibaba and Aliexpress (gateways to China trade worldwide). Its technically better than NEO the “Chineese ETH” just doesnt have as much marketing currently so possibly an underdog that will rally up. Also unlike Ethereum you don’t need to learn tis new language to use this as a developer, works with Javascript so adoption is much easier than Ethereum. eventually?
Current price – £45
Suggested allocation – £200-250
Neo
Overview – Bascially like Ethereum for China
Link –
Why – Most of the world doesn’t realise what an economic success China is (2nd largest in the world currently and in my opinion will take first position within a decade or two. China most populous in the world, they like to invest in their own couples with the benefits of ETH has great potential. I do think QTUM still has the edge though.
Current price – £80
Suggested allocation – £50
Binance Coin Token
Overview – An exchange. It covers lots of alt coins you can exchange for BTC and ETH.
Link –
Why – Top exchange. Great volumes. First to list alot of tokens. Easy to use platform. Though I’d be concerned about people like Amazon muzzling in. They just bought a couple of crypto domains today. Who knows why but coupled with heir brand name, almost everyone with an amazon account would find it super easy if Amazon simply ensured it was the first to list alt coins or had enough of a variety. I am really unsure of the longterm potential here.
Current price – £7
Suggested allocation – £35
Waabi
Overview – Digital token backed by safe products. Use the waabi token to purchase and accrue benefits like discounts and then products are tagged in China and globally and can be checked in database. Once unlocked then that code is unusable but people will pay for genuine food and alcohol period. Especially in developing countries.
Why – Working product literally been in development for years since the scandal of fake baby food being bought in China. Not like QR codes that can be changed. No need to change supply chain or raise packaging. Mckinsey led supply management team onboard. With $461 billion worth of fake goods in circulation globally, well…
Current price – £2
Suggested allocation – £15
Red Pulse
Overview – Realtime business intelligence platform for China.
Link –
Why – Great idea but I am not sure I understand this coin and what its built on properly. I think its built on NEO? In which case you are increasing your exposure on the underlying if already vested in NEO.  Those that can verify pieces of news request from entities get rewarded with tokens? In principle seeds of a good idea I just don’t get it in that the need to use blockchain to execute this idea is not “critical” or integral and therefore can’t evaluate how they intend to use it effectively. The idea in itself though is absolutely brilliant.
Current price – 29p
Suggested allocation – None
Tron
Overview – Worldwide FREE content entertainment system. By Justin Sun Chineese millionaire millennial aiming to create a decentralised internet focussed on entertainment and gaming apps. Like Qtum is another protege of Jack Ma. Should hollywood get even more scared? Time will tell.
Link –
Why – A hardworker (also a coder – developer for Chineese snapchat) and great marketer are fundamentals  I can work with 🙂 Whilst entertainment doesn’t immediately interest me, his idea is a good one and could be a game changer for the industry so if not many coins on the market can currently give exposure to this niche/concept with a team as strong as Justin’s then surely its worth some exposure to see how it plays out from a portfolio diversification perspective?
Current price – 15p
Suggested allocation – £100
TenX
Overview – Crypto payment platform. It holds ETH tokens.
Link –
Why – Sorry I don’t understand why we need a payment platform. Unless it a way to exchange and pay with a basket of altcoins to a retailer than for example only takes bitcoin
Current price –
Suggested allocation – None
Monero
Overview – Private currency. it has no pre-mine.
Link –
Why – Sounds like a copy of BTC.
Current price – £300
Suggested allocation – None
OmiseGo
Overview – Payment crypto.
Link –
Why –
Current price – £15
Suggested allocation –
Cardano
Overview – Ethereum of Japan (ADA) or “Ethereum Killer”. Blockchain protocol, smart contract, solves some problems of Ethereum. Uses proof of stake, good way of getting rid of miners. Languagw is Haskell.
Link –
Why – Fundamentally interested in concepts being built on Ethereum and gaining exposure to another Asian country balances/diversifies portfolio.
Current price –  90p
Suggested allocation – £50
QCash
Overview – Currency based on QTUM.
Link –
Why – Currently can’t find alot of information on it. its new.
Current price – 10p
Suggested allocation –
Lisk
Overview – Block chain platform using javascript.
Link –
Why – Its tryin gto compete for developers in areas like App store where centralised platforms like Apple and GooglePlay dominate
Current price – £13
Suggested allocation – £30
Cindicator
Overview – hybrid intelligence for effective asst managers using AI
Link – https://cindicator.com/
Why – AI has a big role to play in the future, mixing this in with financial management is great, good to get some exposure.
Current price – 11p
Suggested allocation – £40

 

Thursday

4

January 2018

0

COMMENTS

Crypto Portfolio Building – 1. Getting Started

Written by , Posted in Investing

Only investing what one can afford to loose using predominantly fundamental analysis to develop a basket of “cryptos” that have potential for longer term gains. You can of course leverage and also use alot more technical/ sentiment analysis and price action but thats just not my style. I am looking to hold cryptos I think have good fundamental ideas/solutions for the longterm (partly because I think digital currency has a future AND the blockchain technology will revolutionise our lives) and less concerned about short term fluctuation and volatility.

I think Bitcoin has paved the way but I get this feeling its not necessarily “it” and we have only just started. Similar to how “Hi5” paved the way to connect with old school friends, was highly successful then crashed and burned when the more elegant solution came of Facebook that has far weathered the storm in terms of longevity. This is akin to Yahoo and then Google etc etc history repeats itself type of paradigm thinking. It will be interesting to see how this market evolves, what we end up building on block chain technology that revolutionises industries and changes our ways of life for the better.

So you understand where I am coming from better, watch this top 19 industries blockchain will disrupt video here.

Ok to the basics…

Get A Wallet To Store Your Cryptos

You need to first get a wallet. You can have a digital wallet, hardware wallet or paper wallet. For a quick start, I’d opt for the digital and use a platform like this to obtain one able to store Ether/coins based on this technology: https://www.myetherwallet.com/  use this site for a buying guide on coins you are interested in, its a step by step process pretty easy: https://getcrypto.info

You then need to be able to purchase from an exchange. Now you can leave your coins on the exchange but its not advisable incase they get hacked. Always transfer it back into your wallet! Coinbase is quite a popular one but due to skyrocketing demand everyone is trying to get on a platform so it may take a few days to have your identity verified – be patient. Once you get access connect your bank card and hit buy then store your coins offline in a digital/hardware or paper wallet. YOU CANNOT LOOSE YOUR WALLET PRIVATE KEY DETAILS!!! Otherwise your coins are “poof” gone! Never share it! And never discuss how many coins you have, lets keep our lives and relationships simple 🙂

For my first set of 20 coins I’ve been looking at from a basic fundamental perspective visit here. And if you are totally new to crypto, read my basics for what these words like crypto, blockchain, exchange mean here. Honestly its not that complex so get to grips with it. Its going to change our lives quite literally…