Weekly Technical Analysis (31.07.2017)

www.tradescrypt.com’s Weekly Technical Analysis gives investors important insights on fundamentally strong cryptocurrencies which includes Bitcoin, Ethereum, Litecoin, Ripple and AntShares(NEO).  It’s a quick read for investors at the start of the week which presents necessary statistics which could prove vital for considering investment position and making decisions during the week.

1.Bitcoin:BTC Coiningy 31.07.2017

1st August is approaching and we have witnessed BIP 91 Lock-in. The prices soared beyond USD $2800. This was followed by a correction of about 50%. Bitcoin is now trending in the range of USD $2700. Following are the statistical conclusions drawn from this week’s technical analysis:
[expander_maker id=”1″ more=”Read more” less=”Read less”]Read more

  • Risk/Reward Ratio: 0.23 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): USD $2555-$2670
  • Market Cap: USD $45,317,854,582
  • Circulating Supply: 16,479,100
  • Volume(24h): USD $705,815,000

2. Ethereum:ETH Coinigy 31.07.2017

 

Ethereum fell from 0.8064551 BTC to 0.06839837. However, in the last few hours, the price has soared a bit. Risk/reward ratio has improved yet far from a desirable ratio as compared to last week’s ratio. Ethereum ranges at around 0.0707 BTC and red candle sticks indicate a fall which could result in a correction that has already crossed 50% mark to rise up to 60%.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.13 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.07011476-0.06953873 BTC
  • Market Cap: USD $18,450,340,515
  • Circulating Supply: 93,675,096
  • Volume(24h): USD $601,013,000

3. Litecoin:

LTC Coinigy 31.07.3017

Litecoin fell since last week. After a short rise, we see a correction beyond 75%. If seller resistance sustains, this is a very good time to buy. One could anticipate the prices to go further down before the next rise. We are still observing a lot of potential in Litecoin which makes it a good coin to invest in.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 3.24 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.0145804-0.0146539 BTC
  • Market Cap: USD $2,112,147,194
  • Circulating Supply: 52,243,757
  • Volume(24h): USD $75,520,500

4. Ripple:

XRP Coinigy 31.07.3017

Ripple has seen a low of 0.00005674 BTC after a high of 0.00006930 BTC. Risk/Reward ratio has improved a lot as compared to that of last week. In spite of such a dip, Ripple has managed to be the star performer of 2017 with the growth of almost 4000% this year. Q2 growth of 2017 is beyond 1000%. With strong fundamentals and growing community, invest and hold is our recommended position.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.16 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.00005868-0.00005833 BTC
  • Market Cap: USD $6,330,824,924
  • Circulating Supply: 38,333,090,674
  • Volume(24h): USD $41,488,000

5. NEO/AntShares  (02.08.2017):

ANS Coinigy analysis

Antshares, now known as NEO has shown a straight spike earlier today. This was a good exit for short term gainers. We have mentioned the OTE for investors who would still want to put their money on this cryptocurrency.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Optimal Trade Entry(OTE): 0.00259614 -0.00257465 BTC
  • Market Cap: USD $386,283,000
  • Circulating Supply: 50,000,000
  • Volume(24h): USD $14,750,900

Information sources-

www.coinigy.com
www.coinmarketcap.com

hidden text[/expander_maker]

Analysis: IOTA

IOTA

The backbone of IoT is here.

1. What is it? 

Internet of Things (IoT), a revolutionary technology expanding at a great rate invites the needs for interoperability and resource sharing. IOTA proposes a new business-2-business model where a company can leverage its technological resources to fulfill requirements of other companies. This resource trade will be carried out in an open market in real time without any fees. IOTA is a 3rd generation cryptocurrency which is quantum-proof and works on Tangle, a blockless distributed ledger unlike most of the cryptocurrencies which work on the blockchain technology. Tangle technology involves less effort which makes it faster than the blockchain technology. Tangle ledger is used to settle transactions of on-demand resources and services in the autonomous machine economy for ‘Zero’ transaction fees. Additionally, data from sensor nodes and data-loggers can be stored and verified by the ledger.

[expander_maker id=”1″ more=”Read more” less=”Read less”]

2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:

i) IoT: Internet of things is evolving. This gives rise to the autonomous machine economy. Basically, IOTA promises a network of machines which can trade resources and services and pay for the same amongst themselves autonomously.

ii) Tangle: This is the major innovation behind IOTA. It is a secure, scalable and lightweight distributed ledger which powers an economy with micro-transactions and even nano-transactions with zero transaction fees. A blockchain’s security could be compromised using quantum computing which seems non-existent at the moment but given the ability of powerful imagination and the strength of introducing it to the realm, preparation is the only defense against such threats. Tangle uses cryptography which is quantum-resistant which makes it futuristic. So unlike uncle blockchain, Tangle can conduct micro payments and it does not fear quantum computers.

iii) Masked Authentication Messaging(MAM): MAM, IOTA core’s first extensible module, allows data exchange across nodes with full authentication and encryption. Every bit of your data stream is transceived with quantum-proof security. MAM also enables a host to broadcast data to multiple parties.

iv) Everything as a service: The ‘Sharing Economy’ model is being adopted by the whole world – Airbnb, Car-pooling, etc. IOTA makes it possible to lease anything with a chip effortlessly and in real time. Leasing services could include resources like computing power, storage bandwidth and appliances like e-bikes, drones and other tools.

v) Scalable ledger revolution: IOTA proposes a distributed ledger which inherits only the better of the blockchain technology. This unleashes a wide spectrum of possibilities out of which only a very few use-cases have been thought of yet. This encourages developers to use such technology to provide real world solutions. One of such use-case is proposed by IOTA themselves. IOTA’s next generation security appeals its usability in the field of e-governance. E-voting is one of the many use-cases which is being explored by different organizations at this stage.

B) Trends: Internet of things, Micro-transactions, Quantum-proof security, Tangled network.

C) Future updates: IOTA released a GUI Wallet v2.3.1 earlier this month. IOTA’s core team and developers have proved that the project’s number one priority is real world adoption. IOTA is focusing on the development of clients in different languages so which would invite developers to make specific deployments in the language of their choice. They plan to include clients to support JAVA (Development complete), C++, Rust, Go. They have rolled out Lightclient and are performing active research on Swarmclient. Active developments are observed to include Automatic snapshotting functionality.

IOTA Logo

Decentralized Internet-of-Things token

 

3. Community:

A) David Sønstebø: Founder of IOTA and a connoisseur of blockchains and cryptocurrency has managed to introduce the revolutionary blockchain less technology.  David likes to be heavily involved in Internet-of-Things, distributed ledger/blockchain/tangle technologies, Smart Cities, Digital identity, e-governance and innovative hardware design. He believes in any kind of technology that drives the human progress.

B) Sergey Ivancheglo:  Apart from being a self-adoring personality, Sergey is a self-made multi-millionaire. ‘Come from beyond’, as he likes to call himself, founded IOTAtoken and Jinn, he has also been a lead developer of NXT and an early adopter of bitcoin.

C)  Sergei Popov: A mathematical expert, a professor at Unicamp University in Brazil and a member of the NXT community provides a scientific guarantee to David’s and Sergey’s ideas at IOTA.

D) Julie A. MaupinAn advisor to IOTA on incorporation and governance set-up of the foundation, Julie also sits on the Fintech advisory board of the German Ministry of Finance and the G20 Digital Economy Experts Task Force. She is also considered to be a key resource person for the UN Internet Governance Forum. She holds research appointments at global major institutes for blockchain technologies and international governance innovations.

E) John Edge: John launched Europe’s first direct market access trading business for capital markets using applications based on algorithmic trading. He co-founded RedKite, a technology company that anticipated the increase in budget and demand for RegTech solutions in financial markets. They launched world’s first enterprise real-time trade surveillance system for capital markets. John recently co-founded ID2020 a principal driven Public-Private Partnership designed to address the market failures that have led to the vulnerable, especially women and children, being unable to receive protection under the international and local law through lack of recognized identity. With decades of experience, John brings a lot of value to the table.

F) Alexander Renz:  Alex can be considered as a corporate knight by looking at his experience in the fields of mobility and transportation. He collaborates to evangelize and drive the adoption of distributed ledger technology in the fields of mobility and transportation particularly in the Pacific northwest and broader west coast.

G) John D. Halamka: A Professor at Harvard Medical School and Chief Information Officer of the Beth Israel Deaconess System John sits on IOTA’s advisory board. He aims to use distributed ledger technology in conjunction with other technologies to deliver safe and futuristic solutions for the e-health sector.

4. Downside/Risks:

a. IOTA lacks a marketing expert or and a community manager. The core developers of the team interact with the community. They may be talented programmers but they might simply lack a sense of social and business development.

b. IOTA cannot be mined. Petabytes of IOTA have already been mined. Exchanges sell IOTAs at price per million. The price of IOTA that you see at exchanges is for a million of those which are indicated as ‘MIOTA’.

 

5. Future:  IOTA is the first and the only company to use blockchain less technology which makes them quantum-resistant. Their market debut on Bittrex exchange observed a record breaking capitalization of USD $1.5 billion. Integration of blockchain less technology with IoT and their vision to use distributed ledger technology in the fields of transportation, mobility, e-governance, e-health, etc. makes them a strong and a long term player in the market.

6. Technical analysis:

IOTA coinigy graph

Technical Analysis of Siacoin indicates that it has corrected itself roughly by 60% which is a usual threshold before a further surge. This makes the current price of IOT quite appealing. Risk/Reward ratio is 1.51 which could  further increase by about 25% if the investment is made at 0.00009180 BTC.

Following are the statistics inferred from the technical analysis:

i) Risk/Reward Ratio: 1.51

ii) Optimal Trade Entry (OTE): 0.00009180 – 0.00009520 BTC

iii) Market Cap: $739,088,220

The ideal Risk/Reward Ratio tends to 2.

7. Comments: IOTA uses revolutionary technology which could be mapped into many real world applications. It definitely has a lot of value attached to it. The community is far more widespread than we could mention it in this post. They are getting into various fields and finding solutions using the distributed ledger technology. IOTA promises long term growth.

[/expander_maker]

How similar are STOCK MARKETS and CRYPTOCURRENCIES?

Orthodox people seem to be averse to the cryptocurrency market but feel comfortable trading in the stock market since they are relatively unaware that both cryptocurrency market and stock markets are very similar in nature and functioning.

Yes, the cryptocurrency markets are presently volatile, however on the other hand they provide opportunities for very good returns if sound fundamentals and accurate intrinsic values are considered while making the investments.

Therefore www.tradescrypt.com believes that investment strategies in both cryptocurrency and stock markets will be similar provided there is a good understanding of the nature and business of the cryptocurrencies and hence they have been able to achieve good returns for the investors.

Some of these similarities between STOCK MARKET and CRYPTOCURRENCIES are listed below:

  • The value of both cryptocurrency and stocks are based on their business.
  • In both cases, the value is determined on supply and demand basis, that means it depends on how much people are willing to pay for a share.
  • Like stocks, cryptocurrencies can also be categorized into small cap (eg Voxels), mid cap (eg Ripple) and large cap (eg Ethereum and Bitcoins).
  • Similar to IPO’s in stock markets, cryptocurrencies offer a platform to technology companies/start-ups to raise capital through ICO.
  • Understanding company fundamental is important while investing in a stock, similarly understanding cryptocurrency fundamentals (such as technology, community etc) and their intrinsic value is very important to identify the multi-bagger cryptocurrencies of tomorrow.
  • A diversified investment is very important in the stock markets as well as in the cryptocurrency market to reduce risk and increase returns.
  • There are traders, speculators and medium / long term investors in stock markets, those are also present in the cryptocurrency market.
  • As understanding the company business is most important to invest in stock, similarly understanding cryptocurrency technology is the most important factor to multiply your returns by investing in them.

Eventually, only those who understand the market will succeed in the market.

With a team comprising of Techies, Engineers, Analysts, Entrepreneurs and Investment Banking professionals closely involved in the financial technology field, www.tradescrypt.com is able to understand the cryptocurrency market and is able to take a well-informed decision on the position investors should consider in the cryptocurrency market.

www.tradescrypt.com believes that by taking the right, reasonable and logical decisions, investors in the cryptocurrency market can multiply their wealth immensely.

Analysis: Siacoin

Siacoin

Your decentralized private cloud

1. What is it? 

Sia works on a distributed storage network concept where a file, fragmented into nodes is distributed amongst a network of storage centers. No storage center has the complete file or even a significant part of it. This contrasts with the traditional cloud technology where service providers like Amazon S3, Google Cloud and Microsoft Azure don’t provide decentralization. This gives rise to various vulnerabilities to the user data since it is controlled by a single service provider. In recent years we have seen many service providers compromising the privacy rights of the users in pursuit of obtaining higher profits. The decentralization is achieved by inviting anyone and everyone who would want to rent their storage space and bandwidth. Files are secured by asymmetric key cryptography where only the file owners have access to the private key.

[expander_maker id=”1″ more=”Read more” less=”Read less”]

2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:

i)Open source: Over a dozen developers have contributed to Sia. Innovative applications are already being built by an active community of developers on top of the Sia API.

ii)Blockchain marketplace: Blockchain technology is used to create a market place where different hosts compete for business. Storage services can be obtained using Siacoin which can be mined and traded.

iii)Decentralization: Sia distributes different fragments of user files across the network of storage hosts. File owners hold the private keys. This prevents anybody except the owner from accessing or altering the files.

iv)Affordable: Sia’s cloud storage is far cheaper as compared to any service provider. Sia charges up to USD $2 per Terabyte of data unlike Amazon S3, which charges USD $23 per Terabyte.

v)High redundancy and uptime: Distribution of fragments across the global storage network prevents single point of failure and ensures highest uptime making it as good as the other service providers.

B) Trends: Preserve user privacy rights, Decrease storage cloud costs.

C) Future updates: With the launch of Sia v1.3.0 – Capricorn, Sia has added on automatic online file repair and upgraded their network capacity and wallet stability. Their public roadmap states many upgrades in September 2017 which includes a reduction in the time required to form file contracts by 12 times. 6-month plan includes implementation of video streaming feature. Sia has about 700 hosts and 2.8 Petabyte of data already. Sia aims to be a strong player in the coming years, competing with giants like Amazon, Google, Microsoft and Dropbox

 

Siacoin – Your decentralized private cloud

 

3. Community:

A) David Vorick: Former software developer at IBM and Bitcoin Core developer is also the Co-founder of Sia, a decentralized private cloud storage platform.

B) Drew Volpe: Partner and Co-founder at Procyon Ventures, one of the three major enterprises which contributed to the $750,000 seed for Siacoin says “Every team that works with data in a meaningful way, from AI to precision medicine to Industrial IoT, is seeing an explosion in the size of the datasets they want to be able to work with. Sia has the potential to be a game changer for them by fundamentally changing how data is captured, stored, and distributed.” Drew is known to be an entrepreneur, investor and an experienced technologist in the field of search, machine learning, sensors and mobile technology. He is also a mentor to startups at MIT, Harvard and other major institutions across the globe.

C)  Joshua Langsam: Associate Director at Raptor Capital Management, second of the three major enterprises which contributed to the $750,000 seed is impressed by Sia’s distributed cloud storage platform. Raptor Group is a private investment company.

D) Fenbushi Capital: This Chinese venture capital firm invests exclusively in projects associated with blockchain technology.

E) NextCloud: NextCloud, an open source alternative to Dropbox has partnered with Sia.

4. Downside/Risks:

a. The path of adoption to new technology has always been long. It will take time for users as well as hosts to start accepting such a platform and migrating their data to it.

b. It could take quite a lot of time for Sia to achieve a decent amount of traction which would help realize the value they are projecting at the moment

c.  There is no limit to the number of Siacoins minted. There are close to 30 billion Siacoins in circulation today. The purpose of Siacoins is to ensure the fulfillment of transactions across the network and not to be used as a digital currency per se.

5. Future:  The cloud storage market is undoubtedly a large market. Sia’s promising ability to implement storage at a far cheaper rate than the large players in the market and partnership with NextCloud proves that Sia is here to stay.

6. Technical analysis:

 

Technical Analysis of Siacoin indicates that it has corrected itself beyond 60% which is a usual threshold before a further surge. This makes the current price of Sia quite appealing. Risk/Reward ratio is 2.13 which makes the investment opportunity very lucrative.

Following are the statistics inferred from the technical analysis:

i) Risk/Reward Ratio: 2.13

ii) Optimal Trade Entry (OTE): 0.00000332 – 0.00000348 BTC

iii) Market Cap: $ 232,861,788

The ideal Risk/Reward Ratio tends to 2.

7. Comments: Sia’s path-breaking solution for cloud storage is fundamentally strong which makes it a good investment but Sia’s at an early stage development and it could gain value over time once it starts achieving what it promises.

[/expander_maker]

Ideal approach for Cryptocurrency Investing

www.tradescrypt.com’s Cryptocurrency Consultancy Services provides an ideal approach for cryptocurrency investing.

Increased volatility has been observed recently in the cryptocurrency market. There may be negative sentiments toward the cryptocurrency market due to decline in the cryptocurrency prices and this may have lead to traders losing sleep.

An ideal investing strategy is to invest in fundamentally strong cryptocurrencies so that investor’s hard earned money earns money on its own over the medium to long term period, without continuous effort from the investor.

However, short term trading is completely different. Here the trader does not consider the fundamentals, but very diligently focuses only on the upward and downward price movements so that the trader can cash in on those short term trades.

Difference in the two above mentioned approach is that traders tend to neglect fundamentals, therefore they cannot afford to keep their eyes away from the price movements. Unlike the investors, traders money do not automatically earn money but it is the trader who is earning money.

www.tradescrypt.com does not believe in the approach considered by the trader, but their cryptocurrency consultancy services are formulated for efficient medium to long term investments in cryptocurrencies. This approach only considers cryptocurrencies with strong fundamentals such as Bitcoin, Ethereum, Ripple, Litecoin, Antshares etc.

Once www.tradescrypt.com’s research team considers a cryptocurrency fundamentally strong, only then the technical analysis team finds and recommends an optimum entry point and advises the investors to hold those cryptocurrency at least for a medium term period (with the Stop Loss range clearly defined).

With this approach, www.tradescrypt.com is able to very effectively focus on fundamentally strong cryptocurrencies and this has resulted in investors achieving very good returns over the medium to long term period.

This approach ignores the noise around the market but only focuses on the sound fundamentals and optimum trade entry and exit points. Thus, www.tradescrypt.com is able to generate very good returns for the investors by providing cryptocurrency consultancy services purely based on credible information and firm understanding of the intrinsic value of fundamentally strong cryptocurrency.

Weekly Technical Analysis (24.07.2017)

www.tradescrypt.com’s Weekly Technical Analysis gives investors important insights on fundamentally strong cryptocurrencies which includes Bitcoin, Ethereum, Litecoin, Ripple and AntShares(NEO).  It’s a quick read for investors at the start of the week which presents necessary statistics which could prove vital for considering investment position and making decisions during the week.

1.Bitcoin:


Last week was a good week for Bitcoin HODLers / investors. We witnessed BIP 91 Lock-in. The prices had dipped below USD $2000. This price dip had exposed panic sellers while HODLers / investors benefitted from the ‘Buy & Hold’ position. After the Lock-in, the prices soared touching the USD $3000 mark.

Following are the statistical conclusions drawn from this week’s technical analysis:
[expander_maker id=”1″ more=”Read more” less=”Read less”]Read more

  • Risk/Reward Ratio: 1.33 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): USD $2690-$2710
  • Market Cap: USD $44,634,172,796
  • Circulating Supply: 16,466,225
  • Volume(24h): USD $917,334,000

2. Ethereum:

Ethereum fell from 0.10468 BTC to 0.082969. We witnessed a deep dive to 0.078271 earlier last week, which was a good entry point. With the addition of mega enterprises like MasterCard, Cisco Systems, Scotiabank and government bodies like Andhra Pradesh State Government (Indian State Government) accepting Ethereum blockchain, we believe Ethereum has the potential to become the top player.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 0.93 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.080697-0.0811797 BTC
  • Market Cap: USD $20,859,469,134
  • Circulating Supply: 93,509,610
  • Volume(24h): USD $588,710,000

3. Litecoin:

Litecoin fell since last week. Prices dipped from 0.021253 BTC to 0.016184 BTC. Recently, LocalCoinATM announced Litecoin support on Bitcoin ATMs in Toronto, Canada. We are still observing a lot of potential in Litecoin which makes the current prices a good entry point for cryptocurrency investors.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 2.8 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.016127-0.016271 BTC
  • Market Cap: USD $2,266,141,385
  • Circulating Supply: 52,141,232
  • Volume(24h): USD $209,066,000

4. Ripple:

Ripple has seen a low of 0.00006553 BTC after a high of 0.00008714 BTC. In spite of such a dip, Ripple has managed to be the star performer of 2017 with growth of almost 4000% this year. Q2 growth of 2017 is beyond 1000%. With strong fundamentals and growing community, invest and hold is our recommended position.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 0.31 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.00006745-0.00006816 BTC
  • Market Cap: USD $7,291,599,229
  • Circulating Supply: 38,291,387,790
  • Volume(24h): USD $111,551,000

5. AntShares:

With AntShares’ rebranding event on the charts, last week has been a great week for AntShares. It shot right from 0.0026667 BTC to 0.00331513 BTC. Rebranding and support / influence in China are the key factors to observe while analyzing this cryptocurrency. It is firmly believed to be China’s Ethereum.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.51 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.0307167 -0.03028972 BTC
  • Market Cap: USD $413,683,000
  • Circulating Supply: 50,000,000
  • Volume(24h): USD $29,621,300

Information sources-

www.coinigy.com
www.coinmarketcap.com

hidden text[/expander_maker]

Our View: Initial Coin Offering

  • Initial Coin Offering (ICO) are crowdfunding campaign for cryptocurrency start-ups.
  • Start-up developers establishes a currency platform so that a significant amount of initial coins are allocated thereby enabling those initial coins to be auctioned in order to raise capital.
  •  If the currency platform is successful, initial coins offered will rise in value allowing ICO investors an exit.
  • Some start-ups also offer guaranteed equity in the business for the ICO investors.
  • Ethereum is one of the prominent examples of an successful ICO. It was initially launched with a sale of 31,591 bitcoin (then around USD 18.5 million) in exchange for first 60 million ether tokens.
  • Since Ethereum, there were more than 10 more successful ICO’s on the Ethereum platform which includes Basic Attention Token tracking-free advertising on the Brave adblocking browser, MobileGo token used in a cryptocurrency-based video game marketplace, Bancor Network Token which backs a platform designed to make it simpler for developers to make and launch their own blockchain tokens.
  • Investing in any ICO should be considered only after understanding the technology / platform / currency and after start-up management / community background check, among other points.
  • Therefore, at this stage, when cryptocurrency valuation are volatile, an investor should not consider cryptocurrency as a short term gamble, but they have to consider cryptocurrencies as either:

a)  Medium to long term investment instrument whose valuation will increase with greater acceptance and when certain required regulations sets in.

b)  An opportunity to invest in sound start-ups based on solid technology through ICO’s.

   For more details on upcoming ICO’s, subscribe to us and kindly read our cryptocurrency / ICO analysis report on www.tradescrypt.com.

Myth buster: Is Bitcoin and cryptocurrency trading illegal in India?

Myth buster: Is Bitcoin and cryptocurrency trading illegal in India?

 1. What is Bitcoin and cryptocurrency?
Cryptocurrencies are digital currencies that can be used to make payments in exchange for goods and services. These are decentralized currencies, i.e. they operate independently of a central bank as opposed to centralized digital currency/electronic money. These currencies are generated and maintained using encryption algorithms which form a public ledger. Bitcoin was the first decentralized cryptocurrency found in 2009. It works on the blockchain technology. Bitcoin and Cryptocurrencies can also be bought in fraction allowing investors to  buy even INR 500 worth of Bitcoins / cryptocurrencies. You probably may have heard of Ethereum as well. It is the 2nd most valued cryptocurrency after Bitcoin. Further, there are about 800 different cryptocurrencies, each one having different value associated with it.

[expander_maker id=”1″ more=”Read more” less=”Read less”]Read more
2. What is so good about them?
Cryptocurrency is said to be the future of economy. Here are some of it’s noteworthy features:

a) Anti-Fraudulent: Unlike fiat currency, cryptocurrency cannot be counterfeited or reversed arbitrarily by the sender.

b) Safeguards Identity: In the scenario of credit cards, which operate on ‘pull’ mechanism, irrespective of the amount, every time, the card holder has to provide access to their full credit line. ‘Pull’ mechanism allows the store to pull the designated amount from your account. Cryptocurrency work on ‘push’ mechanism which allows the cryptocurrency holder to send an exact amount to the recipient with no additional information.

c) Immediate Settlements: Purchase of real world assets typically invite a timely procedure along with it. The settlements may take days, weeks or sometimes even more due to third party delays (Lawyers, Notary, Government approvals). Bitcoin/cryptocurrency contracts can be designed and enforced to eliminate or add the requirement of third party approvals or external factors. Moreover, the requirement to complete an asset transfer at a future date or time could be fulfilled at a significantly lower expense.

d) Lower fees: Usually, there aren’t any transaction fees involved with Cryptocurrencies because the miners are being compensated by the corresponding networks. However, people prefer to use third-party wallet services like Zebpay, Unocoin and Pocketbits for creating and maintaining their own bitcoin wallets. They charge a fee which is lesser than what is charged by traditional payment transaction services like PayPal, Bank transfers and others.

“THE BLOCKCHAIN KEEPS EVERYONE HONEST, AND A WHOLE LAYER OF BANKING BUREAUCRACY IS REMOVED, LOWERING COSTS.” — PAUL VIGNA.

e) Ownership: Existent transactional service providers like PayPal have the power to freeze your assets when they have a reason to believe that your account has been misused. Such cases have repeated themselves more than it may seem. In the case of cryptocurrency, you hold your private key and corresponding public key which makes up your cryptocurrency address. Unless you lose it yourself, there is no way anyone can take that away from you.

3. Why is it all over the Internet?


This is what a Bitcoin chart looks like. It can be seen an exponential growth in terms of value and market capitalization. Currently Bitcoin is valued at $2570 USD with a market cap of approximately $42 billion USD. Bitcoin market dominance as of 7th July 2017 is 42.8%

4. Has it really made Millionaires or Billionaires?
Yes it has! Fortune.com says if you brought $5 worth of Bitcoin you’d be $4.4 million richer. Look at the Bitcoin price chart, there people who got into bitcoin in early 2013 by investing a few, hundred or thousand dollars. You can calculate their worth today. You will find hundreds of people on the internet who have literally gone from ‘Pickup trucks to Lambos’ in no time.

5. Can I become a Millionaire/Billionaire too?
Well, of course! It is never too late. There are 800 different Cryptocurrencies apart from bitcoins (a.k.a. altcoins), a lot of which have not realized their full value yet. If you can spot the right altcoins and invest in them right now, who knows? That Lambo could be yours’ too!

6. Are cryptocurrencies illegal in India?
No! It is not illegal, it never was. In fact, thousands of people from India have been trading cryptocurrency for many years now. They have made a lot of money too.

  • On February 1st 2016, RBI issued another cautionary press release which states that users transacting cryptocurrency must be aware of their Cryptocurrencies and the risks associated with them since they don’t regulate these Cryptocurrencies. A similar notice was given by them in December 2013.
  • A month later, in March, RBI Deputy Governor R. Gandhi raises points out financial, legal, customer protection and security aspects of Cryptocurrencies that they deem to be risky.
  • As of August 2016, there were 50,000 estimated Bitcoin users in India. Please note that this was during the pre-demonetization period. This number has been growing ever since. The establishment of prominent exchanges and wallets like BTCXIndia, Zebpay, Unocoin, Pocketbits has resulted more and more people get into cryptocurrency trading in India. By some estimates, Bitcoin users could alone go beyond five million by 2019, globally.
  • After the revolutionary announcement of cash ban by PM Narendra Modi, Bitcoin was reported to be inflated 20-25 percent over cost. The value shot up from ₹40,000/Bitcoin in October 2016 to ₹90,000/Bitcoin.
  • During or until this period, unlike the RBI, regulators elsewhere in the world were taking measures proactively to adopt such currency. These include neighboring countries like China, Russia, Singapore and Philippines.
    Although an Inter-disciplinary committee was set up by the RBI in March,2017 to examine the risks associated with Bitcoin and other virtual currencies
  • RBI’s research wing, the Institute for Development and Research in Banking Technology, acknowledged the prominence of blockchain technology and such currency by issuing a whitepaper.
  • Cut to June 27, 2017. Union Finance Minister Arun Jaitley held a meeting to discuss several issues concerning bitcoins after seeking a public opinion on allowance of such currency a month ago.
  • The meeting ended without any verdict but with a further commencement in end of this month.
  • Please note that the Government has never used the word “Illegal” in any of their notices. Nishith Desai Associates, India’s leading international law firm has released a whitepaper which concludes that Bitcoin is legal in India.
  • All the exchanges are following strict KYC Policies which includes PAN and Bank verification before the user can start transacting Bitcoin.
  • With countries like USA and China having reached at a point where they have ATMs for Bitcoin, India will definitely catch up with the trend soon.
  • India has a population of about 1.3 billion people. They day the word goes out that Government of India is officially supporting Bitcoin, one can easily speculate a considerable amount of hike in its value since demonetization. You surely want to hold some Bitcoin and Cryptocurrencies when this happens. Who would want to miss out?

 

Tradescrypt.com hopes that this has cleared all the misconceptions about Bitcoin and cryptocurrency trading in India and answered all your questions.

If you think that we have missed out on anything, please feel free to leave a comment or contact us.

Subscribe to our newsletter for news, analysis and updates straight to your inbox.

[/expander_maker]

 

Analysis: Litecoin

Litecoin LTC

Global decentralized currency.

1. What is it? 
Litecoin is a peer-to-peer, global decentralized currency that can be used to to purchase goods and services. It is fundamentally similar to Bitcoin, but they differ drastically when it comes to particulars behind them. Litecoin promises cheap transactional costs for sending and receiving cross border payments. They claim to have a better rate of transactions and storage efficiency than Bitcoin. Litecoin is an open source software licensed under MIT/X11 license which enables users to Run, modify and distribute the software.

[expander_maker id=”1″ more=”Read more” less=”Read less”]

2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:

i)Open source: This empowers skilled developers across globe to work on the software which in-turn expands the developer/miner community.

ii)Blockchain: The Litecoin blockchain claims to be capable of handling higher transactional volumes than bitcoin. Frequent block generations (~2.5 minutes/block; Bitcoin: ~10 minutes/block), which allow the Litecoin network to support more transactions with seldom need to modify the software, help support their claim.

iii)Wallet encryption: Wallets are encrypted using Scrypt algorithm, unlike SHA256 which is used by Bitcoin. They ensure secure transactions which check identity as a preliminary step before transacting LTC.

iv)Mining reward: Miners are awarded with 25 new LTC per block, an amount which  will halve itself every 840,000  blocks which rounds up to roughly 4 years.

B) Trends: Decrease transactional costs cross border trades.

C) Future updates: Charlie Lee, one of the creators has returned to the development team. There is a major announcement due on 1st of August which also marks the UASF finale for Bitcoin. There is a possibility of a lightning network announcement for Litecoin. Could this be the countdown? http://litecoin.mit.edu/

                                              Litecoin – The ‘Silver’ of the Cryptocurrency market

 

3. Community:

A) Charles Lee: The man behind Litecoin is a well experienced personality in the cryptocurrency ecosystem. The former Director of Engineering at Coinbase, is also the brother of Bobby Lee, CEO at BTC, a leading crypto exchange in China

B) Bobby Lee: CEO, BTCC and one of the board of directors of the Bitcoin Foundation, also the former VP of Technology at Walmart, China (E-Commerce) could pose as a major contributor for the large-scale adoption of cryptocurrency to match the fiat currencies in China. BTCC recently launched Litecoin mining pool to attract miners.

C) Mr. PZ: The secretary-general of global LTC Roundtable has succeeded in promoting LTC at various events in China. He is also one of the major Chinese blockchain evangelists.

4. Downside/Risks:

a. Litecoin is progressing with a great momentum, it is difficult to say what will decrease their ever increasing momentum but one could never overlook the threat which resides due to attacks to slow down or derail the could be “lightening network”.

b. Marketing is one of the non-existent risk at the moment. After signaling SegWit, the rate at which LTC was  induced in markets was lesser than one could have expected. LTC did not exist for most of the mobile wallets. But as they say, things of great value don’t need great marketing, we stand today with major wallets allowing LTC  transactions.

5. Future:  Litecoin has successfully signaled SegWit unlike Bitcoin which will face a verdict on 1st Litecoin is also reportedly testing it’s lightening network which could revolutionize its value. There are speculations that the lightning network announcement will happen on 1st of August along with Bitcoin’s ‘fate decider’ announcement.

6. Technical analysis:

Technical analysis for LTC indicates that it has corrected itself quite quickly as it has soared. One could wait to get in at the Optimal trade entry. Since the fundamental features of the technology behind this claims to be better than the one behind Bitcoin and by far it has done everything to prove that claim right, this is surely in the league for the long run. A speculation of a $100 mark achievement by December 2017 is not too bold for this crypto.

Following are the statistics inferred from the technical analysis:

i) Risk/Reward Ratio: 1.11

ii) Optimal Trade Entry (OTE): 0.0192-0.01884 BTC

iii) Market Cap: $ 2,633,087,671

iv) Price: $50.71 / 0.0 1961740 BTC

The ideal Risk/Reward Ratio tends to 2. You could either wait for it to enter the OTE area or get in right away and enjoy the ride.

7. Comments: Litecoin’s blockchain capabilities, miner support, coin limit, block reward patterns make it better than Bitcoin which is shy of SegWit Activation which it may or may not achieve. A wise investor would surely add this so called ‘Silver’ to the Bitcoin which is the ‘Gold’ in the cryptocurrency market [/expander_maker]

Our view: Cryptocurrency and China

  • China accepted cryptocurrency in a big way. With easy access to cheap hardware, cryptocurrency mining is flourishing.
  • China’s cryptocurrency exchange BTCC accounts for 60% of bitcoin’s collective hashrate.
  • In early 2017, Chinese government suspended all withdrawals from cryptocurrency exchanges causing the bitcoin market to plunge sharply.
  • However, in mid-2017, Chinese government amended the cryptocurrency regulatory framework in order to allow withdrawals from cryptocurrency exchanges.
  • This spurred investor confidence in cryptocurrencies causing the market to rise.
  • Recently, Peoples Bank of China is said to be developing its own cryptocurrency. If this happens, China will be the first country to develop and run its own cryptocurrency.
  • With this, China will enable cryptocurrency to reach millions of Chinese citizen with no access to bank services, reduce cross-border transaction charges, reduce corruption and enable detailed analysis of data and draw economic insights in real time.
  • On the political front, a national cryptocurrency could further strengthen the position of the ruling Communist Party of China.