Connect with us

Trading

Grayscale Launches New Fund for Top Cryptocurrencies

Published

on

One of bitcoin’s largest asset managers is giving investors more ways to play the cryptocurrency market. On Wednesday, Grayscale announced a new crypto fund designed to track the market’s largest and most liquid assets.

// -- Discuss and ask questions in our community on Workplace.

Digital Large Cap Fund

Officially called the Digital Large Cap Fund, Grayscale’s newest investment vehicle provides direct exposure to bitcoin, Ethereum, Ripple XRP, bitcoin cash and Litecoin. The fund employs a market cap-weighted methodology and rebalances quarterly. This means the fund’s underlying assets will be evaluated every three months, possibly removing some cryptocurrencies for others.

At its inception the fund had $4 million in assets and 400,000 shares outstanding.

Grayscale offers three other digital currency funds with exposure to bitcoin, Zcash and Ethereum Classic. Its flagship Bitcoin Investment Trust was conceived in 2013 as a way to bring the digital asset class under a traditional investment vehicle. The Bitcoin Trust has more than $1.7 billion in assets under management and nearly 176 million shares outstanding.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The investment vehicle is more likely to appeal to institutional traders and passive investors keen on exploring cryptocurrency without having to buy and sell individual assets or store them in a wallet. Although the fund will still be subject to large fluctuations, it offers more convenience for those who seek long-term exposure to crypto assets.

The Rise of Crypto Funds

Several startups have raised initial coin offerings (ICOs) inviting investors to participate in their cryptocurrency fund. Crypto20 is one of the most prominent examples. The fund, which launched in October, provides exposure to the world’s top-20 cryptocurrencies based on market capitalization. The holdings are then rebalanced weekly. Bitwise is another notable example of a crypto index fund that offers broad diversification benefits.

The rise of indexing strategies suggests cryptocurrencies are entering mainstream consciousness. Combined with the recently launched bitcoin futures contracts courtesy of CBOE and CME, investors have more opportunities than ever to play the market using traditional asset classes.

Fund managers have tried unsuccessfully to list bitcoin exchange-traded funds (ETFs). Two U.S. companies ditched their listings last month, citing complications with the Securities and Exchange Commission (SEC). Efforts to get bitcoin ETFs listed have been on ice ever since.

A cryptocurrency-based ETF would make bitcoin and other tokens as accessible as stocks, possibly leading to higher demand.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 403 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Trading

Hacked Exclusive: “The algorithm knows something you don’t.” An Interview with One of the World’s Top Algorithmic Crypto Traders

Published

on

When Alexander Gordon-Brown first heard about Bitcoin back in 2010, he thought it sounded mathematically interesting — and financially impractical.

// -- Discuss and ask questions in our community on Workplace.

“It seemed like a passing craze”, he tells me, with no small sense of irony. Though his views weren’t uncommon at the time (or even today), Alex went on to change his outlook as completely as any person can.

In 2016, as he watched the cryptocurrency boom from his office at a proprietary trading firm in London, he realized his initial judgment had been mistaken. The math of crypto still fascinated him, just like the math at his day job — but now he saw it as an “unusual and extraordinary opportunity” to trade an asset with no historical precedent.

Alex wasn’t the first finance professional to go all-in on crypto. Bankers like Arthur Hayes have been exploring Bitcoin since well before the recent boom. Still, Alex had one skill that set him apart. He’d spent the last few years learning to create financial algorithms — code that watches the markets and generates trades to take advantage of every passing trend.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Alex is humble to a fault. Every word he says feels carefully calibrated to avoid exaggeration or self-aggrandizement. But the facts of his brief career in crypto speak for themselves. Though he started with a set of small, conservative bets, Alex’s accounts now log tens of millions of dollars in daily trades. He may be the single most prolific algorithmic trader in the markets — but he’s also the first to insist that the “most” in that title is impossible to prove.

Still, whether he’s first or second or third, this kind of success — built from thousands of tiny profitable trades, rather than a few lucky guesses — doesn’t come by chance. Alex describes his particular talent as follows:

“In terms of understanding how these markets fit together, and how opportunities arise, especially on short-term timescales — I suppose that I qualify as an expert.”

I’d go a bit further and call him a world-class trader: Someone who, time and time again, has managed to wrangle money-making rules from some of the world’s most chaotic markets.

Until now, he’s also been someone who never mentioned his success in public. But last week, he agreed to sit down with me and discuss his move from standard stock trading to the frontiers of finance.

Aaron Gertler: You majored in mathematics at Cambridge. What led you from math to your first job at a hedge fund?

Alexander Gordon-Brown: “I became interested in trading at university, because I thought it might cater well to my strengths. Building mathematical models comes naturally to me. But even more important for trading is quick analytical reasoning activity. It’s pretty similar to an intense strategy game, and I really enjoy those.”

AG: You were doing very well as a trader in your previous job. How did you decide to make such a dramatic switch, into an asset with which you had less experience?

AGB: “I had built up some savings from work, and I wanted more control and flexibility over my time, priorities, and the nature of my work as a whole. I was browsing Facebook one night, and someone had linked to an article about inefficiencies in the crypto market, so I decided to take a closer look. After that, I just tried out trading, first with money that I could afford to lose, then with larger amounts as I got more confident.”

AG: Did you start out well, or was there a steep learning curve before the trades began to work out?

AGB: “I started out with Bitcoin futures, nothing too complicated, and I think that my initial ideas were well-conceived. I generally profited from the beginning. That said, I did make quite a few mistakes starting out, which were more ‘missed opportunity’ than ‘losing money’. I expected to see certain efficiencies in crypto that would have existed in any other market, and later discovered that those didn’t yet exist.”

[Throughout his trading career, Alex has specialized in “market-making” — offering to buy and sell a wide range of assets, making a profit on the spread, and creating liquidity in markets, giving other participants greater flexibility with their own trades. Smaller markets have less liquidity, and therefore offer greater opportunity for market-makers like Alex to profit.]

AG: You probably won’t tell me, but I have to ask: What’s the secret to your success? How have you been able to scale up so quickly?

AGB: “I focus on doing a large volume of trades but keeping my positions small. Many of my trades make small amounts of money and make up for their size by sheer numbers. I don’t want one bad call on a larger position to overwhelm the upside from the many small trades.”

AG: What does a day in your work life look like, given that you manage algorithms rather than making trades yourself?

AGB: “It’s a continuous cycle. I spend some of my time keeping an eye on the positions I’m holding, to make sure the algorithms don’t run off and do something unreasonable. With automated trading, it’s easy for a small mistake to become a big mistake rather quickly.

“I also try to keep up with the wider world of crypto. It’s been a busy few months! A lot of the news that’s come out recently has had effects on pricing, so I find myself checking the news cycle continuously. At my previous job, I worked mostly when the London markets were open, but crypto markets are always open. The hard thing is finding the discipline to switch off for a while and stop working, since I know I’ll just have to catch up again.”

AG: When you’re checking in on your algorithms, how do you know when it’s time to tweak something?

AGB: “When a position starts to build up quickly for no apparent reason, or when an unusually large volume of small trades pops up — again, for an unknown reason. Whenever I see a major algorithmic decision, I need to try and match it to some change in the world. Usually, there’s a clear reason — a coin’s price has increased, for example — but if I can’t find the reason, that’s a sign something strange is going on.

“Fortunately, most instances of weirdness are actually false positives. It looks like something strange is going on, but the algorithm is justified, because it knows something you didn’t.”

AG: Do your algorithms mostly change themselves according to automated rules, or are you generally changing them by hand, in response to your own beliefs about the market?

AGB: “It’s closer to the latter. I try to write code so that the general structure is very flexible, and that I’m mostly just changing parameters. I’ve set things up so that I won’t have to write a lot of additional code every time the world changes.”

AG: And when the world does change, how do you choose what gets your attention? What kinds of news are most important to the way you work?

AGB: “I try to pay attention to the things I think other people will pay attention to. Those pieces of news usually signal times when trading will be particularly good, or when it might be a good idea to shift my sleep schedule so that I’m trading when there’s a lot of market activity. I may have my own beliefs as to which types of news and opinion are most reliable, but if lots of other people who trade decide the news is important, it will be an important day.”

AG: Given the huge boom in ICOs recently, how do you approach the release of new coins you might want to trade?

AGB: “I generally haven’t been too keen on trading newer cryptocurrencies in any big way. I want to stick to things I think are relatively well-established, and where I understand what’s going on. I won’t continue to totally ignore them forever, but right now, they’re not something I pay much attention to.”

AG: Algorithmic trading gets a lot of bad press from people who see it as unfair, or somehow taking advantage of human traders. But in an interview about your previous job, you mentioned that you see algorithmic trading as a positive thing, since it helps markets become more efficient. Do you think the same thing about crypto markets?

AGB: “I think that [arguments about efficiency] actually apply more strongly, since cryptocurrencies are even more inefficient. In crypto markets, I see both the opportunity for algorithmic traders and the value for other traders as being greater.

“Most people who want to trade Bitcoin don’t want to get set up on every exchange so that they can sell on whichever one gives the best price at any one time. They want to sell on any given exchange and get a reasonable price that isn’t too far out of line. And that’s what algorithmic trading allows them to do. Without it, you need a human to pick up every one of those trades.”

AG: Given that people with your background and talents are present in cryptocurrency markets, would amateurs be better off not trying to trade at all? How would you recommend someone approach the market if they don’t have the time or programming skill to follow your path?

AGB: “If you just want to invest in cryptocurrency for the long term, just buying some set of them and forgetting about it seems like the right plan.

“But if you do want to trade every day, focus on the things computers are bad at, and make sure you really understand what you’re doing before you stake any money that you can’t afford to lose.”

AG: What are computers bad at, when it comes to crypto trading?

AGB: “Algorithms are still fairly bad at processing news. You need to choose which stories to trust and how much to trust them, and that’s an area where algorithms struggle, even in stock markets that are much more mature.”

AG: Do you have any idea how common algorithmic trading is within crypto markets? Do you know of anyone else who operates similarly to you?

AGB: “I suspect that other people like me exist, but I don’t know anyone in particular. If you watch these markets behave, once you know what you’re looking for, you can see that other people are doing some amount of algorithmic trading.

“For example, you might see an order of an exact size being executed the same way every second. There might be someone sitting in a chair and pushing the same button very precisely, but… it’s probably a computer.”

AG: You’ve grown your trading to an impressive volume after a relatively short time. Are you still seeing rapid growth in how much you trade? Do you expect to hit a natural limit, as you pick most of the low-hanging fruit you can reach with the types of trades you make?

AGB: “It’s possible that I’m currently at a local peak, especially since some of the ‘frothy’ interest in cryptocurrencies from three months ago has disappeared, and overall trading volume has decreased.

“But a couple of exciting-looking events in the crypto world could raise volume a lot, as people come back to the markets. There have been other Bitcoin crashes, but that’s never been a permanent trend. I don’t expect it to be permanent this time, either.”

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 5 (6 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

5 stars on average, based on 1 rated postsAaron Gertler is a freelance writer and cryptocurrency dabbler. When he's not writing, he spends his time advising philanthropists on their charitable donations and reading everything under the sun. You can find him on Twitter or on his personal website.




Feedback or Requests?

Continue Reading

Analysis

5 Top Yielding Stocks That Outperform The S&P 1500

Published

on

Stocks jump

Barron’s columnist Mike Hulburt has identified five high yielding stocks that have strong growth potential, using Dow Theory Forecasts, a longtime newsletter that focuses on high yielding stocks.

// -- Discuss and ask questions in our community on Workplace.

In summarizing the five stocks – Washington Prime Group (WPG), Consolidated Communications Holdings (CNSL), Seagate Technology PLC (STX), Hersha Hospitality Trust (HT) and Macy’s (M), Hulburt explores the rationale behind Dow Theory Forecasts. He cited a new study from the Dow Theory Forecasts newsletter on a portfolio of stocks with the highest dividend yields that have outperformed the S&P 1500 since 1990 by an average annualized 1.3 percentage points.

Many stocks in the portfolio lost money over the years while their dividends got cut or eliminated, Hulburt noted. General Electric, for example, recently cut its dividend in half as its stock lost nearly 40% in a year the S&P 1500 index gained 19%. The portfolio nonetheless improved sufficiently with its other stocks to more than compensate for the losses and outperform the market as a whole.

The Dow Theory Forecasts built a hypothetical high dividend performing portfolio to optimize the chance of owning a stock with a dividend that would soon be cut. This was accomplished by investing only in S&P 1500 stocks with the highest yields, yields beyond 8%. Only 24 stocks – 1.6% of the total – posted yields at that level, according to FactSet, a financial data and software provider. Since 1994, only nine stocks posted this performance at any given time.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

A portfolio with high yielding stocks is not typically conservative, Hulburt observed. During the financial crisis, stocks at the October 2007 high yielded more than 8%. By the March 2009 low, they had fallen by 63.1% on average, according to FactSet. The Dow Jones Industrial Average, by comparison, lost 53.8%.

The conventional wisdom holds that high dividend paying stocks are more conservative than growth stocks paying no dividends. This is the case for higher quality dividend paying stocks, but not for those with the top dividend yields, Hulburt noted.

The Dow Theory Forecasts does not recommend automatically investing in a stock on the basis of having a high dividend yield. It recommends taking into account factors including the portion of earning paid out in dividends and balance sheet strength.

The Dow Theory Forecasts’ Stock Rating System

Dow Theory Forecasts’ proprietary Quadrix stock-rating system uses more than 90 variables to score stocks in six categories: momentum – defined as recent operating performance; quality; value; financial strength; earnings estimates; and performance, defined as stock price action, according to the company’s website.

For these six categories and the overall score, the system scores stocks on a percentile basis, with zero the lowest and 100 the highest. A score of 95, for example, signifies the stock outperforms 95% of the approximately 5,000 U.S. stocks in the system’s universe.

Stocks cannot be reduced to numerical equations, however, and a numbers-based ranking system cannot replace individual company analysis. But a Quadrix type of system can provide a solid starting point for building portfolios.

Since the system only uses quantifiable factors, it identifies stocks achieving superior results. Similarly, because the system is not influenced by emotions that can cloud the investor’s judgment, it provides a way to track current portfolio holdings.

After the system has winnowed stocks from the vast universe, a team of Dow Theory Forecasts research analysts examine individual company performance.

Following are the five stocks that have the highest yields in the S&P 1500, and which also are recommended by at least one of the top-performing newsletters that Hulburt tracks.

Washington Prime Group (WPG)

Washington Prime Group (WPG), a mall and shopping center REIT, had a 1.2% yield, 35.7 forward price-per-earnings ratio and a 33% loss in its 52-week share price movement through Dec. 6, 2017, according to Thomson Reuters as reported by Investopedia.

For the fiscal year ended Dec. 31, 2017, net income attributable to common shareholders was $183 million, or $0.98 per diluted share, compared to $53.1 million, or $0.29 per diluted share, in the prior year. The increase in net income relates primarily to a $124.8 million gain on disposition of assets recognized during 2017 and a $56 million increase in gains on debt extinguishment in 2017, partially offset by a $45 million increase in non-cash impairment charges in 2017 and lower net revenues in 2017.

Additionally, fiscal year 2016 results include merger, restructuring and transaction costs of $29.6 million, and there were no such costs in 2017.

Washington Prime Group, near 1-year performance.

Consolidated Communications Holdings (CNSL)

Consolidated Communications Holdings (CNSL), a broadband and business communications provider, had a 12.3% yield, 38.4 forward price-per-earnings ratio and a 4% loss in its 52-week share price movement through Dec. 6, 2017, according to Thomson Reuters as reported by Investopedia.

For the full year 2017, the company’s pro forma operating revenue totaled $1,460.6 million, down 6.8% from fiscal 2016. Approximately 44% of the revenue decline is attributed to the divestiture of the equipment services business and the Iowa ILEC in 2016. The balance of the year-over-year decline is primarily due to the continued erosion of legacy voice services and access revenues as well as the step down in transition funding in CAF II support.

Consolidated Communications Holdings, near 1-year performance.

Seagate Technology PLC (STX)

Seagate Technology PLC (STX), a provider of digital storage solutions, had a 6.% yield, 9.44 forward price-per-earnings ratio and a 3% loss in its 52-week share price movement through Dec. 6, 2017, according to Thomson Reuters as reported by Investopedia.

Seagate Technology PLC reported revenue of approximately $2.9 billion for the second quarter of 2018, and GAAP and non-GAAP gross margin of approximately 30%. The company expects to report record exabyte shipments of approximately 88 exabytes, reflecting drive shipments of approximately 40 million and record average capacity per drive of 2.2 terabytes.

The strength in the company’s revenue and gross margin for the quarter was driven primarily by better-than-expected demand for the company’s HDD mass-storage solutions portfolio and operational execution.

Seagate Technology PLC, near 1-year performance.

Hersha Hospitality Trust (HT)

Hersha Hospitality Trust (HT), a provider of high quality hotels in urban gateway markets and coastal destinations, had a 6.3% yield, -217.8 forward price-per-earnings ratio and a 17% loss in its 52-week share price movement through Dec. 6, 2017, according to Thomson Reuters as reported by Investopedia.

Hersha Hospitality Trust reported net income applicable to common shareholders was $75.7 million, or $1.79 per diluted common share, in 2017, compared to net income applicable to common shareholders of $95.6 million, or $2.18 per diluted common share, in 2016.

The decrease in full year 2017 net income and net income per diluted common share was mainly due to a decline in gains on the dispositions of hotel assets.

Hersha Hospitality Trust, near 1-year performance.

Macy’s (M)

Macy’s sales in fiscal 2017 totaled $24.837 billion, down 3.7% from total sales of $25.778 billion in fiscal 2016. Comparable sales on an owned basis fell 2.2% in fiscal 2017, while comparable sales on an owned plus licensed basis dropped by 1.9%. Total sales for fiscal 2017 reflect a 53rd week, whereas comparable sales are on the same 52-week basis as fiscal 2016.

Macy’s, Inc.’s 2017 operating income totaled $1.807 billion, or 7.3% of sales, compared to operating income of $1.315 billion, or 5.1 of sales in fiscal 2016. Operating income for fiscal 2017 totaled $2.098 billion, or 8.4% of sales, excluding $186 million of restructuring and other costs, and $105 million of non-cash retirement plan settlement costs.

Macy’s is strategically investing to accelerate the rollout of near-term growth initiatives impacting stores, technology and merchandising. The company has also created an employee incentive program to improve engagement with associates at every level of the organization.

Macy’s Inc., near 1-year performance.

Other Strategies To Consider

Hulburt noted there are other investment strategies to consider.

The Investment Quality Trends, edited by Kelley Wright, offers another investment approach to identify risk adjusted performance over the trailing 20- and 30-year time periods monitored.

Wright suggests stocks with the highest “relative dividend yields.” A stock’s relative yield is the way its current yield stacks up against its range of past yields. If the underlying company meets certain criteria for financial strength, Wright recommends it when the yield reaches the high end of its range.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 2.00 out of 51 vote, average: 2.00 out of 51 vote, average: 2.00 out of 51 vote, average: 2.00 out of 51 vote, average: 2.00 out of 5 (1 votes, average: 2.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.9 stars on average, based on 8 rated postsLester Coleman is a veteran business journalist based in the United States. He has covered the payments industry for several years and is available for writing assignments.




Feedback or Requests?

Continue Reading

Altcoins

Bitcoin or Altcoins: Which Is The Best Choice

Published

on

In the beginning, there was Bitcoin and all that followed were deemed to be heretics and called by the name Altcoins.  As thus it was. By the end of the year 2017 AD there were 1,386 heretics posing under the names of Ethereum, Litecoin, Ripple and many more that followed in pursuing their vision of the holy grail.  

// -- Discuss and ask questions in our community on Workplace.

Passing through the biblical abyss, we are now in the present world of 2018 when a new testament is being written.  The question that must be answered is this. With the price of literally all cryptos having been slaughtered like sacrificial lambs, do you place your beliefs in bitcoin or the heretics?

We can make things a bit easier by putting Ethereum, LTE and XRP into the same group as bitcoin.  In fact the whole point of doing this is to address the question that is frequently being raised these days.

If you already own crypto and living with the frustration of seeing bitcoin tumbling from its near $20,000 high, you are probably inclined to bury your head and ignore the question all together.  Please resist the temptation. Later on you will be happy you did.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Value Can Be A Sucker Bet

Lately, I have been reading more articles featuring what I would call the most depressed priced list from the group of 2017 ICOs.  There is no question that fortunes were made by smart investors who played this strategy last year. Most of these guys are long gone.

Just take the case of ZClassic whose price when from a low of just under $0.40 to nearly $206.00 in the course of about a year.  That is a better investment return than even the 2017 crypto big performers like Ethereum at over 7,500%! Since January, owners of ZClassic have seen the price drop to around the $8.00 level.

So taking ZClassic and bitcoin and looking at these two in a microcosm, the question is which is a better investment from here?  Here is an easy answer. If both return to their previous high levels, bitcoin will about double in value while ZClassic will be worth 26 times it’s present value.  Expressed in a slightly different way, $10,000 invested in bitcoin would become about $20,000 whereas, in ZClassic becomes $257,500: Hmmmm!

In our example, we chose ZClassic for the simple reason is that its business actually is comparable to bitcoin.  For those less familiar, ZClassic started as a fork of Zcash in November of 2016. Zcash is a cryptocurrency that is aimed using cryptography to provide enhanced privacy of its users compared with bitcoin.

This is what makes our example a real challenge to make the right choice.  I do not own either one of these so have no dog in this fight but the risk reward favors ZClassic.

Now For The Real Test

When we make real life choices comparing bitcoin, Ethereum, Litecoin and Ripple to the better then 1,386 ICOs of 2017, the difficulties multiply exponentially.  The first three have each lost 40%-50% of value from their highs. Only Ripple has fallen far more than the others.

It is a safe bet that the average Altcoin has lost much more than half their value.  The average loss is probably mirrors that of ZClassic. So what is the right choice? Finding the answer is why there are so many people interested in making recommendations.  I would advise against the temptation. These days you need to know the source of your information. There is a lot of bias. The reward is most likely not worth the risk. Here is why.

The next move up in prices will the lead by the big names like bitcoin followed by Ethereum and Ripple.  This is not a unique idea but simply applying common sense. If you want to play the Altcoin price recovery cycle keep in mind that many of the ICOs were pre-venture capital companies that have no operating history and many are pre product.  

In the past, entrepreneurs at that level typically raised capital from friends and family.  In other words from people who never expected to get repaid. So while the rewards of playing this strategy may be as attractive as ZClassic, the risks are infinitely higher.

In the days ahead, we will be keeping an eye out for ideas exceptional cases to the average ICO.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
12 votes, average: 3.42 out of 512 votes, average: 3.42 out of 512 votes, average: 3.42 out of 512 votes, average: 3.42 out of 512 votes, average: 3.42 out of 5 (12 votes, average: 3.42 out of 5)
You need to be a registered member to rate this.
Loading...

4.4 stars on average, based on 75 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending