Top 5 Utility Cryptos To Buy On The Dips
So many Cryptos, but how many of them have real world value? When there is a big sell-off in any market it can be a bit like the market is having an enema and clearing out all the.…uh, bad stuff. All those assets which were trading on hype and pure speculation have a way of coming back down to earth, and hard. People sell out of these assets for fear of becoming a bag holder, but the smart ones go bargain shopping at times like these. What do they look for? In a word, Utility.
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I was expecting my own portfolio to have been bit hard during this latest sell-off but I was pleasantly surprised to see I was only off about 5% from my valuation peak (and by the time I finished this article I was making fresh highs). Some of my holds have been in the green today, but I am one who has been cautious of the speculative mania and the glaring market errors. In early December I very publically posted about some of the reasons why I was selling Cryptos but I admit that anti-Crypto government action in South Korea was not one of those reasons.
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*The Emperor in my little sub-plot here is Bitcoin (BTC)
That said, once Christmas passed and the market (particularly BTC) started correcting I started quietly looking around for Utility Cryptos. The key to making profitable investments in a potential Bear Market or speculative blow-off is to look for options that have real world use and value. In other words – Get back to the Fundamentals. Since Crypto is such a new technology and the sector is just getting started this can be difficult, but here I’ll share with you some of the Cryptos I’ve been accumulating (or just holding) and why.
Regular readers of my blog will remember I posted about Ethereum challenging Bitcoin as the #1 Gateway Crypto. Since then we have seen a massive rally in ETH and we are seeing even more and more ETH trading pairs being used on the newer alt-coin exchanges. Every day more traders are getting fed up with Bitcoin fees and switching to ETH and this Gateway Crypto Utility (transferring between exchanges and alt-coins) for ETH is one of the big trends I see for early 2018. The other big utility ETH currently has is that it is the preferred platform for ICOs and has been for some time. This makes it an invaluable infrastructure blockchain and the combination of these two very important Utility functions I believe could propel ETH to #1 in 2018.
There is a lot of government scrutiny and tax law changes in the works for 2018 and Monero is currently the most widely accepted and respected Privacy Crypto on the market today. A lot of Dark Web vendors are actually preferring to use Monero for transactions so there is already a decent amount of real commerce being conducted with Monero, even if it is currently illegal. As we get more government scrutiny and tax changes in 2018, privacy currencies like Monero are only going to get more useful.
I do see a lot of problems with STEEM currently, it is now a “HOLD” for me and while I am not accumulating there is definite real world Utility for STEEM. It currently has the highest transaction throughput of all the blockchains so it being used extensively. I don’t see STEEM so much as a social network but as a Knowledge Base where a lot of very useful information can be found and accumulated. It is also a great platform for collaborating and building a Professional Network with other traders and techos who might have similar interests in learning about Crypto technology and investing. So while my investment in STEEM financially might be small, I am investing a lot of time into this Crypto.
Binance is probably the biggest and best new alt-coin exchange to hit the market, but it’s not just another exchange. Trading fees on Binance are paid for with the Binance Token (BNB) which means this Crypto has Utility in that it can be used to reduce trading fees and save money. It is also the sort of Crypto that is going to do well regardless of whether the Crypto market goes up or goes down as its value is going to be proportional to trading volume, not price and every trend currently points to an increase in alt-coin Crypto trading in 2018.
In a perfect world Bitshares (BTS) would already be the #1 Gateway Crypto because it is faster, has higher throughput and is cheaper to transact than most other Cryptos. But its current Utility value is via it’s blockchain usage as a Decentralised Exchange. I have been using the BitShares client for some time now to trade on the exchange and liquidity is still low, but growing. The exchange functions well and there are a lot of Cryptos that can be traded. It is the sort of Crypto that will potentially do well in 2018 as the big Proof-Of-Work cryptos like BTC and ETH struggle with scalability. It will also do well if we have a continuation of government crackdowns on centralised exchanges because this is a functioning decentralised alternative that the market is waking up to.
That would be my Top 5 Utility Cryptos that I am watching very closely as the market takes its dips. My accumulation strategy is typically very gradual and cautious because the selling might not be over yet. Some of these Cryptos I've written about have had a big run recently. Binance is showing a huge gain today already so it might be worth waiting a bit for the next dip or consolidation there. STEEM (and especially the STEEM DOLLAR) has been coming back down to earth and may have room still to fall, but the other 3 are all in a good BUY zone for me at the moment.
DISCLAIMER – This information is for general information only and should not be taken as financial advice. I am not a financial adviser and I encourage all readers to seek independent financial advice before investing in any of the above Cryptos.
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I was keen on ETC before as I agreed with their principles and figured it was same tech as ETH, but it is not developing at the same rate. ZEC is good but doesn't have the same market adoption as XMR which is where the value is. Can you explain what you mean by pnd scheme?
ETC has been lagging ETH for development for at least the last 6 months. I think it's only had a couple of ICOs and they've been scammy so they just don't have market penetration.
If this was about technology then the whole market would look different and BTS would be in the top 10, but it is as much about first mover, network effect, marketing and business partnerships as it is about tech.
Binance may be pump and dump, time will tell I guess. I still think the biggest risk is exit scam or exchange failure (Mt Gox style). It has reasonable fundamentals so while it might pump and dump a few times I'm confident the overall direction should be up.
That's a great list, but I'd add SmartCash! Looks so very promising!
When it comes to cryptos, I have this sort of monkey on my back that has prevented me from making good profits. I tend to compare with the past, and would go "But it was only $xx previously. This is too expensive!" More often than not, that coin would then proceed to add at least 50% more, and me kicking myself yet again.
It was the same with Ethereum recently. Despite know its great utility, that monkey on my back would whisper to my mind about ETH "being just $200 a few months ago".
But this time I became bothered by my wife's remark when I whined about "how expensive ETH is at $800". She said "It may be high at 800. But then it might go to 1,000 for all you know". I decided to give ETH another look, just so my wife would know that I do listen to what she says. Especially when it went down to $700 around the Christmas period.
Surprisingly (to me), from this "already too high price", it still went up further! I decided to go for quick gains by selling most towards $1.4k. And giving my wife a share of the profit. I can always buy again after this.
That's one of the human mind fallacy. As an investor the first thing you need to learn is to neglect previous history.
If you paid $200 for dish at restaurant and it tastes like crap dont eat it.
No matter how much an asset costed yesterday, the question is does it costs less than his utility now. I know, it's easy to say than to do, but abstracting from previous price bias is essential.
I could advice you to make a spreadsheet with 100 virtual bitcoins and try to trade it with such a strategy. While trading virtual assets it's much easier to abstract from emotions and do what your rationale tells you. Then compare pnl and adopt such strategies.
Nice comment. You really should post more @bronevik because I think you have a good insight into what it takes to be successful in trading.
I agree with @buggedout. That’s a very inciteful comment @bronevik
I'll think this out.
Thanks!
Missing a profit doesn't feel as bad as buying at the top and then watching it fall. So it is always better to err on the side of caution. I last traded ETH from about $200 to $400 and thought I was doing great....but I'm going to try and hold onto ETH for a while until I see the scalability issues resurface or I otherwise become convinced that it WONT overtake BTC.
Good advice man, I was amazing to see BNB sky rocketing the last few days with everything else glowing red.
One of my biggest regrets of 2017 - not buying BNB when it was for the taking at $1.40 or so. And after that at $2, 4, 6 when it was clearly on an uptrend.
They brought signups back online and have been taking an enormous number of new clients. I'm happy with the holding AND the exchange performance is good too.
@buggedout, thank you for the insight. I want to pull the trigger and start small with crypto's, so your insight and others I truly value. That said, I am not waiting almost 2 weeks to get Bittrex setup. I may just go with Gdax, as i hear the fees are low. Then, trying to find a bitwallet like bread wallet, there are so many steps, I keep saying, the first investor to confirm a one stop shop or 2/3, will win. Since I am a silverbug/gold, I am also waiting for a precious metal crypto, based on metals already mined, not future forecast. May I ask what you think about Ripple? That is scary to think Eth can surpass Bitcoin, but I also made that claim that the first Myspace would not be as big as a Crypto Facebook, if the comparison makes sense or analogy. It paved the wave for the next big coins emerging. thanks again Matt Chicago
You won't find a one-stop-shop for Crypto, its nature is to be decentralised so expect to cobble together your own jigsaw of pieces to achieve your goals.
If you're just starting out, you need a fiat exchange first and then a private wallet. You probably shouldn't be looking at alt-coins until you're on top of those 2 things first but it never hurts to take your time and learn as much as you can first.
As for Ripple. I hate it. I've never been so happy to see a crypto drop 50% like it did over the last week. It might be a good investment but if Ripple wins then we will just get more of the same cronyist banksterism that Crypto tech should be solving - not embracing.
I share the same sentiments regarding Ripple. No offence to those who had invested in it. But I just don't like how a few people has control over the majority of XRP.
Thanks, I was confused between Monero and Zcash. Cleared up some of my doubts
They are a bit different but the main reason I prefer Monero is because it is the one with real market adoption. That could easily change but I am one who tries to listen to the market when it decides to use one crypto over another.
What are your sentiments for EOS?
I am very excited about EOS and I am holding some, but I consider it to be a Speculative Crypto at this stage. I look forward to seeing it go live and it could blow some of these other Cryptos like ETH and BTS out of the water. June is a long way away though....
Yeah, a lot can happen in crypto in 5 months. I'm bullish on it and also holding some.
Coins with Utility will be the ones that make it in the end. Great post.
With many cryptocurrencies available and more and more being introduced, it become more difficult to choose the one to buy. But your advice will help matters. Thanks. I follow and upvote you.
this was helpful, thanks!