Hello and welcome. In this video we are going to be talking about the big year we just had in 2017 in the Bitcoin and cryptocurrency markets. We’re also going to be talking about what might happen in 2018. There’s no doubt about it, 2017 was a huge year, so there’s tons and tons to talk about.
So in this video, this is what we’re going to cover. 2017… Huge year. Let’s dive in to have a little look at what happened, how we got to where we are now, and then discuss 2018 and what might happen next? We’ll talk about some things we might see in 2018, and how to capture the potential profits.
Then along those same lines, we’re going to dive into some hot areas that we are looking to invest in 2018, and you can consider if those match up with your investment strategies and philosophies and decide if you want to take some action.
Before we do all that, we do have to discuss this disclaimer real quickly. This content is not financial advice, it is not intended to inform any trading action. Any hypothetical statements have inherent limitations and are not guaranteed. Previous performance does not guarantee future results. Please know that investing in cryptocurrencies involves great risk and you can potentially gain a lot, but you could also potentially lose your entire investment.
Alright, so that aside, let’s dive right in. So, 2017. Anybody who’s watching knows that 2017 was absolutely insane, we went parabolic. So looking at the Bitcoin chart, I did my best to plot January first, but from start to the peak, we had 2,265% growth approximately, which is absolutely insane.
When you remove this, you can clearly see that this market has gone parabolic. If we switch over to the one week, it shows it even more clearly. So you can just see that we had … 2014, we had the crash, then we had this long bare market, then we had this pattern of consolidation. 2015, 2016 was real flat, right? Provided early investors with a great opportunity to buy real cheap, and then in 2017 it’s almost like the calendar turned. We had this little crash, we woke up around New Year’s and everything changed. Suddenly the prices starts appreciating 3,000, a big drop down to 2,000, and then away we go. You can see we hit this inflection point where we start to go parabolic.
So obviously a huge year. You look at some of these main markets, Bitcoin up over 2,000%. Ethereum, even better than that, did three times, essentially three times as much growth with 6,600% on Ethereum. Litecoin, even better than that, 14,732% growth, and of course, Ripple, even bigger than that, 22,697%. So this market provided people with countless opportunities to create massive profits, not just with Bitcoin, which is what everybody knows, but these other Altcoins have absolutely crushed it.
What happened in 2017?
So let’s look at how that happened real quickly. So really what happened is we shifted from the innovators to early adopters. So this is a chart that kind of shows the process of adoption for any technology, whether it’s bitcoin, whether it’s blockchain, whether it’s the internet, you have early, early innovators, and these are the people who are basically building it: the programmers, the developers, the miners, everybody who got in really early. This is pretty much anybody who told their friends about Bitcoin and everybody rolled their eyes.
The 10%, the early adopters, these are the friends of the innovators who actually said, “You know what? I think they have a point. I’m going to start grabbing some too because I actually see what they’re talking about.” By now this is probably sub $500 Bitcoin. This is now Bitcoin up to maybe $2,000 or less, and I’m just approximating just to give you a sense of what’s going on, all the way up until … You can even make an argument on a macro level that the early adopters is still the phase we’re in, and even the people buying at $16,000, $17,000, and $18,000 are still early adopters, and I would agree.
This graph isn’t meant to be linear or show exact translations in actual amounts of people. I can’t tell you how many people are in here. It just goes to show you that this is the process, right? So when the internet came out, it was only the people who were actually building the early web, the http, building out the protocols, and then you had the other techies who were building out access to the internet, and it wasn’t until many, many years that we went up through this scale.
You can apply the same thing to Facebook, right? Facebook, the innovators would have been basically the first couple of colleges, right? And then it expands out to more colleges across the country, then it kind of goes into businesses, and friends and family, and then the laggards are basically your parents, right? So when they join Facebook, that is when we reach the top of the Facebook.
So that’s kind of what happened, and then the other thing that kind of accelerated this is really this fifth item, which is FOMO, and the big FOMO was created by these two things: millionaires sharing their stories, and news coverage. So when you look at this curve and you look at Bitcoin, nobody was talking about it, nobody was covering it. You could come back here and maybe 30 seconds on CNBC just enough time to make fun of Bitcoin.
Then even still when we were at 1,000, 2,000, for those of us who got in before 2016, 2015, we remember what it was like to see those news articles and everybody making fun of Bitcoin, and now you can’t turn on CNBN without seeing Bitcoin. Throughout this huge, right about 6,000, 7,000, it started getting big. The other thing to note here is the coverage got really big, but so did the amount of millionaires that were minted by this big increase. So by now, you’re almost up, for the people who got in really early, you’re up 1,000%. You’ve got newly minted millionaires talking about how quickly and easily they made money.
Ethereum, you look at even at 200 you’re up 1,500%, right? I mean, Ethereum started … They were people in the ICOs, in the single digits. I got the chart down to eight here. So millionaires minted, people hear the stories and say, “I want some of that too.” So between those two things, creates a lot of FOMO, more and more people start jumping in and piling in. You can see here with Ethereum, a lot of people drove this up, it comes back down, people buy up, there’s demand, and then we have this breakout, right? This massive breakout. You can see this big ascending triangle formed on Ethereum, created a great trade setup for this breakout, so this was really cool to see and to trade. So that was big.
Now, one of the big things we did in 2017, our favorite trade was this one: EOS. EOS is a coin that a lot of people still know about, but that’s what we do in Crypto Victory, we try to find the gems that are underrated, undersold, under-appreciated, and this one, to real quickly give you a recap of what we did, we actually got in pretty early when it first hit exchanges and we rode the wave that first weekend and sold it for pretty good profit.
Then we basically were patient right here, then around this area there was a news event that happened because Bitfinex decided to ban US customers and they dropped some coins from their exchanges, and they noted that EOS was sort of wrapped up in all of that. So people kind of had this negative connotation with EOS. You can see it dropped down, we ended up grabbing some around 55 cents, and we believed that there was great potential and great excitement around this coin. Sure enough, that’s what happened.
So in October we accumulated, and then in November, we had the first breakout, it doubled right through here, and then you can see it doubled again. Then we had this big breakout, which was really great to watch and be a part of, and then right here we actually went in and grabbed more at four dollars and 20 cents or so, right through here on this next breakout. Then now it is at $10.30, it actually peaked out at $10.
We took a little profit through here and then we’re still riding this as well. So this has ended up becoming a great trade, and we highlight this because we’re very grateful for our investments in Bitcoin and the investments that have really worked out very well with Bitcoin, Litecoin, Ethereum, but we still want to go find the markets that are present now that can provide you with something like … You know, this one peaked out at 22,000%.
So while this was happening, Bitcoin only doubled, right? So you could have … It didn’t probably double, it probably quadrupled, but if it goes up 400%, EOS just went up 2,200%. So this is the sort of growth that we’re looking for, the opportunity to create these massive profits instead of just buying and holding Bitcoin or Ethereum. So this was definitely one of the highlights of the year.
What might happen in 2018
Then let’s look at 2018. So 2018, it’s really tough to make predictions with cryptocurrencies because it’s just such a new market, it’s so volatile, but I believe in the potential of cryptocurrency in the blockchain. I believe that this looks like the next wave of the internet, and so I look at the internet as a model for how this might go.
In 2018, I think we’re going to see some great growth, and that’s just my opinion, so you got to take it with a grain of salt, and for what it’s worth, but I do think we’re going to have great growth in 2018. You know, you have the big banks, they have tons of money, and they are probably really chomping at the bit to get involved, and the retail investors want to get involved.
More and more people are putting money in every day. I’ve heard that Coinbase has more users than Charles Schwab Brokerage does. Millennials, studies have shown that they are more inclined to buy cryptocurrencies than they are to buy stocks.
Things are really changing and so I’m buying into that, and I am willing to endure any big crashes that we might have because, yes, any time you’ve got curves that look like this and charts that look like this and are going straight up yes, they are bound to come back down, don’t get me wrong.
Even with the dot com we had a big crash, but the reality is is that if you’re smart and you take your profits and you only invest what you’re willing to lose, you can make this work. A lot of us that got in have already made good return on our investment, but we’re still looking to see where this is going, and that’s why getting involved and paying attention to cryptocurrency and to blockchain is so important because even if this thing comes back down, if we see a big drop and we come all the way back down $5,000 Bitcoin, $2,000 Bitcoin, it doesn’t mean that we’re not going back up.
The dot com bubble crashed, and it laid the foundation for the internet that I’m now communicating to you through and has just completely changed everybody’s lives. So that is what I see happening; growth, but with growing pains.
Then we’ve got some big battles coming up, so Bitcoin versus Bitcoin Cash. Bitcoin Cash came on the scene this fall and provides probably a better technology for executing transactions. So right now, if you send somebody Bitcoin, it could take hours and hours, up to 24 hours, and it’s never been more expensive to send money with Bitcoin. Bitcoin Cash provides a cheaper faster way of actually moving money.
So it’s very likely that they’ll coexist and one won’t kill the other, but Bitcoin Cash presents a very interesting alternative, both from a trading standpoint, but also from an investment standpoint. It brings up an interesting dynamic now that those two are going to kind of battle it out.
Then crypto markets versus Futures. So we’ll have to see what happens with Future’s trading. They launched late this year in December in 2017, but we don’t know exactly yet how it’s going to go because a lot of the retail investors and institutional investors have not allowed, or have not gotten started trading them yet because of the high margin guarantees.
You basically have to put down 50% of the investment upfront, which kind of defeats the purpose. So we’ll need to see what happens there. Again, this is sort of the third point, which is I think we’ll see institutional and money start coming in, right? Hedge funds, which have already started, but more hedge funds, the big banks, more retail investors coming in and buying up Bitcoin and Bitcoin Cash and other cryptocurrencies like Ethereum.
Then the other thing is ETFs, right? So the big thing now a lot of people are talking about is when does the Bitcoin ETF come? That’s what some people might be thinking. For me, the big question is when does the Ethereum ETF come? I assume that it would come shortly thereafter, so that’s going to be something very interesting to watch in 2018. If an ETF becomes available, it really legitimizes Bitcoin and it gives more people access to it.
Then Altcoins and ICO bubbles. So ICOs have become so popular that everybody’s flooding the market with new coins. It seems like every day there’s 20 ICOs going off, and the majority of them are absolute crap. So I think you could see some people pulling back as more and more people get burned off these pump and dumps, and sure they’re definitely great projects, you got to find them, like OmiseGO was a great one, it has done really, really well. You can see here, this big extension from OmiseGO, and that’s a coin that we have really liked for a long time, since August, late July, August. There’s still a lot of great ICOs to invest in, but for every one that’s great, there are probably 20 that are terrible. So I think we’ll see some pullback there.
Then Altcoins I think will still do well, but you’re going to have to … I think investors are going to have to find the real good quality projects. It’s going to be kind of like the internet where there were dozens and dozens of dog food dot coms and all of these copycat sort of fly by night operations, they weren’t legitimate companies, but the Googles survived, Yahoo survived, Amazon survived, Oracle survived.
The core really good companies building the future will survive. So that’s where I’m looking and focusing and that’s what we focus on at Crypto Victory is finding those opportunities, and we’re going to go into those in the next segment, but that’s sort of the fifth point which is for 2018 it’s going to be important for people to focus on areas of growth and real value. I’m going to add that in so you can see it, add real value. So let’s take a look at what you can do to capture success.
How to capture success and profits
So the first thing is get involved. I can’t tell you how many people I talk to that did not get involved because they thought Bitcoin was already up too much. I can’t tell you that it’s going to keep going up, I also can’t tell you it won’t. Bitcoin could be at 40,000 in a couple of months for all we know, and we don’t know how big this bubble can get, right?
The dot com bubble lasted years and went to trillions of dollars and we haven’t even come close to that. So the best thing is to get involved, whatever that means for you. Whether it’s starting to learn, we have a beginner course at Crypto Victory, where you can get in there and really start learning the basics, and get enough capabilities and training to actually start making some trades. You could start, if you already know the basics, you could start learning technical analysis. You can pay attention to the news. Just anything you need to do to get involved I think is a great idea.
Then, number two is don’t make the same mistakes twice. So we wrote up this nice blog post on cryptovictory.com and we talk about common mistakes investors make. It’s worth perusing a list like this and considering if you’re making these mistakes, and if you haven’t started trading then it would be a great thing to learn and read these ahead of time so you don’t make them the first time, right?
So a lot of these are very, very important, like don’t invest more than you can afford to lose. You need patience, you need good position sizing. A lot of people don’t buy the dips when the price is low, they panic and they sell them instead, and that’s why we go over swings in the markets and we teach training in Crypto Victory to help teach people how the markets move so they’re not panicking and selling the bottom or buying the tops. Some other mistakes is they wait too long to get involved by buying their first shares of Bitcoin or a crypto. So there’s just a lot of different things that you could be considering, and we encourage you to go read this article on cryptovictory.com’s blog.
Everybody makes mistakes. I’ve made mistakes, my partners have made mistakes. You just don’t want to make the same mistakes twice. You want every mistake to become profits because you’ve learned from it and you make a difference in the next trades that you make. The other thing is how do you capture success?
You take profits. We see too many people just holding, and holding, and holding, and waiting for it to get bigger and bigger, and you just never know what can happen. So we advocate taking profits along the way. There’s an old saying, “No one ever lost money taking profits,” right? So we do what we preach. We take profits all the time. In a market like this, sometimes it’s hard to do that, but it’s a smart move and something that we believe in.
The hot markets for 2018
Alright, so what are the hot areas? Well we really like the ones that we’ve listed here. There are so many gems and that’s really what we do at Crypto Victory is we’re trying to identify where the market is going so we can get there faster, or not faster, ahead of everybody else. We did that with EOS. LiteCoin is a coin people are talking about now that we saw a couple of months ago. So we’re always looking at what’s going to be hot. Some of these are bigger obvious choices, and then some of them are areas where you can focus on. So let’s dive right in really quickly. So Ethereum, we think that all of these Altcoins are all built on Ethereum and because of that we think that it makes somewhat more sense just to buy the underlining asset. So Ethereum, we think, will have a big 2018.
A lot of these Altcoins will, to bring up this point right here, good Altcoins, I think in general the Altcoin markets will see some losses as some projects just fade out, but the good ones will see incredible results. So together, this is an interesting strategy where on some portion you just own the underlining platform, in this case Ethereum, and you also go and select really great Altcoins.
In terms of Altcoins, the areas that we like are decentralized exchanges and privacy tokens. So decentralized exchanges allow people to start trading directly without the necessity for a third party handling the transactions. So those people right now would be Bittrex, CoinBase, Gemini, and there will be a day where we don’t even involve those entities anymore for us to trade and transact on our own as members of the crypto community. So decentralized exchanges will facilitate the process of us exchanging directly. So I think that that has great potential in the future. In 2018 I think we’re going to see some action there.
Then privacy tokens are really interesting. So Bitcoin probably could be best considered semi-anonymous. Some of these privacy tokens like Dash, Zcash, and Monero achieve a higher level of privacy so no one can really know it was you that made a transaction or sent a coin or received a coin. So there’s a very libertarian attitude to crypto, and it kind of feels like a people’s movement, a people’s revolution to take back control of our own money. So it just feels like privacy is going to continue to be a big theme in that process. So those are some core areas that we’re looking at with Altcoins.
Then Bitcoin and Bitcoin Cash. So because there’s an ETF potential, because the big banks are going to get involved, they’re going to flow that money into the bigger market caps, and the biggest market cap by car is Bitcoin. So that is what we’re seeing. For 2018, it still makes sense to be looking at that asset class to be keeping your money. That’s what we do at Crypto Victory, right? We’re really focused on identifying these opportunities, so we might say decentralized exchanges or privacy tokens. Our goal is to use technical analysis and fundamental analysis to identify the good tokens in each category.
So which token is going to outperform the other? If you take privacy tokens, Dash was a big pick for us this year, and you can see it has done extremely well. This is since August, it’s absolutely broken out. So that’s a good pick, right? We want to identify the ones that are undersold, or the ones that are oversold, and find out which ones have the potential to really carry into the future. Who has the really good code? Who’s got the really great positioning? That’s what we really focus on, so we’re always reading and researching and trying to find which ones are going to outperform the others.
A lot of times there’s a couple of them, like in privacy, Monero is another good one. So they all have their own features. They also have their teams. People don’t understand that you’re actually investing in a company, like a startup, so you want to know who are the founders? What does their technology look like? What does their roadmap look like? Do they have the capability to pull it off? That’s what we’re doing on the fundamentals side.
Then on the technical side, we’re looking at charts, just like we’re doing here, and identifying where there are good trade setups. So Dash looks like it has a little bit of a consolidation pattern here. We had a little pennant right here. You can see these patterns that show up, and so we run technical analysis and we evaluate where there’s trade opportunities. You can see an ascending triangle right here that led to a breakout.
What we do with Crypto Victory
So that’s what we’re doing in Crypto Victory. So by joining Crypto Victory, you’re going to be joining a community of traders, beginners, experts, everybody in between who are looking to either get involved in trading in crypto or taking their trading to the next level. We try to help them by providing regular market updates.
So basically every other day I’m diving in and looking at charts like this, we’re looking at markets, we might switch over to Bitcoin or maybe we’ll look at an Altcoin like FirstBlood for example, or Ada. Here’s ADA, right? Cardano, which has been a great coin recently. So we’re always looking at what the market is doing and helping … We don’t predict what can happen because we can’t, nobody can, but we might be able to use charts to say this might happen, or what are the probabilities that this happens, and then creating strategies so that we can be prepared.
So for example with Ethereum we had a big ascending triangle, and so we could start to get a sense for what was happening with this price action, so we could make some good decisions, and we can help others make good decisions. So when this price broke out, we see it hit here, hit here, and that’s not the time to panic, we know that it’s just testing the support, and then we get this breakout right? And now we had a nice breakout play here. So that’s what it’s all about. We don’t predict the future, we just try to use charting to help inform good decisions.
Then you also get training and education. So in Crypto Victory if you go into the members area, there’s a training and education session where we have 45 minute videos on technical analysis, or we have a beginner’s course, so you can go from beginner up to enough capability and skills to start making trades and identifying opportunities. So our goal is to empower our members with education and training, and to teach them how to do what we do. Our goal is to empower everybody so that they can create their own success.
So we also teach technical analysis, we do that during the market updates, and also we have some material that is helpful as well. Then our top trades, so you’re going to get our top positions, you can see what we actually own. We only put in the room what we actually own. It’s basically a behind the scenes over the shoulder look at what we’re doing with our own money for ourselves, and you can take that information and decide if it’s something that you want to take action on.
Then the last part is trade alerts. So we have a slack channel where we actually post our trades in the slack channel so people can see what we’re doing and decide if it’s right for them as well, and they can make their own decision. A lot of times we’ll tell people why, right? We want to teach, we want to have everybody understanding why we’re doing something the way that we do it. So with that, I want to congratulate everybody who had a huge year in 2017, and I want to welcome everybody who’s new to the crypto community, and I wish you nothing but the best in 2018. We hope you’ll join us at Crypto Victory and we hope that 2018 is a prosperous year. So take care everybody, good luck.