The Key Is to Get in Early

Clearly, the crypto world is still in its initial stages of development and adoption. The role of Crypto Trend is to provide impartial information, so investors can better weigh the dangers and the future potential of this very volatile sector, one that we have labelled the “wild west.’ If you’re willing to accept the risks, you can look forward to serious profit opportunities.

Crypto currencies hold great promise for the future. They can revolutionize money, infusing discipline into monetary policy. Unfortunately, the crypto space also has a dark side. It suffers from loose standards, questionable operators, excessive hype, and occasional market crashes. Also, buying the actual crypto currencies can be a cumbersome process, and as noted below, governments are now stepping in, trying to figure out how they can take a chunk of that action as taxes, fees, or some yet to be created method of taking your money from you.

If buying the actual CCs is not your cup of tea, understand that over the next few years we expect that the majority of the recommendations in the Crypto Trend Premium service will come from blockchain, and other technological advances that will change the way we do business, much the same way that the internet has revolutionized our lives.

Times change, technologies evolve. Ten years ago there were no mobile apps, or data clouds. Today we have robots, which are changing the way people do business, in everything from manufacturing to drones. In China, face-detecting systems can now authorize payments, provide access to facilities, and track the movements of every single person in a smart city. Soon we will be passengers in driverless buses and cars.

We will also see cloud-based AI services, which will make artificial intelligence tools available to a wide range of businesses. And even “Dueling Neural Networks”, a breakthrough in artificial intelligence that allows AI to create images of things it has never seen, giving AI a sense of imagination.

There will be some serious privacy, security, and other issues that will need to be addressed as we step into the next evolution of technology advances, but as an investor, each of these advancements gives you the opportunity to make massive gains. The key is to get in early with the right companies, in the right technological trend.

Be clear here, while some of the stocks we will be recommending in Crypto Trend Premium will be known leaders in their field, other stocks will be unknown and unproven technology stocks that are not on the radar of the masses.

Many of these companies you’ve never heard of will be household names in just a few years.
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It’s tax time – are you ready for CC craziness?

Crypto currency (CC) investors have a lot to think about with the tax implications of buying and selling crypto coins. Many governments are still deliberating about how to get in on the action – in the form of taxation. They know there is big money at stake, and they know they are going broke, so they sure don’t want to miss out. There seems to be no simple answer that all governments can agree on. Should CC’s be treated as currency, as a commodity, as a security, as property, or some combination thereof?

For example, here is what’s happening in the USA. In 2014 the Internal Revenue Service (IRS) determined that “convertible virtual currency”, such as Bitcoin, will be treated as property. This decision means that purchases using CC’s are subject to capital gain (or loss) and investment tax treatment, with all the associated reporting requirements. Given that there are many retailers who now accept CC’s as payment, this means that the IRS requires everyone to do all this when spending their CC:

record the amount of coins spent
allocate the cost basis of the coins spent
subtract the cost basis of the coins spent from the actual price paid
report the difference to the IRS, and calculate the capital gain or loss, factoring in the date of when the coins were purchased

This all goes in your annual tax return, and you must pay the taxes owed, or claim the capital loss. All this work is generated by the consumer’s choice of “payment method”. Many analysts and commentators are calling this a prohibitive, crazy, quagmire. Can you imagine the nightmare if you purchased two cups of coffee every day, using Bitcoin as your payment method? You might need an army of accountants.

In the USA there are going to be other problems, as there are four departments that want to treat CC’s in their own special way:

The Commodity Futures Trading Commission views CC’s as a commodity
The Securities Exchange Commission (SEC) is treating “some” coins as a security
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has stated that “certain activities involving convertible virtual currency constitute money transmission”
as shown above, the IRS insists on treating CC’s as property

So here we have four different, inconsistent categories for the same thing, which prompts us to remind you to carefully check what’s happening with the CC tax rules in your jurisdiction. We can’t promise you that it will make sense, or be easy to understand. It is another example of the “wild west” nature of this market space.

Prepping for a Cryptocurrency World: China Edition

Over the past year, the cryptocurrency market took a series of heavy punches from the Chinese government. The market took the hits like a warrior, but the combos have taken its toll in many cryptocurrency investors. The market lackluster performance in 2018 pales in comparison to its stellar thousand-percent gains in 2017.

What has happened?

Since 2013, the Chinese government have taken measures to regulate cryptocurrency, but nothing compared to what was enforced in 2017. (Check out this article for a detailed analysis of the official notice issued by the Chinese government)

2017 was a banner year for the cryptocurrency market with all the attention and growth it has achieved. The extreme price volatility forced the Central bank to adopt more extreme measures, including the ban of initial coin offerings (ICOs) and clampdowns on domestic cryptocurrency exchanges. Soon after, mining factories in China were forced to close down, citing excessive electricity consumption. Many exchanges and factories have relocated overseas to avoid regulations but remained accessible to Chinese investors. Nonetheless, they still fail to escape the claws of the Chinese Dragon.

In the latest series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China extended its “Eagle Eye” to monitor foreign cryptocurrency exchanges. Companies and bank accounts suspected of carrying out transactions with foreign crypto-exchanges and related activities are subjected to measures from limiting withdrawal limits to freezing of accounts. There have even been ongoing rumors among the Chinese community of more extreme measures to be enforced on foreign platforms that allow trading among Chinese investors.

“As for whether there will be further regulatory measures, we will have to wait for orders from the higher authorities.” Excerpts from an interview with team leader of the China’s Public Information Network Security Supervision agency under the Ministry of Public Security, 28th February

WHY WHY WHY!?

Imagine your child investing his or her savings to invest in a digital product (in this case, cryptocurrency) that he or she has no way of verifying its authenticity and value. He or she could get lucky and strike it rich, or lose it all when the crypto-bubble burst. Now scale that to millions of Chinese citizens and we are talking about billions of Chinese Yuan.

The market is full of scams and pointless ICOs. (I’m sure you have heard news of people sending coins to random addresses with the promise of doubling their investments and ICOs that simply don’t make sense). Many unsavvy investors are in it for the money and would care less about the technology and innovation behind it. The value of many cryptocurrencies is derived from market speculation. During the crypto-boom in 2017, participate in any ICO with either a famous advisor onboard, a promising team or a decent hype and you are guaranteed at least 3X your investments.

A lack of understanding of the firm and the technology behind it, combined with the proliferation of ICOs, is a recipe for disaster. Members of the Central bank reports that almost 90% of the ICOs are fraudulent or involves illegal fundraising. In my opinion, the Chinese government wants to ensure that cryptocurrency remains ‘controllable’ and not too big to fail within the Chinese community. China is taking the right steps towards a safer, more regulated cryptocurrency world, albeit aggressive and controversial. In fact, it might be the best move the country has taken in decades.

Will China issue an ultimatum and make cryptocurrency illegal? I highly doubt so since it is pretty pointless to do so. Currently, financial institutions are banned from holding any crypto assets while individuals are allowed to but are barred from carrying out any forms of trading.

A State-run Cryptocurrency Exchange?

At the annual “Two Sessions” (Named because two major parties- National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPCC) both take part in the forum)held on the first week of March, leaders congregate to discuss about the latest issues and make necessary law amendments.

Wang Pengjie, a member of the NPCC dabbled into the prospects of a state-run digital asset trading platform as well as initiate educational projects on blockchain and cryptocurrency in China. However, the proposed platform would require a authenticated account to allow trading.

“With the establishment of related regulations and the co-operation of the People’s Bank of China (PBoC) and China Securities Regulatory Commission(CSRC), a regulated and efficient cryptocurrency exchange platform would serve as a formal way for companies to raise funds (through ICOs) and investors to hold their digital assets and achieve capital appreciation” Excerpts of Wang Pengjie presentation at the Two Sessions.

The March towards a Blockchain Nation

Governments and central banks worldwide have struggled to grapple with the increasing popularity of cryptocurrencies; but one thing is sure, all have embraced blockchain.

Despite the cryptocurrency crackdown, blockchain has been gaining popularity and adoption in various levels. The Chinese government have been supporting blockchain initiatives and embracing the technology. In fact, the People’s Bank of China (PBoC) have been working on a digital currency and have conducted mock transactions with some of the country’s commercial banks. It is still unconfirmed if the digital currency will be decentralized and offer features of cryptocurrency like anonymity and immutability. It wouldn’t come as a surprise if it turns out to be just a digital Chinese Yuan given that anonymity is the last thing that China wants in their country. However, created as a close substitute of the Chinese Yuan, the digital currency will be subjected to existing monetary policies and laws.

People’s Bank of China Governor, Zhou Xiaochuan. Source: CNBC

“Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors. We don’t like (cryptocurrency) products that make use of the huge opportunity for speculation that gives people the illusion of getting rich overnight” Excerpts from Zhou Xiaochuan interview on Friday, 9th March.

On a media appearance on Friday, 9th March, Governor of People’s Bank of China, Zhou Xiaochuan criticized cryptocurrency projects that leveraged on the crypto-boom to cash in and fuel market speculation. He also noted that development of the digital currency is ‘technologically inevitable’

On a regional level, many Chinese cities have are driving blockchain initiatives to promote growth in their region. Hangzhou, renown for being the headquarters of Alibaba, have stated blockchain technology to be one of the city’s top priorities in 2018. The local government in Chengdu city have also been proposed the building of an incubation center to foster the adoption of blockchain technology in the city’s financial services.

Local conglomerates such Tencent and Alibaba have also formed partnership with blockchain firms or initiated projects on their own. Blockchain firms such as VeChain have also secured multiple partnerships with Chinese firms to improve supply chain transparency in China.

All clues point to the fact that China is working towards a blockchain nation. China has always had a open mentality to emergent technologies such as mobile payment and Artificial Intelligence. Henceforth, it is without a doubt that China will be the first blockchain-enabled country. Will we see the Chinese government backing down and let its citizens trade again? Probably, when the market has matured and is less volatile but definitely not in 2018.

The Best Forex Trading Strategies

Traders have been in debate to what the best Forex trading strategies are for years. That debate is likely to continue for many more years to come. What most people that are new to Forex trading want to know is what is the best and how can we identify it as the best. I want to first of all consider what a trading strategy is then look at two different types and asses them both.

A Forex trading strategy or system is simply a set of rules a trader will use to enter, exit and adjust his trade. The strategy may consider fundamental analysis, technical analysis or a bit of both. The answer to which is the best cannot be determined by simply looking at the results of a strategy but by looking at the trader as well. Psychology is the single biggest issue traders’ face when carrying out a winning or losing trade. The ability to be able to stick to your own rules during a losing or winning trade can be challenging. It is for this reason many traders will turn to automated trading systems to beat the psychological issues they are faced with. Auto trading using EA’s has its benefits but it is a proven fact that markets are in fact random which means a strategy working today may not work tomorrow.

What about a mixture of both?

You could be the best analyst in the world and still be a terrible trader! How many times have you taken a trade with all your analysis in your head then exited early or not taken the trade at all. A common scenario is not taking the planned trade because you couldn’t commit then taking a random trade that wasn’t planned and losing. Sounds ridiculous when you read that scenario but it happens every day.

Imagine a system where you could use your own analysis to set up a trade then use a trading system to take over and carry out your settings so you didn’t have the Psychology to deal with. Surely this would be the best Forex trading system. The good news is these trading systems are about but not many people are giving them away. You could however have a program coded for you that takes trades based on your rules and eliminates the psychology. If you have a system that works on a manual basis but only works with certain market conditions then this could be the best Forex trading strategy.