Few events have the power to make a cryptocurrency multiply 10X. Being widely adopted, becoming the standard in its niche, developing an innovative or very unique feature, having a great community around it – all these have the power to increase a crypto’s value many times over.
But what are some possible catalysts for cryptocurrency valuation in 2018? On this post we’ll discuss some of the most exciting events we’re looking forward to in 2018. We’ve also included a few tips on what precautions you should take in the coming months.
We have invested in all the assets mentioned below and these strategic events are part of our own plans for 2018. We’ll be looking forward to all these events and we’d like to share part of our own strategy with you.
1. Distributed Staking in Cardano ADA
What: The Shelley update in the Cardano Roadmap will bring a feature that’s been expected by all Cardano investors: staking! Everyone wants to earn interests on their hard earned cash, and Shelley is Cardano’s answer to that. Our own estimates indicate that unless the Cardano ADA network activity increases a lot, the staking won’t yield great returns at first. But the important outcome of the Cardano ADA distributed operation is to prove the technology works as designed and that it can scale.
When: Q2 2018. Already 75% done.
Cashtag: $ADA
2. Power Ledger Asset Germination Events
What: Asset Germination Events are one of the most exciting features of the Power Ledger system. It will allow anyone, anywhere, to invest in cool energy projects around the world. Not only is solar energy green, it is the driving force behind the most innovative companies in the world today.
When: The Whitepaper and official Power Ledger blog are a bit vague about the timing. All we know is it’s coming in 2018. Rumours predict October 2018, but we have no official word on that.
Cashtag: $POWR
Bonus: Power Ledger will be on the Extreme Tech Finals where a distinguished jury, including Sir Richard Branson, will choose this year’s winners. When? Fall 2018
3. Enjin Coin Game SDK’s and Integration
What: Enjin coin is releasing several SDK’s and integration into many awesome games in 2018. Can you imagine the potential for gaming asset buying, trading and investments?
When: All throughout 2018.
Cashtag: $ENJ
4. DIMCoin HYBSE
What: DIMCoin will release the Hybrid Stock Exchange, crypto trading in mobile phones, Asia expansion and much more.
When: June 2018
Cashtag: $DIM
2020 Update: The DIMCoin project has vanished.
Caveat Emptor: What to Watch Out for in 2018
The cryptocurrency investment landscape is changing quickly and what worked in 2016 didn’t work as well in 2017. Here are few things we believe you should watch out for throghout 2018.
1. Filter your ICOs twice as hard
2017 was a tough year for ICOs. Most of them got dumped immediately as they went public, allowing non-whitelisted investors to purchase the coins and tokens at a discounted rate on regular exchanges wiping off any advantage that would be gained by early birds. Great projects like Enigma, Power Ledger and others were initially sold at the same prices or lower than the pre-ICO and ICOs themselves. The wave of successful ICOs from 2016 did not carry over to 2017, and we believe you should filter your own ICOs twice as hard in 2018.
Note: Regulations so far have been very positive for cryptocurrencies in 2018, but they probably will crack down hard on ICOs. The head of the SEC was explicit about it on yesterday’s hearing at the CFTC.
2. Be careful with celebrity recommendations
Celebrities and their relation to ICOs, coins and tokens are under scrutiny in the USA and abroad. Influencers have the power to drive millions of investors to an asset that may or may not be a sound investments. Celebrities lend their image to these projects and later depart, having no obligations towards the people they influenced.
Everyone is free to follow their favorite celebrity into investments they believe in, but do perform due diligence and research your crypto investments thoroughly before going through. Remember, it is very likely that celebrities are getting tokens/coins in exchange for their work. That is, they are not putting their own money into these ventures. If this is the case then the worst case scenario for them is wasting a bit of their time. Whereas several investors are spending hard earned cash in these projects.
Regulators also have their crosshairs on celebrity recommendations so be extra careful.
3. Don’t invest based on memes and popular accounts on Twitter
During the cryptocurrency dip from late December 2017 to early February 2018 there was a noticeable change on crypto-related Twitter accounts. The most popular personalities started shifting their rhetoric, began distancing from superlatives, were being more defensive and some even said they’d freeze their social presence for the time being. Why?
It’s easy being euphoric during bonanzas, raking all the fish in. But what about when the net comes in empty? When cryptos take a dip, hackers attack some popular exchange, regulators demand more paperwork for crypto investing, all these can have a temporary negative impact on crypto prices.
In our opinion, such periods are great to filter out hype and to identify true investors. Note the accounts that didn’t change their rhetoric and pay special attention to those in the future. They’re likely in it for the long run.
As for memes and jokes, a good laugh won’t hurt at the end of the day, but you probably should not invest based on humoristic social accounts either.
4. Cryptocurrency Technical Analysis is Dead
Seriously, there is no Technical Analysis possible on cryptos. It’s just a bunch of scribbled lines. Nobody could predict what happened from mid 2017 onwards. The parabolic trend is obviously unsustainable and market corrections are inevitable. Nothing goes up forever, that’s the only technical analysis possible in the world of crypto. Be on the lookout for big events that could cause a big impact (hint ^ ^ ^ ^ wink wink) and don’t try to buy every dip or sell every top, you will eventually hurt yourself and while you may hit a few homeruns, there’s always an avalanche that catches you offguard and will wipe out your wins.
T.A. may be possible in the cryptocurrency world in the future when the markets are more stable and regulations help maintain a relatively predictable behavior from investors. Right now there is Tether, Bitfinex, new regulations, futures, Wall Street is just beginning to join the crypto train and there are simply too many external factors to allow for Technical Analysis to be useful.
But note that T.A. might be useful for short periods, as in hours or days. As long as there isn’t a major shift on a particular cryptocurrency, you can estimate short period reversals using it. But don’t try to predict the next 3 months using TA, you will likely fail.
5. Nobody will sell you the map to a real goldmine.
If someone is selling you the map to the goldmine for $5, you can assume the mine has been depleted. Anyone telling you about the next greatest investment in cryptos on Twitter, for free, is most likely selling snake oil. If their strategy was so great, they’d sell everything they own to buy whatever it is they’re promoting. Do your own research, find your own jewels.
Choose your investments wisely and more importantly, HODL! 2018 promises to be a very exciting year in crypto!