CryptoCurrency Analysis #1

From here on out I’ve decided to do an investment post every week. I’ll spend my time doing an analysis of what I’m going to invest in and go over how it has been determined. Particularly, I’m going to be focusing on cryptocurrencies a stand alone investment (i.e. not mix with Stocks, although Project Piglet supports that).

Bitcoin (BTC) – 02/14/2018

First, I’ll review Bitcoin. It’s been a rough month watching it’s value drop from ~$20,000 to right around $9,200 at the time of this post. That being said, having been watching / holding bitcoin since 2009 – it’s nothing new.

Today, Bitcoin is at a “sell” state:

Meaning, I should probably sell the Bitcoin (if I have any). There will likely be another downturn soon, so it’s worth selling now, and buying again later.

Bitcoin Cash (BCH) – 02/14/2018

Bitcoin Cash has similarly had a wild ride (perhaps even more than Bitcoin). Today it’s sitting at a “hold”, on, I somewhat agree with that sentiment. There really isn’t much discussion about it, and thus the buy / sell information is somewhat foggy. Honestly, I wouldn’t buy Bitcoin Cash any time soon, and I’d cash out on the next up day.

Litecoin (LTC) – 02/14/2018

When I personally saw the Litecoin price, I cashed out immediately. Even if it goes up further, I’ve secured my ~30% gain (bought around ~$160 January 17th, sold at ~$210) in about one month.

It’s likely I’ll be putting money back in shortly, however – today I’m just going to sit on my earnings. The discussion in a previous article: Causality in CryptoMarkets, suggests that time should be roughly a week.

Ethereum (ETH) – 02/14/2018

Following the trend for the day, Ethereum is a sell as well. If you had bought around February 5th as Piglet suggested you would have made money (between 5% – 50% depending on the day). For the most part though, Ethereum has been a solid sell and I still recommend that.

Personally, I have not held Ethereum since December, and I’d recommend waiting until a new period to buy (if you’re interested in holding Ethereum).

Overall Holdings – 02/14/2018

Today, I’m sitting at roughly 58% cash, with some other minor holdings I’m sitting on simply because I don’t want to pay the taxes (plan to hold for twelve months, so I only pay capital gains):

Essentially, I’m completely in cash for short term investments. We’ll see what the next few days hold to see if we’ll buy any more.

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