In October 2018, cryptocurrencies are in the doldrums and waiting for a catalyst.

It’s estimated that 49% of Central Asia and Eastern Europe, 59% of South East Asia, 65% of Latin America, 67% of the Middle East, and 80% of Sub-Saharan Africa are unbanked.

Or put another way 2.5 billion people are without basic banking services.

One possible catalyst and the propellant for blockchain technology along stage four of the hype cycle, (the slope of enlightenment), is decentralised exchanges that serve this market.

Blockchain technology: Is there a secret sauce?

Most people don’t know or care how their television works. All they care about is the on/off and channel buttons. Most don’t understand how their car works, or how a synchromesh stick shift gearbox magically gets them five blocks away from home without even thinking about it.

Understanding how Cardano’s proof of stake algorithm, Ouroboros, works is one thing. But using this knowledge to benefit from investing in ADA is quite another.

Short term pump or real trend? — Cryptocurrency metrics that matter.

The 5% club understand the most important variables the financial world uses to figure out the likelihood of money flowing into or out of an asset class.

One of the variables to be considered is the opportunity cost — aka the discount rate. Knowing the discount rate is the key to unlocking intrinsic value. And if the 5% have an estimate of the intrinsic value, they can compare it to the asking price.

The bottlenecks behind blockchain security

The 95% are controlled by their emotions. When a word like anarchy is used, it causes a lot of discomfort to the 95% because they use the best heuristic to make sense of the information. Anarchy is an example of an abstract word. It gives the appearance of explaining everything, yet it explains nothing.

In political science, anarchy is a word, when used in international relations, describing any possible state between order and chaos.

So, what has sovereignty got to do with cryptocurrencies?

Does a market react to news or does news react to a market?

On the 31st of October 2018, Bitcoin Cash made a new low of $410.10. Eight days later Bitcoin Cash had gone up 57%.

Has Bitcoin Cash made a significant market low? Is Bitcoin Cash positioned to take the crown and become the market leading cryptocurrency by market cap, and at the same time archive market dominance by following the ideology of Bitcoin’s founder Satoshi Nakamoto?

Or is it just heading for a fight?

As Bitcoin goes under the hammer, is a major change in the cryptocurrency markets taking place?

The cryptocurrency markets got beat up this week, with pundits blaming the drop on the Bitcoin Cash hard fork and everything in between. The 5%, the most consistent investors and speculators, don’t listen to the news, preferring instead to build up their picture of what’s going on, analysing direct market feedback for evidence of shifts in supply and demand.

After a large percentage move down, the 5% are looking for a missing component, the trait that shows up at lows and is absent at highs. Fear.

For cryptocurrencies to replace cash does anything have to change?

Innovators and early adopters, the experienced old hands of the crypto space, who understand completely how to transfer from fiat currency into crypto and back, have a problem even their aptitude at moving funds around between multiple exchanges and wallets can’t solve. And this problem is volatility.

If you’re on a cryptocurrency trading exchange and want to protect your profits, or even if you’ve made losses and just want to get out, where can you put your funds to protect them? The most used solution may not be as safe as you think.

Crowd behaviour at highs and lows and what the 5% do instead when trading Crypto

The term “bubble” is used anytime an asset’s price is driven, by speculation, far away from its intrinsic value.

In the last twenty years, we’ve had an unprecedented number of bubbles. Tech stocks in 2000. Real estate in 2006, Debt in 2007, Bonds in 2013 and Bitcoin in 2017.

Maybe it’s a new technology or a more efficient service, perhaps it’s a scheme where, if successful, it could change your life, but whatever it is, and whatever it does, the behaviour is always the same.

What advertising and market bubbles have in common

When faced with uncertainty, human beings have a tendency to search for the opinions of others, and in precisely the same way, when we open a curiosity gap, it’s known that we experience a strong need or desire to close the gap. Just like the uncertainty pattern, the curiosity gap pattern has been used to manipulate the crowd into action.

You might be thinking that exploiting the crowd using these tactics is a new phenomenon? It’s not.

Indicator settings don’t influence trend direction

Trends, like the planets moving around the Sun, don’t work the way the majority of market participants think they do. There is an unlimited number of ways trends can be traded. The 95% believe the only way to trade a market is by taking a directional position.

While the 95% obsess over indicators and which settings work best, the 5% focus their attention on the interaction of supply and demand and the accompanying levels of fear.

Are cryptocurrencies immune from the Power Law?

The majority of market participants spend their time reading about how the latest and greatest upgrade to an existing blockchain is going to change the game, or they read the opinions of cryptocurrency gurus, following them on social media, reading the tweets and posts for the one thing they are looking for. Certainty.

Unfortunately, certainty does not exist in any market, including the cryptocurrency space. In financial markets, venture capital, and macro economics, there is one law to rule them all.

Crypto trading: The majority look in the wrong place. They get in late, and out early.

The inconvenient truth: Most people new to the world of speculation and trading start defining trends with indicators and signals from the past. They don’t take the time to learn why trends begin, how trends move through time, and how they end.

Technical analysis is often used to show how easy it is to be successful in hindsight; however, the reality, for most, is different when they attempt to use a TA system in real time.

Not understanding background conditions is like walking across a freeway blindfolded.

The inconvenient truth: Most people new to the world of speculation and trading start defining trends with indicators and signals from the past. They don’t take the time to learn why trends begin, how trends move through time, and how they end.

Technical analysis is often used to show how easy it is to be successful in hindsight; however, the reality, for most, is different when they attempt to use a TA system in real time.

Tron is disrupting the world’s most valuable business — centralised big data.

Imagine a business, where the ingredients are free, but the end product is the most valuable commodity on Earth — a commodity so valuable it is taking over global stock markets.

The gatekeepers have outsourced content generation, but instead of paying you to create the content, you pay them. It’s like you paying a bank to hold your money on deposit, while they lend it out and keep the profit. Genius for them. Not so much for you. It’s a problem one cryptocurrency is attempting to solve.

Losing cryptocurrency traders do the same things in all conditions. Winning traders don’t.

The majority of traders don’t adjust their strategies depending on conditions, and they don’t monitor the strategies they use. Consistent speculators don’t just adjust strategies, dependent on where in the price cycle they are trading, they also follow the performance of the strategies they use, not only in testing before they use them but in real time.

Trading cryptocurrencies can look easy, but tripwires are hidden in plain site.

Not so long ago, it was possible to trade with 400:1 margin, and if you think that sounds like a lot, it is.

Depositing $10,000 in an account with 400:1 margin would allow you to control a $4,000,000 position. And of course, it also means a small move of 0.50% against your trade in the underlying market would wipe out your account — and a lot more.

Holding cryptocurrency losses isn’t easy, but to earn rewards tomorrow you need vision today.

Time, when viewed from the future, gives us the illusion that events happen fast, but real life occurs in slow motion — compared to history. Looking back, thirty years from now, 2013 to 2019 will compress into the blink of an eye, and history will have judged the winners and losers in the cryptocurrency markets, making it seem evident for all to see. Meanwhile, back in real time, what will you do if a coin you own hits a bump in the road.