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absolute beginners guide cryptocurrency investment

The Absolute Beginner’s Guide to Cryptocurrency Investing 2019

The Absolute Beginner’s Guide to Cryptocurrency Investing 2019 1280 673 Oliver R. George

Before we start: Please note that this is not investment advice and not a solicitation to buy or sell a cryptocurrency asset, coins or tokens. Since cryptocurrencies are a new asset class, references are made wherever possible. All statements are based on publicly available information and the author’s experiences. The author and The Coin Research have not received any payments from third parties to promote this article. 

The blog will focus on Cryptocurrencies as we experience them in daily life. If you are interested to learn more about the blockchain technology behind cryptocurrencies, please refer to this Blockchain TED talk introduction video.

Like every beginning: When you first start with a completely new topic like cryptocurrency, you get overwhelmed. How to start and where to start? What keyword to search in Google? Where do you find helpful resources to learn more? This cryptocurrency learning guide is developed for beginners and it will take you max. 30 min to get through it. It will give you a solid first impression about what you can expect from the new world of cryptocurrencies.

Let’s just start the journey. Enjoy the learning experience. This journey might change your thinking about money, value transfer and potentially lead to a new future in your life.

The Absolute Beginner’s Guide to Cryptocurrency Investing 2019

 

Development of Cryptocurrencies

Cryptocurrency is still at a very early stage. However, among the millennials and with a huge distribution of computers and mobile phones, the technical knowledge of the population increases. This is driving the adoption of the crypto as a potential store of value. The concept of cryptocurrencies receives high acceptance among the younger population and has the potential to boom in the future. Crypto has been pushed by media along the all-time high from Bitcoin and Ethereum, two of the leading cryptocurrencies. News help to drive awareness and might turn skeptical people into “involved” who are slowly understanding the technology and thinking behind digital money.

Since this is a very young industry, market development is very volatile. Coming from a market capitalization of nearly not existent, it went over $500 billion and is at 119 billion at the time of writing. It’s impossible to estimate, where this will be in a year from now. However, over 3,000 different cryptocurrencies have been launched and around 2,000 are trading on the crypto exchanges.

 

Introduction into the Ecosystem Cryptocurrencies 

In this article, we mentioned it already and you will have heard of Bitcoin and so-called “Altcoins”. Bitcoin is the legacy coin of the cryptocurrency ecosystem. It’s although not the first crypto coin, that has been invented. However, all the coins before Bitcoin failed because of technical challenges. Since the software and protocol of Bitcoin is Open Source, everyone can use this software to produce a new Bitcoin-like cryptocurrency. These new coins are called Altcoins (Alternative Coins). Whether the Altcoin is based on the Bitcoin blockchain or a completely different blockchain (like Ethereum) it falls under the same definition, to be an “alternative coin to Bitcoin”.

Splits of a blockchain, to create a new cryptocurrency, are called forks. The forks or clones of Bitcoin or a different blockchain aspire to serve different areas, aiming to be ‘better’ to address and solve a specific issue. Still, Bitcoin is leading the market capitalization in the crypto ecosystem and is by far the largest cryptocurrency. At the time of writing, Bitcoin dominates with 52.6%.

 

Cryptocurrency and Fiat

The money we use every day (like US-Dollar, Euro, Yen, etc) are called “Fiat” in the crypto communities. Fiat does not refer to the Italian carmaker, but to the official definition of the word in the English vocabulary (Fiat) and means “decree”, “edict”. Fiat money is a currency that has been established as money, often by government regulation. The Fiat currencies have been digitalized in the cryptocurrency space and they relate 1:1 to the formal official money.

Do not get puzzled with the concept of cryptocurrencies. Although cryptocurrency includes the word currency, when you purchase Bitcoin or Altcoins, you are in fact buying some participation on a blockchain project or company. You are not buying a currency in the traditional understanding. The value of a cryptocurrency can change significantly. The cryptocurrencies you buy are more comparable to a very high-risk stock participation, although they lack the qualities of a stock and the regulation and consumer protection behind it.

 

Cryptocurrency Exchanges

As mentioned, there are over 2,000 cryptocurrencies available and counting. Buying and selling of cryptocurrencies happen on specialized exchanges. These are different exchanges compared to the well-known stock exchanges, like Wall Street, NASDAQ. Crypto exchanges are websites where you may buy and sell your cryptocurrencies, using fiat money.

A short introduction into Cryptocurrency Exchanges

To start with: there are 2 types of crypto exchanges. Centralized exchanges and decentralized exchanges.

The difference is: in a centralized exchange, you deposit, trade and withdraw your cryptocurrencies with a centralized company, via a trading system. The centralized exchange factually “owns” your crypto, while its there. It’s fully under their control. This has become an issue several times in the young history of crypto. Exchanges can get hacked and you can lose your money. The famous Mt Gox  hack is only one example, where 740,000 Bitcoin has been stolen. A staggering value of over $500 million.

In decentralized exchanges, you own your crypto. You transfer it to the blockchain, where your trade (buy, sell) will be listed and mined. The risk of losing your crypto is significantly lower and is in line with the risk of the specific blockchain to be hacked. However, decentralized exchanges are still very new and experimental in some cases. They have less liquidity compared to central exchanges and the user experience is not far developed yet.

There are several indicators to estimate the reliability and quality of a crypto exchange. Important is the availability of trading pairs, like Bitcoin to Fiat, Bitcoin to Ether, etc. Not all exchanges trade all available cryptocurrencies. Secondly, its the liquidity of the exchange, this means how much volume is the exchange trading in a specific pair. As the last point, you must consider pricing spreads, fees, limits to purchase and withdraw, security topics, insurance of your crypto, user-experience. Always have a look at the contact area of exchange. Very often they share no official contact address, are located in “legislation friendly” and “tax haven” countries, with zero regulation.

 

Best cryptocurrency exchanges for beginners

We recommend 2 crypto exchanges, that we find appealing for beginners. Coinbase and Binance.

By far the number 1 for newbies and best cryptocurrency exchange is Coinbase. It has a beginner-friendly user interface, very similar to your online banking or Paypal, and unbeatable insurance of your crypto deposits.

Coinbase exchange Cryptocurrency exchanges for beginners

Number 2 on our list on crypto exchanges for beginners is Binance. Binance is more complex than Coinbase. It covers a significantly wider range of trading pairs and offers an advanced modus for passionate crypto traders. The user interface is a bit more complex and less intuitive, however, most beginners have no issue using it immediately.

binance exchange cryptocurrency bitcoin altcoin trading for beginners

The onboarding process is very similar to all exchanges. After setting up an intermediary exchange account, you will be required to go through a “Know Your Customer (KYC)” process to verify your details with Coinbase and Binance. You will need some more details for Coinbase, since they are a regulated exchange. Binance has fewer requirements and as well as less protection. Now after you finalized the KYC process, you are only six simple steps away from a Bitcoin or Altcoin purchase:

  1. Transfer Fiat money to the exchange (or use your credit card)
  2. Access the “Buy/Sell Bitcoin or Altcoin’ tab
  3. Select the payment method using the drop-down menu
  4. Enter the desired amount of cryptocurrency to buy or sell
  5. Click “Buy or Sell Instantly”
  6. View your credited or sold Altcoins on your dashboard

Now you own your first Bitcoin or Altcoin. You can trade different pairs, transfer it to other exchanges or to your hardware wallet. Note, however, that the transfer of crypto between different parties costs a small amount in cryptocurrency. Costs are far lower than real bank transfers, however, you need to monitor these. Transfers are not free and exchange might charge you a withdrawal fee.

Next steps in your “career as a crypto trader” could be that you onboard on other exchanges, like Bittrex or Bitmex. Bittrex is comparable to Binance, Bitmex, however, is a trading platform that semi-professional traders use. (Check it out and sign up with Bitmex)

Bitmex cryptocurrency exchange

When signing up on these exchanges for the first time, please consider that the verification process on these exchanges may take several hours or some days, and purchase/withdraw limits may only increase gradually as you trade.

An additional point for funding or withdrawals: the US Dollar is the most common Fiat currency used by exchanges. If you are using a currency other than US$, do check out the exchange’s funding and withdrawal policy. Note as well that some exchanges might have regional restrictions and e.g not serve US customers, due to applicable legislation.

Cryptocurrency Wallets

In the crypto ecosystem, your wallet is similar to your bank account in the real world. This is the place where you store your Bitcoin or Altcoins. All exchanges have inbuilt online wallets to receive, keep and withdraw cryptocurrency. However, as mentioned above, it is definitely not recommendable to store big quantities of crypto on exchanges, due to safety concerns and hacking risks. We recommend storing your crypto offline in a hardware wallet like Nano Ledger or in an online paper wallet like MyEtherWallet. Both serve the purpose of removing the exchange platform risk, at the cost and hassle of taking up the responsibility of keeping your cryptocurrency safe.

Our preferred offline hardware wallet is the Nano Ledger. A simple user interface, well documented and a good fit for most users.

ledger nano hardware wallet from the coin research

To transfer your cryptocurrency from exchange to your hardware wallet, simply follow this very simple process, using Coinbase exchange and Nano Ledger as an example:

  1. Plug in your Nano Ledger USB cable
  2. Open your Ledger Live Software (a Software from Ledger to simply manage your crypto)
  3. Find your wallet address on the Nano Ledger Live Client by clicking on “Receive Crypto”. Software will show your receiving address.
  4. Access Coinbase ‘Send/Request’ tab and input your Nano Ledger wallet address
  5. Confirm the amount to transfer and click “Send Funds”

We always recommend testing the address and system working first. Therefore transfer only a small amount first to test it. In blockchain and cryptocurrencies, mistakes in the transfer process (e.g. wrong receiving address, sent Ethereum to a Bitcoin address) can lead to the loss of your crypto.

The Coin Research teams recommend using hardware wallets. Not only because you have a tangible item with your money, but mainly because it is safer, compared to “hot” online wallets. However, you have the risk of losing the wallet. Therefore it’s important to not your key and keeps it extremely safe. You can recover your crypto with the key if you lost your wallet.

Investments in Cryptocurrencies

Cryptocurrencies are a new asset class. the companies operating in crypto are very young and do not have a long term record. The business is partly experimental and blockchain developments have exponential growth, on the technological side. Based on the unknown developments and insecurity in the sector, the prices of crypto have extremely high volatility. Investments in cryptocurrencies are therefore not suitable for every investor, because of the risks involved.

Cryptocurrency as a Percentage of Your Investment Portfolio

This is not investment advice and we can not evaluate your personal situation. Please speak to a financial advisor, before you invest.

Generally speaking, cryptocurrency investments have the potential to realize many “get rich fast” stories, but the risks involved and the volatility makes it unpredictable. To be on the safe side: whatever you invest in crypto, you should be prepared for losing it. Emergency funds, pension funds, retirement reserves should never be invested in cryptocurrencies. The upside to gain is huge, but it comes with lots of risks and may put you under emotional stress. The emotional pressure and stress to lose 20% per day is something you should consider before you jump in this adventure.

For a conservative investment portfolio, we would suggest the following:

  • People below 25 years, not married, no kids: maximum 20% in cryptocurrencies and 60% in traditional stock investments, 20% in cash (depending on investment cycle this could be higher or lower)
  • If you are between 25 – 50 years old, married an maybe with kids, maximum should be 10% in crypto and 60% traditional investments, cash 30%.
  • Over 50 years old, you should hold a maximum 5% in crypto, and 75% in traditional stock investments, funds or similar.

This rough calculation considers the different live phases people are generally in. It reflects the financial responsibility or burden one might have and the risk associated with investment in crypto. It is definitely not a clever idea, to maneuver yourself into a paycheck by paycheck life and to risk the funds acquired to und your house, kids college or retirement.

How to identify the right crypto investment opportunity? What crypto coin should I buy?

There are several approaches to identify cryptocurrency investment opportunities. these are two types of analysis that investors generally do. Technical Analysis and Fundamental Analysis. Most of the high-frequency traders and day-traders we know are good at technical analysis and most of the investors look more into the Fundamental Analysis. Best investors usually do a mix of both. They use the fundamental analysis to understand the basics of a project and the technical analysis to decide the purchase point/price point.

What is Fundamental Analysis for a cryptocurrency coin?

Fundamental analysis is the study of the fundamentals of a project that you are investing in. It involves intensive researching about the project, the company, the team behind the company, their previous achievement, the business area they are working in, the real world problem the project is trying to solve, the roadmap and commitment to it, the financial abilities, the development team, the technical struggles, and much more. The research form The Coin Research Team is mainly focused on Fundamental Analysis.

 

What is Technical Analysis for a cryptocurrency coin?

Technical Analysis is the art of reading charts. Basics are to read a pattern in the charts, trade on a pattern and hope that the price development follows your estimated pattern. It is founded on the principle that price action tends to repeat itself due to the collective, patterned behavior of investors.

Sounds complicated? It is!

This is why The Team Research offers a set of researched reports for cryptocurrency investors. We analyze the fundamentals of projects based on the proprietary Cryptocurrency Valuation Modell from The Coin Research. Based on these we can estimate developments of crypto coins and make researched and founded recommendations.

In addition, the coin Research offers a comprehensive Risk Management guideline for every coin, to address the volatility and reduce losses to planned and calculated levels.

 

How to get more Crypto? Trading and Investing in Cryptocurrency

You might have your first Bitcoin and want more. There are several ways to get more crypto. Trading, Mining, Stacking are a few of them.

Trading and investments in cryptocurrencies are quite simple. Once you understand the basics of the crypto world, it’s as simple as buying stocks and trading options or other investment instruments.

 

Short Term Crypto Trading with Margin

For the experienced stocks and forex traders, the trading with margin on crypto is not new at all. Crypto trading with margin follows similar principles. For the new crypto investor, however, this requires a bit of learning and a short brief up on how to make a margin / leveraged trade.

It goes without saying, that short-term trading takes advantages of incoming news or trend development to make some quick money. If you foresee the development of a coin based on maybe some good news or announcements, you could open a long leveraged trade and see how it goes. Like in the real world: you have to be fast and buy the rumor, sell the news. Take the profit, once you have it and be very disciplined with your trading strategy if you wish to make a profit with short term margin trading.

 

Mining of cryptocurrency coins

If trading is not your world and you like more the computers and software, mining could be the way to earn some crypto. However, due to very high difficulty levels for most blockchains, you might need high tech equipment to be competitive. Mining involves setting up a rig of computers, consisting of Graphics processing units or Computer processing units and quite high investment in the electricity. Mining with a regular PC or Laptop is technically possible, but for most blockchains not worthwhile. The computation power of a standard computer is far to low and electricity costs will be higher compared to the crypto-coin rewards you will get for Proof of Work Mining.

 

Staking of Cryptocurrency to earn more coins

For Proof of Stake blockchains, the staking is the comparable version of “mining. As a matter of fact, it’s not mining at all, as it requires no mining equipment. You get a reward for staking your coins and participating in a governance model of the blockchain. Very similar to the dividends you might get for holding a stock. The reward rate and staking method differ greatly among Proof of Stake coins, but in general, it takes less effort as compared to mining.

 

Further Helpful Resources for Beginners in Cryptocurrencies

The best place to check your coins value is Coinmarketcap.com You will find the actual price of your coins at different cryptocurrency exchanges. As well as links to project details, community, twitter handles, etc. A good source of information is the coins’ subreddits for news and market sentiments.

The Coin Research Team wishes you success and researched investing. Do your own diligence before you invest or check the reports in our member’s area.

binance bnb cryptocurrency investment report 2

Binance (BNB) Cryptocurrency Investment Research Report

Binance (BNB) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Binance Token (BNB)

Binance Exchange is by far the no. 1 cryptocurrency exchange worldwide that offers to trade in more than 50 crypto coins including the leading pairs of Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and of course Binance Coin (BNB). The name of the exchange Binance is based on a combination of “Binary and Finance”.  Its based in Tokyo, Japan and has been launched during summer 2017.

Binance BNB token is the use token of the Binance exchange. BNB is an ECR 20 token based on the Ethereum Blockchain protocol. The BNB token has quickly gained popularity and high trade volumes, trading at the time of writing around a market cap of around $800m (no. 12 on Coinmarketcap). The onboarding of new users is standard for exchanges. Users have to complete the Know Your Customer (KYC) forms. Upon successful account creation, users can add crypto funds to the wallet address provided by Binance to start trading.

In addition to the exchange, Binance has a blockchain startup incubator called Binance Labs, which focuses on the development of promising early-stage projects. It helps highly selected cryptocurrency project teams by providing necessary funding for development, management, and advisory resources, and a launch pad for financing or fundraising exercises.

The Investment Story for Binance Exchange Token (BNB)

Binance (BNB) Token is a Top 12 Coin at Coinmarketcap at the time of writing.

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Binance (BNB) is the next Amazon on the rise. Some compared Binance with Google. This is wrong. Google offers services to the consumers, however, makes the profit in a B2B model, as an intermediate for the advertising industry. They sell the data (profiles, demographics, etc) of their customers to the advertising industry.

Amazon offers a product to the consumer and physically sells/delivers value to the consumer. Big difference to Google. Amazon deals with the consumer directly and is working hard to offer the best service, best user experience. The direct contact and direct execution of the sale, the roll-out country by country, the trust required from the masses, that’s what makes the difference.

Binance has very good chances to become the next Amazon!

Why? Simply because their retail product is awesome fast, trustworthy, have a lot of open communication, offer the relevant products (pairs of trading), zero hassle approach. Good customer service, that cares about the customer itself, a respected, open and charming CEO, open communication to the communities.

The biggest weakness of Binance? They are a centralized organization. And like every centralized company, it can be seized, governments can take over control of the exchange, software, funds in wallets, etc. And of course, your funds are always under risk, if you deposit them in a central exchange. If you don’t control your keys, you don’t control your crypto. Binance, however, has implemented a #SAFU funds, to deal with emergencies, where customers lose their money.

Binance cryptocurrency investment report 01.19

Binance (BNB): Probably the strongest investment story on cryptocurrency 

The development of Binance as an exchange platform is dependent on the cryptocurrency market development. High volatility generally speaking is good for Binance, because it means high volume trading. When Bitcoin jumped towards $20,000 in December 2017, Binance made record profits. The trading of retail investors, smaller institutions and whales led to record quarterly EBIT results.

This has calmed down during 2018. Sales pressure and low buy volumes take a toll of Binance profits. Not to forget: the collapse of the ICO market, losses on Altcoins or Shitcoins over 90%, have a negative impact on the investor’s sentiment. Still, Binance trades between $500 – 700 million per day.

Extremes are always temporary events. The cryptocurrency market will soon balance out and find its midpoint, where sales and buy orders level out. Those investors with the guts to buy when blood is on the street, will be rewarded just like the people who sold in times of euphoria.

Not everyone is going to survive this carnage. Some exchanges will have to give up, Liqui.io is just one of them. One company that is definitely going to survive and is prospering during the bear market is Binance (BNB). The token has significantly outperformed other cryptocurrencies during this bear market. Binance lost as well in value, compared to the peak performance, however, the recovery after the bottoming out, looks very promising and strong for me.

There is a saying, the bank always wins. During a recession or boom periods, the bank always earns a solid profit on the services provided. Same applies for Binance. Be it a bull or bear market, the exchange always profits from trading fees. The trading fees might be higher during bull periods of course. So are the costs, like more customer service, support, IT, data, servers, etc… Therefore an exchange will, of course, adjust the cost basis during a bear market to manage the level of profitability, For sure, at the moment, there are only very few more lucrative businesses in blockchain than Binance.

Binance has the realistic chance to dominate the cryptocurrency exchanges in future and become an Amazon for blockchain. A strong exchange business, the development of a decentralized exchange on top, Binance lab as an incubator for blockchain projects are the key arguments that support this bet.

Investment Rating for Binance Token BNB 

Time of writing: 29/01/2019

BUY 

Short to mid-term buy in the range of:
5.50 – 8.50 USD

Investment Valuation Scores for Binance Token BNB 

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Binance (BNB) Token

Investment Rating: Buy Binance Token (BNB)
Buy Up to Price / Accumulate: $5.50 – $8.50
Stop Loss: $4.80
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor

Time of writing 29/01/2019


Cryptocurrency Exchanges: Where to buy Binance (BNB) Token? 

Best Exchanges to buy Binance Token (BNB): 

At the time of writing, BNB is being traded in 106 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume is Binance.

Buy It On:  Binance (RECOMMENDED)

binance cryptocurrency exchange for bitcoin altcoin trading        

Coinbase exchange for beginners


How to store Binance Tokens (BNB)? 

BNB Tokens are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for BNB too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

Price Scenarios and assumptions for Binance Token (BNB)  

Bull Case Scenario:
Target price range 15.10 – 22.00 USD
(Assumes recovery of the cryptocurrency market)

Base Scenario:
Target price range 9.25 – 10.30 USD

(Assumes that the market turns around and no significant negative impact from launches of competitive exchanges)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 4,80 USD (-23%)
(Assumes continuing bear market, competitors offer a better protocol)

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Time Horizon for Binance Token (BNB)

Our target prices are based on mid-term to long-term scenario estimates.

Note that the current market development and the chart development of BNB do not indicate a turnaround from the downward trend. Cautious investors should wait for turnaround signs of the market and BNB.

Out mid-term definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Chart Development of Binance Token (BNB)

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Key research findings: Binance Coin (BNB)

Part 1): Company Background and Recent Updates of Binance Token (BNB)

Binance has been founded in during Summer 2017 by Mr. Changpeng Zhao, well known among the Twitter community as @CZ_binance. At the point of launching, Binance provided very compelling reasons for investors and traders to use the platform:

  • fast order execution
  • transparent order book
  • broad pairs of cryptocurrency pairs
  • high liquidity
  • simple onboarding process
  • straightforward UX

In addition to this Binance somehow managed to stay away from the bad press, e.g Pump & Dumps, hacks, fake ICOs, etc. Today Binance can transact over 1.4 million transactions per second (according to their website). That’s probably record-breaking among the crypto exchanges. Binance managed to increase very quickly the user base, estimated to be around 10.000.000 by end of 2018 and developing very fast.

And Binance continues in the race of dominating the cryptocurrency trading. Or as CZ said during a conference in Singapore: „Fiat is still where all the money is in. … And we’ve got to open that gate“. They plan to open 5-10 crypto exchanges during 2019.

In addition, CZ from Binance launched a venture called Binance Labs in September 2018. This is an Incubator program for Blockchain projects with the aim to bootstrap cryptocurrency start-ups of all kinds. Similar to what the Silicon Valley corporations have been doing over the last 20 years. They acquired various companies with interesting products to absorb their solutions. Binance goes the route of early-stage Venture Capitalists by funding start-ups in-house. More than 500 applications were sent to Binance in the first season of the Incubator program. From that number, Binance chose only eight teams they will support.

The use cases of Binance Token BNB

The blockchain is still a very young industry and in today’s landscape, a lot of cryptocurrencies exist as token bets on services that have yet to translate to actual use cases and products. Only few Cryptocurrency Coins have a clear use case linked to the blockchain, like Bitcoin (store of value), Ether (powering transactions and smart contracts), Monero (privacy coin).

With the Binance (BNB) token you can:

Pay for the exchange fees on Binance for your cryptocurrency trading orders. The use of BNB to pay for transaction fees give users at the beginning a 50% discount compared with the prevailing rate for other cryptocurrencies. That discount has changed to 25% recently, as stated in the Binance whitepaper, but it’s still a great deal for the cryptocurrency traders.

Pay with BNB for services or goods across many websites.
Binance managed to convince some first adopters to implement payments with BNB. They have a clear focus to increase the network of merchants and establishments that accept BNB. We expect use cases to grow further, as they support more blockchain innovators via Binance Labs and Binance Launchpad.

On CryptocurrencyInvestment.org you can pay the Membership fee with Cryptocurrencies (including BNB) too.

And until further use cases are developed, Binance has an ongoing commitment to decrease the total supply of BNB in the market. Every quarter since it launched, Binance committed to using 20% of the profit to buy back Binance Tokens and burn them permanently.


Twitter Feed Binance Token (BNB)

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Part 2): The Team and the Investors of Binance (BNB)

The Binance team is comprised of members from a wide variety of backgrounds and experiences including blockchain engineering, investment banking, strategy consulting, academic research, and data science. CEO is as mentioned Mr. Changpeng Zhao. On LinkedIn we found 673 employees worldwide.

This is most probably one of the largest teams in cryptocurrency.

Part 3): Valuation of Binance Coin (BNB)

Like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum).

Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for Binance Coin (BNB) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Binance Token doesn’t have much of a long-term track record or history of credibility to back it. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is LOW for Binance (BNB). 

 

Risk 1: Market Volatility for Binance Token 

Cryptocurrencies and BNB included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 8-12% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the BNB Token has seen wild swings in price over its short existence.

The volatility of BNB Token fluctuates between 2.00 USD to 22.00 USD. Larger swings on a daily basis between 2-5% are rather usual than exceptional.

We see the Binance BNB cryptocurrency coin currently in a side-trend, consolidating around 5.80-6.50.

 

side chart binance cryptocurrency investment report

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Binance BNB  

Company inherent risks are:

  • Security breaches and hacks of the Binance exchange. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The best ideas are worth nothing if there are no high skilled people to execute. The expertise of the leadership team and especially of the CEO CZ_Binance at BNB is crucial for success.
  • Decentralized exchanges could win over trading volume from Binance over time if Binance can not offer an adequate decentralized offer.

The BNB Token price is quite dependent on the total market situation and the development of the cryptocurrency / blockchain industry. Negative developments in the industry, e,g, on Bitcoin, Ethereum and other main Cryptocurrencies will affect the price development of BNB.

 

Risk 3: Regulatory Risk for Binance BNB Token

BAT raised money through an ICO (Initial Coin Offering) (15m USD, Summer 2017). As a result, governments may conclude that BNB tokens are securities and might seek to regulate, restrict or ban the use and sale of tokens. Or the SEC might enter into a legal dispute with Binance.

 

Risk 4: Investors Risk Binance BNB Token – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Binance BNB is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? 

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 4.80 USD for BNB, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 4.80 USD, your Stop Loss Order will be executed and you would automatically sell at 4.80 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates of the Binance cryptocurrency investment report. We will publish updates to Binance BNB on a regular basis.

Disclosures:

The Authors do own small quantities of BNB tokens for trading on Binance. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

Stellar Lumens (XLM) cryptocurrency investment strategy and report

Stellar (XLM) Cryptocurrency Investment Research Report

Stellar (XLM) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Stellar (XLM) Lumens

The Stellar network is a mix of a blockchain based ledger and database that allows cross-asset transfers and crypto payments. The crypto token of the Stellar blockchain is called Lumens (XLM). Stellar is the blockchain and the payment network and Lumens (XLM) is the cryptocurrency. Both are governed by the non-profit organization Stellar.org.

Stellar describes itself as a platform that connects banks, payments systems and people. The main use case should be to move money across borders quickly, reliably, and for at almost no cost.

The software of the Stellar network is open source and developed by the community. Stellar was originally based on the Ripple (XRP) protocol. After a fork from Ripple, Stellar was formed by changing to a consensus code. The functions of Stellar are similar to Ripple. The Stellar network can handle exchanges between cryptocurrencies/tokens and FIAT currencies. Exchanges and transfers are very fast and similar to Ripple.

Although Stellar.org, the organization that supports Stellar and Lumens, is managed as non-profit, it is centralized like Ripple. Stellar.org is handling cross blockchains/platform transactions and very small microtransactions. Similar to Ripple (XRP) the Lumens token has a transactional role and serves for the transfer of value. Speculation on price increases of Lumen is, therefore, a bet on the adoption of the Stellar network.

The Investment Story for Stellar (XLM) Lumens Cryptocurrency

Stellar / Lumens (XLM) is a Top 9 Coin at Coinmarketcap at the time of writing.

Our team analyzed intensively the Stellar network and the use cases of (XLM) Lumens. Since Stellar is a fork of Ripple (XRP) it has similar “features and bugs”. In a nutshell, Stellar is comparable to a simple version of PayPal. You can transfer money in more or less every currency around the globe instantly. However, this comes at the price of a centralized organization.

The features are:

  1. Very fast transfers (close to real-time settlement 2-5 seconds, similar to credit card transactions)
  2. Low costs for small transfers ($0.01 fee handles 600,000 transactions)
  3. Fast transfers for different currencies (automatic currency exchange)
  4. The software is open source, organization managing Stellar is nonprofit.

The bugs are:

  1. It’s a centralized organization
  2. Trust-based system and not comparable to decentralized blockchain solutions

The Stellar Protocol operates on the basis of an open membership system: any user can serve as a validation node. However, there are no incentives for nodes and the validation process. Currently, the platform has about 30 nodes powering the Stellar network. On Stellar, there are no economic rewards for validators; they dedicate their resources to maintaining the network purely on free will or based on central guidance and financing.

From an investor point of view, the only reason to hold Stellar (XLM) Lumens is that you plan to transfer money to other users, pay for services etc. The value of the coin will most probably move “with the market”. Growth in value is only expected if the adoption of Stellar grows exponentially.

Stellar XLM Lumens cryptocurrency development XLM USDT

Stellar XLM Lumens is not a strong investment story

The Stellar protocol is designed to change the financial sector, like PayPal did. The platform fees are really low, and their approach in facilitating cross-border money transfers is certainly a remarkable point. However, Stellar is still very far from disrupting the banks or becoming a leading force for value transfer. It as well cannot repalce banks, since the services are limited to the very narrow “Cash transfer”.

By and large, the platform’s ultimate success absolutely depends on its adoption by the masses or other financial institutions. Financial institutions could however move to Ripple (XRP), which has the larger organisation and structure. Private people and retail investors have many alternatives to XLM. Many other blockchain projects offer similar speed, costs in transactions and are less centralized.

Based on these we do not recommend Stellar (XLM) Lumens as an investment for the time being.

Investment Rating for Stellar XLM Lumens  

 

SELL 

Sell during stronger demand periods.

Investment Valuation Scores for Stellar XLM Lumens Token 

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Stellar (XLM) Token

Investment Rating: Sell Stellar XLM
Buy Up to Price / Accumulate:
Stop Loss:
Position Size:


Cryptocurrency Exchanges: Where to buy or sell Stellar (XLM) Token? 

Best Exchanges to buy Stellar XLM Coin: 

At the time of writing, XLM is being traded in 202 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume is ZB (Korean).

Buy It On:  Binance (RECOMMENDED)

binance cryptocurrency exchange for bitcoin altcoin trading        

Coinbase exchange for beginners


How to store Stellar XLM? 

XLM Tokens are proprietary tokens to the Stellar network. Wallets for Stellar to be downloaded only through reliable sources. Due to safety reasons, we do not include links to wallets. Please check Stellar.org.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use your own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED)

Price Scenarios and assumptions for Stellar (XLM)  

Bull Case Scenario:
Target price range 0.10 – 0.11 USD (125% – 137%)
(Assumes recovery of the cryptocurrency market)

Base Scenario:
Target price range 0.08 – 0.09 USD
(Assumes that the market turns around and no significant negative impact from launches of competitive exchanges)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.05-0.06 USD (-38%)
(Assumes continuing bear market, competitors offer a better protocol)

stellar
Stellar
$0.271

Chart Development of Stellar Lumens (XLM)

  • stellar
  • Stellar
    (XLM)
  • Price
    $0.271
  • Market Cap
    $6,286,279,384.00


Key research findings: Stellar Lumens (XLM)

Research Background and Recent Updates of Stellar XLM

 

Stellar network aims to a global payment platform, an alternative to existing financial institutions.

They have a Ripple XRP like working product with extensive documentation and tooling, including an API and developer-centric platform. Big advantages are quick transaction times and very low fees.

Less positive are the central way of working for Stellar. Similar to Ripple, about 30 nodes control the network. There is no reward for independent nodes to participate in the validation process.

How does Stellar Inflation work?

Stellar does not use proof-of-work (PoW like Bitcoin) or proof-of-stake (PoS) like Qtum. It also does not use a dividend reward system such as Neo’s Gas generation. So you are asking how do you receive rewards, the answer is inflation. The Stellar distributed network has a built-in, fixed, nominal inflation mechanism. New lumens are added to the network at a rate of 1% each year. Each week, the protocol distributes these lumens to any account that gets over 0.05% of the “votes” from other accounts in the network.

Means in order to participate in the voting, you must own a minimum 0.05% of the coins (roughly $1,000,000 in XLM). This sounds like a rewards programme for the owners or whales, less for normal users. Small retail investors can, however, attend voting pools and stake their coins.

Summarized: Strong technology might not be enough if it runs on centralized nodes. Quick transactions “speak for itself”, but might be copied by other projects.

Stellar has to develop a route to adopt masses in order to have a long-term future. The very nature of cryptocurrency is so unpredictable that good projects may find themselves swept away with the rest of the 99% of projects that will fail.


Twitter Feed Stellar Lumens (XLM)

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Valuation of Stellar XLM

Please note like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum).

Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Investment Risks for Stellar XLM and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Binance Token doesn’t have much of a long-term track record or history of credibility to back it. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is HIGH for Stellar (XLM). 

 

Risk 1: Market Volatility for Stellar XLM Token 

Cryptocurrencies and XLM included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 8-12% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the XLM Token has seen wild swings in price over its short existence.

The volatility of Stellar XLM fluctuates between 0.015 USD to 0.85 USD. Larger swings on a daily basis between 2-5% are rather usual than exceptional.

We see the Stellar XLM cryptocurrency coin currently in a downward trend, no consolidation in sight.

 

Stellar Lumens XLM development cryptocurrency investment strategy

Source: Coinmarketcap

 

Company Inherent Risks for Stellar XLM  

Company inherent risks are:

  • Security breaches and hacks of the Stellar protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The best ideas are worth nothing if there are no high skilled people to execute.
  • Decentralized cryptocurrencies could develop their software and offer similar execution time, low fees.

The XLM Token price is quite dependent on the total market situation and the development of the cryptocurrency/blockchain industry. Negative developments in the industry, e.g. on Bitcoin, Ethereum and other main Cryptocurrencies will affect the price development of XLM.

 

Investors Risk Stellar XLM (Lumens) – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Stellar XLM is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? 

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 0.08 USD for XLM, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 0.08 USD, your Stop Loss Order will be executed and you would automatically sell at 0.08 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates of the Stellar (XLM) Lumens cryptocurrency investment report. We will publish updates to Stellar XLM on a regular basis.

Disclosures:

The Authors do not own Stellar XLM. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

Basic Attention Token BAT Coin Research Report Cryptocurrency Investment Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Basic Attention Token (BAT)

Basic Attention Token (BAT) is an Ethereum blockchain based advertising exchange platform connecting publishers, advertisers, and users. BAT is the ERC-20 utility token used on the platform and it is integrated with the Brave web browser. Basic Attention Token plans to significantly improve the efficiency of marketing on the internet, especially digital advertising by creating a new system that rewards users for viewing ads.

The Investment Story for Basic Attention Token (BAT)

Basic Attention Token (BAT) is a Top 36 Coin at Coinmarketcap at the time of writing.

Basic Attention Token (BAT) is designed to revolutionize the advertising industry. The idea behind the platform is brilliant. A revolutionary digital advertising and rewards platform that rewards users in BAT tokens for any ads they opt into seeing. BAT locally matches ads to users without any tracking or data collection required. Brave is a new, privacy browser that blocks all third-party ads and trackers by default.

Its a token for an industry estimated to turnover over $200 billion per year. The key issue of this industry is click fraud, view fraud and other forms of abuse. Generally, the advertising industry pays the content publishers (websites, youtubers, content producers, social media influencers) for the views or clicks they generate with their audience.

BAT enters this field to facilitate the transactions between publishers, the advertising industry and users for their attention. By adding the users to the process, registering everything on the blockchain, the process of view and click rewards becomes transparent and fraud gets minimized. User wins, they get a payment for their attention, advertisers win, they don’t have to pay for click fraud and publishers win, as they can fully monetize the content.

Investment Rating for Basic Attention Token BAT

 

ACCUMULATE

Mid term accumulation in the range of:
0.11 – 0.12 USD

Investment Valuation Scores for Basic Attention Token BAT

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Basic Attention Token (BAT)

Investment Rating: Accumulate Basic Attention Token (BAT)
Buy Up to Price / Accumulate: $0.11 – $0.12
Stop Loss: $0.08
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor


Cryptocurrency Exchanges: Where to buy Basic Attention Token (BAT)? 

Best Exchanges to buy Basic Attention Token (BAT): 

At the time of writing, BAT is being traded in 67 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume are 55 Global Markets from Korea, Binance and Coinbase.

Buy It On: Binance (RECOMMENDED), Coinbase

Coinbase exchange for beginners

binance cryptocurrency exchange for bitcoin altcoin trading        


How to store Basic Attention Tokens? 

BAT Tokens are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for BAT too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

Price Scenarios and assumptions for Basic Attention Tokens BAT  

Bull Case Scenario:
Target price range 0.30 – 0.35 USD (250% – 292%)
(Assumes step by step acceptance of the business model through media companies and adoption of the Brave browser)

Base Scenario:
Target price range 0.25 – 0.30 USD (208% – 250%)
(Assumes that the market turns around and an average adoption rate of the browser that builds over time)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.08 USD (-34%)
(Assumes low adoption of decentralized exchanges, competitors offer a better protocol, bear market environment for crypto)

Basic Attention Token(BAT)
$0.546 -6.95%(24H Vol)
$96,527,613.00
7D Chart

Time Horizon for Basic Attention Token (BAT)

Our target prices are based on mid-term to long-term scenario estimates.

Note that the current market development and the chart development of BAT do not indicate a turnaround from the downward trend. Cautious investors should wait for turnaround signs of the market and BAT.

Out mid-term definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Chart Development of Basic Attention Token (BAT)

  • basic-attention-token
  • Basic Attention Token
    (BAT)
  • Price
    $0.546
  • Market Cap
    $817,984,156.00


Key research findings: Basic Attention Token (BAT)

Part 1): Company Background and Recent Updates of Basic Attention Token (BAT)

It took a few decades of development to have fast internet, fast devices, new tracking methods in more or less every corner of the world. Digital advertising jumped on this train and used the developments to grow exponentially many years. It’s in the meantime the biggest segment of the advertising industry. TV, Radio, Sponsoring are generating as well high numbers, however, ranking below digital advertising.

Basic Attention Token market growth potential

And this industry is still growing rapidly. Advertising became very targeted during the last years. Personalized advertising, based on your interest and behavior has taken over the spill broad advertising we know from the past.

This is not the end of the growth trend. The higher the personalization and the better the tracking possibilities, the more money will be spent to target consumers. The industry analysts expect that digital advertising will again double during the next 2-3 years. This itself is exceptional news for an investor. However, to identify a player in the blockchain industry, that could add significant value to this billion industry, is even better news.

Basic Attention Token is the player who is extremely far in the process to come out with products and solutions, that can take the world of digital marketing like a Tsunami.

Our conclusion: Basix Attention Token (BAT) is a highly undervalued cryptocurrency project, with a real working product and a very strong and highly committed team.
If they manage to achieve adoption for the Brave Browser, we will see this project raising in the years to come. The success of the BAT Token depends on the adoption of Brave.

It is an amazing opportunity to buy this token for a long-term investor. Don’t expect that the revolution will happen fast. Expect a step by step development at the beginning, before it goes exponential.

The use case of Basic Attention Token BAT

BAT turns the current advertising model inside out. If you surf the internet today and you get bombarded with advertising, you do not get paid for your attention, your time, or the electrical power and data you’re consuming, to view that advertising.  Someone is just using you, to earn money for your attention. As long as this advertising is very helpful too and supports you in finding the right things, identifying solutions for your issues, this might be ok and acceptable.
But more often than not, you feel abused by the marketing industry, wanting to sell you another vacation, flight, book, hairdryer, you name it.

BAT is working to give users back the control over their own attention. Attention should become a conscious behavior, you decide what you what advertising you want to see and get rewarded for it.

cryptocurrency research how it works basic attention token bat

Source: Basicattentiontoken.org

 

How is Basic Attention Token BAT working?

In very simple words:  Today you surf the web with a Google Chrome, Microsoft Edge or Apple Safari browser.
And there are 2 options: Either you use an extension to block advertising or not. Most people have a regular installation and do not block advertising.

Basic Attention Token has developed an own browser called Brave Browser. The Brave Browser allows you to opt-out of not wanted advertisements. And in Brave, you get rewarded in BAT for seeing ads. Or you can tip content contributors, publishers, etc.

The mission and goal of BAT is to dramatically improve the efficiency of the digital advertising industry by using the power of the blockchain. The Brave market place, allows publishers and users to trade advertising and attention-based services.

The system works anonymously and there are no middlemen or service agencies to track, store and sell your private data with this model. This is probably the key reason why Google and Microsoft are not big fans of this advertising distribution model. Their business model consists of being a middleman and charging for the services to distribute advertising to users, by using private user data, they accumulated over time.

 

cryptocurrency Investment report basic attention token BAT

Source: Brave.com

 

BAT is a Robin Hood for the advertising industry

Advertising is expensive for the user. Yes, for the user. Some studies estimate that up to 79% of data traffic on mobiles comes from advertising and as much as 21% of battery life. In a nutshell, we the web users are being monetized but not rewarded.

The marketing industry is abusing us to achieve their financial goals. This is where Brave and BAT get attractive. If you use Brave and opt-in to receive ads with BAT, you will be able to receive some % of the ad revenue depending on the ad type the current publisher uses.


Twitter Feed Basic Attention Token (BAT)

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Part 2): The Team and the Investors of Basic Attention Token (BAT)

Bredan Eich (Founder and CEO) and Brian Bondy (Co-Founder) are highly rated in the Web industry. They are the creators of JavaScript, co-founders of Mozilla and Firefox which set their qualifications on the highest levels. The project was funded by Founders Fund, Foundation Capital, Propel Venture Partners, Pantera Capital, DCG, Danhua Capital, and Huiyin Blockchain Venture among others.

Part 3): Valuation of Basic Attention Token (BAT)

Like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum). Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for Basic Attention Token (BAT) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Basic Attention Token doesn’t have much of a long-term track record or history of credibility to back it. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is MEDIUM for Basic Attention Token (BAT). 

 

Risk 1: Market Volatility for Basic Attention Token 

Cryptocurrencies and BAT included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 15-25% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the BAT Token has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news.

The volatility of BAT Token fluctuates between 0.07 USD to 0.83 USD. Huge swings on a daily basis between 5-10% are rather usual than exceptional.

We see the BAT token currently in a downward trend, that seems to stabilize around 0.11 – 0.12 USD.

Basic Attention Token BAT development cryptocurrency investment chart

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Basic Attention Token (BAT) 

Company inherent risks are:

  • Security breaches and hacks of the Basic Attention Token blockchain and protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The best ideas are worth nothing if there are no high skilled people to execute. The expertise of the leadership team at BAT is crucial for success.
  • The Brave browser suffers a lack of acceptance and the economic model behind the token will not prosper. The Browser market is dominated by Google. And Goolge might not allow BAT to develop an extension for Google Chrome that blocks Googles Business model.

The BAT Basic Attention Token price is quite dependent on the total market situation and the development of the cryptocurrency / blockchain industry. Negative developments in the industry, e,g, on Bitcoin, Ethereum and other main Cryptocurrencies will affect the price development of BAT.

 

Risk 3: Regulatory Risk for BAT Basic Attention Token

BAT raised money through an ICO (Initial Coin Offering) (15m USD, May 2017). As a result, governments may conclude that BAT tokens are securities and might seek to regulate, restrict or ban the use and sale of tokens. Or the SEC might enter into a legal dispute with BAT Basic Attention Token.

 

Risk 4: Investors Risk BAT Basic Attention Token – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Basic Attention Token (BAT) is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? (BAT)

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 0.08 USD for BAT, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 0.18 USD, your Stop Loss Order will be executed and you would automatically sell at 0.18 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates. We will publish updates to BAT Basic Attention Token on a regular basis.

Disclosures:

The Authors do not own BAT  tokens. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

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Monero (XMR) Cryptocurrency Investment Research Report

Monero (XMR) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction to Monero (XMR)

Let’s start with a question: How would you feel if anyone was allowed to check your bank account and how much money you had? And what if they could see how many transactions you did yesterday and to whom? Sounds like a nightmare to you too?

Money anonymity and financial transaction privacy are some of the most sought after things.

Monero (XMR) is a secure, private, untraceable cryptocurrency build on open source. It has been created to offer the anonymity that couldn’t be achieved with Bitcoin. In their own words: “Monero is cash for a connected world. It’s fast, private, and secure. With Monero, you are your own bank. You can spend safely, knowing that others cannot see your balances or track your activity.” Monero (XMR) is not directly comparable to Bitcoin. It uses a different kind of cryptography to allow for the privacy attributes.

 

cryptocurrency investment monero xmr the coin research logo monero

Source: Reddit

Monero has a bit of history, compared to the very young new cryptocurrency coins or ECR20 tokens. Monero was built upon a strong set of ethics and principles of decentralization and scalability. It was launched in the first quarter of 2014, without an ICO, or pre-mining. The governance and community approach behind the development of Monero is completely based upon donations from the token users themselves.

The Monero developers aim towards creating a cryptocurrency that works just like cash including complete privacy of all transactions and the parties involved in it. While on the Bitcoin blockchain you can see Address XYZ sent 5 BTC to Address ABC on Monero you will not be able to see anything. Not the addresses, not the amounts. Monero uses unique one-time addresses for each transaction so that only the receiver knows where the money went.

The Investment Story for Monero (XMR)

Monero (XMR) is a Top 14 Coin at Coinmarketcap at the time of writing.

Monero (XMR) is designed to offer private digital money transfers. However, secure, private and untraceable transactions of funds are not the only thing that this cryptocurrency ecosystem can offer. Since 2014, the Monero blockchain has been upgraded with other services, like smart contracts.

Smart contracts on Monero are based on the same anonymity and ethical principles. Smart contracts are one of the key drivers of the blockchain ecosystem. However, smart contracts with added anonymity and confidentiality which are absolutely not traceable, are new and only available at Monero.

From a technical point of view, the way Monero is able to make transactions untraceable is through a technology called ring signatures. It essentially mixes an individual’s set of transactions with others so it is not clear to the public eye who owns which addresses. Additionally, the technology hides balances completely through stealth addresses which are random one-time addresses that can’t be associated with an individual or a history of transactions.

Investment Rating for Monero (XMR)

NEUTRAL (keep it – if you have it)

No action recommended. Keep it, if you have it.
Wait for a turnaround, before buy.

Info: Our investment recommendations
SELL, NEUTRAL, ACCUMULATE, BUY

Investment Valuation Scores for Monero (XMR)

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Monero (XMR)

Investment Rating: NEUTRAL for Monero (XMR)
Buy Up to Price: no buy recommendation, waiting for a turnaround
Stop Loss:
Position Size:


Cryptocurrency Exchanges: Where to buy Monero (XMR)? 

Best Exchanges to buy Monero (XMR): 

At the time of writing, XMR is being traded in 116 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume are Bithumb, CHAOEX and Binance.

Buy It On: Binance (RECOMMENDED), Enter Cryptocurrency on Binance and Coinbase

BUY MONERO (XMR)

binance cryptocurrency exchange for bitcoin altcoin trading 

ENTER CRYPTOCURRENCY

Coinbase Cryptocurrency Exchange for 0x Protocol ZRX, Bitcoin, Ethereum


How to store Monero (XMR)? 

Monero (XMR) Coins are stored on the Blockchain in proprietary Wallets.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED)

ledger nano hardware wallet from the coin research store 0x protocol zrx

cryptocurrency investment and hardware wallet ledger best hardware ledger

Price Scenarios and assumptions for Monero (XMR)  

Bull Case Scenario:
Target price range: NEUTRAL rating, no price targets

Base Scenario:
Target price range: Rating NEUTRAL, no price targets

Risk Bear Scenario / Stop Loss Scenario:
Target price range: Rating NEUTRAL, no price targets

Monero(XMR)
$242.28 -7.70%(24H Vol)
$245,731,828.00
7D Chart
monero
Monero
$ 242.28
Supply 17,936,468.18 XMR
Volume $245,731,828.00
Market Cap $4,345,649,299.00
Change -7.70%

Time Horizon for Monero (XMR)

We do not recommend a new investment in Monero (XMR) for the time being.

Need to monitor the development of other privacy coins and the development of the total market.

Chart Development of Monero (XMR)

  • monero
  • Monero
    (XMR)
  • Price
    $242.28
  • Market Cap
    $4,345,649,299.00


Key research findings: Monero (XMR)

Part 1): Company Background and Recent Updates of Monero (XMR)

Monero, like all other cryptocurrencies, lost ground since January 2018. It is in a steady decline since then, with no noticeable attempt to bounce back.  For cryptocurrency investors, the big question is whether Monero is a worthwhile investment especially now that it’s at a low price.

Monero XMR is considered as the best coin for crypto investors looking for an anonymous coin. Its distribution and adoption in the darknet are still substantial.

The development and marketing of Monero XMR are very quiet. Again, we speak about a community financed by donations with less financial power compared to the big ICO coins. However Monero has not been known for lots of hype anyhow, it’s more a humble coin, choosing silent routes, that loves the “understatement”.

Question is how will Monero now deal with the upcoming new cryptocurrencies fighting for the title of the best anonymous coin.

cryptocurrencies investments monero xmr privacy coin

Key competitors for Monero are Z-cash Komodo, PIVX,  and to some extent, Verge and Dash have privacy features included as well. Additionally Republic Protocol (REN) develops a new blockchain layer, that would add privacy and anonymity to every available blockchain.

Moneros developers are focused on the technology, working to improve the reliability of the cryptocurrency as an anonymous coin. Marketing and education are not key in their strategies and roadmap for the time being, leading to a deterioration in value and to become undervalued for quite some time now.

Obviously, the negative price development is not great news for Monero, like it’s not for the other cryptocurrencies too. Having other cryptocurrencies implementing privacy features and being loud and active in communication, there is a risk that this might further erode the position of Monero over time.

The use case of Monero (XMR)

Let’s start with the benefits of Monero (XMR) Cryptocurrency:

  • Private: No one can see how much balance you have by looking at the blockchain.
  • Secure: Irreversible cryptographic math secures Monero transactions and wallets.
  • Untraceable: Monero coins can’t be traced back to the blockchain due to encryption.
  • Decentralized: All nodes or wallets are equally eligible to verify Monero coins.
  • Fungible: All coins have the same market value irrespective of time or place.

Monero is special because not all crypto coins are private by design. They’re of course better than your bank account, credit cards or PayPal. Most cryptocurrencies like Bitcoin, Ethereum, EOS, etc. rely on public ledgers and it’s quite easy to monitor transactions of wallets, the history, etc. Public blockchains used for money transactions are like distributing flyers with your bank account statement. Most people are not going to take a look, however, some might.

For business transactions, public ledgers are an even higher risk. Cryptocurrency addresses of the company would be public (because you would like to receive transfers from your customers). Every transaction that goes out of the wallet, linked addresses etc can be traced and tracked. And your competitors will derive some intelligence of it.

Monero has no public transparency on the transactions, addresses are designed for one-time use and assigned to each transaction. Only the receiver knows where the money went. Transactions in Monero (XMR) can be made optionally transparent. Read-only keys can provide a view on historical transactions, useful for auditors, your accountant, tax advisor, etc.


Twitter Feed Monero (XMR)

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Part 2): The Team and the Investors of Monero (XMR)

Monero XMR is entirely open-source. It has a dedicated team and over 350 people have made contributions since launch. It’ s probably one of the largest open source teams on Github.

There is no aggressive development or management on Mondero. The currency will continue to develop at a steady pace, rolling out new usability features and adapting to changes in the industry as they arrive. Monero doesn’t have a detailed public roadmap, but its contributors consistently deliver the upgrades they promise.

xmr monero team for cryptocurrencies investments and the coin research