Bitcoin’s march is in full swing. During such runs, some investors hold the majority of their portfolios in BTC, while the others try to catch strong movements in altcoins with much lesser capitalizations. Active traders seek to timely switch between BTC and alts to increase the total value in BTC and not only in USD.

There are some fascinating patterns and interdependencies in the crypto world that may help you decide which strategy to employ.

Correlation

You’ve probably heard that cryptocurrencies are highly correlated and seen a matrix like that:



For those who have not. A correlation matrix is a table showing correlation coefficients between variables. The coefficient indicates the strength and direction of a linear relationship between two random variables. In our case, between the prices of two coins. A correlation coefficient is always between +1 and -1. A value of 0 indicates that there is no linear relationship between the prices of two coins. A value of +1 indicates that the prices perfectly mimic each other, a value of -1 is the same as +1 but the prices change in the opposite directions. In our example, the smallest coefficient is 0.717 between IOTA and ADA, it is considered a strong positive relationship.

The table shows some useful information:

“herd behavior”, major coins follow along pretty much the same path
diversification opportunities among the top coins are not that great since there is evidence of a strong positive relationship between them. To effectively diversify you need low/not high correlation among portfolio constituents.

The matrix, however, hides some important peculiarities of cash flow movements in crypto, which is going to be the main focus of this article.


The law of communicating vessels

Have ever noticed that when BTC is strong and is about to skyrocket, altcoins stand humbly in its shadow? Bitcoin literally siphons funds from other cryptocurrencies. When the run is over and BTC is on break, money flows back to altcoins which, in turn, come to the forefront quickly closing the gap. This pattern recurs consistently in the bull market. For a better understanding, let’s take a closer look at the recent surge of BTC in the context of some large-cap altcoins quoted against it.



You can clearly see the phases in which BTC moves up absorbing money from the market and where it takes a break allowing altcoins to get their share of glory. Interestingly enough, this latest quick drop from $11,200 to $10,300 (22 Jun ’19) was not continued by the same reaction, altcoins further depreciate in BTC. Does it mean that the run isn’t over yet? According to this pattern
—
yes. Probably, by the time this article is published, the answer will be already plotted on the live chart. You can check it here (press the button on the chart to load new bars).


Hindsight

On the road to 20k in late 2017, the same pattern was present. Money has been moving between BTC and altcoins forming similar cycles.



An obvious question: how it all ended up with respect to our observations?



After 7 Dec ’17, beginning from a standard correction of BTC, altcoins started ignoring its further movements and were steadily appreciating in BTC. Around the red vertical line, where altcoins started entering the “green zone” against BTC the market finally collapsed. It does not mean that the next huge correction will be happening in the same way, however, when the pattern is broken, you should be especially cautious.

Conclusion

First, the charts above can help you understand in which state of a bull run we currently are. Second, if you are an active trader, this information may assist in the decision-making of whether to stay in BTC or switch to alts. This indicator should not be used as a decisive factor, but rather as a supplementary tool.

There are other intriguing aspects of money flows in crypto that are not covered in this article. This relates to how market manipulators force average traders to make mistakes by pumping BTC separately from altcoins, plus how they make additional profits with smaller initial cash outflow by knowing the order in which altcoins will be pumped. Maybe there will be an article on this topic too.


Sobering reminder

Looking at this crazy daily chart of BTC/USD and monitoring all this positive news you should be careful, the market is reaching its boiling point. Avoid leverage and decisions based on the feeling of missing opportunity, stay safe.

Handy links to stay tuned to our updates:

Website: https://blackmoonplatform.com

Telegram channel: https://t.me/blackmooncryptochannel

Facebook: https://www.facebook.com/blackmoonfg/

Twitter: https://twitter.com/BlackmoonFG

Reddit: https://www.reddit.com/r/BlackMoonCrypto/

DISCLAIMER


Investment in cryptocurrencies carries a high degree of risk and volatility and is not suitable for every investor; therefore, you should not risk the capital you cannot afford to lose. Please consult an independent professional financial or legal adviser to ensure the product meets your objectives before you decide to invest. Regional restrictions and suitability checks apply.

Dear Blackmooners,

We have a lot of changes ahead of us, that is why we will move to a new domain BLACKMOON.NET this week.

Current domain name blackmoonplatform.com will remain with redirection to the new. The only action you need - refresh login with your login/password and 2FA (we strongly recommend to use it).

In case of any questions please contact information@blackmoon.net.

Kind regards,

Blackmoon Team

128% this is the year to date return of the general crypto market. This means that cryptocurrency owners saw their holdings more than doubled in less than six months. As mentioned in my previous post, there are good reasons to be bullish on blockchain. Here are five tips to keep in mind when investing in any asset, including cryptocurrencies.


1. Write down your investment strategy.

Seriously. Just write it down. It doesn’t matter whether your strategy is “buy and hold” or active management in a certain universe of coins. When you write your strategy down, first, you formally articulate it and, second, you are less likely to deviate from it in the future.

The write-up could include just a handful of items:

How much to invest;
Stop loss level (especially if you engage in speculative trading);
Take profit level;
Time horizon to measure the results and/or review the strategy.

This will save you a great deal of money and nerves in the future.

Example: I will allocate $1,000 to coin A in my portfolio. I will exit position should the value decline to $750 or reach $1,500. I will review my strategy on the 20th of September.


2. Be ready to tell apart signal versus noise.

All investment channels in both fiat and especially crypto are overloaded with information. Make sure that you don’t base your investment decisions on the noise.

Price and only price is a fact. Everything else is just an opinion. Take it with a grain of salt. Rule of thumb here is the longer your investment horizon, the less information you really need within your investment period.


3. The market can remain irrational longer than you can remain solvent.

It is believed, that the quote belongs to the renowned macroeconomist John Maynard Keynes. Just like in the previous point, the price is a fact. Even if you strongly believe that the market is overvalued or undervalued, don’t rush to get into a trade unless you get strong evidence that the market is moving in the right direction.

It is especially important for leveraged short positions, where a single strong market movement could wipe out your portfolio.

4. Don’t take leverage unless you have years of experience in trading.

Leverage is serious and should be taken seriously. Leverage was introduced in traditional fiat world to amplify volatility of not so volatile assets like major currency pairs or stocks, where even a 5% change during the day is already a large move to make it to the headlines of the evening news. Surely, cryptocurrencies are way more volatile. You can check Investopedia speculating on this matter.

This means that you should think of using leverage only if you are both, extremely confident in your view and have sufficient experience in trading to actively manage your position. By all means, this includes having a written investment strategy to control your risk.

All in all, leveraged positions are more a tactical instrument that should not form a substantial part of your investment portfolio.


5. Diversify your investments.

Diversification and investment come together. Your investment portfolio should be diversified. First, your investment portfolio should include both crypto and fiat assets. Second, even on the crypto level, your portfolio should be well diversified.

There is nothing wrong with strategically overweighting certain coins and underweighting others, but it’s rather foolish to have your crypto allocation fully represented by one coin. If you are not convinced, watch this 5-minute video by Ray Dalio, American billionaire investor and hedge fund manager.

Direct diversification, like purchasing a wide variety of stocks, might be costly for the majority of investors. In the fiat world, investors could save on the transaction fees buying products that represent a portfolio of stocks, like those issued by iShares, the division of Blackrock. For crypto, you could browse Blackmoon products, for instance, Top 10 market cap.

Cryptocurrencies represent a new investment frontier and, according to Cambridge Associates, should become a part of a well-diversified investment portfolio. Like with any other investment, rigorous and well-defined strategy trumps the game of chance and yields better returns to the investors.

Define your investment strategy, filter away noise, take the price for the fact and consider everything else as an opinion, don’t play with leverage and diversify your investments to boost your chances for success.

Handy links to stay tuned to our updates:

Website: https://blackmoonplatform.com

Telegram channel: https://t.me/blackmooncryptochannel

Facebook: https://www.facebook.com/blackmoonfg/

Twitter: https://twitter.com/BlackmoonFG

Reddit: https://www.reddit.com/r/BlackMoonCrypto/

DISCLAIMER

Investment in cryptocurrencies carries a high degree of risk and volatility and is not suitable for every investor; therefore, you should not risk the capital you cannot afford to lose. Please consult an independent professional financial or legal adviser to ensure the product meets your objectives before you decide to invest. Regional restrictions and suitability checks apply.

The cryptocurrency market is experiencing tectonic changes. It’s not about a 108.36% increase in the cryptocurrency capitalization this year. It’s about the projects who weathered the crypto winter and entering the field.

Pillars of the traditional financial market are coming…

The market seems to start maturing, with institutional investors increasing their exposure to crypto. On May 31st the number of Bitcoin contracts on the Chicago Mercantile Exchange reached an all-time high. Cambridge Associates in their research mentioned that the industry “is developing, not faltering” and suggested that institutional investors should begin exploring it. Finally, according to Binance research, institutional investors were buying units in Grayscale Bitcoin Trust at a 40% premium.

Given my VC background, I find the following evidence even more conceiving than the mere price of bitcoin. It’s the established companies tapping the waters. In June Apple revealed that iOS 13 would have a cryptographic developer tool. Prior to that in March Samsung presented cryptocurrency wallet for its flagship phone. Nevertheless, both Apple and Samsung are merely addressing the needs of the existing cryptocurrency community, without meaningfully contributing to its growth.

New long awaited coins: Grams (TON) vs GlobalCoin (Facebook)

There are two major IT projects that are set to push the horizons of the blockchain adoption. The first one is Facebook GlobalCoin initiative. It would be a huge PR event for the industry and would dramatically boost liquidity by introducing new investors who were not accustomed to the world of the blockchain.

The second one is obviously Telegram with its Telegram Open Network. The publicly available archive with the client was updated to the next version on June 6th. Despite lower user base than that of Facebook, TON would face a better adoption thanks to the following facts:

Telegram is already widely adopted by the crypto community;

TON will be a programmable decentralized blockchain;

Grams, TON native tokens, are not stablecoins like GlobalCoin and hence will be more compelling from the investment standpoint;

Last but not least Telegram has better publicity in terms of privacy.

All these facts prove that the future of the blockchain industry and cryptocurrency markets is quite bright.

Who are the major beneficiaries?

The major movers in the field became the cryptocurrency exchanges. Most of them are evolving into full-service financial companies, with crowdfunding functionality (IEO) and OTC desks. They also start targeting institutions. Some of them are still struggling to get traction with fiat payments though.

Overall, the cryptocurrency landscape seems to be clearer now, with many companies releasing nothing for months. With all the weeds taken out, we shall see a great advance in the blockchain space over the second half of 2019, in both financial services and blockchain segments.

Blackmoon’s part of the pie

As we outlined in our latest digest, Blackmoon has been working hard on introducing new products and functionality:

Blackmoon wallet,

Credit card payments,

Bank wires,

as well as six new investment products.

We are not going to stop, and July is going to be a significant month for the company and our community.

Blackmoon plans to fundamentally improve the functionality of the platform. This will enable investors:

to access a dramatically wider range of investment products,

and manage their holdings more efficiently.

Moreover, this release will introduce new functionality of our native BMC token.

I’m more than thrilled to tell you more details soon. Stay tuned to our updates to reach new crypto horizons together with Blackmoon.

Handy links to stay tuned to our updates:

website: blackmoonplatform.com
telegram channel: https://t.me/blackmooncryptochannel
Twitter: https://twitter.com/BlackmoonFG
Reddit: https://www.reddit.com/r/BlackMoonCrypto/


DISCLAIMER

Investment in financial instruments carries a significant risk of loss and may not BE suitable for every investor. Before purchasing our investment products, please consider your level of experience, investment objectives and risk appetite, and consult an independent financial or legal advisor to ensure the product meets your objectives. Please note that your investments do not have capital protection and carry a risk of loss, including the loss of the entire investment amount; therefore, you should not risk the capital you cannot afford to lose. This material is presented for information purposes only and does not constitute a solicitation or investment advice.

Hello there! We received a wave of requests to resume our monthly updates that we stopped posting a while ago and were more than happy to hear your interest. We were very captivated with all the tasks to keep our platform working and advancing, designing new products and enhancing the user experience. And today we are sharing the progress with you and promise that Monthly Digests will be resumed and will be prepared for you monthly.


What about new products?

We have launched 5 unique and extraordinary products over the last 5 months. Almost every user will find something interesting on our platform.

We made our first thematic portfolios. A thematic portfolio is composed of assets bundled together by the same theme or idea. The best part of it is that instead of buying dozens of underlying assets, an investor can purchase just one product of a chosen theme. As an additional benefit, the portfolio is automatically rebalanced in accordance with a predefined method and schedule.

Together with Daneel’ we created the first of its kind thematic portfolio. This product tracks the performance of Daneel’s phenomenal sentiment index.

More details about the products to follow.


WATER THEMATIC PORTFOLIO (BMxWTR)

Water is an essential part of our life. While the supply of freshwater remains at an approximately similar level, the demand grows relentlessly.

Blackmoon’s Water Thematic Portfolio is composed of companies that represent different sectors involved in the water industry worldwide, including water treatment, filtering, management, desalination, reservation, distribution, heating, and also covers the companies engaged in water management in agriculture and engineering solutions for effective water utilization.

eGAMING THEMATIC PORTFOLIO (BMxEGM)

Watching, playing and learning about new games have become a part of the daily routine for millions. These factors, accompanied by game development companies and hardware manufacturers, are turning eGaming into serious multilateral business.
The Blackmoon eGaming Thematic Portfolio provides you with broad exposure to this burgeoning industry.

The portfolio is composed of companies that represent different sectors involved in the development of the eGaming industry, including game development, hardware manufacturing, video games streaming, and digital game distribution.

BREXIT THEMATIC PORTFOLIO (BMxBRXT)

The portfolio is composed of the eight largest publicly traded companies in the United Kingdom and receives most of its revenues from sales overseas. Moreover, Brexit token is very diversified, composed of companies from different sectors, such as mining, pharmaceutical, oil and gas, medical suppliers and technology developers.

SENTIMENT TOP10 (BMxDT10)

The Sentiment Top 10 ETx is created by Blackmoon and Daneel’. This token is based on the proprietary sentiment analysis designed by Daneel.io using the AI and Big Data technologies. This ETx provides a unique opportunity to get exposure to the 10 cryptocurrencies with the largest sentiment score. Cryptocurrencies listed in the final tradable list are weighted against one another based on their sentiment score.

LYFT (BMxLyft)

Transportation is a massive market. In 2017 in the US, transportation was the second largest household expenditure after housing and was almost twice as large as healthcare and three times as large as entertainment.

Lyft is one of the most notable companies in the transportation market. Blackmoon offers a unique opportunity for investors to get exposure to Lyft shares.


UBER TECHNOLOGIES (BMxUber)

Another ride-hailing company, Uber Technologies, Inc. Token backed by the shares of this company is available on our platform since the very first day after IPO. This token is a unique opportunity to get exposure to the largest ride-hailing company in the USA, which operates on 6 continents in 63 countries enabling 14 million trips to happen every day.

What about the development of the Platform?

For the past six months, we significantly changed our Platform functionality. We introduced the new Blackmoon wallets, which makes tokens trading even more convenient!

The newly introduced Blackmoon Wallet gives you access to the new features:

Easily invest and trade tokens on Blackmoon;
Track the value of your balance in real-time;
Manage the portfolio of purchased tokens in one place;
React fast to the change of the market conditions;
Transfer tokens to your personal external wallet if you want.

For you to quickly get used to the new interface we summarized the main features below.

First of all, deposits!

Cryptocurrency deposits

You can buy tokens once you deposit Ethereum or Bitcoin to the Platform. To do this just follow the easy steps:

login to your account;
open the Dashboard section;
click on the blue button “Deposit” in the up right corner;



select “Cryptocurrency”;



when the address appears, send your crypto to this address.



If you have already purchased tokens earlier, when you first time open the new Dashboard you won’t find your tokens there… Don’t Panic! They are still with you, stored at your personal wallets. You may find the list of tokens that you previously bought and the list of wallets where they are kept in your account settings. To trade them just follow the same simple steps described above for depositing cryptocurrencies.

Fiat deposits

You can buy tokens, Bitcoin and Ethereum on out Platform for Euro! You can deposit Euro by your Visa or MasterCard or by bank transfer in just a few easy steps.

Dashboard functionality

The Dashboard allows instant buying and selling, 24 hours a day, 7 days a week. To sum up, you can now see all your tokens, BTC, ETH as well as EUR in the Blackmoon Wallet, immediately available for investment. Introduction of the Blackmoon Wallet significantly improves the convenience and speed of using the Blackmoon Platform. Now, whenever the opportunity arises, you are free to make a trade with a few clicks!



For your convenience, we prepared the ultimate guide of the Blackmoon’s new functionality. You may find it at this link.

Upcoming development

There’s always room for improvement. Our main goal is to enhance the user experience, make the platform user-friendly, self-sustainable instrument that is able to fulfil all the needs of our clients. We are currently working on further upgrades of the Blackmoon platform and soon will be ready to announce something special. Stay tuned and make sure to catch our next Digest to find out the details.

New service
—
Apollo



Blackmoon introduced a new service
—
Apollo which allows automatic coin liquidation.

This new service from Blackmoon offers solutions to some critical problems that altcoin owners face. This service is dedicated to those who own a large amount of the illiquid coins and seek to liquidate their position. The service is able to liquidate the position in the most efficient way via algorithmic conversion. Bots monitor the situation 24 hours a day, 7 days a week and don’t miss market opportunities. And this is only one of the functions! Investors can pre-set desired parameters and submit a buy or sell request. All the hard work will be done by the machine.

Another issue that Apollo solves is that investors usually do not trade coins because they are listed on unreliable exchanges and when a coin is going to be listed on a decent exchange, investors want to take advantage and buy or sell fast. Apollo has a vast network of connected exchanges and has already established and verified integrations, furthermore, orders are executed at a speed and frequency that is impossible for a human trader to achieve.

You can find more information about Apollo including case studies at this link.

CONFERENCES

Moshe Joshua, CPO, is considered by the community to be a pioneer in the blockchain field in Israel. Therefore he was invited to participate as a key speaker in an exclusive blockchain seminar in a panel discussion “2019
—
Building out financial Infrastructure”. This seminar was organized for the US Blockchain Certified Trade Mission originated by the Chamber of Digital Commerce, a Washington, DC-based industry association dedicated to the promotion of acceptance and use of digital assets and blockchain technologies.



That’s all for June, you can find further details about all the changes and updates that we covered here briefly in our Medium blog. Below you can find links to media publications and mentions. See you again soon! Stay tuned for the next update in July and do not forget to tell your friends about us. There is a lot of interesting news ahead.


List of media where Blackmoon was mentioned

Blackmoon and Plato Technologies Forge Strategic Partnership to Facilitate Launching of New ‘On-the-fly’ ETx’s
Blackmoon and Jarvis Forge Strategic Partnership
—
New ETx in the Pipeline
Blackmoon and Dr Werner & Partner Strategic Partnership Announced
—
Launching New ETx
Blackmoon and Rivver to Introduce a Crypto-Backed ETx
Exclusive: Blackmoon Allows Users to Participate in Lyft IPO
Blackmoon Announces New Strategic Partnership With Daneel to Build New ETx’s
Blackmoon and BLOCK 30 Labs Form Global Strategic Partnership to Launch BLOCK 30 Exchange Traded Index (ETX)
Blackmoon and Zeus Exchange Strategic Partnership Announced

List of publications on Medium blog

Investing has never been so easy!
Credit & Debit Cards. Now there are even more ways to invest!
Water: The First Thematic Portfolio on the Blackmoon Platform!
The Ultimate Guide To Blackmoon’s New Functionality.
Lyft IPO. A unique offering on the Blackmoon Platform.
eGaming & eSports: You’ve played the games. Now own the shares.
BREXIT: Invest In This Unique Event. When A Door Closes A Window Opens
Blackmoon Forges Multiple Strategic Partnerships to Build New Investable ETx’s
The Sentiment Top 10 by Daneel.io
—
the first ETx on the Blackmoon Platform!
New Blackmoon Service
—
Apollo: Automated Coin Liquidation
Uber IPO

Handy links to stay tuned to our updates:

website: blackmoonplatform.com
telegram channel: https://t.me/blackmooncryptochannel
Twitter: https://twitter.com/BlackmoonFG
Reddit: https://www.reddit.com/r/BlackMoonCrypto/


DISCLAIMER

Investment in cryptocurrencies carries a high degree of risk and volatility and is not suitable for every investor; therefore, you should not risk the capital you cannot afford to lose. Please consult an independent professional financial or legal adviser to ensure the product meets your objectives before you decide to invest. Regional restrictions and suitability checks apply.