Thank you for reading, I am Dukefish, an EOS advocate and this blog series “Life of a Small Time Investor” is intended to share my experience with the crypto world and help those learn from my mistakes and triumphs. Though as always, this blog is not investment advice just how the chips have fallen for me so far. The greatest knowledge I can part to you is make sure you Do Your Own Research!
Fell on Black Days
Since last we spoke the days of red have continued with millions and millions of dollars being wiped from the market capacity, (this song is most apt) and most coins continue to plunged in price, ignoring the stablecoins. The joys of the markets! Though at the end of my last entry, I chose to double down and then hodl my expanded portfolio.
For in times like these, as a small time guy it means that small amounts of fiat end up going a lot further in obtaining a higher volume of coins. I am still focusing my attention on EOS and EOS projects but it is noteworthy that Ripple (XRP) has become second in marketcap once again, overtaking Ethereum (ETH). With this price move downwards, it seems that the bear market is unfortunately here to hibernate this winter.
So I want to talk about the exchanges that I have used so far and my overall experience. Like most people, my main method of moving fiat into crypto is through the exchange Coinbase. While useful and fairly easy to do Coinbase does require KYC (Know Your Customer) verification, so it adds fuel to the fire of removing anonymity in the cryptospace. The privacy issue is a hot topic and is important for many, KYC is something I would prefer not to become the norm.
With my original investment into the EOS ICO, I had to use Coinbase to turn fiat into ETH and then use that with the MetaMask app to participate in the token sale. The key reason to Coinbase success it is an exchange that enables you to payout in real money too. So I can turn profit back into fiat and into something tangible in my wallet.
Though Coinbase is my main entry point, turning my BTC or ETH was a little laborious, having to transfer from website to website. My go to method was to transfer from Coinbase to Binance and then from Binance to EOS and then out to my personal wallet. It was long and annoying and I do not like transaction fees, EOS is instantaneous and does not charge me for every transaction I make. It is also the same route if I want to get any other tokens at present. (Still very tempted to sink something into XRP). However other exchanges use MetaMask and Scatter to enact transactions and trading.
As of Nov 2018 a cross chain solution has emerged, BancorX where a bridge between blockchains has appeared, ETH & EOS. I can now use ETH to purchase Bancor’s own token BNT. Swap that BNT from being hosted on the ETH network to having them hosted on EOS. I simply can then trade them into EOS without having to go through an intermediary process like I did previously. For a less word orientated explanation this official YouTube link explains how to use the feature.
As well as this cross chain function, Bancor has existed for a while as an exchange trading ERC20 tokens and has high throughput and processes high volume of tokens, I think is a very reputable exchange. They have switched there operations to run on the EOS network due to EOS increased TPS and scalability than other existing networks. The feature I am most focused on though is their EOS token exchange. This has listed some prominent EOS alt coins and will be adding more as time progresses. The gambling Dapps DICE and POKER coins are listed on there and I can see being a big pull for those. As players wanting to stake for dividends or buy some more when they are chasing the gambling dragon!
The EOS Bancor exchange also lists IQ, Everipedia’s token, KARMA and HORUS All three of these coins were airdrops for genesis holders so being to exchange on this platform is a welcome addition and hopefully will increase demand and liquidity of these projects. Interestingly the only exchange coin available as well on Bancor EOS alt tokens is CET, the coin of the Chinese Exchange, Chaince.
So firstly, Chaince is the same as Coinbase, in regards that it too requires KYC to register and use. It’s own exchange coin is CET and these were airdropped to all genesis account holders. Unlike Bancor token, CET can only be used on EOS network. Chaince markets itself is a trading platform of blockchain assets focusing on projects around EOS. Under the premise of ensuring the security of users’ assets. It offers a host more trading pairs with EOS alt tokens, as well as recently adding as of Nov 13th 2018 trading pairs with the stablecoin Tether, (EOS/USDT, CET/USDT).
EOS has a big following in the Chinese markets despite the authoritarian regime changing its mind about crypto legality too often. China hosts many of the top 21 Block Producers so it is only natural an exchange is going to appear for the ecosystem. Thankfully it being globally accessible and it is a great traditional somewhat centralized style exchange. The interface is very classic trading, with all the graphs you could ever want. CET tokens are not as valuable as some of the other alt tokens at present but I see real potential in holding onto these. More trading pairs are bound to appear as the market grows.
A decentralized exchange (DEX) requires no KYC and it is essentially “a new type of pair matching that allows people to place orders and trade cryptocurrencies without an intermediary institution managing the ledger or controlling user funds”. So unlike Bancor or Chaince there is no internal coin to trade against and there are many more pairings in the DEX that I use, newdex.io.
There are at least a hundred pairs of EOS alt tokens all for projects emerging in this EOS ecosystem. Some of which I have never heard off, and before purchase make sure you look into the coin not just its price. Most of these alt tokens are worth very little per coin so large stacks could be formed if you like big numbers. As a small investor I can see this appeal.
NewDex.io has allowed me to move the number of genesis airdrops that I have received since launch and there are many. Due to my small stack on the snapshot by airdrop values are low. Though for genesis whales all this airdrops could mount up to quite the tidy little profit already. The site is easy to navigate and integrates smoothly with Scatter. You know that your trades are coming from other EOS users and keeping it out of the hands of intermediary run exchanges; who granted make amazing returns.
The use of exchanges is key to any financial market and it is good to see many good players in the EOS ecosystem. It allows for new projects to get of the ground and us small time investors to play the trading chart game.
With a bear market well in play I can see the wave of red lasting until the end of the year. It is a volatile market and as long as this Bitcoin Cash debacle continues I think faith in the crypto world is being tested. Purely as an observer I envision BTC ending up in the 3.5k to 6k $USD range when the calendar finally flips over to 2019. As someone who is for the long term I am going to try seize this opportunity to increase my portfolio while prices are down. Markets go in cycles a bull run will happen eventually, a month, a year, ten? But now that this Pandora’s box of crypto has been opened, there will be no turning back.
Thank you for your time!