It’s not often that I come across a crypto project that really blows my mind, but Helium is one such example.
It was about 2 weeks ago when I decided to take a deeper dive into the project. This was thanks to many of my viewers suggesting I look into it – so thanks if that’s you!
The reason that I found this project so fascinating is because of how big its ambitions are. It wants to completely reshape the way we think about wireless networks. It’s also intriguing as unlike most cryptocurrency projects, the underlying tech was not developed with crypto in mind.
Rather, it was developed from the ground up to help decentralise 5G networks. It was only when they were thinking of ways to encourage participation did they consider the economic benefits that come from a cryptocurrency.
That crypto is HNT and it’s got some pretty unique tokenomics…
I don’t want to give the game away, but I really enjoyed researching this project. That rabbit hole goes deep but I hope my latest video shines some light on it for you guys!
You can watch that video here.
📊 Portfolio Update 📊
Few small changes to the portfolio. Sold off a bit of my SOL and PAXG to put into DOT. Just a bit of rebalancing in my smart contract plays. Moreover, I still think DOT is undervalued especially given that we could have PLOs coming soon. I will be doing an updated video on Polkadot so keep an eye out for that.
In terms of other coins on my radar, I am still considering HNT and may pick up a bit more AR if the price allows it. I will keep you guys updated in my NOW VERIFIED! Telegram channel!
ETH 25.84% | BTC 21.59% | SOL 15.39% | DOT 9.24% | USDC 4.66% | ADA 4.33% | PAXG 4.29% | ATOM 4.27% | UST 2.82% | RUNE 2.01% | INJ 1.81% | AR 1.32% | LINK 1.15% | MATIC 1.09% | LIT 0.18%
📈 Thoughts on Market 📈
I bet you’re all wondering why the crypto market suddenly rallied late last week. I was pretty stumped myself, but I seem to have put my finger on a few factors which could have caused it. For starters we have the delay of the infrastructure bill which contains those two crypto clauses that could be harmful to crypto. The TLDR there is that it will require ill defined ‘brokers’ to collect KYC on customers and require the counterparty in any transaction worth more than $10, 000 to be reported to the IRS (tax man).
The delay of the infrastructure bill also explains why the stock market continued to crash even as the crypto market pumped. As we have seen over the past year, the two have generally been following each other as traders rebalance risk-on and risk-off positions.
In this case though, what was good for crypto was bad for the market, because the infrastructure bill would inject 1.5 trillion into the economy, and some of that money would have a ripple effect in the regular stock market. Because that spending has been delayed, stocks continue to suffer (though they have recovered a tad).
The second factor which could have contributed to the recent rally was SEC Chairman Gary Gensler’s reiteration that he is “looking forward to the SEC’s review” of Bitcoin futures ETF filings. On Friday, the SEC again delayed their decision on 4 Bitcoin ETFs into late November and early December. Oddly enough, this is a pretty good sign, because if they weren’t on board with any of these Bitcoin ETFs they would have rejected them outright.
The third factor that probably played a role in the recent pump was the low balance of BTC on exchanges. As I’ve mentioned many times before, this makes it much easier to move BTC’s price up or down, and what we saw on Friday was very much a BTC driven move.
According to CryptoQuant CEO Ki Young Ju, on-chain data suggests most of this investment was coming from outside of the United States. I have a feeling that a lot of this money came from Dubai, because regulators recently sanctioned crypto trading there. In case you missed the memo, there are a lot of rich people in Dubai.
As amazing as the crypto market is looking right now though, it’s important to remember that we’re not out of the woods just yet. The current US administration is looking to bring stablecoins under the wings of banking regulators, and this is something I’ve been warning you all about for a while.
The details are still up in the air though and nothing has been passed yet, so that’s probably why the crypto market hasn’t reacted. Even so, this could get really ugly really fast, which is why I’m glad Terra successfully shipped their Columbus 5 upgrade.
This will make it easy to bring their decentralized UST stablecoin to every cryptocurrency blockchain. As you can see from the above, I hold some UST in my personal portfolio and think that it is a good idea to diversify stablecoin risk away from just the centralised versions. You can get my most recent take on Terra here.
🤔 Polkadot 🤔
September was quite the month for smart contract chains. These include the likes of Solana, Algorand and Cardano. However, one of those projects which did not seem to get as much fanfare was Polkadot.
However, I have a feeling that the final quarter could be Polkadot’s time to shine. And that is all because of those upcoming Parachain Loan Offerings. These could be imminent and Gavin Wood recently disclosed that they were ready to launch. No timeline was given, but once the audit was complete it could be announced.
When that happens, there could be a flood of projects from the Kusama ecosystem that are likely to want to move over to Polkadot. In fact, according to a recent survey, 80% of the prospective Kusama parachain projects planned to launch on Polkadot too.
If I was a betting man, I would say that any Polkadot Parachain launch would have to wait until Kusama is done with their second set of parachain slot auctions.
Once these Polkadot PLOs start, there are already quite a lot of exciting projects that could are ready to roll. One of these is Acala which is set to become the DeFi hub of the Polkadot ecosystem – a project I have had my eyes on for some time now.
Apart from the individual projects that are building here, the launch of PLOs could been a boon for the price of DOT. This is for three reasons:
- It will create hype around the Polkadot ecosystem and all the media coverage / FOMO that comes with it
- There will be demand to stake DOT in order to participate in these PLOs
- When they are staked, they are taking out of supply and hence means less is available to go around
All of these factors are price positive for DOT.
There are also a number of upgrades which are being planned for Polkadot – upgrades which could further decentralise the project and hence make it less susceptible to regulatory pressure points.
There is a lot more that I want to talk about with Polkadot and I will be covering it in an upcoming video – so stay tuned!
🔝 Top Newbie Tips 🔝
In last week’s mailer I gave you all some security tips. There’s one I missed that’s especially relevant given recent events. I’m referring to the revelation that over 6000 Coinbase users were hacked earlier this year, and as CoinTelegraph reported “the attackers must have known the affected users’ email address, password and phone number”.
Believe it or not, but the overwhelming majority of hacks happen because people use the same email and password combination on multiple sites, at least according to this guy (a must watch interview by the way). While your login info may be safe on larger sites like Facebook and Twitter, this is not the case for smaller websites because they don’t have nearly the same degree of cybersecurity tech.
When smaller websites get hacked, the hackers use various programs which automatically enter the email and password combinations they scraped into hundreds of other sites until they get a hit, and that might be how the Coinbase hack happened. It’s also not beyond the realm of possibility that a rogue employee could have leaked it – we just don’t know.
The thing is, humans are corruptible, and there’s no amount of regulation that can change that. Add this to the list of reasons to keep your crypto in your own self custodial wallet. You can get my top recommendations for crypto wallets here and here.
Another thing I mentioned in last week’s security tips was a few ways you can protect your privacy. One thing you should keep in mind at all times is that blockchain tracking firms like Chainalysis can easily track you down, especially if you’ve ever interacted with a centralized exchange (and I’m sure almost all of you have).
I say this because Compound Finance founder Robert Leshner not so subtly threatened recipients of additional COMP rewards to return them or else be reported to the IRS (as they are “doxxed”. As you can imagine, his tweet went down like a lead balloon and drew the ire of many in the crypto community.
But, here’s the thing. Compound Finance does not do KYC on its users (how can they?). But his tweet underscores an important point and that is that these blockchain firms can easily Dox anyone if determined enough.
And speaking of those additional COMP rewards, if you happen to be one of those lucky recipients, you should know that they are very much yours to keep. In crypto all transactions are final for better or for worse. That said, be aware of the tax implications something like this could have, and remember not to take tax advice (or threats) from anyone who’s not a licensed accountant.
Crypto taxes are a hot topic right now especially since governments are starving for money, and they know where the money is at. Consider getting your hands on a crypto tax software, see if you can reduce your crypto tax burden, or even consider moving to a crypto friendly country if you’ve made massive gains.
🔥 Deals of The Week 🔥
💶 Buy Crypto With Fiat: The crypto markets have kicked off with a bang this month. Maybe you feel that now is the time to top up that crypto portfolio? The truth is that buying crypto can be a huge learning curve for many people and that’s why there is value in exchanges that are super easy to use.
The most user-friendly exchange I have found is the Swissborg app. I actually use this myself to move in and out of the crypto and fiat. What’s incredible is that I have had crypto withdrawals hit my bank account instantly – something you don’t see often.
Swissborg offers you access to dozens of major cryptos and a few exotic players too. On top of that, it is the easiest way to earn crypto interest. Here you can earn crypto yield up to 8.94% in just a few clicks – that means no messing around with complicated DeFi yield farming.
On top of that, if you deposit €50+ on Swissborg, then you’ll get up to €100 FREE in CHSB tokens. You’ll probably want to take advantage of that!
👉 Sign up to Swissborg & get up to €100 FREE!
🦾 Trading Automation: Those crypto markets are surging at all hours of the day, that brings with it a plethora of trading opportunities. However, there are two main problems:
1) Most people simply have no idea if their trading strategy is any good. Rather than trading blindly, you can stack the odds in your favour by backtesting your strategy against historical price data. If that strategy you are using did well over the past year, then that’s a great indication that your strategy could be worth using today.
2) Often, profitable opportunities pop up whilst you are asleep or out and about. However, trading bots allow you to automate your trading strategies and take advantage of those markets 24/7.
Do these sound like problems you face? Well, you are going to want to look into crypto trading tools! I’ve done a video all about them which tells you all you need to know!
If you don’t have the time to watch that, then I don’t mind telling you that I personally use 3Commas as my crypto trading bot of choice.
👉 Sign Up To 3Commas For A 3 Day FREE Trial & 50% OFF
🗞️ Crypto News Focus 🗞️
– China & Crypto – CCP outlawing crypto transactions backfires as the Chinese people turn to decentralized exchanges.
– Bleak Future For Traditional Remittances? – El Salvador could put Western Union out of business by kick starting mainstream adoption.
– Deutsche Bank Change Their Tune – Bank says that BTC could be 21st century gold.
🔮 Video Pipeline 🔮
- Worst case for Crypto
- Crazy Ethereum Report
- Polkadot Update: Still worth it?
- Algorand Vs Solana: Which is best?
- BIS CBDC Report: This you need to know!
- Complete Opensea Guide
🏆 What’s New At CoinBureau.com This Week? 🏆
✅ Mint NFTs: Top 5 Platforms to Create and PROFIT!
✅ Crypto Trading Bots: Automated Money Machines?
✅ Holochain RSM: NEW and IMPROVED Blockchain!
Now, that’s about all I have time for this newsletter. However, I just want to express my gratitude for all your support. I know that the Coin Bureau wouldn’t be what it is today without each and every one of you.
Many of you know that my merch store is one of the main ways my team and I are able to produce all this content and make it ad free for anyone who wants to learn about crypto! If you’d like to support my work then that’s where to go!
Also, I have just added a cool NEW Coin Bureau beanie to the store. Those in the northern hemisphere might want to check that out – winter is coming! ❄️
Anyhow, I hope you have a top Sunday and that you get value from my latest video!
Guy your crypto guy