All posts by Khashayar Abbasi

Up 70% in 32 days

Yesterday I gave you a heads up about the new crypto we’re adding to the Crypto With Kash portfolio (side note: one of our picks is up 70% in the last 32 days, turning every £1,000 invested into £1,700).

I’ve just sent out my full write up of this latest pick to members of the service, but I wanted to give you a quick breakdown of why I’m so keen on it here too, so you can decide if you’d like to get involved.

To show you the potential of this coin we first need to talk about a different crypto called UniSwap (to be clear, this is not the coin we’ve just added to the portfolio).

UniSwap entered the Decentralised Finance (DeFi) crypto scene back in September last year.

Like I talked about in yesterday’s email, it’s a Decentralised Exchange (DEX) crypto… you can think of it like a crypto version of Betfair, where people trade crypto with each other and, instead of a middleman, the technology itself takes care of everything.

This proved a huge hit with the crypto community…

And since September, UniSwap has gone from $2 to $29…

That’s the opportunity to turn every £100 invested into £1,450… and every £1,000 into £14,500.

Now, the coin I’ve just added to the Crypto With Kash portfolio is similar to UniSwap in two ways…

  1. It performs a similar function as a Decentralised Exchange (DEX)
  2. It’s sitting at a similar price to UniSwap before it took off

But, most importantly, it has a killer third angle that most people are overlooking, which I believe could potentially make it even more valuable than UniSwap…

You see, at face value the growth rate of UniSwap is much higher than this coin, but if you do a bit of digging (and I have) you’ll discover that my latest pick has an ace up its sleeve…

It’s running a “plug in” technology that allows trades and liquidity from other crypto platforms to flow through its exchange… inflows that aren’t taken into account in the usual measurements of volume and growth.

And when you take this “hidden” growth into account, my latest pick is growing at a rate that’s as much as 12X faster than UniSwap… and yet the price is still hovering in the low dollars.

I believe it’s only a matter of time before that changes.

When the mainstream catches wind of this, I wouldn’t be surprised to see this crypto take a similar trajectory to UniSwap in the coming weeks and months… and over the long term maybe even surpass it.

That’s why I’m recommending members of my service stock up on this crypto while it’s at what I believe is a bargain price.

If you’d like to know the name of this coin and read my full write up on it, you can join us on the inside of the Crypto With Kash service here.

You’ll receive my welcome email containing instructions on how to download the latest newsletter, plus write ups on the other coins in our portfolio, my two crypto guides, and also an invitation to join the private Telegram group.

See you on the inside!

“Betfair cryptos” are going nuts

When Betfair launched in 2000, some people thought it would be the end of conventional bookmakers.

While that hasn’t happened, with the largest volume of bets still taking place with traditional bookmakers, like Bet365, behind the scenes it’s had a huge impact…

As my colleague professional football bettor Adam Cheng says, “Betfair forces bookmakers to match its exchange prices, otherwise they’re open to arbitrage”.

So, in a way Betfair has won out against traditional bookies. And this is reflected in the price investors were willing to pay, valuing the company at $1.5 billion after its first 6 years.

Needless to say, the people with their fingers in this pie at the early stages made a killing!

And now the same thing is happening in the world of cryptocurrencies, where traditional exchanges are being challenged by a new crypto-specific breed of exchange…

Two types of crypto exchanges

There are two types of crypto exchanges…

1: Centralised Exchanges

The first are centralised exchanges like Coinbase, Binance, and Kraken.

These exchanges operate like the “traditional bookmakers” of the crypto world. And they’re not much different to stock and options trading exchanges like RobinHood, IG, and eToro.

This has many benefits and some serious downsides (which makes them ripe for innovation, and is why the second type of exchange is flourishing).

Here’s a breakdown of the pros and cons of centralised exchanges…

Pros:

✅ Easy to deposit traditional currencies and exchange for cryptos

✅ Customer support as with any other company (although Coinbase gets a lot complaints on this front)

✅ Curated list of cryptos, so there’s a decent “standard” to ones you can buy

Cons:

❌ You’re trusting a private company with your traditional currency and cryptos (and they don’t fall under the Financial Services Compensation Scheme (FSCS))

❌ Vulnerable to hacks (in 2014 centralised exchange Mt. Gox lost 850,000 of its customers’ Bitcoins)

❌ Potentially high fees, especially on some of the most popular centralised exchanges

❌ You have to sign up with photo ID (not a problem for some, but worth mentioning)

2: Decentralised Exchanges

The second type of cryptocurrency are decentralised exchanges, or DEX for short. Examples are UniSwap and Curve.

You can think of these like the Betfairs of the cryptocurrency space. Except they’re not just peer to peer markets, but completely decentralised in terms of ownership too, because they’re not owned and controlled by one entity.

So, instead of trusting a centralised private company to hold and exchange your cryptocurrencies, like with Coinbase, you’re instead relying on the cryptocurrency technology itself to secure these transactions without any human interference.

This might seem a bit scary at first, but it’s the whole point cryptocurrencies took off in the first place! The promise of cutting out the middleman and using cryptography to secure financial transactions instead.

And DEXs are now delivering on that promise for trading exchanges, coming at Coinbase and others like Uber went after the traditional taxi industry!

Here’s a breakdown of the pros and cons of decentralised exchanges (DEX)…

Pros:

✅ Not relying on a centralised point of failure, like with Coinbase, so (if you trust in the decentralised tech of crypto) your money held on exchange is potentially safer

✅ Uses cryptographic technology so less vulnerable to hacks (although they can still take place as this tech is still developing)

✅ Much wider array of cryptocurrencies available (and if you want big gains you’ll want to be able to invest in smaller, unheard of coins)

✅ Fees can be much lower because there’s no middleman taking a cut (although because of network utilisation this isn’t currently the case with Ethereum based DEXs)

Cons:

❌ More complicated than using a traditional centralised exchange (although the ease of use of DEXs has come a long way)

❌ No conventional customer support (although many have good online communities where you can ask questions)

❌ Current fees on Ethereum based DEXs are relatively high (though they should come down when Ethereum gets its pending upgrades)

Now, I’m not suggesting you need to leave Coinbase and start using DEXs to trade crypto (I use both centralised and decentralised exchanges depending on what I want to do).

What I am suggesting though is that you consider investing in some DEX related cryptocurrencies (many of which you can even buy on Coinbase!)…

DEX “Betfair cryptos” are going nuts

DEX cryptos are a subset of Decentralised Finance (DeFi) cryptos, which is what we’re building the Crypto With Kash portfolio on.

And DEX cryptos have been performing extremely well over the last year, for example…

UniSwap went from $2 to $29 dollars in less than a year, turning every £100 invested into £1,450.

It’s too late to capitalise on UniSwap, but I’m about to add an overlooked DEX to the Crypto With Kash portfolio this Friday (that’s tomorrow). One that could follow the same path as UniSwap… and maybe even top it in the future.

I’m just finishing my full write up on this crypto.

I’ll let you know when it’s ready tomorrow, and also share some more details about why this specific kind of DEX crypto is popping right now.

“WTF happened to Bitcoin last night”

Did you see the Bitcoin “flash crash” last week?

$300 billion ran out of the crypto in less than 24 hours, sending the price from about $62,000 down to $53,000.

A $9,000 haircut!

As we talked about in the Crypto With Kash Telegram group, there were two main reasons for the size of this drop.

As my member Marco K says, the first reason was a major power outage in China…

CoinTelegraph reported last year that more than 50% of Bitcoin mining takes place in China, which is why a power outage like this could have such a big (temporary) impact on the price.

The second reason the drop was so big is because of the amount of people holding large “leveraged” positions in Bitcoin…

Being leveraged basically means borrowing money from an exchange or broker to buy more of an asset.

The problem is when the value of that asset drops and you don’t have additional funds to add to your account to keep the exchange/broker happy… in that case your position is automatically “liquidated”, e.g. sold off.

As you can see from that screenshot, someone (or some group) out there was leveraged up to $68 million! And a total of $9.7 billion was liquidated in less than 24 hours.

This is why, for most people, I don’t recommend leveraging an already volatile asset like crypto. Because while you’re borrowing money to potentially make more money, your losses are leveraged too… meaning they can be huge!

So, lots of scary news… mining outages and leveraged to the gills losses…

But, as you can see from the first message above, my members weren’t phased by the crypto “flash crash”, and instead saw it as an opportunity to “go shopping” and stock up on our portfolio cryptos at slightly lower prices.

And they’ve got good reason to be confident, because even with the “flash crash” the Crypto With Kash portfolio is up more than 40% since its launch 3 weeks ago.

Better yet, despite all the negative crypto headlines in mainstream media over the last week, there’s some hugely bullish news on the horizon.

It can be summed up in one boring (but very important) sentence…

Inflation is coming

Inflation is when prices go up and the value of traditional money like the pound and dollar goes down.

I’ll be going more into this in a few weeks time, but for now let me show you a quick chart…

OK, that looks a bit complicated, but it’s saying two important things…

  1. Inflation is coming
  2. It’s going to spike above central banks’ 2% target

Now, this is pretty bad news if you’re holding all your money in traditional money like the pound or dollar… as, at least in the near future, you’ll be able to buy less for your money.

But, it’s very good for the crypto space because many cryptos are DEFLATIONARY… in other words, they grow more valuable over time because they have hard limits on their supply. For example, there will only ever be 21 million Bitcoin.

As I say, I just wanted to make you aware of this early because I think it could provoke a huge inflow of money into the crypto space in the coming months as people look for a way to protect their wealth from rising inflation.

But I’ll be breaking down the situation for you properly in a few weeks’ time.

Next week is all about my next crypto recommendation, which I’m VERY excited about.

While this is exclusive to Crypto With Kash members, I will be sharing some details with you in these free emails too.

So, keep your eyes out for that next week!

Thanks for taking the time to read this.

Risky Bitcoin – The Final Risk Down (Part 3)

Kash here.

In Part 1 of Risky Bitcoin we looked at all the crypto wallet options, and how to pick the right one for you.

In Part 2 we looked at dastardly scams, and how to avoid them.

And in Part 3, The Final Risk Down (which is what you’re reading right now), we’re covering the risky leftovers… which are actually some of the most important things to be aware of.

They are…

👆👇 Up and down risk

🏦 Trust issues

🤓 Not-a-nerd risk

Let’s get stuck in…

👆👇 Up and down risk

What is this?

Up and down risk is my name for volatility risk. The simple fact that cryptos can go up and down in price.

Now, this is nothing new if you’re used to trading things like stocks, gold, or traditional currencies on the forex markets.

But cryptos are far more volatile.

Check out this chart…

The wiggly blue line is the volatility between Bitcoin and the U.S. dollar.

And the flat red line is the volatility between the U.S. dollar and the British pound.

I’d say it’s pretty obvious how much more up and down Bitcoin is!

On the one hand this is a very good thing because that volatility can send Bitcoin (and the rest of the crypto market) up a lot in value.

But on the other hand it also means the drops in value are more frequent and often steeper than other investments.

Couple this with the fact that countless studies show the majority of people can’t time when to get in and out of financial markets, and you have the potential to lose a lot of money.

What can I do about it?

  • Hold you cryptos as a long term investment
  • Don’t try and time the crypto markets (most people can’t)
  • Enter and exit the markets with small chunks of money at a time, over a few weeks (this is called dollar cost averaging)
  • Don’t invest money you can’t afford to lose

🏦 Trust issues

What is this?

This phrase is popular in the crypto space…

“Not your keys, not your coins.”

The idea is pretty simple. If you leave your crypto with a third party, rather than in a crypto wallet you have control of, then in reality it’s their money, not yours.

That’s because crypto companies, like the exchange Coinbase, are not yet subjected to as rigorous regulation as traditional financial companies.

You need to be aware that, unlike with your bank, there is no Financial Services Compensation Scheme (FSCS) protecting your deposits. So, if Coinbase or another exchange goes bust, you would likely lose any crypto you have deposited with them.

This actually happened back in 2014 with the crypto exchange Mt. Gox. At the time, they were handling 7 out of every 10 Bitcoin transactions worldwide, then out of the blue they filed for bankruptcy.

Through theft, mismanagement, or fraud (it’s still unclear) they’d lost 850,000 of their customers’ bitcoins.

At the time that was worth $450 million, bad enough, but at today’s values that’s $37 billion!

Many crpyro companies now hold reserves of dollars, crypto, or even gold, to back their products. This offers some additional reassurance and security for investors, but only if these reserves are distributed between trusted third parties, so there’s no centralised risk.

And only if they’re audited by trusted third parties too, so you’re not just relying on one company’s word that their vaults are full of riches.

What can I do about it?

  • Keep your crypto in a wallet you have control over not on exchanges
  • Check if companies are audited by trusted third parties
  • Check if they hold their reserves with multiple trusted third parties
  • Don’t invest money you can’t afford to lose (again!)

🤓 Not-a-nerd risk

What is this?

If you’re not a nerd, or you’re a bit of a technophobe, then you may struggle with some technology risk too.

You don’t need to be the next Bill Gates, but it is good to have a basic understanding of how this new crypto tech works.

For example, getting to grips with how your crypto hardware wallet works, and what the difference between a private key and a public key is.

Understanding that will mean you never give someone your private key instead of your public one, accidentally handing them access to your crypto funds.

Another thing to understand is the tech behind the crypto projects your investing in.

For example, does the coin you are investing in have a functional product that’s already being used in the real world?

It’s easy enough for a group of tech-savvy people to launch a coin with no working product behind it and then cash out with your money before they’ve delivered anything.

If you read up on the tech behind any crypto project it will become obvious whether it’s a pipe dream or an established project that’s already solving a problem.

Finally, some of the crypto money making options beyond “buy and hold” can be a little complicated.

Over time they’ll get more accessible, but right now the technical know how you need to, say, send money to a decentralised liquidity pool is quite high.

Stick to what you know, until you know more!

What can I do about it?

  • Buy a hardware wallet and learn how to use it
  • Only invest in cryptos that already have a usable product
  • Don’t venture into more exotic crypto money making options until you understand them
  • Don’t invest money you can’t afford to lose (again, again!)

Oh yeah, and also…

Remember to pay your taxes!

Check this Gov UK page for up to date tax rules for cryptos.

Well, there you have it.

Along with the wallets and scams guides, that’s the major risks of investing in crypto that you need to be aware of.

While it can be a bit of a boring subject I hope I broke it down for you in an easy to understand way.

Of course, if you have any questions about crypto risks, or crypto in general…

Simply email your questions to clients@thebetchat.com, and I’ll make sure I cover them in the days and weeks to come.

Why Bitcoin keeps going up (even when it doesn’t)

Kash here.

Let’s talk about Bitcoin…

Did you see it rally up to $58,000 the other day…

Only to crash back down to $51,000?

That $7,000 drop looks pretty nasty…

And I feel sorry for anyone who bought at the top and panic sold at the bottom.

But I also have some advice…

Stop staring at the trees.

Because that’s exactly what worrying about Bitcoin’s day to day price movements is like… standing right up against a tree and worrying about a tiny patch of its bark.

Instead, you want to zoom out so you can see the woods.

And the woods look good…

The only bitcoin chart you ever need to look at

Take a look at this Bitcoin chart…

It’s the only one you ever need to look at if you’re interested in the long-term potential of this Big Daddy Crypto…

It looks like a rainbow having a heart attack, doesn’t it?

But the colours aren’t just for show…

It shows how the Bitcoin price is essentially “programmed” to keep going up.

See the main rainbow line?

That’s Bitcoin’s price.

Now, see the purple and blue lines behind it… going up like steps all the way to the top right hand corner of the chart?

Those lines represent the max supply of bitcoins.

The higher those lines go the more the supply reduces… until one day all 21 million bitcoins have been mined.

And then… there will be no more new bitcoins…

This process is known in the crypto world as the “the halvening”

It’s a bit of a silly name…

But, so far,  the halvening has predicted the long-term price movements of Bitcoin like a time-travelling Mystic Meg.

In fact, it almost looks like the Bitcoin price is chasing the halvening line on that chart.

But it’s not by chance… it’s more by design…

Every 4 years Bitcoin is programmed to halve the rate it can be mined at, instantly making it scarcer overnight.

And I’d say it’s pretty obvious that the rarer something is, the more it’s price has the potential to increase… especially if it’s already worth $50,000+ today.

So, that’s why I say take your eyes off the trees and look at the woods instead.

Bitcoin sure looks good from up here, doesn’t it?

As always, if you have any questions about Bitcoin or cryptos in general please hit us up at clients@thebetchat.com.

Thank you for taking the time to read this.

Risky Bitcoin – Scammy Scams (Part 2)

Kash here.

In Part 1 of Risky Bitcoin we covered staying safe with crypto wallets and exchanges.

Don’t worry if you missed it, you can still check it out here.

In Part 2, which is what you’re reading right now, we’re going to dive head first (but safely) into crypto scams.

Or, as I like to call them, “scammy scams” because they’re so evil they’re worth calling out twice.

We’ll be covering…

🥸 Fake ICOs (and other fake crypto projects)

🎣 Phishing

⛽ Pump and dumps (Wolves of Crypto Street)

😇 Social engineering

Let’s get stuck in with a quick overview of these hucksters…

👺 Scammy Scams 👺

If you dabbled in the crypto space back in the 2017 bull market days, you’ll likely have come across a few scams. Back then, Initial Coin Offerings (ICOs) were the big thing, and amongst the legitimate new coins being created there were A LOT of pyramid schemes and just downright dodgy projects.

That’s part of the reason some pundits still label the entire sector as a scam, but I think with banks like JPMorgan saying they’ll “have to be involved” with Bitcoin and Tesla buying up $1.5 billion’s worth, that image is fast changing.

But, that doesn’t mean there aren’t still scams out there, because there definitely are. A report by Chainanalysis revealed $2.6 billion was lost to scams in 2020, although this is much smaller than 2019’s $4.3 billion, which is a positive trend!

Let’s look at some different types of scams and tips for staying safe from each of them…

🥸 Fake ICOs (and other fake crypto projects) 🥸

What is it?

This was huge in 2017 and 1018. An Initial Coin Offering (ICO) is when a company creates a new cryptocurrency and either gives away or sells it to a limited number of “early adopters” before it hits the wider market.

It’s like Initial Public Offerings (IPOs) in finance, where people get to invest in a company before it hits the stock market. Except, because ICOs are largely unregulated, they’ve been a minefield full of fake crypto projects taking people’s money… and then disappearing.

In fact, a research study in 2018 found…

 “78% projects were identified as scams, collectively valued at $1.3 billion”

The good news is Facebook banned advertising ICOs back in 2018 and some countries, like China, have outright banned them too, so regulation is catching up.

How do I stay safe?

🔒 Invest in cryptos that have been audited by third parties (check audits here)

🔒 Don’t invest in crypto projects that are at “the idea” stage, with no minimum viable product (MVP)

🔒 Only invest through established exchanges that audit the coins they allow on their platform (until you’re more familiar with the ecosystem)

🎣 Phishing 🎣

What is it?

This is a proper old school scam, reimagined slightly for crypto. A nefarious scammer will contact you, usually via email or text, and try to trick you into handing over passwords or other personal information so they can steal your crypto.

Here’s an example where the scammer asks you to verify your login details for “an upgrade” to the service, but it’s a link to a fake site where they’ll collect your information…

Another variant is to say get you to send them money to “invest into Bitcoin” and they’ll do all the work for you, obviously never to be heard from again.

These scams are like the classic “Nigerian Prince” email scams, where a so-called member of foreign royalty asks you to send them money so they can send you more back… what a deal!

Bottom line, if you receive a message that sounds too good to be true… it’s probably a scam like this!

How do I stay safe?

🔒 Use a “throwaway” email address for signing up to crypto projects you’re unsure about

🔒 Visit the services website directly rather than following the link in the email (most legitimate projects won’t ask you to verify details with a link in an email)

🔒 Contact a member of the project via the website to check (even if there’s a delay it’s worth waiting to make sure)

🔒 Don’t send crypto (or any money) to a random person with the hope of getting more back!

⛽ Pump and dumps (Wolves of Crypto Street) ⛽

What is it?

Have you seen the movie Wolf of Wall Street? Leonardo DeCaprio portrays Jordan Belfort, a Wall Street fund manager who was “the master” at pump and dump schemes.

He would trick unsuspecting customers to invest in tiny illiquid stocks, sending the price soaring, before his firm cashed out for a profit, leaving his customers to catch a falling knife. He was finally put in jail for defrauding his customers out of $200 million … and now he sells courses on marketing?? What a world.

Anyway, pump and dump schemes are rife in the crypto world, mostly via social media sites like Facebook or Twitter. Like Belfort, these Wolves of Crypto Street will talk up a tiny illiquid crypto as the next big thing… only to cash out when they’ve made a big profit at everyone else’s expense.

Here’s what a pump and dump looks like on a stock chart…

Sure, it’s great for the guys running the gig, who get in while it’s going up… but what about everyone else who’s left with the losses on that ski slope downwards afterwards? Yuck! Horrible, unfair stuff.

How do I stay safe?

🔒 Do your research on long-term crypto investments, not what’s being tweeted the most

🔒 Don’t invest in crypto projects that are at “the idea” stage, with no minimum viable product (MVP)

🔒 Only invest through established exchanges that audit the coins they allow on their platform (until you’re more familiar with the ecosystem)

🔒 Don’t listen to people who get put in jail for fraud and then sell marketing courses!

😇 Social engineering 😇

Not every hacker comes armed with a computer that can tap into the matrix… sometimes they just have the ability to charm the pants off of you, along with the wallet in those pants.

“Social engineering” is when the evildoers of the world manipulate others to either get hold of sensitive information they can benefit from, or ask for money or crypto directly.

It’s like a “more charming” version of phishing, or as CoinDesk puts it…

“They take advantage of human fallibility rather than code vulnerability.”

For example, 17-year-old Graham Clark manipulated Twitter employees to give him access to 130 prominent Twitter accounts, including those of Barack Obama, Bill Gates, Kim Kardashian, and Elon Musk…

Then he posted messages to their followers asking for bitcoin, like this…

(Yer… don’t send any money to that address!)

All together, Graham scammed people out of about $140,000 worth of crypto. And, courtesy of the US justice system, he’s now facing 20 years in prison… that sounds fun!

But there’s plenty more people doing this on a smaller scale out there. And they’re not getting the scrutiny of regulators because they’re not taking over famous people’s accounts.

So, until the legal system catches up, it’s best to take a few of your own steps to protect yourself against this kind of stuff.

How do I stay safe?

🔒 Don’t send crypto (or any money) to a random person with the hope of getting more back!

🔒 Only buy and sell crypto through established exchanges until you understand the crypto ecosystem better

🔒 Then (when you’re ready) move your crypto to a hardware wallet, so no company’s support team can accidentally give out your account details (looking at you Twitter)

🔒 Use different passwords for your social media accounts, so if someone breaks into one they don’t have access to all of them (password managers can help massively with this)

🔒 Use a different email for your crypto logins vs your social media logins, so if someone compromises your social media they can’t access your crypto-related accounts

There we go…

Now you know how to avoid scammy scammers and their dastardly crypto schemes.

As always, if you have any questions about crypto scams, or anything else crypto related…

Simply email your questions to clients@thebetchat.com, and I’ll make sure I cover them in the days and weeks to come.

Thank you for taking the time to read this.