Hey there, Power Profit Traders!
As a reminder, U.S. markets are closed tomorrow, Dec. 24, in observance of a Saturday Christmas. Enjoy the day off!
In the meantime, let’s talk a little about the exciting world of cyber coins – a subject I love and teach in my Microcurrency Trader (which is 20% OFF for just a few more days!).
Cyber coins are not new – but they continue to gain not just in price, but in the breadth of the market.
More and more individual traders are getting into the coin market – often lured by the most popular cryptos, like Bitcoin (BTC) and Ethereum (ETH). And over the past year, institutional traders – including from some of the leading mega banks – have been dabbling in funds investing in coins.
The origin of coins goes back to the 1990s. It came with the development and expansion of digital communications that also brought encrypted key software into the market. This is the basic means by which most email and other online communications and transactions are done.
But for coins – initially based on stable coins such as ecash in Europe and the U.S. — this was just the start.
The market continues to expand and evolve… and for the baseline of the coin market – this year has been excellent.
And next year – and beyond – could be even better for one coin…
Big Coin is Just a Beginning
The Bloomberg Galaxy Crypto Index (BGCI) is a leading institutional index for coins. It tracks the biggest and most widely held and traded coins in the global market.
Think of this as a benchmark for the mainstream coin market, and right now it shows this sector is dwarfing the returns of more traditional assets like stocks and bonds.
Bloomberg Galaxy Crypto Index Total Return – Source: Bloomberg
This institutional index has a total return so far for this year of 174.08%. Yep, you read that right.
It kind of makes that return in the S&P 500 Index (SPX) look like chump change.
But bigger doesn’t always mean better. And this also includes the market for coins.
I have been working on not just the big established coins, but increasingly in the newer – and sometimes much more attractive – coins coming into the market and rapidly gaining in popularity and price.
It’s similar to what you might see in the stock market. Sure, you can own the blue chips and the biggest, most popular stocks… But the established names aren’t always the leaders, and certainly don’t offer the only opportunity to make money.
Often the upstarts with the next generation of ideas and products are where the real profits can be made.
That said, my favorite newer coin is one that has great bones, as it is based on the established Ethereum Mainnet Blockchain leger. This means that it has the guts to work now and for years to follow, and it brings with it the credibility for new and heavily established institutional investors to get onboard.
Enjin Coin (ENJ) came on the scene around 2017, and began trading in 2018. And it has generally been picking up followers in tandem with its price in U.S. dollars.
Enjin Price in US dollars (ENJ) – Source: Binance
Enjin is not just a credible coin utilizing the Ethereum blockchain leger – it is very specialized for markets that on their own are soaring in popularity and profits.
Enjin was designed for use in transacting and denominating non-fungible tokens, better known as NFTs.
NFTs are means of taking a physical or digital asset and breaking it down into individual pieces or tokens. Many works of art have been sold in parts or tokens to investors seeking to own a piece of an appreciating, unique asset – including from even major established artists. Ask my pal Nick Black, our resident NFT Knight Rider.
Enjin was purposely built around NFTs, which are burgeoning in popularity and becoming more mainstream – one of the reasons it is so appealing to me.
But it gets better.
Electronic gaming is a very big business that only got bigger over the past couple of years, as more and more folks were stuck at home.
Spending and revenue from games continues to soar. And this has driven many of the leading gaming stocks to outperform on the stock market.
Gamers want or need to get more and better tools to become more successful online. Or they want to have better avatars to represent them in various meta universes.
Whatever the motive, there are lots of upsell opportunities in gaming.
All of this takes a new form of currency. And, you guessed it… Enjin was also designed especially for these cyber coin transactions.
This combination of NFTs and gaming – both booming sectors that could get bigger and better – makes Enjin attractive to me fundamentally.
The lesson to learn today is that cyber coins are increasingly becoming a major institutional market and not just on the fringe. But that doesn’t mean that you should just follow the herd with the biggest coins… I prefer to live on the cutting edge.
And as my Microcurrency Traders know, I plan to strategically trade ENJ a few times along the way in 2022… so get in on the ride at 20% OFF before the deal expires on Sunday.
Have a great holiday weekend, everybody!
Tom Gentile
America’s #1 Pattern Trader
