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ICO Sold Out in Minutes? A quick tip

With ICO's (Initial Coin Offerings) reaching their hard cap in seconds, it becomes increasignly difficult to invest in a popular project before it hits an exchange.

However, what if you were able to push your transaction to the front of the line? That's right you beautiful b*$ch today we're going over some ninja techniques... if you're willing to pay the price.

Before going any further, please note that this specific method only works with MyEtherWallet.

Ethereum transactions all require you  to spend Gas. Gas is a brilliantly simple metaphor for the cost of any given ETH transaction to execute. With MyEtherWallet you are able to customize the price your willing to pay for that Gas, called Gwei.

However, with MyEtherWallet the maximum amount you're able to pay in Gwei is 99. 

To put it simply, these limits are just that...limits. With so many users out there attempting to send Ethereum to purchase any given ICO token, it really comes down to a matter of chance. One false keystroke puts you 30 steps behind someone else trying to purchase that same token.

But what if you were able to break through that limit, and purchase a pass that sent your order to the very front of the queue?

Note: this is a risky maneuver, you can easily waste hard earned Ethereum during this process. It's entirely possible that even though you increase your limits to what you can afford, there very well may be thousands of other people willing to pay 5 times that amount.

Once you initiate that transaction you can't get those transaction fees back. So if you wind up not getting your tokens because someone else paid more, you'll also have spent quite a bit of Ethereum in transaction fess in the process.

Step 1

After logging in to MyEtherWallet and your on the Send Ether & Tokens tab, right click on the drop down that allows you to change the Gas Price:

After clicking on that drop down, select Inspect (using the Chrome browser):

After clicking on inspect, you should now see a dashboard full of strings of weird looking text that one could best describe as hieroglyphics. This dashboard is called the Chrome DevTools. 

Now click on the tab (sideways triangle) 

Step 2

Double click where you see 99 Gwei. You should now be able to edit the text, make sure you only edit the actual number. 

If you happen to delete the "Gwei" then you will not know the gwei.

As you can see, I edited the Gwei beyond the limits of MyEtherWallet. It is currently showing as 200 when the limit is 90. Please note that 200 is quite high, I only selected this number to demonstrate this process.

In addition to editing the Gwei, I also use Eth Gas Station to get an idea of the amount of Gas I would want to use for any given transaction.

For a real world example of this process, I participated in a recent ICO and used 300 gwei and 300,000 gas and wound up only spending $35 in transaction fees. 

Also note that there will be Crowd sales that have limits. You will not be able to use this method for every ICO that your heart desires. They typically announce this information on their Telegram or Medium accounts so be sure to keep your eye on the prize.

Hedging Against Bitcoin

Bitcoin and most of the top 100 have been pretty stagnant lately. This market caused some new investors to lose hope in the market, and more seasoned ones to finally turn  off their computers and step out into the sunlight.

Bitcoin Correlation & The Market

All currencies tend to have a strong correlation. One of the more basic reasons is any time there is a trading pair between two currencies (BTC/FCT, BTC/ETH) there is going to be a natural correlation between the two.

This happens when one is sold for the other, causing supply of either to decrease or increase.

Okay, but what is correlation? In this instance, correlation is a way of measuring a similar effect happening to multiple cryptocurrencies. This effect or influence can be negative or positive depending on their influence to each other, as well as any outside variables (news, project release etc.)

Now that we've established the what, let's take a look at the how. In order for us to make money trading this correlation we first must be able to identify it.

Have you ever wondered why the Litecoin and Bitcoin, or Ethereum and Bitcoin charts look so similar?

ETH/USD

bitcoin correlation

LTC/USD

BTC/USD

This is due to the strong correlation we mentioned earlier.

So how do I figure out what to look for?

Thankfully, there are other data nerds out there (like ourselves) who go deep into the rabbit hole to uncover the specifics. The chart below shows the correlation and assigns a value between 1 and -1. 1 denotes the strongest correlation and -1 is the weakest correlation. 

Looking at this chart we can see that for the most part, all of these alts are somewhat correlated to the returns you would have realized if you held Bitcoin.

However, we can use this chart to identify those with the least correlation in order to "weather the storm". Note, this is only the first half of our analysis. We use the technique mentioned in this post to come up with a list of coins that we would then analyze further. We would look at the charts, team, market cap, and upcoming news.

Not sure if you noticed in the Tradingview charts I shared above, but out of those three charts, Ethereum was the top performer. 

With that in mind, our goal would hypothetically be to identify coins with the lowest BTC correlation and the highest ETH correlation. 

(This is not financial advice nor is it bulletproof advice, if you don't do your own research this article alone will only slightly increase your odds)

  • LOWEST BTC CORRELATION
  • HIGHEST eth CORRELATION
  • overview

Coins to bet/hedge against Bitcoin dropping

  • Bitcoin Cash
  • Ripple?

Coins to hedge against BTC and hold if you believe ETH will rise (least risk)

  • Augur
  • Ethereum Classic

Additional coins that are highly correlated to ETH

  • Litecoin
  • Nem
  • Dash
  • Factom

Remember, this is not the end. Now that we have this initial list we can check the fundamentals of each coin to identify our top pick.

Let me know in the comments if you had success with this method, or if you have any suggestions!

For more information on how that graph was created, and why log returns are used opposed to using price check out the video below.