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As a follow up to my introductory post on stablecoins, I thought I would take a look at some of the more popular ones out there. Hence the first one I chose to write about is DAI by Maker (aka MakerDAO).

As I was writing, I realize how long this became so I split it into a 2 parts. Part 1 is an introduction to the stablecoin as I understand it and part 2 covers my own opinions.

What is DAI Stable Coin and Maker (aka MakerDAO)?

DAI is the crypto-collateralized stable coin that aims to remain at $1 = 1 DAI and aims to achieve this by utilizing…


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2018 has seen a huge increase in stablecoin projects as everyone seems to be trying to dethrone Tether (USDT) at this point. But why the sudden interest and what are the difference between them? Here are my initial thoughts on the topic:

What are Stablecoins?

Stablecoins are cryptocurrencies which are pegged to an asset that has a stable value such as gold or fiat money (USD). For example Tether (USDT) is a stablecoin designed to be pegged to $1USD for each of its coin. How it does this depends on the stablecoin’s design.

Why The Sudden Growth in Stablecoins?

In my opinion the sudden growth in stablecoins is attributable…


As many of you know there is an upcoming hard fork for BCH on 15 Nov and interesting opportunities have cropped up lately. One of them was the introduction of BCH ABC and BCH SV trading by Poloniex. This introduces an interesting arbitrage opportunity that I illustrate in this article.

Note: I share this example to show how the cryptocurrency market has unique arbitrage opportunities as long as you understand the mechanics behind it. It is intended for educational purpose and is by no means a recommendation or investment advice.

The Arbitrage Idea

Premise

  1. Poloniex is trying to support the fork by allowing tradeable…

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Thought a summary of key information on the major exchanges that trade BCH ahead of the upcoming fork on 15 Nov (at 4.40pm UTC) would be helpful for everyone as they try to navigate ahead of the contentious fork.

Summary (at time of writing 12 Nov 2018):

To be eligible for the exchange’s handling of the fork, you would need to have your BCH at the exchange at the snapshot of BCH balances at UNIX time 1542300000 (16:40 UTC) on the relevant exchange but deposit/withdrawals suspensions are generally earlier so please take note.


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Default risk is something that is prevalent all around us. By definition it is the chance that someone fails to pay you back on their debt obligation. Yet how many of us actually assess and try to quantify this risk? For instance do you think how likely your friend will pay you back when you lend them money, if so how do you measure it and assess?

Hence in this article I share my thoughts on this and also how it relates to/impacts the cryptocurrency world.

Default Risk


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Looking for ways to hedge out your cryptocurrency exposure?

Perfect. As I cover 4 different methods to hedge out your cryptocurrency exposure with a brief section at the end of “why people hedge” to show some of the use cases for this type of strategy.

As I am a fan of TL DR summaries I have created a summary ranking table below (based on my opinion) for you to reference (though I would highly recommend reading the sections you are interested in):


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Most buy and hold crypto investors might aim to “shoot for the moon” but in reality there exists a subset of crypto investment strategies that can work regardless of market direction with a different risk/return profile.

So given my interest/focus in the area of market neutral cryptocurrency trading strategies, I thought I would share some of the generic strategies that I know of. For those interested I will also show how crypto and non-crypto (fiat) investors might be able to implement it for themselves.

To be consistent each section is broken down by strategy covering:

  1. Basic concept of the strategy

Cham Ho

Founder & Partner of Unikorn Capital (unikorncapital.com) a crypto investment company. He is also a CFA® charterholder. Telegram: @ChamHo_UC

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