Taking Profits on XRP: Buying 0x (ZRX)
Ripple XRP has absolutely crushed it this week, and today I sold about 20% of my total XRP for a significant gain. I remain bullish on XRP but this sale is intended to lock in profits and grab the next big 10x coin.
What's next?
There are many coins I love so it was hard to decide but a combination of factors lead me to 0x Coin (ZRX).
What is ZRX?
"0x is an open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain."
"0x protocol is a pluggable building block for dApps that require exchange functionality. Join the many developers that are already using 0x in their web applications and smart contracts."
"In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer."
What does that mean?
0x is a protocol which adds to ease of token exchange, reduced costs and increased speeds of transcation, all within the Ethereum platform.
It achieves these improvements by using smart contracts which execute orders off-chain, through the use of "relayers". Taking most actions off the chain, through 0x, will improve speed and lower costs dramatically.
Who would use 0x?
Well that's part of my excitement, its not just who might use it, you can see a list of people who are already using it. They have a functional protocol now! Check out this list of companies using 0x protocol.
Ethfinex:
Ethfinex is a new decentralized exchange being created by the people behind Bitfinex, only this will use 0x protocol to improve service and lower fees.
https://support.bitfinex.com/hc/en-us/articles/115004422865-What-is-Ethfinex-
Blocknet:
They argue that "no single blockchain could carry the load of storing and serving humanity’s data. There is already a vast array of technologies upon discrete, isolated blockchains. Together they are capable of realising the vastly disruptive power of a decentralised internet – if they could be made to work together."
Blocknet hopes to interconnect blockchains, by becoming "the internet of blockchain".
https://blocknet.co/
Radar:
Radar aims to make the search for what ERC20 token you want, for the price you want, easier. They will be very pivotal to the success of 0x, and so I am eagerly watching their efforts.
https://radarrelay.com/
Conclusion:
0x (ZRX) is a decentralized exchange, protocol, which can be used by any dApp on the Ethereum platform which requires token exchange. More importantly it enables private sale of tokens in a new way, with lower fees, and faster transactions, particularly when linked with Radar.
This token is about 0.65 USD right now, with a small 300 Million market cap. Anything with a cap under a billion has a lot of room to grow, and when you add that to the problems we have recently had with centralized exchanges such as EtherDelta hack, Coinbase "surprise" BCH listing, or historically with Mt.Gox, you begin to see a lot of upside 0x. And better yet, 0x does more than just provide exchange options, it works with other dApps to expediate their operation as well through off-chain transaction relaying.
Also there are already companies building on this 0x protocol, some of which mentioned above are exciting, and perhaps now you begin to see why I am investing in 0x.
It may end up being a longer term hold. Perhaps a few months, but I suspect I can 10x my investment sooner than I could expect another 10x from my Ripple XRP which I sold to buy my 0x.
Disclaimer:
As always, I am not a financial advisor, and I am not an expert. I am just a guy talking about my interests and journey in this space on the internet. If you want to invest in 0x, please do your own research and risk only what you could afford to lose. Crypto is a dangerous mistress.
If you enjoy the content I would appreciate your support in the form of an up-vote, comment and I always love to see new followers.
Your writing is very interesting.
But I want to ask you, what do you think about the development of 2018 bitcoin price in the future?
I just want to survey some people
I have doubts about Bitcoin valuation. I was listening to one of my favourite speakers, Julian Hosp, and he was saying that when we look at a crypto we need to look at its value before we consider its price. Value is what it is worth, price is what you pay for it.
They are linked but not always directly correlated.
Bitcoin has a very high price, but I question its value. The thing that BTC does best is a "store of value" and I agree that is interesting and meaningful, however there are many coins that offer that. Litecoin is nearly as old, and therefore nearly as proven as BTC, yet BTC is way more expensive than LTC, and there are other examples like this.
What does BTC do that no other coin can do? It was first is the only thing that seperates it. That again is meaningful but in my view not sufficient to justify heavily investing in BTC at this point.
I hold a bit of BTC, maybe it makes up 1/30th of my portfolio, but I am not bullish on it because first and for most, I believe the "value" does not justify the "price".
Add to that, BCH stealing some attention, users, and miners, and add to that the growing cryptocurrency options, whose to say there won't be some as yet unknown leader of the crypto market in years to come.
One more point. When I look to investing, I strive to find projects that have a value, an answer to a current problem, and I ask how big is that problem, and how important is that answer, who is their competition and what sets them apart from their competition. On all these metrics I feel BTC scores poorly.
Is BTC a currency? kind of, but there are cryptos that are better at that, then BTC.
Does BTC solve any real world problems? Remittances, sure, but again other cryptos do that better, Ripple for example.
Does BTC do something that no other crypto does? Nope.
I hold very little BTC, and I will likely keep it that way, although that is not to say that I don't doubt it will 10x eventually, I do doubt it will occur before half a dozen other coins. So I prefer to seek those alt coins that will 10x faster than BTC.
Hope that helps.
Nice post...and an important update
Very sane