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5 indicators to consider when making long-term crypto investment decisions

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Crypto: Are you wondering whether you should buy bitcoin and either hold the digital asset in your portfolio short or long-term? Well, regardless of the position you decide to take, it’s best to get some direction by utilizing technical analysis and fundamental analysis tools.

Cryptocurrency trading indicators work if not exactly but almost the same way as traditional tradable asset indicators. Whether you want to trade crypto, forex, stocks, or even other assets or commodities, you should get some sense of direction from these indicators before you invest.

Without technical analysis and proper study of the fundamentals, you will be trading out of ignorance and wishful thinking. And this is not something anyone wants to do using their hard-earned money. The crypto market is highly volatile, with many unpredictable outcomes due to different variables.

In today’s post, we’ll show you some of the most important and top five indicators to check before choosing a long-term position.

Find out how to carry out Technical analysis as a beginner.

Market Capitalization

Simply put, market capitalization is the metric used to measure the relative size of a cryptocurrency. It is calculated by multiplying the current price of a particular coin or token with the total number of the same coin in circulation.

As of the time of writing this article, the crypto market share is over 1 trillion US dollars. With Bitcoin having a dominant figure of just above US$1 trillion, Ethereum at around $200 billion, and over $50 billion being shared among other cryptocurrencies.

What you need to understand is that the larger the market cap volume the lesser the volatility. What this means is a large market cap shows dominance, which is a good indicator for choosing a long position. Take for instance Bitcoin with a market cap of $1 trillion which is more than 70% of the entire crypto market size. This indicates that one could buy bitcoin as a long-term investment.

However, as a long-term investor, you will want to avoid projects with a very small or low market cap volume. This is because cryptocurrencies with low market caps could be subject to pump and dump schemes, and result in you losing your hard-earned money. You should target projects with say at least a $10 billion dollar market share. Based on market cap share, one could pick Ethereum in one’s portfolio for a long position.

Utility and User Base

Before choosing a long position, one of the other things or indicators that you want to check is the utility of any particular cryptocurrency. You should research the usefulness of cryptocurrency, and the robustness of the community that backs it. A good project should have a strong community.

Ethereum is the second-largest cryptocurrency by market capitalization and has a solid community and use-case. It allows smart contracts and developers to build decentralized applications (dApps) on its blockchain.

Another great example of a cryptocurrency with good utility and a decent size community is Cardano. Cardano has been dubbed as the “third generation” of blockchains after Bitcoin and Ethereum. It is created to solve scalability, interoperability, and sustainability.

Litecoin, Binance coin (BNB) are also great examples of cryptocurrencies that have good use-cases and active communities. You can buy these crypto-assets on Remitano P2P exchanges for long-term investment.

Future and Ongoing Projects

This should be a no-brainer, right? Well, not an easy indicator to look out for. Before choosing a long position, you want to know the underlying technology that is driving the cryptocurrency.

The future of the coins listed above is bright and strong. Why? These cryptocurrencies have strong developers and communities. Bugs are being fixed regularly, contributors and more people are joining the projects. The more contributors, developers, and people joining the project, the more valuable it becomes.

Continuous research in order to augment the blockchain technologies powering cryptocurrency projects and support the ongoing development is crucial. Ethereum for example is moving from its proof-of-work (PoW) to a proof-of-stake consensus mechanism with Ethereum 2.0. This is going to improve scalability and speed of the network.

The new EIP 1559 is going to solve the long due problem of high Ethereum network gas fees and also improve the user experience. Projects and developments like this have arguably played a significant role in the recent spike of Ethereum’s price.

The crypto world is an exciting one, and hence positive and exciting developments often lead to adoption. So, before you choose a long position you want to have all these boxes checked and ticked.

Volume and Transaction

Trading volume is the number and value of trades of a particular coin at a particular time. For example, if Tom sells 2 BTC at the rate of 20K USD for each, then the volume of the transaction is simply 40K USD or 2BTC.

A coin’s trade volume helps to clarify two things – it helps to checkmate sudden rise and fall in market price, and it’s also a good indicator that the coin is being actively traded.

South Africa ranks as the 10th biggest country in terms of bitcoin trading volume, thanks to P2P and spot crypto exchanges available in the country.

So far in 2021, the Ethereum network has been able to process more than a million transactions per day, surpassing the number of people that buy bitcoin.

Simpy, an increase in volume should be seen or accompanied by a rising market which is an indication of solid buyer interest. According to a poll by CoinDesk on Twitter, 38% of traders say Volume is a crypto indicator they can’t do without. 30% voted for RSI, 23% for Moving Average, and 9% others. This means that Volume is one indicator you can only ignore at your peril.

What Problem is the Project Solving?

Just like every other business that you know, a good crypto project should be solving a particular problem. Bitcoin is created to disrupt the traditional financial world by eliminating the intermediary between two parties when sending funds.

Before you choose a long position for any cryptocurrency, you need to evaluate the teams behind it, you need to know the project’s mission and vision. That’s not all, you need to understand the roadmap and how plausible it is to accomplish. Reading the project White paper will reveal much of what you need to know about the coin.

You do not want to invest in any crypto project that is not transparent enough with all these. You should only focus on projects that have value and their purpose. Also, you need to understand whether the token is a utility token, security token, transaction token, or platform token?

Carefully studying and evaluating the indicators mentioned in this article would prevent even the average investors from making bad decisions. Traders seeking long-term positions can buy Bitcoin, Ethereum, and Cardano to start with because they are heavily traded, and have stood the test of time.

Article By: Heath Muchena

 

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Investment

Chaka secures $1.5M pre-seed round to power digital investments and wealth management opportunities across Africa

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Chaka CEO, Tosin Osibodu at a press briefing (Image & Press Release: Chaka)

Chaka is thrilled to announce its $1.5M pre-seed funding round led by Breyer Capital, a global venture firm focused on catalyzing growth in high-impact companies like Spotify, Facebook, and now, Chaka. Other participants in the round are 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures.

Chaka is a technology solutions company on a mission to enable every business and person in Africa to access borderless digital investment and wealth management opportunities. The team combines investment expertise and best-in-class technology to provide reliable digital Investing, trading and wealth management solutions that are easy-to-use and easy-to-integrate.

Their mission is to enable digital border-less investing for African businesses and individuals. They’re powering the digital investment landscape in Africa through partnerships with asset managers, financial technology firms, and regulators with whom we have a shared mission. We achieve this by providing trading solutions that are easy to use and easy to integrate.

With this capital, they will focus on the goals to build a roster of formidable partners and accelerate expansion to other markets within West Africa. This investment also enables them to hire top talent and integrate more advanced functionalities into our investment and wealth management solutions.

Jim Breyer, CEO of Breyer Capital, shared his view on this investment and it illustrates their shared vision: “We are proud to align ourselves with a company that is leveling the investment playing field for Nigerians (and Africans at large). We’re confident in the value Chaka provides through its digital tools, and we look forward to playing our part in supporting Tosin, Bo, Olaolu, and the Chaka team.”

This is a significant milestone for Chaka and could not have come this far without their users, partners, early investors, and a talented, achieving team of Champions.

They see digital investments as a means to boost economic transformation in Africa, and we’re very keen to bring this vision to life.

 

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elmenus, Egypt’s Leading Food App Secures $10M Pre-Series C from Fawry, Luxor Capital and Marakez

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Co-Founders (Image: elmenus)

elmenus and Fawry to co-develop innovative solutions for restaurants and customers

Luxor Capital’s first investment in the MENA region, previous investments include the biggest food ordering platforms globally, such as Zomato, Deliveryhero and Glovo

elmenus, Egypt’s biggest food discovery and ordering platform, has secured new funding from three new investors, based in the MENA region and North America. Fawry Group, the renowned digital transformation and e-payment platform is leading the investment from Egypt. The investment follows Fawry’s new strategy to take minority stakes in fast-growing, Egyptian, technology businesses. As well as investing, Fawry will work closely with elmenus to develop innovative solutions to benefit restaurants and consumers. Also investing is Marakez, a leading Egyptian real estate developer.

Ashraf Sabry, CEO of Fawry, said: “Fawry is looking forward to its journey with elmenus, working closely with the executive team and entering many ventures together.  By this investment, we show our desire to not only be a payment catalyst but to be a strategic partner to elmenus, its customers, restaurants and their riders. The Egyptian food space has high growth potential, with technology disrupting the status quo, as customers’ needs in food service provision rapidly change.”

From North America, investment has also been received from New York-based hedge fund, Luxor Capital Group, which has $11 billion of assets under management. elmenus is its first investment in the MENA region testament to its’ growth track record and market opportunity in Egypt. Luxor has a long history of successfully investing in food technology companies around the world.

Amir Allam, CEO of elmenus, commented: “Attracting new investment from Fawry, Luxor Capital and Marakez – following the endorsement of industry veteran, David Buttress, earlier this year – validates elmenus’ unique strategy. We are accelerating the adoption of online ordering by users, while enabling restaurants with new verticals – to help them scale. This funding demonstrates the investors’ strong belief in our position in Egypt, and our capability to dominate the market.”

elmenus, which now has over 1.5 million monthly users, is the most comprehensive platform for restaurant information and food discovery in Egypt, and its aim is to personalize food recommendations at a dish level. elmenus continues to expand rapidly, and today’s announcement follows the investment and board appointment of David Buttress – the former CEO of global food ordering firm, JustEat – announced earlier this year.

By the end of 2021, elmenus expects to empower 12,000 restaurants with new data and tool offerings to help them scale their businesses, across 20 Egyptian cities. Its cutting-edge digital solutions will also drive its existing database of several million users, to switch to online ordering.

 

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MarketForce secures $2M Pre-Series A round, plans to launch in Nigeria and scale up RejaReja in East Africa

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MarketForce Co-founders, Tesh Mbaabu (Left) and Mesongo Sibuti (Right) (Image & Release: MarketForce)

Kenyan-based MarketForce, a B2B platform for retail distribution of consumer goods and digital financial services in Africa, announces a $2 million Pre-Series A round, bringing total funding to-date to $2.5 million. With this fresh round of funding, MarketForce has brought on V8 Capital, Future Africa, Greenhouse Capital, Launch Africa, Rebel Fund, Remapped Ventures, and a couple of strategic angel investors as new investors. They joined Y Combinator and existing investor P1 Ventures, who also participated in the oversubscribed round.

In sub-Saharan Africa, approximately 90% of household retail transactions are in cash, and delivered through a network of about 100 million MSMEs, with 42 million in Nigeria alone. Retail payments on the continent are expected to top $2.1 trillion by 2025, and MarketForce aims to digitize a large portion of these offline transactions.

Co-founded in 2018 by Tesh Mbaabu and Mesongo Sibuti, MarketForce uniquely combines a field sales automation SaaS solution with it’s “RejaReja” B2B marketplace to digitize how informal retail merchants buy and sell FMCGs and digital financial services. RejaReja helps these corner shops, commonly referred to as ‘dukas’ in Kenya, get better service, assortment, and access to new revenue opportunities, outfitting them with the technology and support they need to transform themselves from simple FMCG outlets to comprehensive financial service hubs for the continent’s last-mile communities. Currently available in Kenya, RejaReja offers informal retailers next-day delivery for hundreds of SKUs from the leading FMCG brands.

Last month, MarketForce announced the strategic acquisition of Digiduka, which was formed and funded during the inaugural cohort of the Antler programme in Nairobi. This was a huge fintech step forward as RejaReja now provides a wallet that allows retailers to collect mobile money and bank payments via mobile app, WhatsApp bot or USSD shortcode, eliminating the high mobile money transaction fees and enabling merchants accept digital payments, access working credit and earn more by acting as distribution agents for popular financial services such as airtime, bills, utilities, and even insurance.

With this round of funding, MarketForce plans to launch in Nigeria and to scale up RejaReja to more towns in East Africa.

“We are seeing significant demand for our radically improved way for companies to distribute their goods and services in Africa, and we’re thrilled to get a boost from returning and new investors at this crucial time,” said Tesh Mbaabu, Co-founder and CEO of MarketForce. “The combination of our technology with the offline distribution network that we are building is essential to creating maximum output and impact in African retail distribution. Our goal is to create income growth opportunities for a million retailers and independent sales agents across Africa within the next five years.” 

“Our clients and partners understand MarketForce’s power to increase sales performance and productivity across markets and industries,” said Co-founder and CTO Mesongo. “We are building the operating system for retail distribution in Africa, and we have the right combination of technology and team to make our Pan-African vision a reality.” 

Today, MarketForce clients are able to gain access to both our software and the RejaReja marketplace, which has garnered over 15,000 retail customers, processing thousands of orders daily, and we are experiencing double digit revenue growth month over month. The MarketForce SaaS product on the other hand has garnered over 10,000 monthly active users, with over 300,000 transactions worth over 500 Million USD processed to date through the platform in 3 key markets; Kenya, Uganda and Tanzania. Clients and partners include Safaricom, Pepsi, Grain Industries, Fort Beverages, Madison Insurance, Platinum Credit, Momentum Credit, Letshego, Pezesha and Lami.

A happy RejaReja customer in Nairobi (MarketForce)

“We are glad to be backing MarketForce in this round of funding, given their ability to build a differentiated, powerful and all-inclusive digital commerce platform for informal retailers in Africa. Similar to Paystack, another successful African YC company who targets merchants selling online, RejaReja targets the millions of underserved informal merchants who are still offline when it comes to business automation and payments,” said Tobi Oke, Managing Partner at V8 Capital Partners. 

“We are proud to back MarketForce to build the future of retail in Africa and help catalyze the digitization of the African retail market, which is highly informal, fragmented and undigitized, but holds a lot of untapped potential to improve incomes and enable millions of African retailers to grow their businesses. MarketForce sits in a place that enables them to generate a lot of value and empower every single participant in the massive retail industry,” said Adenike Sheriff, Principal at Future Africa. 

“We are excited to strengthen our partnership with MarketForce,” said Mikael Hajjar, Managing Partner at P1 Ventures. “MarketForce is one of the fastest-growing African leaders in sales and distribution automation technology. We’ve witnessed the pain point that MarketForce’s product addresses and how its customers realize major productivity gains over substitutes.” 

“I have known Mesongo and Tesh for over two years and MarketForce has proven that they know how to leverage the entire retail supply chain as a gateway for digital payments. Their organic as well as acquisition-driven growth & expansion strategy thus far has proven that their understanding of unit economics and marginal customer acquisition costs is solid. As a pan-African fintech company, they are very well positioned to tap into the $700 billion that gets transacted in this space every year,” said Zachariah George, Managing Partner at Launch Africa. 

 

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