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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

ILLA, an African asset-light FMCG Logistics Company Raises $2M Investment Round

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ILLA Team (Image: Supplied)

Cairo-based FMCG Logistics company ILLA secures a $2M investment round to boost its growth in the market and diversify its offering to the FMCG value chain. The round was co-led by Watheeq Financial Services and Golden Palm Investments. The round saw participation from Loftyinc Capital Management, Kepple Africa Fund, Cubit Ventures, AUC Angels, Oqal Angel Network and FLat6Labs Cairo doubling down on its investment in ILLA for the third time

Founded in 2019 by Mahmoud Elzomor, Alaa Jarkas, Ahmed Sakr, and Hossam Saraya, and shortly joined by a well versed management team with Mohamed Emera as Director of Growth, Mohamed Kamal as CFO, and Khaled Elzomor as Commercial Director ILLA aims to optimize post-production supply chain activities for FMCG brands, starting with middle-mile delivery services, being the most fragmented part of the value chain.

By focusing exclusively on the FMCG market, ILLA was able to capture the business and trust of over 65 clients in its portfolio, with household names to the likes of Coca-Cola, P&G, Danone, Nestle, Juhayna, and Pepsico.

Since 2019, ILLA has been delivering on its core promise of moving goods with efficiency on behalf of FMCG brands, spanning over 5,000,000 KM and completing over 250,000
transactions, across 27 governorates in Egypt leveraging its tech platform to power delivery
operations

Before ILLA, FMCG brands had to rely on a variety of owned and outsourced assets to manage their delivery operations, and that adds to the pain of a fragmented logistics cycle, which gave way to the value offering of ILLA to those brands; a streamlined value chain with visibility, control and growth potential for each individual brand, with ILLA acting as an asset-light logistics  company, leveraging its tech platform and operational intelligence to deliver an unparalleled experience to FMCG brands.

“ILLA will use the funds to fuel its expansion and growth in Egypt and disrupt the traditional route to-market for FMCG companies and SMEs, while building more around its tech platform to deliver more value to its clients and drivers alike”, says Mahmoud ElZomor, Co-Founder and CEO of ILLA

“Mahmoud and the team are tailor-made for ILLA, bringing decades of diversified experience to help drive efficiency into the $15 trillion global FMCG market. With the onset of covid, the global supply chain management industry is suitable for modernization, and ILLA is uniquely positioned as an end-to-end execution platform. In addition, ILLA’s smart logistics solutions also play a crucial role in providing a full stack of operational solutions that will disrupt the sector, and will change the behavior for all stakeholders within the FMCG market,” said Khaled Zaidan of Watheeq Financial Services.

“Middle-mile logistics is one of the most underinvested segments of the global supply chain market. ILLA has identified this massive opportunity in MENA and is offering a full-stack B2B supply chain management platform enabling FMCG brands to reach retailers directly at the lowest cost per case. Mahmoud and team are utilizing the trucking logistics shared economy and tech automation to innovate within a large and fast-growing market.”AJ Okereke, Partner, Golden Palm

 

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Fawry Invest in Sudanese Classifieds and Marketplace Platform alsoug, Marking First Overseas Venture

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 Fawry CEO Eng. Ashraf Sabry (Image: Supplied)

Fawry establishes strategic partnership with Sudanese consumer platform with an eye to scaling up technology platform beyond Egypt.

Fawry (the “Company”, FWRY.CA on the Egyptian Exchange), Egypt’s leading provider of e- payments solutions and digital banking services, announced today that it has finalized an investment in alsoug.com, Sudan’s largest online classifieds platform and marketplace, to help build out alsoug’s new fintech platform, Cashi. Fawry has acquired a strategic minority stake in the alsoug.com/Cashi holding company, marking the Company’s first venture capital investment outside of its Egyptian home market. The investment comes as part of Sudan’s first announced venture capital funding round.

Fawry played a leading role in ensuring the success of the USD 5m round, with the Company’s presence catalyzing involvement from other strategic Western VC players. As a strategic investor in alsoug, Fawry intends to leverage its long track record with white label technology solutions to help the platform expand in scale, enhancing the platform’s merchant acquisition operation, refining its go-to-market approach, and providing valuable insights that inform high-level strategy across all segments of the business.

Founded in 2016 by a world-class team of technology entrepreneurs, alsoug is now Sudan’s leading consumer internet platform and its largest digital marketplace. Alsoug is one of Sudan’s most downloaded apps on the Google Play app store with two million downloads and is a platform where sellers can list everything from real estate and cars to services and commodities.

Despite the political and economic headwinds experienced by Sudan as it goes through a transformative political transition, the platform has grown rapidly since 2016, reflecting alsoug’s highly skilled team of in-house developers, comprehensive coverage by its on-the-ground teams, as well as Sudan’s promising economic fundamentals. Moving forward, and building on the strategic partnership with Fawry, alsoug will significantly expand its service offering by building a new payments network capable of serving customers across Sudan, one of the largest countries on the African continent.

“We’re delighted to be kicking off our partnership with alsoug, one of Sudan’s most exciting prospects and a Sudanese leader in tech innovation. This is our first investment foray outside of Egypt in our thirteen years of operation, and we’re confident that our story with alsoug and Cashi will be a special one. Fawry’s investment in alsoug delivers on our plans to venture into underserved international markets by leveraging our technology and teaming up with strong local players. This investment will provide us the opportunity to strategically expand our footprint into Africa and transfer the experience we’ve gained in the dynamic Egyptian market to neighboring Sudan, an economy with major potential across several sectors and with a significant pool of entrepreneurial talent. Meanwhile, Fawry’s strategic partnership with alsoug leaves it ideally placed to help guide the platform’s rollout of a countrywide payments system, a feat which Fawry has already managed through a scalable, robust, and best-in-class technology platform.” said: Fawry CEO Eng. Ashraf Sabry

“This investment marks a significant milestone not just for alsoug, but for the nascent tech space in Sudan as a whole, which has until today been essentially shut out of the global capital markets. I hope this investment is the first of many and that the huge potential of the tech sector in Sudan is fully realized in the coming years. We are looking forward to working with Fawry, and our new strategic shareholders, to continue our expansion from the classifieds and marketplace space into payments. We will build a payments platform that will deliver financial inclusion to all Sudanese.” said Alsoug co-founder and CEO Tarneem (Nina) Saeed

 

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ReelFruit Secures $3 Million Series A Funding To Expand Production with New Factory

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ReelFruit CEO/Founder; Affiong Williams (Image: Supplied)

ReelFruit, a premium dried fruit company known for its high quality nutritious snacks, today announced a Series A investment of $3M. Alitheia IDF led the round and invested $2M while other investors included Samata Capital and Flying Doctor Healthcare Investment Company. The New Practice advised ReelFruit on the transaction. With the capital, ReelFruit will scale its dried fruit production, develop new products, and increase exports by 10 x to 15 MT in the first year.

Key to its expansion plans, ReelFruit will acquire a new factory in Ogun State to increase its monthly dried fruit production from 6 MT to 30 MT. The factory will hire over 200 people in its first year. With its greater supply of dried fruit, ReelFruit will continue to innovate new products for the local and international markets.

As part of its efforts to secure high quality raw materials, it plans to deepen its existing work with Nigerian fruit farmers. The company will form an agro-extension services program for 250 registered mango and pineapple producers. The program will boost fruit yields and help support a steady supply of high quality raw material for the factory.

To meet strong demand for its dried fruit snacks, ReelFruit will diversify its local and international sales channels. The company will launch an e-commerce channel for direct US sales by 4Q21. ReelFruit will also unlock more B2B opportunities including white-labelling and co-packing to support the national drive toward import substitution. Local buyers will be able to buy dried fruit locally thereby reducing dependence on imports. Reelfruit is already on track to double last year’s revenues by November 2021.

“This investment takes ReelFruit to the next level. We can meet increased demand for our products and tackle one of our biggest challenges – raw material supply. We’re thrilled that this will unleash a greater impact on our value chain by increasing farmer incomes and creating up to 300 decent jobs for Nigerians,” Affiong Williams, ReelFruit CEO/Founder.

“Alitheia IDF is proud to support ReelFruit’s ongoing efforts to boost food production in Nigeria and positively impact communities through deliberate partnerships with local farmers, distributors, and retailers. The investment will strengthen the company to unlock further growth, upskill farmers and improve economic outcomes for thousands of women who play a significant role in the production of ReelFruit’s products,” said Tokunboh Ishmael, Alitheia IDF co-founder.

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