Polkadot (DOT)

Since yesterday Polkadot or DOT is tradeable as a certificate (ETP) during normal Swedish office hours through my broker. It is tradeable 24/7 if you buy the real crypto.

Links
Polkadot (DOT) | Valour | Valour
DeFi Technologies Subsidiary Valour Launches Polkadot Exchange Traded Product

Polkadot: Decentralized Web 3.0 Blockchain Interoperability Platform
Polkadot (cryptocurrency) – Wikipedia

Polkadot is a heterogeneous multi-chain interchange and translation architecture which enables customised side-chains to connect with public blockchains.The protocol was created by the Ethereum co-founder Gavin Wood.

– Wikipedia

Basically it’s one of hundred Ethereum competitors. Most of them will be disbanded eventually. A few will survive. I will try to trade it based on hype and technical analysis.

Larger images can be viewed by right clicking on them and open them in another window or tab.

Screenshot from Coinmarketcap

Currently Bitcoin is by far the largest cryptocurrency. Polkadot is at number 8 at the moment. It’s worth less than 10% of Ethereum or 3.4% of Bitcoin based on market cap.

Most of these crypto will follow Bitcoin. At the moment Bitcoin is not showing much short term strength. Therefor I feel the risk is higher. Ethereum and Polkadot even more. If Bitcoin goes down further these will also go down much more. The opposite is also likely or if Bitcoin goes sideways.

This monthly chart shows that the uptrend is intact. However it is long way down to the lower trend line as well as a long way up to the upper trend line.

Below are charts of DOT versus USD, BTC and ETH. Please read the charts.

DOT/USD

The price has broken down. If it gets back into the rectangle I will become bullish. Otherwise I’m neutral or bearish. It’s a long way down to the previous rectangle.

DOT/BTC

Versus Bitcoin it is still in a rectangle. It reacted strong near the 200 sma and the lower rectangle boundary.

DOT/ETH

Versus Ethereum it has outperformed earlier during the year. I guess it will do it again. Question is when?

I have a small starter position.

I will keep monitor these and wait. I might “Dollar cost average” and buy a little every month if the price gets back into the rectangle vs USD. Otherwise I’ll try to avoid increasing my small positon. When it starts to outperform versus BTC and ETH I will try to buy aggressively.

I need to do a plan to sell as well.

My favorite quote at the moment:

You must learn to allow patience and stillness to take over from anxiety and frantic activity… The good player is patient. He is observant, controlling his patience, and organizing his composure. When he sees an opportunity, he explodes.

– Marital artist Jim Lau, quoted by Joe Hyams in Zen in the Martial Arts.

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