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These Three Little-Known Cryptos Are About to Explode
And How You Can Make 10 Times Your Money or More With Them

By Teeka Tiwari
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Teeka Tiwari
Cryptocurrencies are going berserk right now.

According to The Wall Street Journal, analysts are predicting a trading frenzy.

Bloomberg reports cryptos are minting a new class of millionaires.

In the past 12 months, no investment market in the world has grown faster, or produced more explosive gains than cryptocurrencies.

It’s the only market I know of where you can risk as little as $100 and make tens of thousands of dollars.

The time to get in is now.

The market is tiny. And it’s off the radar of most investors. But I can assure you it’s real and producing some spectacular gains.

Take Binance, for example. This cryptocurrency rose 8,022% in 2017 alone. That’s enough to turn every $200 you invested into over $16,000.

Or how about EOS? It jumped 752% in just 180 days.

And then there’s ZCoin. Investors made 22,900% over 2017.

You’ve likely never heard of these tiny, little-known crypto plays. But don’t worry. They’re unknown to 99.9% of the population.

We’re still in the early innings of this market. And the new crypto plays coming out will give investors like you the chance to bank some truly life-changing gains.

This is key. What we want to do here is make “asymmetric bets.” These are small-stake, low-risk bets with huge potential payoffs. The type of bets that can make you a solid payoff without risking your life savings. (Make sure to read our crypto trading strategy in the Where to Be Invested Now section below.)

In this month’s issue, I’m going to do a deeper dive into the three cryptocurrencies I shared with you in a January 22 buy alert. I believe these “asymmetric bets” can make you 10 times your money or more.

But first, I want to tell you about my system to spot the best small, fast-moving crypto plays before they explode.

It’s been my secret to success. I call it B.I.T.S.

B.I.T.S. System
B.I.T.S. stands for Business value ratio, Insiders, Technicals, and Social media.

It’s a four-part strategy that can help me predict when a cryptocurrency is setting up for a big move.

“B” Is for Business Value Ratio
The first letter, “B” for business value ratio, tells us when a cryptocurrency is cheap.

Take a look at the chart below. It’s how most people invest. They buy in on greed (when stocks are rising), and they sell out on fear (when stocks are dropping). Most individual investors will repeat this cycle until they go broke.

Image

It’s easy to get caught up in the hype cycle when something goes up a lot. And as you can see from the chart above, buying at the top of the greed curve will have you selling at the bottom of the fear curve.

It’s much harder to buy something after it’s been beaten lower and no one wants to buy it. But that’s when the biggest gains are madehellip;

With B.I.T.S., we flip the script. The system is designed to automatically have us look at ideas when they are at the bottom of the fear curve. We track that by using the business value ratio.

The business value ratio measures the daily dollar value of all transactions compared to the total value of the cryptocurrency. Over time, this creates a baseline of activity.

We’ve found that when the business value ratio dips below the 30-day baseline range, it’s a sign the cryptocurrency is getting cheap.

The business value ratio is a mean reversion tool. Over time, it will move back toward the black line. When the business value ratio is far below its normal level, this tells us that we are near the bottom of the fear curve. And that’s when we want to take a closer look.

But just because something is getting cheap isn’t enough to get us buying. It’s like the old saying: Don’t try to catch a falling knife. We want to make sure (to the best of our ability) that the price is done going down.

That’s where the rest of the B.I.T.S. system comes inhellip;

“I” Is for Insiders
Insiders are a big part of the B.I.T.S. method. That’s why I’ve spent so much time creating relationships with every major development team, PR firm, and cryptocurrency venture capital investor in the world.

When the business value ratio indicator starts flashing, I go to my insiders. I find out what’s going on.

Is the development team legitimate? Are there any new changes in the code coming up? Will the currency be trading on any new exchanges? Does the project solve a real business problem?

The Importance of Network
These are just a few of the questions I ask. Along the way, these insiders will sometimes let slip important pieces of information. One time, I had an insider tip me off to a coming change in the code that would make the coin much scarcer.

Once the announcement came, the coin rose triple digits. This wasn’t illegal insider information. It was publicly available, but it was hidden away on an obscure online forum frequented by programmers. There is no way an outsider would have gotten that information without an inside contact.

Being able to tap this network has helped me find some incredible ideas.

I travel all over the world to meet crypto experts. London, Lisbon, Berlin, Copenhagen, New Yorkhellip; I even have a relationship with a hedge fund manager in Tel Aviv.

You must be tied into the insiders in this space if you want to be able to find the good deals.

Before I issue a recommendation, I make sure that my insiders give it their stamp of approval.

“T” Stands for Technicals
Remember when I talked about staying away from falling knives? Well, that’s what the “T” in B.I.T.S. is for. We use technical analysis to tell us when the selling is over.

We use a tool called the Relative Strength Index indicator, or RSI for short.

The RSI measures how strong a cryptocurrency is based on its previous trading history. So, it looks at today’s price and the price of the currency in the past (usually 14 days before). If today’s stock price is higher, the RSI moves up. If today’s stock price is lower, the RSI moves down.

It’s a simple yet powerful indicator. RSI readings range from zero to 100. A zero reading means it is being heavily sold. A 100 reading means it is being heavily bought.

An RSI move from below 50 to above 50 signals that buyers are getting back in control. This reading, along with the rest of the B.I.T.S. system, tells us it’s time to get into the trade.

“S” Stands for Social Media
The “S” in B.I.T.S. should really stand for “special sauce.” The social media component of the B.I.T.S. system is truly awesome. Our research has shown that before a cryptocurrency takes off, we always see a surge in “chatter” in our Social Media Tracker.

Just as the NSA analyzes the volume of “chatter” to predict the next terrorist attack, our Social Media Tracker will pick up cryptocurrency chatter right before it has a major move higherhellip;

Once we see the “chatter” break a 30-day high, this tells us that interest in the cryptocurrency is building.

Now, obviously, there were some big moves that this sentiment indicator missed.

No indicator anywhere in the world is going to capture every big move. That would be impossible.

Cryptocurrencies are volatile. There are some that shoot up, but if there’s no reason for the spike, they’re probably coming right back down.

That’s why I analyze each crypto personally, run it by my team, and make sure it passes all my other checklists.

I want the ones that can not only give us a quick gain but also have the chance of becoming as valuable as bitcoin is.

Those are the ones we focus on.

Using my system, I’ve recently identified three cryptos that I think are about to soar. Let’s get to the first one…

Smart Speculations
Regular readers may recall that we consider cryptocurrencies like bitcoin to be Chaos Hedges. Our Chaos Hedges act as a form of insurance against things like market crashes. Having some Chaos Hedges, such as gold, silver, and crypto assets, provides downside portfolio protection.

However, most cryptocurrencies (like the three we’re recommending today) are speculative plays. But unlike other purely speculative plays, we dig deep to look for setups in the market that could give us 100%-plus gains in six to 12 months. We call these Smart Speculations. When used correctly, Smart Speculations offer the opportunity for outsized gains, even in conservative portfolios.

We generally recommend allocating no more than 5% of your investable assets to Smart Speculations in the Palm Beach Letter portfolio. (For an overview of our asset allocation strategy, including a breakdown of asset classes, please click here.)

Again, since these are Smart Speculations, keep your positions small. You don’t need to put in a large amount to make huge gains. And remember to store your coins in our recommended wallets.

Crypto No. 1: Cindicator
Wall Street goes to great lengths to gain an edge whenever and wherever it can. It’s all in the quest for alpha, or how much you outperform the general market.

And whenever a product comes along that can generate alpha, Wall Street will pay top dollar for it. One area where it has been spending feverishly is predictive analytics.

In short, data analytics uses a number of techniques, such as predictive modeling, machine learning, and data mining, to make predictions about future events.

Last year Wall Street firms spent $4 billion on predictive analytics. And it’s expected to triple over the next five years.

That’s where our first pick, Cindicator (CND), comes in. It’s creating an open system for hybrid intelligence.

With hybrid intelligence, Cindicator combines the best of both worlds. You have collective intelligence of financial analysts, data scientists, traders, and investors. And that’s paired with the artificial intelligence of machine learning models.

It’s like having the collective intelligence of everyone on the planet. And then making it even better with artificial intelligence.

Just how powerful is hybrid intelligence? Let me give you an example.

Researchers recently used hybrid intelligence to figure out the molecular structure of an HIV enzyme.

It was a problem scientists had been trying to solve for 13 years.

To do so, scientists combined the University of Washington’s supercomputer with Foldit, an online game that poses complex puzzles about how proteins fold.

By combining the two, scientists were able to solve the problem in just three weeks.

That’s the power of hybrid intelligence.

Cindicator now has over 70,000 decentralized financial analysts enhanced by artificial intelligence.

And by staking the Cindicator token, CND, you can get access to Cindicator’s trading models.

Just how powerful are Cindicator’s models? Here are a couple of examples:

In November 2016, Cindicator used its own crowd indicator to trade the U.S. stock market.

For the month, the S&P 500 ended up 2.7%. Meanwhile, Cindicator executed 43 trades for a return of 16.9%, trouncing the results of the market.

More recently, Cindicator did a pilot project with the Moscow Stock Exchange.

Using a pool of just 863 independent nonprofessional analysts, Cindicator’s model increased its portfolio by 2.81% in 15 days. That works out to a 47% annual return.

It’s exactly these types of results that Wall Street is craving.

As we mentioned before, in order to use Cindicator’s services, you need to own and “stake” the CND token.

Staking just means that you need to hold CND in an approved wallet. Cindicator then checks your balance and grants you access to the appropriate services.

Here’s why that’s critical. Those using the services are essentially locking up the tokens, and that means they won’t be available for sale. That reduces the float and makes the token more valuable.

For example, CindicatorBot’s beginner service requires a stake of 5,000 CND. The expert service, the one Wall Streeters will want, requires 700,000 CND. That’s not chump change, even at Cindicator’s low prices today.

That’s just one service. Another is Cryptometer Bot 2.0. The bot identifies arbitrage opportunities on the 10 biggest exchanges with the eight most-traded cryptocurrency pairs.

If you want to use Cryptometer Bot 2.0, you’ll need 1,000,000 CND. That’s right, one million.

Now think of all the Wall Streeters that will want this product, the hedge funds, the endowments, the pensions, etc. Demand will explode for the CND token.

Plus, Wall Street and asset management is just one use case for Cindicator. Other areas of application include venture capital, science (like the HIV enzyme example from above), corporate decision making, and politics, to name a few.

Hybrid intelligence is the future and Cindicator is leading the way.

What Takes CND Higher
There are 150 new crypto funds launching in 2018, with hundreds more coming. On top of crypto funds, there are an estimated 15,000 hedge funds worldwide.

If 10% of them add crypto exposure, that’s 1,500 hedge funds that are likely buyers of Cindicator tokens. The top-tier research package requires holding 1 million tokens. So that means if 1,500 hedge funds need to buy 1 million tokens each, that’s 1.5 billion in potential token demand.

But guess what?

There aren’t enough tokens to go around.

There are only 1.4 billion tradable CND tokens. 20% of those are already locked up. That leaves 1.12 billion tokens facing a projected demand of 1.5 billion tokens.

And this demand projection is just for hedge funds. It doesn’t include the 7 million global crypto tradershellip; the 20 million traditional stock tradershellip; or the 10,000 mutual funds.

That’s why we think you’ll see a massive demand-driven rally in CND tokens that will take them to $5 this year and $20 over the next couple of years.

At the time of this writing, we can buy them around 21 cents.

Action to Take: Buy Cindicator (CND)
Buy-up-to Price: $0.30
Position Size: $200–400 for smaller investors, $500–1,000 for bigger investors
Asset Class: Smart Speculation
Buy It On: HitBTC, Binance
Store It On: MyEtherWallet

Important Note: Cryptocurrencies are volatile. If Cindicator’s price is above our recommended buy-up-to price at the time you read this, just be patient. Don’t chase the price. Use a limit order and wait for it to come down. This will ensure that you don’t pay more than we believe a cryptocurrency is worth. Meanwhile, if we adjust our buy-up-to price, we’ll send you an alert.

How to Buy Cryptocurrencies
Never purchased a cryptocurrency before? Don’t worry. We have extensive resources to guide you through the process. Start from here:

Read the quick-start guide.

Watch our videos on how to set up accounts to buy and store cryptocurrencies.

Visit the Crypto Corner for any other questions.
Crypto No. 2: Aragon
In May 2016, the DAO, a digital decentralized autonomous organization, set the record for the largest crowdfunding campaign in history when it raised $150 million.

Launched on Ethereum, the euphoria from the record crowdsale quickly dissipated when a hacker exploited a vulnerability in the DAO’s code. By the time developers fixed the problem, $55 million had been siphoned away.

As a result, there was an intense debate in the community on how best to solve the problem. One camp felt the code should be rolled back to make investors whole. The other camp wanted no fix so that the Ethereum blockchain remained immutable.

In the end, the Ethereum blockchain did a hard fork, with the end result being Ethereum (ETH) and Ethereum Classic (ETC). ETH made investors whole, while ETC remained immutable.

The DAO hack controversy highlights the need for governance in cryptocurrencies.

It’s not an uncommon problem. Bitcoin, for example, has also been mired in decisions on how best to scale the network.

During 2017, the debate over bitcoin scaling led to two 30%-plus drops in price. And it also led to the contentious Bitcoin Cash hard fork in August 2017.

Solving the governance issue is Aragon (ANT). It aims to be the first community-governed decentralized organization whose goal is to act as a digital jurisdiction and online decentralized court system.

Organizations will be able to use the Aragon Network’s basic constitution and services as a framework. And they’ll also be able to build a custom set of rules to govern relationships inside the organization.

Based in Spain, Aragon is led by Luis Cuende, a tech prodigy listed among Forbes’ 30 Under 30.

With the advent of the internet and cloud computing, Cuende sees a new type of company emerging, one without traditional corporate and geographic forms. And that means we’ll need new architecture to manage these entities.

Aragon is building the tools for these next-generation decentralized organizations. And Aragon wants to provide everything you need to run one of these companies.

While governance is a key feature, with Aragon you’ll also be able to administer accounting, bylaws, cap tables, fundraising, and payroll.

These activities aren’t exciting. But they’re critical to running an efficient organization. If Aragon can become a critical piece of infrastructure for decentralized companies, that will create significant value.

Organizations can join the network by paying fees in Aragon’s native token, ANT. Implementing Aragon is done seamlessly by running Aragon Core, a module system that runs on Ethereum and can be built on.

Many other Ethereum projects are already partnering with Aragon. For example, they partnered with Project 0x, a protocol for decentralized exchange on Ethereum. That will enable seamless token exchanges between any organization within the Aragon Network.

It’s also a partner of the district0x Network, which is a collective of decentralized markets and communities powered by Ethereum. Aragon will facilitate the governance of the districts created within the district0x Network.

We expect many more partnership agreements over 2018. Aragon just established Aragon Nest, a grants program to support the development of the ecosystem.

The program is being done in conjunction with Placeholder Capital, a cryptocurrency hedge fund. It’s led by Joel Monegro and Chris Burniske. Monegro is a former analyst with venture capital firm Union Square Ventures. And Burniske is the former lead crypto analyst at ARK Investment Management.

The goal of the grants program is to facilitate projects that will not only help Aragon, but the Ethereum network as a whole, as well.

One thing to watch with Aragon is its transparency report. Aragon raised 275,000 ETH in its token sale when ETH traded around $125. It’s much more valuable now. (As of this writing, ETH traded near $1,090.)

As of January 2018, Aragon still holds over 262,000 ETH, as well as 7.4 million ANT. Combined, they’re worth $316 million. Meanwhile, Aragon’s market capitalization is $149 million.

That makes it cheap. We can buy it 53% below the cash it holds. We expect it will go to $12 as the valuation gap closes and even higher when the mainnet launches in March.

Action to Take: Buy Aragon (ANT)
Buy-up-to Price: $8
Position Size: $200–400 for smaller investors, $500–1,000 for bigger investors
Asset Class: Smart Speculation
Buy It On: Bittrex, Liqui
Store It On: Jaxx, MyEtherWallet

Important Note: Cryptocurrencies are volatile. If Aragon’s price is above our recommended buy-up-to price at the time you read this, just be patient. Don’t chase the price. Use a limit order and wait for it to come down. This will ensure that you don’t pay more than we believe a cryptocurrency is worth. Meanwhile, if we adjust our buy-up-to price, we’ll send you an alert.

Crypto No. 3: Dragonchain
Famous for its theme parks, movies, and animated characters, many don’t think of Disney as a technology hub.

But then again, most people aren’t familiar with the Disney Open Source Project.

The Open Source Program encourages developers to utilize code, contribute to projects, and release open-source software.

Today, there are over a dozen projects, focused on a range of activities from 3D authoring to rendering applications to image technologies.

And while it may surprise some, one of Disney’s open-source projects is our pick today, Dragonchain (DRGN).

It started as the Disney Private Blockchain Platform. However, Disney moved it to its open-source project and it’s now run by the non-profit Dragon Foundation.

Founded by CEO Joe Roets, the goal is to build Dragonchain Inc. into a commercial business that helps other companies start using blockchain technology.

Dragonchain simplifies the process for businesses to implement the blockchain by solving many of the pain points.

For example, Dragonchain provides easy integration into existing systems. It provides multi-currency support so it can be used worldwide. And it uses multiple popular programming languages, such as Java, Python, Node, and C#, making it easier to develop.

One of its main features is securing private business data, like how a dragon protects its treasure. Hence the name Dragonchain.

To accommodate private businesses, Dragonchain uses a unique five-layer architecture for consensus. Each successive level is more secure than the previous level.

Level 1, for example, would be for inter-company type verifications, where business is largely conducted on a trust basis. And that moves up to Level 5, its most secure level, which bridges to one or more of the public blockchains, like bitcoin or Ethereum.

Another unique feature of Dragonchain is that it’s using a serverless blockchain platform. The advantage of going serverless is that it’s more scalable and costs less. So far Dragonchain has integrated Amazon Web Services (AWS), with plans for more integrations in the future.

There’s a myriad of uses s for Dragonchain. For Disney, they’re looking into identity systems, ticketing, and digital media entitlements.

But there’s a host of other uses as well. For example, you can use Dragonchain for things like voting, payments, and auditing, among many others.

To facilitate projects on Dragonchain, the Dragonchain Foundation launched the Dragon Fund and funded it with 5% of DRGN from the token sale.

The goal of the fund is to provide professional services and strategic partnerships to develop successful ecosystems on Dragonchain.

And then there’s the Dragonchain marketplace. There, you can communicate with others in blockchain tech. You can hire developers and engineers. And there’s even resources like prebuilt smart-contract libraries.

One project using Dragonchain is Look Lateral. It started as an art magazine in 2007, expanded to the global art space, and is a large presence at major art fairs around the globe. And today, it’s tackling one of the toughest problems in the art world, provenance and authenticity.

As an asset class, art is estimated to be worth $60 billion. Yet, even with big money involved, there’s a lack of transparency in the art market and doubts over the authenticity of some pieces.

Look Lateral wants to improve the art market by changing how it’s archived, sold, and traded. To that end, its creating unique signatures, provenance, and financial art market solutions. And it’s doing so using Dragonchain.

Expect a lot more projects to come out using Dragonchain this year.

The Dragon Fund recently completed its first formal application process. And it received over 200 applications.

As enterprises join the Dragonchain platform, we’ll see the price of DRGN rise. They’ll need to buy the DRGN token to use the platform. But beyond that, they’re incentivized to hold the token as well.

Dragonchain has a unique feature called the Dragon Slumber Score (DSS). The more DRGN you hold, and the longer you hold it for, the higher your DSS score.

Dragonchain holders will have early access and discounts to projects that launch on the platform. And the higher your DSS, the better incentives you’ll receive.

With a large number of enterprises joining Dragonchain this year and the launch of its Incubator Program, we expect Dragonchain to reach a valuation of $3 billion or more. And that gives 500% upside from today’s prices.

Action to Take: Buy Dragonchain (DRGN)
Buy-up-to Price: $5
Position Size: $200–400 for smaller investors, $500–1,000 for bigger investors
Asset Class: Smart Speculation
Buy It On: KuCoin
Store It On: MyEtherWallet

Important Note: Cryptocurrencies are volatile. If Dragonchain’s price is above our recommended buy-up-to price at the time you read this, just be patient. Don’t chase the price. Use a limit order and wait for it to come down. This will ensure that you don’t pay more than we believe a cryptocurrency is worth. Meanwhile, if we adjust our buy-up-to price, we’ll send you an alert.

Where to Be Invested Now
Our Strategy for Investing in Cryptocurrencies
By Teeka Tiwari and Greg Wilson

Our mission at The Palm Beach Letter is to bring you safe, income-generating investments.

So, you may be wondering why we are investing in the admittedly volatile asset class of cryptocurrencies. Below, we’ll tell you why and reveal our strategy, so you have the right mindset to be successful.

Cryptocurrencies represent a great asymmetric investing opportunity. By that, we mean the upside far outweighs the downside. Small investments in cryptocurrencies can have an outsized impact on your portfolio.

Consider our original five cryptocurrency investments in the Palm Beach Letter portfolio…

A small investment of $400 into each coin would have set you back $2,000. Those investments are worth over $66,000 today. And along the way, we’ve made partial sells and taken over $8,000 off the table.

That means you are playing with the house’s money. And you have funds that you can reinvest in our future recommendations.

Now, before you go hog wild in cryptocurrencies, it’s important you understand what you’re getting in to.

Consider the last three months in cryptocurrencies. We can use bitcoin as an example.

From late October to mid-December, bitcoin rallied over 200%. It then fell over 50% in less than two weeks. Many days during that time, we saw double-digit percentage swings.

It’s a far cry from our normal stock recommendations, where a daily move greater than 5% would be considered an extreme event.

The most important thing to understand about cryptocurrencies is the volatility. In 2017 alone, we saw the cryptocurrency market crash over 30% on three separate occasions.

This is to be expected in a new, emerging asset class. And you should keep that in mind when you invest in cryptocurrencies.

There are a few ways we combat the volatility for successful investing.

First, it’s important to use proper position sizing. That means not betting the farm on any one position. Depending on your portfolio size, we recommend investing as little as $200 into each individual position.

Second, we use uniform position sizes. That means investing an equal amount across all our cryptocurrency positions. Think of it like this: If you made five equal investments, and four went to zero but one went up 1,000%, you will still end up making 100% overall.

Cryptocurrency is an emerging asset class. We don’t want to put our bets on just one horse. It’s just too risky.

Finally, we make our cryptocurrency investments within the framework of our Asset Allocation Guide. By following that framework, you’ll put yourself in a position where no one asset class could take down your financial ship.

With that in mind, let’s see where to invest today.

PERFORMANCE STOCKS

Super Cash Refund Stocks

Five of the seven Super Cash Refund Stocks we originally recommended are viable today. But be mindful of our buy-up-to prices. Please note that we sold General Electric (GE) and Merck (MRK).

Nuveen NASDAQ 100 Dynamic Overwrite Fund (QQQX)

In late December, we received our fourth dividend on QQQX. That brings the total for 2017 to $1.48. Meaning, those who bought at the time of our original recommendation made 7.4% for the year.

Including dividends, we’re now up 32.2% on QQQX. It’s above our buy-up-to price. If you own it, continue to hold.

Action to Take: Hold QQQX.

Tekla Life Sciences Investors (HQL)

Biotech continues to be one of our favorite sectors in the market. And we’re playing it through Tekla Life Sciences Investors, a closed-end fund with a focus on biotechnology.

At the time of our original recommendation, the biotech sector traded at a 30% discount to the S&P 500. Today, it’s still 18%. Keep in mind that the biotech sector historically trades at a premium to the S&P 500.

Plus, HQL offers a fat yield of 8.2%. And you can still buy it at a discount—2.5%, as of this writing—to its net asset value.

Action to Take: Buy HQL up to $24.

PowerShares Preferred Portfolio ETF (PGX)

PGX continues to be a safe place to park your money and collect a dividend yield that’s nearly 200% greater than the S&P 500’s.

Action to Take: Buy PGX up to $15.50.

Templeton Dragon Fund (TDF)

Congratulations to holders of the Templeton Dragon Fund. It recently broke out to new highs. Including dividends, we’re now up over 26%.

The positive price action has taken TDF above our buy-up-to price. If you’re not yet in TDF, be patient and let the game come to you.

Action to Take: Buy TDF up to $22.

Amgen (AMGN)

Last month, we noted that while Amgen was not one of our Super Cash Refund Stocks, it would still benefit from Trump’s new tax bill. The company holds $41 billion in cash, with 91% overseas.

Amgen announced it will repatriate its cash. And at the annual J.P. Morgan Healthcare Conference, Amgen CEO Bob Broadway hinted that more dividend hikes could be on the way. He also reaffirmed Amgen would post double-digit earnings growth for 2018.

Action to Take: Buy AMGN up to $195.

Microchip Technology (MCHP)

When we first recommended Microchip, its market share of the microcontroller market stood at 10%. Today, it’s 16%. And it has done this while maintaining its thick profit margins.

That’s enabled the company to return over $1.1 billion to shareholders over the past three years in dividends and stock buybacks.

Microchip is well-positioned to benefit from the movement to smart devices. And it has a history of rewarding shareholders. It’s above our buy-up-to price, but continue to hold if you own MCHP.

Action to Take: Hold MCHP.

NVIDIA (NVDA)

Nvidia continues to power higher and those who got in when we first recommended it are now up over 600%.

The company is at the center of several megatrends, including the growth of datacenters, electric cars, artificial intelligence, gaming, and cryptocurrency mining.

Not only is Nvidia benefitting from these trends, but it’s becoming more profitable. Over the last three years, the company more than doubled operating margins to 35%. And it grew free cash flow by 2.5 times to $1.9 billion in the last fiscal year.

For those who own Nvidia, continue to hold.

Action to Take: Hold NVDA.

CHAOS HEDGES

Bitcoin (BTC)

Now is a great time to buy bitcoin as there’s a number of positive developments right now and on the horizon.

SegWit transactions continue to gain adoption. (SegWit removes signature data from bitcoin transactions, thus increasing the block size.) Further, we’ll see a jump in SegWit transactions once Coinbase implements them in 2018.

We’re also starting to see the testing and use of the Lightning Network. This technology will help bitcoin scale. The first Lightning Network transaction took place this January.

Action to Take: Buy BTC up to $25,000.

Monero (XMR)

This month, Monero introduced its solution for accepting retail payments. The system will make it easy for retailers to accept Monero.

It’s being tested out at the hotel deal comparison site Room77 in Berlin. It can process transactions in just a few seconds with just a mobile wallet and QR code.

Action to Take: Hold XMR.

Ripple (XRP)

In January, Ripple announced that MoneyGram is adding Ripple to its payment flows.

There’s nearly $600 billion in cross-border payments every year. And MoneyGram has a global network of 350,000 agent offices and operates in over 200 countries.

Ripple is up 480% since we added it last month and now above our buy price.

Action to Take: Hold XRP.

Sprott Physical Gold Trust (PHYS)

Gold broke out of its six-year downtrend in summer 2017. Since then, it successfully retested the downtrend line in late 2017.

With interest rates rising and the dollar falling, gold is now moving higher again. It’s also worth noting that commodities in general, when compared to the S&P 500, are at their cheapest since the dotcom bubble.

Gold is a great insurance policy in uncertain times, and now is a good time to buy.

Action to Take: Buy PHYS up to $12.

Sprott Physical Silver Trust (PSLV)

We like PSLV for the same reasons we like PHYS above.

Action to Take: Buy PSLV up to $10.

RELIABLE FIXED INCOME

HCP (HCP)

HCP sold off in early January as one of its skilled nursing operators, Tandem Health Care, was not able to pay its loan. The result is HCP will have to take an impairment charge of $20 million. While a negative event, HCP continues to have a well-diversified group of tenants.

This is a good opportunity to pick up shares in HCP. It yields over 6% now. We’ll likely see a dividend increase in the first quarter. And it remains a great way to play the ageing demographics trend.

Action to Take: Buy HCP up to $36.

Reader Mailbag
As an investor of 40 years, the crypto market volatility does not phase me. I’m in it with you for the long haul. Adhering to your “let the game come to you” philosophy, I’ve used the opportunities to buy the recommendations on the dipshellip; I’m also disciplined in not exceeding the buy-up-to recommendations.

– Dennis P.

Thanks to your advice about proper position sizing, and to the incredibly valuable unique education that Palm Beach Group provides regarding overall Asset Allocation, I don’t worry much during these crypto market corrections, because while cryptos have grown to be a more significant part of my portfolio, the amount of capital I initially invested is still less than 5% of my overall investment capital.

– Oliver P.

I am a retiree who works a couple of days a week to supplement [Social Security]. I used it buy several of Teeka’s recommendationshellip; I took some cream off the top when he suggested it, converted it back to bitcoin, and brought additional positions. Because of my financial situation and age, my positions are only $100+/- each. I’m thrilled with the money I’ve made, but you know what, if I lost my initial investment, nothing in my life would changehellip; but because these are asymmetric trades, the upside could be amazing! I don’t lose a bit of sleep. Life is good. Thanks, Teeka.

– Judith H.

The way I manage my investment on these wild rides has been through appropriate position sizing and focusing on the underlying value of the technology and companies as you very well advocate. I have been a follower of you for a few months now, and your guidance certainly has been a fantastic support to my strategies and convictions.