October 31 to the first digital asset Bitcoin was 10 years old. During this time, the cryptocurrency market from the ground up to over $200 billion, there was about 15,500 exchanges. These figures regularly increase interest, despite the ever-changing moods, does not vanish. One reason for this is that the cryptocurrency remains an effective method of earning. Trading on the stock exchanges of digital assets attract Fiat traders and other users, which are captured by the idea of getting a quick profit.
However, many users, especially if they have not previously encountered with trading, there are questions on the entrance to the cryptocurrency market. To explain the action on the exchange of digital assets we spoke with communications Manager crypto-platform EXMO Maria Stankiewicz that you need to start trading and how to cope with all the difficulties that preparing a volatile coin.
Before you start to discuss trading, tell us about your exchange. What has happened in your company?
As you know, today, to stay in place, you need to run, and to actively develop — you need to run very fast, especially in the cryptocurrency industry. We try constantly to change, to test new services and products and launch new stocks and enter new markets. In the summer of 2018, we have added 13 new cryptocurrency and 34 currency pairs, Turkish Lira added in addition to the other 5 Vietnam currencies, TradingView has launched graphics, a new system of kesbeke when the refund happens every day, hooked up a new payment system Mistertango, WebMoney, SWIFT transfers, start on the Turkish market.
As a new cooperation cryptocurrency exchanges, in particular, the entry into the Turkish market, to help the common trader earn more? Because at the moment Lira is the national currency of Turkey is not in the best condition.
We analyzed the situation and noticed that the entry into the Turkish market is primarily due to the fact that over the past six months the number of new users from Turkey increased by 3 times compared to the same period last year. Seeing the demand, our market decided to fully start in a new region by adding the Turkish Lira and making a version of the website and customer support in the Turkish language. Now we launched the promotion — 0% Commission for input and output of the Turkish Lira, which, of course, encourages traders to trade on our exchange. Various affiliate promotions (including payment systems, 0% Commission), adding a popular and interesting cryptocurrency, 100% kesbeke, regular airdrop, contests with coins allow you to not only retain existing traders and attract a huge number of new. Despite the market correction, registration go up, which means that the exchange is on the right track.
The industry is constantly evolving. What changes in trading crypto-currencies have occurred in recent years?
The major trend of 2018 — the arrival on the stock market whales are very smart professional investors, Fiat investment funds that previously avoided the exchange side. We tried to work with major industry players, sent them the requests for cooperation made them special conditions with reduced fees, because the volume of transactions are high. We come to the Russian and Asian funds, with them very interesting to work with. In addition, they affect the volume of trading of the exchange — they have increased. This is a big plus for users.
The second trend of cryptocurrency exchanges for ICO. Now for a listing of the queue stood more than 250 coins is too much. Such a large number can be attributed to the plume 2017, when there was a boom ICO, all have designed their tokens and wanted them to make a list of some of the exchange. Now a Scam is not so much because the euphoria has passed, users began to better understand the digital currency industry. Projects have become much better.
How is the listing of coins?
Initially, we, like all cryptocurrency exchanges, please fill in the questionnaire. Consideration of the application takes from 3 days to several weeks. Very important for us to be fully confident in the project.
We can distinguish 5 main criteria, which is the final conclusion to list a particular coin on the exchange or not.
Evaluation of the project from the point of view of the work done is interesting and promising idea, is there a working MVP (minimal working prototype), it looks like a roadmap, how moves work, respect for deadlines.
Evaluation of the project from the point of view of the community: what is common information field around the project, how are the threads on specialized forums.
Evaluation team: who is making our project was a successful project professional in team history. Most often we prefer to talk personally with the CEO of the project, to understand the motivations and plans of the team.
Project evaluation terms of market value — whether your business benefits and market needs?
Evaluation of the project in terms of a willingness to work on joint marketing and PR: for us it is important that we together can create interesting infopovod and lead your customers to our exchange and our clients — be interested in new and interesting coin.
What, in your opinion, the most important difference piatogo trading of cryptocurrency?
Anyway, let’s first define what an exchange. You need to understand that this is not a place where you can just passively watch your contributions when you have invested in any asset and expect its growth. For profit need to participate in trade, besides, it’s very interesting. It is encouraging that people are beginning to understand that the trading process requires knowledge and understanding of the main trends and existing dimensions.
Fiaty trading was formed decades ago. The first stock exchange was opened in the 16th century and still exist today, and cryptocurrency platforms for the modern world — a new phenomenon.
Strengths of cryptocurrency trading include:
Sudden emission impossible. The total quantity of a particular currency is known in advance, and no one is able to «turn on the machine and print a few million» for his own purposes;
Use of money can be directly, without intermediaries such as the Bank or the exchanger;
The cryptocurrency world is distributed by default. No single center, the organizer of the system, performance provides a huge number of casual users of nodes, where each node independently makes a decision about the (in)validity of transactions.
High speed. Transaction often take only a few minutes;
The transaction cost is fixed and does not depend on the amount transferred. This is especially true for large transfers — the Bank would have to pay a percentage of the amount;
Logs of all transactions public. Therefore, all movements of money can be tracked: for example, when (hypothetical) payment of taxes with bitcoin, you can check where it went each paid Satoshi. It is very important from the point of view of fight against corruption;
Create a new wallet takes a couple of minutes;
Security. Bitcoins, and other cryptocurrency, you cannot block, you cannot take away through the courts or through pressure on banks;
Freedom. Cryptocurrency work anywhere there is Internet, ignoring any boundaries.
But there are weaknesses. These include:
The money supply of each currency is limited and can only be reduced, withdrawn from circulation money as a result of lost data is not replaced by new ones;
The lack (currently) of security of course. National currency secured by manufactured in the country goods and services, in national currency taxes and fees. It makes the national currency demand. The cryptocurrency world, in turn, secured solely by the demand for it;
High liquidity risk;
It is difficult enough to explain to users that never experienced the world of cryptocurrency, what it is and how it all works. Because of this cryptocurrency is not yet become the object of public use.
So, we are trying to talk about bitcoin and technology in an accessible and understandable form for everyone. What is the capital, in your opinion, need to capturadora to start?
To understand the basics of trading stop minimum capital. Much depends on the chosen strategy, from your preferred currency pairs from your own expectations. For example, in a pair XRP/RUB minimum size limit for entry is 15 Ripple — today it is 360 rubles, or about $5.5 at the current rate. Of course, with such a low Deposit to count on a considerable profit in the short term have hardly. If you have the desire to engage in the world of trading seriously, you may want to increase the initial Deposit, there is no upper limit. However, any business should be approached systematically, step by step.
Then how best to distribute assets to $1,000, up to $10,000 and more?
There is no fundamental difference. If your trading strategy is/technique is able to double your capital in 3-4 months — what difference in what currency will be increase? In General, diversification is desirable, but it is not the cornerstone of the trade.
At what point is best to enter the cryptocurrency market, given its variability? Not too late now to enter the industry?
Jonathan swift, Anglo-Irish writer and social activist, said that there is nothing more permanent than temporary. Therefore, one should not expect permanence and tranquility from the world of funds, including cryptocurrency. Should look for ways to make money from this volatility in this dynamics. The whole point of market entry is determined by your beliefs, your trading strategy to your character. For example, if you prefer medium term trading, then you will be protracted long-term movements, which are present on the market with surprising regularity. If you are closer to the soul of intraday trade (ranging from scalping to trade from levels of distribution or other methods), the volatility of the market and found the balances you will only benefit.
As rational (if possible) to behave in a bear market? And how to behave in a bull market?
Here the strategy is quite simple: to sell when the rate is falling, and buy when the rate is increasing. You should not try to expand the course with its asset — it is simply not enough.
In a bear market each of the next transaction must be at a price lower than the previous one; bullish — the opposite situation. Thus is formed the line or bears line the bulls, averaging the entry price.
Where and how can you take risks?
Risk management each trader determines his own. Despite the overall diversity of strategies in General, we can distinguish several features in common.
Do not sit up all day for the trade. Over time, mindfulness and concentration decreases, increasing the possibility of error;
Don’t put all your eggs in one basket — enter the transaction amount is not more than 30% of your Deposit. This is a basic rule for many investors and traders;
The amount of risk in each strategy needs to be in the range of 3:1.
What tests should count in the calculation of the dynamics of crypto-asset?
By exactly the same ones used on the Forex exchanges: fundamental and technical analysis. Fundamental largely based on the study of the financial and macroeconomic situation in the world, it is possible to decide on which currency to buy or sell in order to obtain long-term benefits. Technical analysis seeks to answer the question: when you need to buy or sell certain assets. It is based on the analysis of the different graphs, it is widely used mathematical methods.
Whether in cryptocurrency trading to rely on intuition and thoughts such as «I have a feeling that…»?
The feeling is usually based on extensive experience in a particular area. When a man does something specific for a long time, he on a subconscious level, postponed understanding and skills that are manifested later in the form of premonitions. This is the type of premonitions, which is trust, under its full responsibility. The other kind of judgments are thoughts such as «but I heard, and I said.» The decision on the basis of someone’s judgment — a common mistake, especially among novice traders. You should always think for themselves and take personal responsibility for their actions and their choices.
What, in your opinion, is the course?
Cryptocurrency is a long term investment. In fact, today the industry is much more healthy than during the last boom. In the beginning of 2018, we saw how the crypto bubble has burst, and the market remained a healthy project. The fact that people today lose interest in a large number of violas that have no real application and real-world community — it’s true. And this is great news! Hence, the focus of investors and users has shifted toward high-quality projects and products. And taking into account other healthy trends (active movement towards regulation and integration into the world of classical Finance), I believe that we are on the right track.
That is why you need to benefit from every situation on the stock market: how to earn money in a falling and rising market, to look at interesting projects, to buy interesting coins and tokens.