Investing through the eyes of a cryptologist

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The main cryptocurrency dealer Anatoly Radchenko talks about the main market trends

The last few years could rightly be described as a rollercoaster when it comes to cryptocurrencies. Bitcoin became a household name at night, and just as quickly, his bubble burst. Initial coin offerings (ICOs) have enjoyed a boom, but now their success is diminishing. Meanwhile, security token (STO) offers and other discoveries are competing to fill the gap.

To navigate and understand where the cryptocurrency market is headed, I spoke with Anatoly Radchenko, CEO of United Traders, which is an advanced investment and financial services company. At the age of 28, Radchenko was twice named as the best private investor and started a hedge fund. He has significant experience with financial markets in general and a unique first-person perspective on cryptocurrency trading.

In the last year and a half, the encrypted industry has become quite known. What happened?

"The period from 2016 to 2017 was the most interesting in the encrypted market, Ico appeared on the scene and everyone had very high expectations, but these prospects are still there today, but they are much more deeply rooted. high and they were in a very short period of time, which is why everyone soon got disillusioned and the bubble burst, and because 2017 was very difficult for all traders, even with the most important funds like Novograts and Pantera Capital, investors lost the same amount as those who personally owned bitcoins. "

Radchenko explains that in traditional markets, not all assets are market-related, but with the encrypted market, all assets have gone to his side. It was difficult to find a safe haven. So 2017 has taught traders, especially new ones, that markets are quite volatile. Many traders used leverage, which led to large losses and eventually the elimination of all positions. They arrived with great expectations for a quick gain, and it did not go well enough, "he added.

Can we expect a rebound in the market?

"I think the drop is a good thing, because a fall in value will eventually lead to a decline in volatility, when a large number of people have at least one bitcoin each, press the button and the snowball for losses. , most bitcoins will once again become big owners, which will reduce the circulation of bitcoins on the market, which in general should stabilize markets a little, so a fall has also made investments for many serious actors possible. all of a sudden they were able to afford it. "

Radchenko is cautious about what will happen next, since, of course, everyone has different predictions about what will happen with cryptocurrencies, to the point that many experts are fed up with asking them what they think. The main Wall Street advisor said he was tired of predicting cryptography and recently wrote about Bloomberg who refuses to comment on the subject.

"We also decided to take a small joke with a fun, quick quiz where anyone can predict what will come next ", adds Radchenko.

Do you think that the prices of cryptocurrencies have been manipulated and, if so, by whom and how?

"In principle, when the price was $ 6,000, everyone understood that, okay, someone buys, someone sells, but with a strong move from $ 6,000 to $ 3,000, many people have been thrown off the road. Without significant events, I think Tether and Bitfinex, who have been polled by the Justice Department, are at stake here, and I think this may be some sort of bitmix manipulation. "

Radchenko explains that a bitmix & nbsp; it's an exchange that only accepts bitcoins. It is very simple to register. Most people, let's call them gamblers, have switched to this platform and there has been a high turnover. If you look at the bitmix volume, the total could reach 5 or 6 billion a day compared to the volume of the Binance and Bitfinex exchanges. So we find that we are in a situation widely discussed in the classical markets: the volume of derivatives, which in one way or another indirectly influence the underlying asset, or the spot price of the asset itself, is much more high. This also applies to gold and oil. And with cryptography, we do not have a regulation or a central supplier, so prices differ everywhere. There is a lot of systemic and financial risks.

What are some rules for investing in crypts?

A good rule is to try to invest in big projects, because money tend to go towards money, that is to say projects with good marketing. Another good rule is that you do not need to try to guess the bottom. It is better to allocate resources uniformly and in equal parts in different projects, because, once again, the price now does not reflect anything. As we have seen recently, iOS has grown 30% in one day. Why did it happen? Nobody knows. And you'll never guess if it starts growing today or tomorrow. It is necessary to be patient and not to try to find the bottom.

As for the challenges faced by traders in 2017, it's hard to be happy when people lose money because of their inexperience. But the most important thing a trader needs to understand is that, even if he is wrong when it comes to his predictions and transactions, all is not lost. The market will be there tomorrow and the day after tomorrow and in a year. A trader must always have a margin of safety (or money) to somehow correct a situation that has gone wrong. Do not go all-in and expect immediate results. Gamblers are cut down.

How do scam projects affect industry and the value of currencies? Do they make a large number on the cost of other cryptocurrencies?

Scam projects have always existed and will always exist. Most people try to focus on good projects, but there have always been good and good projects and novice investors may not be able to distinguish. But I do not think that most of the projects that failed were necessarily the result of organized criminal groups, for example. They had no intention of making funds disappear. A lot of guys who raised funds for ICO had no previous construction work, and knew nothing about corporate culture or staffing, and much less how to conduct B2B and B2C relationships. They only had an idea, investors invested a lot of money in the idea and the idea did not go anywhere. Furthermore, the cryptography market has fallen. It was a kind of game, and they lost. I do not think most people wanted to throw their investors under the bus.

What trends await us in 2019? Maybe some will be transferred from 2018 and so on?

The first is the development of various bitcoin protocols, services and chains, such as Lightning. These are faster, more reliable and simpler banking methods and the user experience will continue to improve only in 2019. The second is the emergence, I hope, of the security token framework. When companies collect money, they can only issue tokens a year later, so this year we will see how the Telegram tokens, for example, will behave. Moreover, since services like Facebook have their own internal currencies (as they say they create for WhatsApp transfers) they will drive adoption so that people begin to understand how, for example, Facebook's cryptocurrency differs from Bitcoin , which is decentralization in general, and why it is necessary. Finally, we will also see the use of blockchain technology by companies.

Can you talk about how the ICO boom happened and if it happens again?

It can easily happen again, but it will be called something else and will have another mechanism. The rules will change a little, the names will change, the marketing will change and the boom will be repeated. I think the security tokens will be the next boom.

And what is the importance of security tokens now for industry?

The fact that your rights are described and, roughly speaking, the company has a certain responsibility. These security tokens may have dividend distribution properties, may have voting properties, or may have properties such as security, but may be stored and forwarded as a token.

With the security tokens it is always clear how many are, where they are, with whom they are, how to find a buyer, a seller, etc. It will contribute to making the market liquid and transparent. That is, it can reduce the barriers that average investors invest during the first phase of a company. As a rule, all the best companies consider how to attract Google Ventures, Andreessen Horowitz, Sequoia and so on. But security tokens can also drive the democratization of investment in good companies.

How will the current utility tokens, including security tokens, be adjusted in the future?

This is actually, probably, one of the most difficult problems and, in my opinion, nobody knows, and everyone is waiting for that answer. I think the Security and Trade Commission should listen to other regulators in other countries and understand that. They can not simply talk about how it should be.

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The main cryptocurrency dealer Anatoly Radchenko talks about the main market trends

The last few years could rightly be described as a rollercoaster when it comes to cryptocurrencies. Bitcoin became a household name at night, and just as quickly, his bubble burst. Initial coin offerings (ICOs) have enjoyed a boom, but now their success is diminishing. Meanwhile, security token (STO) offers and other discoveries are competing to fill the gap.

To navigate and understand where the cryptocurrency market is headed, I spoke with Anatoly Radchenko, CEO of United Traders, which is an advanced investment and financial services company. At the age of 28, Radchenko was twice named as the best private investor and started a hedge fund. He has significant experience with financial markets in general and a unique first-person perspective on cryptocurrency trading.

In the last year and a half, the encrypted industry has become quite known. What happened?

"The period from 2016 to 2017 was the most interesting in the cryptography market: ICOs appeared on stage, and everyone had very high expectations: these perspectives are still present today, but they are much more rooted: at the beginning expectations were too high and were in a very short period of time, which is why everyone quickly disengaged and the bubble burst, and 2017 was very difficult for all traders. Even with the most important funds like Novograts and Pantera Capital, investors they lost the same amount personally held bitcoin ".

Radchenko explains that in traditional markets, not all assets are market-related, but with the encrypted market, all assets have gone to his side. It was difficult to find a safe haven. So 2017 has taught traders, especially new ones, that markets are quite volatile. Many traders used leverage, which led to large losses and eventually the elimination of all positions. They arrived with great expectations for a quick gain, and it did not go well enough, "he added.

Can we expect a rebound in the market?

"I think the drop is a good thing, because a decline in value will eventually lead to a decline in volatility: when a large number of people have at least one bitcoin each, press the button and the snowball of losses. bitcoins will once again be owned by big owners, which will reduce the circulation of bitcoins in the market, which should generally stabilize the markets a little bit, so a strong decline has also made possible investments for many serious actors who suddenly they were able to afford it ".

Radchenko is cautious about what will happen next, since, of course, everyone has different predictions about what will happen with cryptocurrencies, to the point that many experts are fed up with asking them what they think. The main Wall Street advisor said he was tired of predicting cryptography and recently wrote about Bloomberg who refuses to comment on the subject.

"We also decided to take a small joke with a fun, quick quiz where anyone can predict what will come next ", adds Radchenko.

Do you think that the prices of cryptocurrencies have been manipulated and, if so, by whom and how?

"In principle, when the price was $ 6,000, everyone understood that, okay, someone buys, someone sells, but with a strong move from $ 6,000 to $ 3,000, many people have been thrown off the road and have happened without significant events: Tether and Bitfinex, which have been polled by the Justice Department, are at stake here. I also think this may be a kind of manipulation of the same bitmix ".

Radchenko explains that a bitmix is ​​an exchange that only accepts bitcoins. It is very simple to register. Most people, let's call them gamblers, have switched to this platform and there has been a high turnover. If you look at the bitmix volume, the total could reach 5 or 6 billion a day compared to the volume of the Binance and Bitfinex exchanges. So we find that we are in a situation widely discussed in the classical markets: the volume of derivatives, which in one way or another indirectly influence the underlying asset, or the spot price of the asset itself, is much more high. This also applies to gold and oil. And with cryptography, we do not have a regulation or a central supplier, so prices differ everywhere. There is a lot of systemic and financial risks.

What are some rules for investing in crypts?

A good rule is to try to invest in big projects, because money tend to go towards money, that is to say projects with good marketing. Another good rule is that you do not need to try to guess the bottom. It is better to allocate resources uniformly and in equal parts in different projects, because, once again, the price now does not reflect anything. As we have seen recently, iOS has grown 30% in one day. Why did it happen? Nobody knows. And you'll never guess if it starts growing today or tomorrow. It is necessary to be patient and not to try to find the bottom.

As for the challenges faced by traders in 2017, it's hard to be happy when people lose money because of their inexperience. But the most important thing a trader needs to understand is that, even if he is wrong when it comes to his predictions and transactions, all is not lost. The market will be there tomorrow and the day after tomorrow and in a year. A trader must always have a margin of safety (or money) to somehow correct a situation that has gone wrong. Do not go all-in and expect immediate results. Gamblers are cut down.

How do scam projects affect industry and the value of currencies? Do they make a large number on the cost of other cryptocurrencies?

Scam projects have always existed and will always exist. Most people try to focus on good projects, but there have always been good and good projects and novice investors may not be able to distinguish. But I do not think that most of the projects that failed were necessarily the result of organized criminal groups, for example. They had no intention of making funds disappear. A lot of guys who raised funds for ICO had no previous construction work, and knew nothing about corporate culture or staffing, and much less how to conduct B2B and B2C relationships. They only had an idea, investors invested a lot of money in the idea and the idea did not go anywhere. Furthermore, the cryptography market has fallen. It was a kind of game, and they lost. I do not think most people wanted to throw their investors under the bus.

What trends await us in 2019? Maybe some will be transferred from 2018 and so on?

The first is the development of various bitcoin protocols, services and chains, such as Lightning. These are faster, more reliable and simpler banking methods and the user experience will continue to improve only in 2019. The second is the emergence, I hope, of the security token framework. When companies collect money, they can only issue tokens a year later, so this year we will see how the Telegram tokens, for example, will behave. Moreover, since services like Facebook have their own internal currencies (as they say they create for WhatsApp transfers) they will drive adoption so that people begin to understand how, for example, Facebook's cryptocurrency differs from Bitcoin , which is decentralization in general, and why it is necessary. Finally, we will also see the use of blockchain technology by companies.

Can you talk about how the ICO boom happened and if it happens again?

It can easily happen again, but it will be called something else and will have another mechanism. The rules will change a little, the names will change, the marketing will change and the boom will be repeated. I think the security tokens will be the next boom.

And what is the importance of security tokens now for industry?

The fact that your rights are described and, roughly speaking, the company has a certain responsibility. These security tokens may have dividend distribution properties, may have voting properties, or may have properties such as security, but may be stored and forwarded as a token.

With the security tokens it is always clear how many are, where they are, with whom they are, how to find a buyer, a seller, etc. It will contribute to making the market liquid and transparent. That is, it can reduce the barriers that average investors invest during the first phase of a company. As a rule, all the best companies consider how to attract Google Ventures, Andreessen Horowitz, Sequoia and so on. But security tokens can also drive the democratization of investment in good companies.

How will the current utility tokens, including security tokens, be adjusted in the future?

This is actually, probably, one of the most difficult problems and, in my opinion, nobody knows, and everyone is waiting for that answer. I think the Security and Trade Commission should listen to other regulators in other countries and understand that. They can not simply talk about how it should be.