Damir Latypov: the Future of cryptotrading for professionals
Billions of dollars in daily trading volumes, hundreds of liquid investment instruments, great dynamics and volatility of the auction — all this modern world of cryptotrading. The market of digital assets which did not exist ten years ago, today has a market capitalization of $200 billion — enough to declare themselves as held for investment and technological breakthrough.
That is impressive, the volatility of digital coins at the same time acts as a factor for attracting the attention of new players and a source of significant risk to the invested capital. Attempts to earn on trade cryptocurrency taken by many, but it turns out far not at all. We spoke to Damir Latypov, CEO of the project Cointoco.in, about why the results of trading on cryptocurrency exchanges do not always satisfy the expectations of investors.
Hello, Damir. First question: Cryptotrading may be beneficial for the Amateur investor, or the risk is too great?
Of course, it can. It is important not to take the trade cryptocurrency as a means of instant enrichment. The loss is not excluded at any stage, but if you follow the simple rules of risk and money management, to devote time to analysis of the current situation on the market, the first profit is not long to wait. Novice traders often relatively easily given the first few successful transactions: it does not prevent a number of psychological problems, and nervous tension has not yet begun to adversely affect the quality of the adopted trading decisions.
This fully refers to the honeymoon period of relations with the exchange, but a stable trade with a profit in the range from several months to a year and beyond — the lot of professionals and the subject of a separate discussion.
Why? What is the difference between the approaches to trading.
Professional cryptotrading involves the use of a number of specialized tools and software solutions to simultaneously manage multiple trading accounts of customers, more in-depth and comprehensive technical analysis and monitoring of the market situation. If we take into account only relevant to trade, for professional significant difference between short and long intervals do not: the same risk management, same currency pair and the permanent analysis. For the Amateur or novice trader everything is much easier.
To achieve stable returns in the long term is possible only with a huge amount of time to analysis, and this requires, literally, to live the market. Not less important is the fact that consider indicators of professionalism of the trader: the regularities of changes of quotations, noticed reactions to technical and fundamental factors. This valuable information is extremely difficult to obtain from the analysis of graphs carried out after the fact — something always remains beyond comprehension. Very differently perceived personal experience of trading, no matter whether he was successful or unsuccessful. Being in the thick of things, always get more information and your chances to make more informed and accurate decision in a similar situation is much higher. In General, experience in any business is crucial, and in the financial markets.
How about your experience?
Before you start Cointoco.in and start trading cryptocurrency, we are a team of LD Asset Management for more than 10 years worked with traditional financial instruments — stocks, FOREX, futures, commodities. Traded directly on exchanges, and later through a broker SAXO BANK. But the most encouraging prospects now I see cryptotrading.
What is the choice in favor of the cryptocurrency.
The sole opportunity to earn more at comparable level of risk. The high volatility of the cryptocurrency market and trade 24/7 allows you to get a greater amount of profit than with traditional tools. Additional risks are also missing: no expiration of contracts, the leverage we use.
In fact, our income only consists of profits customers — no extra fees from transactions not entered, and our interest is expressed as a fixed percentage of profit on results of trading of every month.
What is different cryptotrading from buying tokens to invest (release) and participation in investment funds?
First of all, we make money on growth and on the depreciation of the currencies traded. Pair with Fiat XRP/USD, BCH/USD, ETH/USD and others allow you to gain a profit while reducing the cost of basic CryptoStream against the greenback by simply opening a short position. Secondly— the assets of our clients remain in their disposal. We do not require the enumeration of coins in our wallets: for making trading operations on the client’s account on the Bitfinex team used the API keys of withdrawals remain under the exclusive control of the client.
This scheme is most transparent, safe and reliable for the investor, and the combination of professional qualities of the project team cointoco.in — still much less risky than independent trading. We also do not guarantee a certain level of income, but in March 2018 consistently traded at plus — 4 to 20% per month.
Trust management helps to reduce the risk of losses from trade, but where is the guarantee that the actions of the Manager will be more successful than self trading?
There are no such guarantees. However, the development of this topic naturally leads to the same conclusions — professional capturador in the long term is always more successful than a beginner. Yes, the market gives equal chance to earn to all without exception, but in the hands of a professional more tools for effective use of the available opportunities. Let’s take a simple example: culinary duel between a professional chef and a novice. Both the recipe of some dishes, which none of them had ever cooked. With equal opportunities, from cooks professional will certainly at least something edible, which can not guarantee the masterpiece of the beginner. And the only difference in the experience.
Any investor needs to adopt a conceptual decision on what he plans to do – trade or invest? Cryptotrading — interesting, exciting and even exciting-but it takes time, total immersion and access to trade 24/7, that not everyone can afford for a number of reasons. Earnings on cryptocurrency does not always imply intense process of trade — you can make a profit using existing investment mechanisms. The project cointoco.in only one of such mechanisms, and, in my opinion, the most accessible and easiest tool for an investor with a transparent and predictable dynamics.
And there are alternative investment vehicles?
Of course, as you know. You can participate in the ICO’s various projects. Assets will need to show a fair amount of pragmatism, knowledge in the field of blockchain technology and patience. A year and a half, when it becomes clear that the main idea has been asked kriptosmartfon, and the most important stages of work on the project will be completed, the invested funds are quite capable to bring a good income. Assuming, of course that all goes according to plan of developers, without a significant postponement, or encounter insurmountable difficulties.
The second mechanism is available for the investor is to build a balanced basket of cryptocurrencies to release in anticipation of rising value. This approach was relevant in 2017, when the market capitalization grew at a record pace, but in today’s reality appear to be a questionable decision.
In the first and in the second case you will still need to help the analyst to select the most promising tools.
That is, with no professionals anywhere?
Real skills cryptotrading to earn and Manager, and investor. The more considerable baggage of experience of the Manager, the more effective his work, more profit, less drawdown. No one is limited in the attempts to show a decent result, spending time and risking your money. But the reality is that trading, especially with an eye on the long term, can not be a passion or hobby. This activity requires appropriate knowledge, professional instinct and, most importantly, experience. Practically, this means that the success of the novice will have to become a Pro not just to learn the basics of trading on the stock exchange, but also to all related work, primarily to learn how to analyze, understand and predict the market. The choice is, as always, or change profession and become a professional who lives their markets, or give your funds under the control of the professionals!