Cryptocurrency market is not ready for cryptocurrency derivatives - Kir Kelevra
Creating cryptocurrency derivatives - such as bitcoin futures - is an idea that is unlikely to work in conditions of increased volatility. The market is not yet ready for such financial instruments. This is the opinion of the Blockchain & Bitcoin Conference Belarus speaker, one of the most famous crypto traders in Ukraine - Kir Kelevra. We talked to Kir about the specifics of trading on the cryptocurrency market and how will the arrival of major players affect it.
- Hello, Kir. Tell us, what news should the cryptocurrency market trader pay attention to first of all?
- Hello. As a person who has been working with cryptocurrency since 2013, I want to say that news in this industry are presented in an extremely horrible and unprofessional manner. It's not surprising, since there’s practically no journalists who managed to switch specialty and deliberately write about cryptocurrencies and technology. There are so many marketing materials that it becomes difficult to tell the truth from lies. I want to pay special attention to the fundamental news, because they are extremely difficult to distort. You should search not someone's conclusions in the text, but facts, events, incidents. And after reading, always ask yourself what’s in it for the writers and who’ll profit from this?
- Which sources provide the most timely and reliable information for crypto traders?
I personally use news aggregators. I’m not going to name any specific ones to avoid being subjective or bias. Each trader has to choose the most convenient source for them. You will have to customize the necessary news feeds once to be able enjoy them all the time.
There are a couple of good Telegram channels and bots, which gather information from different sources and give it to you in one feed. It's convenient and quite fast, although sometimes it can get a bit messy.
And, of course, my favorite - Twitter! This is what professionals use, not only on the cryptocurrency market, but on Wall Street as well.
- How will the arrival of major players to the market affect cryptocurrency trading?
- Few people understand this, but really big players will not come to the market until there are clear rules of the game. The market where anarchy and impunity are in charge does not attract really important players.
But when they do appear on the cryptocurrency market, they will provide liquidity; therefore, they will create the most market volume. And of course, it will reduce volatility – the childhood disease of all rapidly developing markets.
- If cryptocurrency derivatives (such as bitcoin futures) will become more and more popular, how can they affect the cryptocurrency market in the future?
- The same way futures for tulips influenced the market in late 1637. I believe that creating derivatives with such volatility is an extremely dumb idea, and it's even more insane to trade them. Short-term futures do fit into my paradigm, but I think that the market is not yet ready for more complex financial instruments.
- How does government regulation or its absence affect cryptocurrency trading?
- The absence of rules and any organizational structure is leading to chaos and as a result to collapse. This is the path that all cryptocurrency market players are now quietly accepting. Since the industry could not find convenient and acceptable forms of self-organization in so long, the government should take care of this. If cryptocurrencies are not regulated, then at least certain industries should be formalized. Otherwise, human greed will prevail, which will completely discredit the very concept of "crypto".
- Which cryptocurrency trading platforms are most suitable for professional traders? Why these?
- In terms of design and organization, I like the BitMex cryptocurrency exchange platform the most. The fact is that this platform is built in a way that corresponds to the modern realities of trading. It has margin and futures trading, and good liquidity as well.
For spot trading, I use Bittrex and Binance - also because of good liquidity of traded pairs. The Tidex exchange is growing pretty fast. It has an extremely sensibly built API and its architecture takes future functioning into account. I think this platform has a good future ahead of it.
The decentralized exchange Waves DEX shouldn’t be underestimated as well - its new design is very convenient to work with.
- Tell us a little bit more about your Blockchain & Bitcoin Conference Belarus presentation
My presentation will be dedicated to current problems of cryptocurrency trading and the change in the vector of its development. I want to highlight all the shortcomings and point out the pitfalls of working in current realities. My presentation will explain what such a complex concept as cryptocurrency trading really is. I promise it will be interesting.
Register to Blockchain & Bitcoin Conference Belarus and learn about the current realities of cryptocurrency trading