Pavel Salas is a trader with more than a decade of traditional trading experience, who was there when the very first tokens made their way into the market. He was a cryptopioneer at eToro, the biggest social trading platform these days, now being a regional director of the company. He is also a financial adviser for the Tokenbox project. We sat and talked about the cryptotrading’s present and future, which, according to Pavel, lies with transparent, fast working and perfectly secure trading platforms.
Describe a perfect cryptotrading platform. What would be it’s main features?
First of all, creating funds, as well as depositing money must be easy and fast. There should be multiple options, like depositing via bank transfer or a credit card, like sending money through Bitcoin or Ethereum, withdrawing coins or fiat currencies – something that people are already used to. It should be easy to use, have real time data, aggregate different exchanges, as on cryptocurrency markets prices can be dramatically different. At least five big exchanges are a must, and also a money pool for buying coins directly. The platform should be ready to execute big ordres, not just small ones. There must be additional regulation, so that the company wouldn’t make hit-and-run. Depending on a regulator, there should be some insurance and legal support. The weakest point of the blockchain technology are now the wallets, where you storage your coins – if someone gets access to your key and takes your coins, there is no way to get them back. Also, seeing the statistics of people trading on the platform would be nice – so that you can follow them.
Which platform today is close enough to fullfiling this list? If there is one, what does it lack, on the other hand?
I think now we are at the beginning of the whole cryptoworld vast development. There isn’t a platform fullfiling the concept. The Lykke platform gives you an option of trading different assets, including Bitcoin and Ethereum, option of putting money in fiat and taking them out, or putting them to cryptowallet. It lacks good web interface though. Trading options are accessible on eToro, as on traditional OTC market and financial companies like Plus500, but without leverage. No platform has a fast withdrawal option. So the situation is tricky. I think, platforms will eventually improve, make the service more natural for trading and for traders, make it a mix of OTC market and cryptoworld – of a sort. I see the Tokenbox as a good option. Their whitepaper puts together the best features from both markets. As a new company they have more flexibility, unlike older companies that will have to rebuild a lot.
Is transparency an essential feature for a crypto ecosystem? How does Tokenbox provide it for it’s investors and funds? How is legal clarity involved?
I honestly think that transparency is the future. I’m sure the Tokenbox should focus on posting results, giving maximum information for people to analyze. Many traditional investors would like to invest into cryptoassets, but don’t know how to enter the market. In my opinion, the Tokenbox can become a company that will open this door for a big number of new investors, help them invest into the cryptoworld safely and in well-regulated way. By the way, Nouriel Roubini in one of his researches says that in 3-4 years 32% of people will be actively investing in social companies. That’s the point the Tokenbox and other companies should focus on – social part, openness, involvement , transparency.
What is the fastest and the most efficient way for a cryptotrader to enter the crypto business? Where would one search for investors, how would one make a perfectly balanced portfolio?
It has always been a problem. The cryptomarket is a Wild West of trading. Basically, if a trader is honest and really wants to invest money and give gains to his investors – that would be a very nice scenario. Unfortunately, there is another way, and I know some funds like that – they receive money and just walk away. There is no fast and secure option of building a cryptofund nowadays. The platform, that will attract funds and traders, give them an opportunity to trade any assets they want and secure the funds for investors, should evolve. The gains distribution security is one of the challenges these days. As for the strategy, the best one is to buy and wait. When the correction comes, buy once more. The portfolio should be balanced between different cryptocurrencies, split between the top 10 at least. A trader should monitor different upcoming ICOs, their applications, founders, technology, whitepaper, how this token is traded, is the product updated, are there any news about the project itself. Fake rumors can pop up, but a good trader should be able to analyze himself.
What are the crucial issues that cryptotraders face nowadays? Is it about gaining trust, or looking for essential trading tools, or providing security?
The main issue that traders face today is gaining trust of investors. The second one is giving transparency, making people believe in their trading skill. The lack of liquidity is another point.
You are undeniably experienced in traditional trading. Do you think there are specific tools that have been transfered from a traditional market into a cryptomarket? Name them. Which traditional trading tools you expect to appear in the cryptomarket?
A lot of things that help the market going are based on human psychology and behaviour. From the traders perspective, the cryptomarket lacks faster execution, regulation for exchanges. Institutional people often have problems entering the cryptomarket, they’re afraid to loose money because they don’t understand it the way they know the stock exchange. This breach should be overpassed. Creating some crypto analogues for USD using smart contracts, conversion rate may also limit the exposure of companies.
A little estimation: what does cryptoworld expect from ecosystems like the Tokenbox? Does it have a bright future?
Companies like Tokenbox, ecosystems linking traders, investors and funds, have a big future – if they manage to solve some cornerstone problems. First, the legal part – a license, a checking regulator would secure their customers. Second – the liquidity, an option to trade a lot of assets within the platform. Third – a possibility to get investment in any assets, and withdraw any assets. The platform like this allows you to trade yourself, to convert money, to generate a cryptofund in an easy, transparent way – that’s the beauty of the system the Tokenbox is developing. Last, but not the least – the security of the keys, the storage. Generally, the idea of the Tokenbox is one of the best on the market. They create something amazing. Within the next few years we will definitely see some companies trying to implement the Tokenbox concept.