The total capitalization of the cryptocurrency market has decreased by four times in 2018. However, ICO projects have raised a record sum of money this year. It signifies that the market is changing: shady players are leaving and serious companies are entering the market. That is the opinion of Rostislav Haliplii – the speaker of Blockchain Conference Moscow, founder of DarQube, the company that develops trading tools. We talked to Rostislav about the situation in the cryptocurrency market and AI solutions that can help traders to become more efficient.
Interviewer: Blockchain Conference Moscow (BCM).
Respondent: Rostislav Haliplii (R.H.).
BCM: Hello, Rostislav. How do you assess the situation at the cryptocurrency exchanges today?
R.H.: The key factor of the crypto revolution is a well-functioning market that guarantees the correct evaluation of cryptocurrency assets as well as simple and transparent trading.
Currently, there are around 150 different cryptocurrency exchanges. This market fragmentation is an embryonal stage of any market, for example, stock or foreign currency market. It certainly leads to the reduction of transaction fees and encourages market innovations.
However, initially it causes negative unforeseen consequences that pose a serious threat to the market stability and negatively influence investor trust. Besides, today’s fragmented landscape in the cryptocurrency market facilitates segregation of the trading community and provides traders with a large amount of data, which complicates making correct trading decisions.
The solution of this problem has always been democratization of information, tools, and technologies, which are the main instruments for the majority of successful market players.
BCM: Today the activity of cryptocurrency trading has dropped, mildly speaking, when compared with the last year’s hype. How do you think, who has remained in the game?
R.H.: The cryptocurrency market undergoes the stage of infancy and growth. The maximum capitalization of the cryptocurrency market was equal to more than $800 billion in January 2018. However, the steady growth of the capitalization seen in the last five years changed to a sudden drop by four times.
This occurrence can be compared with the period of overspeculations that took place from 1995 to 2000, the period of extreme growth in the Internet use and adaptation, in the result of which the index of NASDAQ has dropped by 78%.
However, despite the decrease in the general market capitalization, 2018 has become record-breaking in terms of raised investments during ICO campaigns. It can signalize that the cryptocurrency market is changing fundamentally and shady players are leaving it.
Conclusion can be made that today’s players are investors that believe in the blockchain technology and look for projects oriented towards the increase in transparency (new analytical tools) and practical usefulness (messengers, cloud repositories, smart contracts, etc.). They are also professional traders and enthusiasts looking for reliable and efficient tools for successful trading.
BCM: As a founder of DarQube crypto platform, will you tell us about its core idea?
R.H.: We are working on the levelling of the playing field by democratizing technologies required for making correct trading decisions for all traders to be able to form the market. Access to difficult data analytics, artificial intelligence, and automation is a key to revenue in the unstable cryptographic markets.
DarQube is a platform that unites crypto enthusiasts and professional traders and equips them with all tools needed to trade successfully at a variety of exchanges. Our main advantages are analytics, personalized interface, readymade solutions (bots, strategies, and signals), communication, and friendly community.
Without programming skills, traders can build their trading strategy and use it for trading or place it at our marketplace. As a result, investors receive instant access to a wide range of trading strategies with different risk profiles that can be applied to numerous currencies and exchanges.
BCM: For whom do you provide your services? What knowledge should you have to use them?
R.H.: Our mission is to equip everyone, from a beginning trader to experienced experts, with a set of tools and knowledge that they require to maximize their own potential. We also work with corporate customers that want to integrate our technologies.
BCM: If we imagine an average crypto trader, what use can he make out of an AI-based trading tool?
R.H.: Artificial intelligence plays an important role in our world today. There are many examples of how AI outperforms the human mind in term of capabilities, for example, AlphaZeroin the game of chess or DeepMind Health in medicine.
Our project also uses AI systems. DarQube offers many applications for the AI system. For example, we have an AI solution intended to optimize indicator values. The main goal of implementing this technology in DarQube is to help traders to build profitable strategies. AI can be used to turn a good strategy into an excellent one.
BCM: As a risk management expert, please, give several recommendations to traders and managers how not to lose their capital.
R.H.: Compared to the traditional foreign currency market, the cryptocurrency market provokes a lot of interest in investors thanks to the potentially high return on investments. However, together with the high profitability, the cryptocurrency market is characterized with high volatility, which is accompanied with high risk of losing capital.
To gain a stable income in trading, one requires discipline, analytical qualities, strong psychological background, and of course understanding of the market. However, having large amounts of information, most of experienced traders do not manage to achieve a stable income.
Today many platforms attract users with get-rich-quick schemes in the cryptocurrency market and do not teach them or provide required analytical tools for successful trading. This is the reason why I recommend using tools for risk management and technological solutions that allow perceiving and analyzing information correctly in order to maintain and grow capital. It provides a significant advantage in trading.
BCM: What will you be speaking about at Blockchain Conference Moscow?
R.H.: My main presentation will tell about the restricted functionality of modern cryptocurrency exchanges and advantages that high-end technologies and artificial intelligence give in trading.
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