Finbold conducts this type of interviews to enable readers to understand more about the financial markets and the fundamentals behind them as well as the wide range of tools available. Read the full interview below.
In a recent interview with Finbold, automated crypto trading platform Coinrule.com founders Gabriele Musella and Oleg Giberstein talked about how the pandemic has inspired more people to look out for financial opportunities. The proprietors also delved into specific user groups that explored financial opportunities.
Giberstein, who is also the Coinrule COO, shared his view on how Bitcoin and Gold will co-exist in the future and which asset will have more value. He further explained why it is becoming hard for countries to ban Bitcoin as more institutions invest in the asset.
Musella, Coinrule’s CEO, also highlighted how businesses could stay on top in the highly saturated crypto trading market.
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Coinrule recently raised €570K meant to help with your goal of democratizing finance. What do you think is the main hindrance towards democratizing finance? How is Coinrule fixing this problem?
Gabriele Musella: “Today, the world of finance is a black box for far too many. With savings accounts interest rates near 0% and most normal people not knowing much about investing, the majority simply don’t know how to grow their capital.
Professionals like funds and banks, on the other hand, have access to advanced tools. Coinrule is fixing this problem by giving beginners access to advanced trading tools in a fun, simple, and educational interface“.
Automated crypto trading is a relatively new way of taking part in the digital space market. Can you talk about Coinrule’s current number of users? How is it changing amid the health crisis? What is the age group distribution of your users?
Gabriele Musella: “We have seen a huge amount of growth and interest in automated trading over the past year. The pandemic has given people more time to explore financial opportunities, and many of them have found their way to Coinrule.
The majority of users are millennials between 30 and 45 who are discovering active trading as opposed to passive ‘black box’ trading”.
What measures have you put in place to prevent users from operational risks that can be caused by the malfunction of a trading platform?
Oleg Giberstein: “Most of the risks still sit on the underlying exchanges that Coinrule connects with. At Coinrule, we focus on ensuring stability and reliability of everything under our control: that is, correctly tracking market data and sending the right executions at the right time.
We follow industry best practices in product processes, conduct security, and penetration testing and also are developing internal automated testing frameworks to monitor the platform operations consistently”.
What advice can you give investors planning to get into automated cryptocurrency trading? What should their portfolios look like? What strategy should they adapt?
Oleg Giberstein: “There is rarely a one-size fits all as this really depends on an individual’s personal goals as well as market conditions.
Generally, it can make sense for regular people to have 80-90% of their investment in relatively low-risk assets, while 10-20% can be traded more actively with automated strategies. I personally usually have 50% of my portfolio in Bitcoin and another 20% in Ethereum. The strategies depend on market conditions.
In the current bull market, I tend to accumulate dips while taking profits at certain pre-set levels. More advanced traders can start using Technical Indicators such as Moving Averages or the RSI. We regularly share new strategies in our newsletter and also in the Knowledge Base”.
The entry of institutions into the crypto space continues to give the sector the validation it needs. How will this entry of institutions influence the regulatory framework in 2021?
Oleg Giberstein: “That is the most critical question with the highest risk potential for the sector. While it seems like Bitcoin is quickly turning ‘too big to ban’ in most countries, others, such as India, are taking steps to try and ban crypto assets.
Overall, though the pressure of creating a permissive regulatory framework will grow on every state as adoption increases. This is the most global, most distributed market that has ever existed.
What I would expect to see in 2021 is the US Securities and Exchanges Commission finally approving the Bitcoin ETF. What I would like to see in 2021 is more countries adopting legislation that allows banks and payment providers to work with crypto-asset businesses in a compliant way. Overall I think we are on a good path”.
Bitcoin has been on an impressive run in the last few months, hitting a new all-time high recently. What is your prediction for the asset in 2021?
Oleg Giberstein: “Bitcoin is an asset whose trajectory is hard to predict in the short-term but far easier in the long-term.
With the growing institutional and corporate adoption with companies like PayPal entering the game and Tesla and others putting Bitcoin on their corporate balance sheets, it certainly feels like this current rally still has at least one leg up to go.
What is important to watch here is the growing supply squeeze on the exchanges. The amount of Bitcoin held on exchanges is steadily decreasing. But what ultimately matters is that because of Bitcoin’s limited supply, growing recognition as a store of value and inflationary economic policies, the long-term outlook is strong”.
Bitcoin is now being considered as a measure of wealth posing a threat to gold. Do you think Bitcoin will replace Gold?
Oleg Giberstein: “Over time, Bitcoin has gained legitimacy both as a store of value and as a medium of exchange. While Gold has been a store of value for literally thousands of years, its appeal to younger generations who are digitally native is less clear. That said, Gold will always play a role due to its history and its consideration among certain types of institutional investors. There are also actual use-cases for gold, such as in jewelry and some industrial applications.
Bitcoin, on the other hand, is today seen as primarily a store of value but use-cases around payments and even smart contracts could be unlocked over time as its price becomes less volatile once it reaches critical adoption mass.
Ultimately, both assets will co-exist but Bitcoin’s market cap could go well beyond that of Gold as there are so many things it could be used for”.
What features make Coinrule unique from competitors in this highly saturated market?
Gabriele Musella: “While there are a number of automated trading bot companies in the market, Coinrule stands out because it is created specifically for beginners with no prior knowledge or skill in professional trading of assets, either digital or traditional ones.
The competitive advantage is the “If-this-then-that” logic, which allows users to build thousands of trading rules both complex and simple”.
What three key factors do you think can make Coinrule a worthy platform for crypto traders? What qualifications should traders have to onboard easily?
Gabriele Musella: “In the new age of digital products, having a fluid onboarding with plenty of resources for users is critical. With that in mind, our design-first approach heavily influences the way we present information to our traders. Coinrule’s UI is so intuitive that usually, traders are shocked how little there is to learn.
That’s also why no specific skills are required to use Coinrule. Traders want to know what are the best strategies to run. That is why we have a risk-free Paper Trading Demo Exchange that is modeled on Binance and are also releasing a backtesting feature that will let traders test strategies on historical data.
We also host weekly trading webinars, have an active and supportive community and an industry-leading support team. Overall the learning curve is low, it takes only a few minutes to get around the app and to start creating your first automated trades. Go and try it yourself”.
The end of the interview.
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