How to Survive Bear Market (2)
Here is the second time we invite specialist to share with our users in community about “how to survive bear market?” We have Lok, CMO of Molecular Group this time. Let’s review what he suggested.
Introduction
Lok, CMO of Molecular Group, entered the market in 2013 and witnessed the fluctuation of BTC, buying at the price about 3000RMB as well as 900RMB when it started to slump. To a certain extent, he is an experienced crypto investor.
How to survive bear market?
Back in 2013, few derivative product is available for investors. Either buy or sell could they choose especially when it came the bear market. So when BCT collapsed falling from 8000RMB to about 900RMB in 2015, investors were so helpless. It was difficult to keep HODLing the coin since the only thing you can rely on is your own belief in BTC. Fortunately, futures contract and margin trading came out later enriched the market.
01
Status quo
Digital currency and related industries have experienced a prosperous development for almost a decade, and the demand for specialized, large-scale, standardized asset management institutions and supporting institutions by digital currency investors is increasing. There are professional funds and unprofessional investors to create new games in the market. For a new market, more and more different people should participate in order to break through and forward the development.
In the traditional financial system, investors can use banks, trusts, funds and other mature channels to preserve and increase the value of assets, and to allocate assets to stocks, bonds, commodities, precious metals, etc. The digital currency market has expanded dramatically since the birth of Bitcoin. The total market value has reached about 200 billion US dollars, but there is still a lack of matching financial infrastructure and investment tools.
Digital currency assets have strong demand for professional asset management. Compared with listed companies’ equity, net-value funds and other fiat financing channels, digital currency information is low in disclosure, technology threshold is high, and value fluctuations are fierce. Many individual investors do not have the professional ability and risk tolerance of investment in digital assets. Therefore, digital currency investors have strong demand for specialized, large-scale, standardized asset management institutions and supporting institutions, which has also spawned the digital currency asset management industry chain. The digital currency asset management market has a short history and it is still in the early stages of development.
In the mature market, there is a complete regulatory system. Investors have a comprehensive understanding of the uncertainty of financial product performance, and can judge the quality of the organization through historical performance. However, the digital currency market has a relatively short development history and the regulatory system is still incomplete. It is difficult for investors to judge the service capabilities of the organization based on short-term historical performance. Therefore, the brand value and service quality of the digital currency asset management are particularly important. This is why I start a career and develop this project in this industry.
Suggestions
Closing position right now is not recommended in bear market. We can learn from the price history of BTC, ETH, EOS that the mainstream tokens are of good liquidity and derivative products with more possibility to appreciate. So it probably better to exchange project tokens into major cryptocurrencies if not much asset is in hand or the ICO project you invested has no more progress.
Either perpetual swap trading or futures contract needs an accurate stop loss line. Infinite margin call is the worst decision. Futures contract is of high risk which is used to hedge the risk by professional institutions instead of buy and sell in unilateral market.
02
Analysis of Yuebao-similar products
Normally, people will take exchange as their prior choice to deposit cryprocurrency in, while wallet follows as the second before considering popular asset management platform and quantitative team. So let’s see what’s the difference among them.
Exchange
OKEX-Yubibao
Pros: deposit and withdraw at any time, real-time arrival
Cons: random limit, returns are subject to OKEX’s margin trading performance
Conclusion: Yubibao on OKEX is similar to its futures products in the previous quarter when no investor opening short any more and everyone wearing position. So investors’ returns rate is affected by OKEX’s margin trading performance.
BIBOX-CunBi bao
Pros: predetermined return rate, multiple cryptocurrencies supported
Cons: low liquidity
Conclusion: CunBi Bao is more likely designed for bear market when trading volume is at a low level. To avoid some investors crushing the market, exchanges who has the most cryptocurrency storage would distribute part of their tokens to reward investors so as to control the liquidity. However, this method should be carefully conducted and seize the time to further develop their own ecosystem and protect investors’ profits.
Wallet
Digital currency wallet is a tool for storing, managing, and transferring digital currency, and is one of the diversion portals for the digital currency industry. imToken supports the decentralized trading platform Tokenlon in the international version 2.0 and provides flash-exchange. Different from Imtoken, digital currency wallets such as Circle, KCash and CoinMeet create a one-stop management service system, support multiple digital currency asset types, and realize multiple functions such as payment and exchange. The wallet can be connected to exchange’s API to provide users with simple and convenient functions. On the other hand, the wallet represented by KCash has a self-built platform, embedded current and fixed investment products. Digital assets on the platform can be quickly and freely transferred and exchanged internally.
Kcash
Pros: typical wallet functions provided, convenient to transfer
Cons: limited products to choose
Bitbank-The Biggest Custody Platform
Pros: trustful with long history
Cons: low returns rate
To sum up, every project provides specialized products with its own strength. So we have to polish our supermarket-like invest module for our target customers. Molecular Future started in July, 2017.
03
About Molecular Future
Introduction
Molecular Future is jointly invested by China Fortune(00110.HK), Eagles Fund, TGN, Molecular Group, XBTING Foundation, HCASH and CollinStar Capital, focusing on blockchain application and digital asset management.
The intention of development this project is to integrate all kinds of investment products whether stable or high-risk as every investor can find a suitable one for themself on one single platform.
Roadshow
Molecular Future has been to many different cities for its roadshows, and has won some rewards in the industry.
Development
Molecular Future keeps making progress. From the very beginning of publishing white paper to the latest launch of APP Version 1.5 and now preparation of Version 2.0 is under process. We are always striving to be a better one-stop digital asset management platform.
Three major sectors of Molecular Future
1. Invest: Meet different risk appetite financial needs
In the invest sector, there are not only low-risk products like current as well as regular investment, but also medium- and high-risk projects such as hedge funds and quantitative funds. Molecular Future is an open platform to fully meet the needs of investors and achieve mutual benefit.
2. Molecular Fission: Earning token returns
Deposit MOF and returns will be generated at a random rate every day. Daily settlement, compound interest, flexible deposit & withdrawal.
3. Mortage: Get a loan without selling your coin
Major coins like ETH, BTC, MOF can be mortgaged on Molecular Future. Both mortgagor and loaner can create order or choose an existing one on the platform. Unlimited margin call set you relieved from liquidation.
Platform Token MOF
MOF has 6 major usages, which will be further developed into a more comprehensive ecosystem.
A brand new version will be launched in 2019, which will be more user-friendly. More kinds of market funds and benefits activities will be waiting for you.
Thank you so much for your attention and support. Let’s look forward to next issue.
