On April 13, Eangelmarkets and Mars Finance jointly held an AMA Q&A event. This AMA helped more investors who are new to the cryptocurrency market to understand the derivatives trading market and how to avoid risks and invest wisely in the cryptocurrency market.
In this live event, Mars Finance invited Mr. Cao Jinyuan, the trading consultant of Eangelmarkets, a decentralized multi-chain derivatives trading platform, to briefly analyze the development trend of the derivatives market, as well as the product details, competitive advantages and future vision of Eangelmarkets.
The following is a compilation of AMA Q&A.
Q1: As traditional financial markets continue to oscillate due to the intensification of the new crown epidemic and the uncertainties brought about by geopolitics, we are seeing more and more traditional financial market participants entering the cryptocurrency market under the double-factor overlapping market environment. According to a PwC report, almost all traditional hedge fund strategies are now involved in the cryptocurrency space. In your opinion, what are the root causes driving the continued infiltration of traditional financial market resources into the crypto market?
A: The change in attitude from "rejection" to "gradual acceptance" by traditional financial firms and regulators in some of the more enlightened countries has been very significant. Many financial firms have figured this out, with venture capital/hedge funds/investment banks and custodians being the first to take the plunge. The improved cryptocurrency infrastructure has made it easier and more compliant for traditional companies to purchase cryptocurrencies. After all, a compliant purchase channel is the most basic requirement for traditional companies to get involved in the crypto industry.
From the data point of view, the overall market capitalization of the crypto asset market is $2.2 trillion as of May 2, 2021. It is estimated that 17% of the total U.S. population is involved in crypto-asset investments, while the U.K. figure is about 5%. Globally, the penetration of crypto-assets among internet users is 1.9% and 1.2% of the global population, and according to the "innovation diffusion curve", globally we can see that the crypto market is still According to the "innovation diffusion curve", we can see that the crypto market is still in the very early stage of innovators, and the road ahead is bright and a huge blue ocean.
Q2: As an experienced financial trading strategist, what do you think is the biggest difference between the traditional financial market and the cryptocurrency market?
A: Cryptocurrencies do not have a specific form, the flow cost is lower, and the payment security and reliability are higher, so you do not have to worry about any security risks of the assets. In addition, cryptocurrencies are truly "global currencies", so there is no need to worry about exchange rate issues in the process of using them. In addition, cryptocurrencies are resistant to financial manipulation to a certain extent, reducing the probability of systemic financial risks. Therefore, from a certain point of view, some characteristics of cryptocurrencies make up for the shortcomings and shortcomings of traditional financial institutions, effectively reducing some of the transaction risks and becoming a real "game breaker". At present, the development and progress of cryptocurrencies provide a new target and direction for financial institutions worldwide to innovate.
Q3: As we all know, there is a certain learning threshold to participate in DeFi trading, so it is especially important for investors who are new to the market to choose a trading protocol that is easy to use. What factors do you consider when choosing a derivatives trading platform?
A: To find a suitable derivatives trading platform in the face of a wide range of options, you can make a comprehensive selection of the following points in relation to your own situation.
- Whether there is compliance regulation : In order to protect your money, you need to choose a regulated trader first. Whether the platform is regulated means whether the transaction is safe or not, which is a very important step to protect your money.
- Account type : A good trader will usually have a variety of optional account types to meet the needs of different traders. Therefore, when choosing a trader, make sure that the account you need the trader can provide.
- Transaction costs: The main income of a trader is commissions and spreads. The spread is the difference between the bid and ask price. The level of these two means to the trader the level of transaction costs, that is, the size of the profit margin, therefore, they are one of the important reference factors for choosing a trader.
- Order execution speed: When choosing a trader, it is important to know how fast its order execution is and whether the trader offers pending orders. If the order execution is slow, then the transaction price will move a few points on the price of the order, which may affect the amount of the trader's profit.
- whether the access channel is smooth: the access method and the daily access limit are decided by each trader independently. A good trader will make it easy to get in and out, and will also reduce the transfer fees for access.
6.Margin and leverage: When choosing a dealer, pay attention to what leverage it offers, and then choose a platform with the corresponding leverage according to your investment volume.
Q4: As far as I know, Eangelmarkets is a decentralized multi-chain platform based on traditional financial markets and encrypted markets. As a trading consultant of Eangelmarkets, can you please introduce to us what functions and advantages Eangelmarkets provides that traditional trading platforms do not have?
A: As we can see, there are many problems with traditional trading platforms, such as market manipulation, non-transparent trading, high risk of investment, no capital protection, unstable systems, incomplete hardware systems, and lack of liquidity. Compared to traditional crypto platforms, Eangelmarkets has the advantages of aggregated index, secure trading, decentralized asset management, contract interaction pool market making mechanism, stable system, millisecond trading speed, and most importantly, the use of global professional MT5 financial tools.
Q5: Asset richness is one of the indicators of a quality platform, what financial trading products does Eangelmarkets currently support?
A: Eangelmarkets not only supports spot trading and traditional financial forex, gold, stock index, etc., but also supports a variety of derivatives trading such as futures, options, synthetic assets, insurance, etc. Especially, it adopts cross-chain technology to support derivatives trading on mainstream public chains such as BSC, Ether, Polka, Polygon, Matic, TRON, etc.
Q6: For investors who are new to the crypto market, they face certain learning cost and threshold, so it is especially important to choose an easy-to-use trading platform. What are the advantages of Eangelmarkets compared to other crypto trading platforms in terms of product design? What is the design of Eangelmarkets in terms of lowering the threshold of users?
A: 1. Many-to-many cross-chain: Eangelmarkets' cross-chain bridge has supported eight different blockchains including Ethereum, Bitcoin, Binance Smart Chain, Fantom, and Huobi Ecological Chain, which can meet the requirements of L1 chain and L2 chain. Asset circulation transfer and cross-chain interoperability.
- Anti-penetration contract trading: Compared with futures contracts, which are bound by the delivery date, perpetual contracts do not have to be closed because the delivery date of the contract is approaching. The perpetual contract is fundamentally free from the constraints of the delivery date, and also avoids repeatedly opening positions, missing the market, unnecessary fees and so on, which makes it impossible to maximize profits. The price mechanism of the perpetual contract is also different from that of the delivery contract, as the perpetual contract is aligned with the spot price, which is not easy to be maliciously "pinched" and lead to uncontrollable position explosion and position penetration.
- Easy to use: No registration and login required, no KYC required, no audit required for withdrawing coins. You can start your trading immediately from anywhere in the world, and you can withdraw and replenish freely 7*24 hours.
- Ultra high liquidity: Eangelmarkets upgraded the LPToken contract to ensure excellent liquidity and extremely low slippage in the price range.
- Smooth experience: aggregation of top trading platform MT5 technology, smooth trading engine, a variety of professional indicators trend at a glance.
- Rich variety: rich contract types, trading varieties, trading speed comparable to the centralized engine trading.
Q7: Different users have different investment risk preferences, does Eangelmarkets have different trading features or strategies for different user groups? (e.g. institutional level users)
A: Eangelmarkets adopts a decentralized wallet + MT5 professional trading system, which has high compatibility and is not only suitable for investment novice, but also for professional or experienced investors.
First of all, the MT5 trading platform has a higher richness of trading varieties. The financial products supported cover stocks, futures options, spot, foreign exchange, CFD and so on, improving market information and being able to provide investors with more complete financial product quotes and transactions, enriching investors' options and reducing the risk of investors concentrating on a single product. In addition, the MT5 trading platform has twenty-one time period charts, more than seventy technical indicators, nineteen line drawing tools, four zoom modes, a variety of execution methods and order types, more pending orders, more powerful EA testing capabilities (support for multi-currency EA testing), relying on these enhancements and new features, the MT5 platform can show investors more complete quotes information The MT5 platform has improved technicality and faster computing speed. In terms of programming, the MT5 trading platform supports the C++ programming language, which is more convenient and faster, and is a blessing for C++ enthusiasts. In short, the MT5 trading platform has richer features, faster speed, and stronger technical support, which can provide investors with better services and reduce the cost of foreign exchange at the same time.
Q8: Learning to use the platform operation functions is only the first step in trading. What really improves the user retention rate is the trading experience, such as high trading depth and low slippage. Could you please talk about how Eangelmarkets improves the user's trading experience from the user's point of view?
A: The Eangelmarkets platform has a 22-year trading engine and over 70 technical indicators and chart templates, as well as intelligent strategies and expandable intelligent trading systems to provide the most convenient and fast service for users. In addition, the price you see is the price of the transaction, we through the clear ultra-low spreads, for users shaped like infinite depth, and even sudden quotes can be based on the price seen instant trading, can effectively reduce the market uncertainty brought about by unexpected losses.
Eangelmarkets can also provide the world's top traders and intelligent trading information, to achieve millisecond follow-up response, support for retrading, and a variety of pending orders to choose from, and most importantly, the current Eangelmarkets trading varieties have covered the whole industry derivatives!
Q9: In the cryptocurrency market, a quality project will start to build its own ecology when it reaches a certain volume. How does the EA trading chain mentioned in the whitepaper empower each other with Eangelmarkets?
A: Eangelmarkets has four main directions in terms of ecological layout, EA trading chain, Eangel cross-chain bridge, Eangel contract trading Eangel swap.
EA trading chain is a public chain, a new underlying technology platform linking various blockchain technologies, allowing trust-based value to circulate freely in different blockchain systems and empowering new solutions for decentralized systems. EA trading chain is a traffic portal for trading platforms, with low processing fees and high TPS, high security and scalability, native support for cross-chain protocols, compatibility with ethereum EVM, collaborative smart contract development, and other advantages.
Q10: What organizations and communities are currently supporting Eangelmarkets?
A: Eangelmarkets has been favored by many well-known investment and financing institutions since its early days. At present, Eangelmarkets' investment and cooperation institutions include: Acsisinc, chain-capital, Lok-Capital, pixmania, SEQUOIA(HK), Saviu-Ventures, Sustany-Capital, Atos Syntel, and trillian.
Q11: 2022 has passed one third, what new plans does Eangelmarkets have in the next time? Can you share the latest development roadmap of the platform with you?
A: The main development plan focuses on: adding cross-chain bridge functions, realizing ethereum, bitcoin, coinan smart chain, Fantom, firecoin eco-chain; supporting mining/trading of NFT+ meta-universe chain tour assets; integrating various DeFi mining functions such as wallet, lending collateral, aggregator, algorithmic stable coin, lending collateral and insurance.
Q12: Finally, can you please give some suggestions for investors who are new to the crypto market from your personal experience of trading in the market for many years? (Please answer from the perspective of how to avoid risks)
A: The vast majority of large market participants have been through multiple cycles of cryptocurrencies and generally have extensive experience in traditional financial markets. If you don't have a similar accumulation, you should learn to understand these their mindsets and not simply go out and copy these people's portfolios at some random point in time. Be proficient in the basics, know how the industry works, learn to do proper due diligence, and once you understand the basics, be able to have a critical starting point every time you see a new project. To try to understand the mechanics of the protocol, evaluate the token economics of the project, and the prospects of the project by the community as well as the background of the team.
All in all, I hope you all learn to do something professional and treat your investment like a job. The capital market is cruel, don't blindly invest with a gambling mindset, make sure every project you invest in is in line with your judgment, so that even if the investment ends in failure, you can at least take the opportunity to revisit your investment strategy and optimize it, which is also a reward! This is a rewarding experience.
About Eangelmarkets
Eangelmarkets is a new multi-chain derivatives trading platform that brings together the trading advantages of CEX and DEX to enable secure, fast and low-cost exchange, cross-chain transfer and liquidity mining of a full range of derivatives. Eangelmarkets not only supports decentralized spot trading and traditional financial forex, gold, stock indices, etc., but also supports futures (perpetual contracts), options, synthetic assets, insurance, etc., as well as derivatives trading on many mainstream public chains.
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