The stagnation of the crypto market has discouraged newbies, but seasoned traders remain unfazed, the CEO saidnge of cryptocurrency EXMO.
EXMO, an exchange with around $ 40 million in daily trading volume according to the target CoinGecko , mainly aimed at merchants from Russia, Ukraine, Belarus and Kazakhstan, but has been actively expanding in the UK recently, said CEO Sergey Zhdanov.
In June, trading activity on spot cryptos and derivatives markets contracted by more than 40% , according to a report from CryptoCompare.
"Retail traders who flocked to crypto in 2021 were defined as surprised by the price decline," Zhdanov said. "The new people are leaving from principle that [crypto] will grow forever, but then it falls. "
La fouthe DOGE
Many new traders have been drawn by the CEO of Tesla Elon Musk's Twitter rants about dogecoin , Zhdanov said. This was particularly noticeable in the UK, where EXMO has fewer users and therefore it was more obvious who the new traders were.
"In January and February, when Elon Musk was tweeting [about DOGE], the first wave of interest has occurred. [ British news outlet] Metro.co.uk wrote about it and provided us with a link, and 10,000 new UK users came in, all after dogecoin, ”Zhdanov said.
For the vast majority of these newbies, the pattern was simple: they bought DOGE high, sold low after the drop price, then took some money out and left, Zhdanov said. They didn't switch to older cryptocurrencies like bitcoin or ether and simply capitulated, he said.
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Still, 10% of those new users have remained active traders and accounted for around $ 1 million in trading volume over the past six months, Zhdanov said. This does not necessarily mean that these traders have invested a lot of money in crypto, but rather that they have done a lot of transactions. Maybe they used the same amount of deposit to buy coins, sell them, then buy again, etc.
Unlike new users, more experienced traders who started before this year and had experienced previous highs and lows in the market, even around the time of the low volatility and depressed prices, Zhdanov said.
"Experienced traders have a longer-term strategy - even when the marketis calm, they continue to buy or sell, "he said.
In any case, the first half of 2021 has been better for EXMO than any last year, according to Zhdanov. The exchange now has 1.9 million registrations and around 100,000 users have $ 5 or more in their accounts. Of the 1.9 million, 200,000 registered users this year, and 35,000 of them have actually started trading.
And older people prefer old coins : Up to 80% of EXMO trading is in bitcoin and ether, Zhdanov said.