Coining in the right market is critical

Is it the right time to invest in cryptocurrencies? Madalina Rotaru, CEO of Key Way Markets Ltd, gives her expert advice

Madalina Rotaru, CEO of Key Way Markets Ltd, the operating company of leading global multi-license broker CAPEX.com, possesses extensive expertise and a wealth of experience in the financial services domain.

In her capacity as CEO, Rotaru oversees the entirety of the company's workforce and manages its global operations. The role has exposed her to exciting and progressive ecosystems across the world, taking her on a journey from east to west and leading her to Abu Dhabi, where she currently heads the expansion of CAPEX.com's operations in the Middle East.  

Rotaru spoke about the current state of the cryptocurrency market, as we sought her opinions on investing in digital coins. 

What does CAPEX.com essentially do?

CAPEX.com, operated by Key Way Markets Ltd, is a global multi-licensed broker changing the way people in the Middle East invest. We aim to make trading more accessible, transparent, and secure for a broader audience - from professional to novice traders. We believe this industry is still inaccessible to many people, so we focus on education and technological innovation to create a powerful set of tools and resources for an exceptional investment experience. 

The world has been taken over by a crypto boom. Your thoughts?

Since its inception in 2008, the crypto market has seen manifold growth, demonstrating its incredible potential and power. There are multiple factors at play - crypto adoption as a means of payment, inflation hedge caused by the pandemic, an unprecedented institutional interest, and more. 

How is UAE as a market for cryptocurrencies?

The UAE happens to house world's first digital currency deep cold storage unit and the Abu Dhabi Global Market (ADGM) was the first to introduce a regulatory framework for digital coins back in June 2018, becoming an attractive jurisdiction for crypto companies large and small.

Further, the UAE is planning to increase transactions made on and via a Blockchain platform by 50 per cent by the end of 2021 and just recently, the Dubai Multi Commodities Centre (DMCC) launched a new crypto centre - the DMCC Crypto Centre, following the massive market shift to digital assets and NFTs. DMCC Crypto Centre will house a hub for the development and application of crypto, offering a variety of services to innovators, entrepreneurs, and pioneers. 

How do big league companies accepting Bitcoin as a form of payment help the cryptocurrency sector?

Big-league companies such as Microsoft, Starbucks, MasterCard and more embracing crypto as a form of payment has helped boost the popularity of digital coins, turning them into mainstream products.

Back when PayPal announced the launch of cryptocurrency buying and selling features on its platform, we witnessed an increase in Bitcoin's price almost immediately.

With the growing popularity, many similar applications were launched in the past months. Popular competitors to PayPal and Venmo, Square (SQ) and CashApp are now accepting cryptos as well. Recently, eBay Inc said it was considering accepting cryptocurrency as a valid form of payment, and although Amazon does not directly permit Bitcoin as a valid payment method, you can still buy Amazon vouchers and gift cards through it.

Should one invest in Bitcoin at the moment, given its volatility?

It depends on how you look at things, your trading strategies and risk appetite. For instance, the buy and hold strategy might seem risky to many, considering the recent volatility spikes. However, Bitcoin and other cryptos remain largely decentralised and secure methods to conduct transactions, bypassing traditional fees charged by banks and financial institutions. 

With all the movements, let us not forget about what happened after the BTC crash in early 2018 - the market recovered, surpassing everyone's expectations. Until we witness a global regulation in place, we see no reason why history cannot repeat itself.

On the other hand, with its rapid growth in popularity, there are other options people have started to consider, such as trading cryptos via leveraged products.

How does one determine which are the best coins to invest in?

Our advice to anyone looking to trade cryptocurrencies is to consider first and foremost the inflation rate and its adoption. Before choosing a crypto, investors should look at several critical points to make an informed decision, such as:

- Does it have a solid and innovative purpose like Ether? And what are its many uses and applications?

- Are its prospects for adoption solid like Bitcoin?

- What is the chosen cryptos' price history, the volume of trades and supply?

- The amount of information available to uncover the development cycle, transparency, and reputation of its development team.

• Business and Technology Review