Yoni Assia, eToro’s CEO in a podcast done earlier today chats trading cryptos and the future of finance with Victor of Financial Magnates. He is one of the pioneers of cryptocurrency trading through his brokerage company which he started as a tech firm eToro. The firm started offering Bitcoin a few years ago and also included a few other cryptos to their basket this year.
In the interview, Mr. Assia touches on what has been the key reason for the success of the new financial instruments and offers a piece of advice on the best ways a brokerage can approach cryptocurrency trading.
On how he started with cryptocurrencies he says:
“We were excited about cryptocurrencies very early on. I’ve been involved in the industry since 2010. We were lucky and smart as a company to buy some Bitcoin in 2011 and 2012 and we launched Bitcoin trading on eToro in 2014. We were also relatively early on with Ethereum partly due to our connection with Vitalik Biterin, with whom we wrote the colored coins white paper.”
“While he was in Israel he stayed in eToro’s offices. It was about the same time while he was building Ethereum, which was the next stage in the development of cryptocurrencies. We started offering ETH in January 2017, which was at the same time when we saw the entire amazing growth of the cryptocurrency market throughout 2017.”
As he chats trading cryptos, he is asked what was the trigger that drove him to crypto, he responds by saying:
“I really believe that the invention if cryptocurrency will have a much bigger impact on the world that people understand right now. I parallel the invention of cryptos and the blockchain to the invention of electricity, computers and its bigger than the invention of the internet. The reason for this is that we are redefining finance, almost redefining economics as computer science. This is a huge leap in the history of humanity. When people analyze current years in the future, they will be marking the period as a “revolution”. We’re only at the beginning of it and it is going to impact every single part of the financial services industry.”
When asked what advice he would offer brokers that are offering CFDs, he says:
“I think that in this market the physical market is a more viable approach than CFDs and I think that it is also important that the behavior of clients actually impact the market. Some brokers have underestimated the risk of the cryptocurrencies rally continuing and mismanaged risk. Some people thought that the leap from 2000 to 5000 will mark the peak, looking at this market as onto a typical financial instrument. This is very different, this is a digital gold rush. We are seeing the largest move of financial assets in the history of mankind.”
“The price of Bitcoin can easily reach 50,000 and easily go down to 5,000 or 2,000. I think that being a part of this market and connecting the dots and being connected to the blockchain industry is very important in this space.”
“Let’s speak about a very important issue for clients which is security. We have seen some exchanges go bust in the past and some people say that we are going to see it in the future as well. How do you manage this risk?”
“We are a relatively large company as we have about 500 employees worldwide. We have a very large tech team that includes developers, IT experts, security experts and we’ve been in the space for a while, so we understand the pros and cons of where and how to keep crypto safe. It is also about the customer’s experience – a lot of them want to safe keep their cryptocurrency on their own. This makes sense to some more sophisticated clients that understand how to keep their cryptocurrency safe and how to manage it. At eToro we simplify this process for people and do it for them. We are regulated throughout Europe in the UK and we always look at our customers’ best interest.”
Listen to the full podcast here as Yoni chats trading cryptos.