The cryptocurrency market enjoyed an ocean of success in the past few years but has now dwindled down to a rocky seabed at the helm of controversy and volatility. With the top 10 cryptocurrencies witnessing double-digit percentage losses recently, we speak with Stanislav Maer, CEO at Cryptics.TECH to understand the risks of trading in cryptocurrencies for businesses. Read on!

How are Cryptocurrencies being used today?

The cryptocurrencies market is experiencing a very turbulent period of evolution as it is determining its purpose in the global economy. Cryptocurrencies, in turn, are being used as a surrogate for the exchange of services on worthy project platforms and as a speculation instrument for those who are tarnishing the reputation of the entire industry through profiteering. This contrast is what makes cryptocurrencies volatile. Their true purpose is to serve as a utility instrument on platforms aimed at creating solid market offerings.

What are the risks of business trading with cryptocurrencies?

Businesses risk a lot by trading cryptocurrencies as the market is too volatile and unpredictable. Without proper regulation and securitization instruments available, the risk of losing all resources invested in portfolios is extremely high. A business that decides to trade on this market is doing so at its own risk.

How does Cryptics.Tech create a cushion for those who are using cryptocurrencies?

We offer a technologically advanced solution that equips investors with the necessary tools for ensuring liquidity on cryptocurrencies exchanges. We also provide a safety cushion for individual fund managers by increasing transparency and understanding of cryptocurrency markets.

Our platform connects individual fund managers, traders, financial quantitative researchers, as well as the data science community. In addition, our platform is based on an advanced neural network that allows predicting cryptocurrency exchange rates with a very high degree of probability.

Do you think investors will soon start funding startups with Cryptocurrencies? Is it already happening?

Given the immense volatility of the market, the concept of funding startups with cryptocurrencies is a risky venture for both, the investors and the startups. This approach puts projects in jeopardy due to the threat of exchange rate drops and loss of liquidity and asset backing as investors risk being left without an end product and return on investment. If it is happening, that is a precedent that we will have to monitor and see what happens.

How can startups use Cryptocurrencies?

The only real way of applying cryptocurrency is by virtue of using them as utility instruments on platforms. This way, startups will have real assets capable of holding and accumulating value for investors as portfolio additions when the project platform and its product offering start gaining demand in the market. Any other use of cryptos can be equated to sheer speculation.

What are the Cryptocurrency trends you foresee in 2018?

It is extremely difficult to predict anything for sure in this market. However, the one constant that has already been proven is that projects that have products with real applications will have a good future. These are services and products that make the transition from the virtual into the real world and are directly connected with improving the lives of ordinary citizens and businesses.