Jun 20, 2021

Crypto strategies: Timing the market vs time in the market

Dacxi
Cryptocurrency
Blockchain
Investment
Katharine Wooller, MD, Dacxi U...
3 min
Wooller investigates the prevailing market trends in cryptocurrency and analyses the different strategies of big-time and small-time investors

There is a lot of surface noise in the cryptocurrency space and most of it is the psychobabble of investor sentiment. One week it is the sound of everybody rushing towards a feeding frenzy. The next the wailing and gnashing of teeth as those near the surface (the ones most exposed) get spooked and rush the other way, falling over each other in the race to escape. 

Watching crypto markets in the last few weeks has been brutal viewing; best done on a strong stomach and ideally through your fingers!  It’s impossible to know what drives lemmings off a cliff, when they run, they all run the same way at once. 

The speculative crypto investor is not always a logical beast, and there seems to be a lot of sentiment where the money is either ‘all in’ or ‘all out’.  Crypto is exquisitely volatile, and annoyingly can sometimes defy logic – no-one really knows what is going on.  Thankfully the blockchain data has some answers on what the smart money is doing.

Essentially scared sheep are trying to ‘time the market’, traders who are buying and selling short term on a hunch the market is running in their direction, going with the flow in a world where cash is king. Recently the sheep got spooked, their time was up. Unsurprisingly, when the market run is to sell ‘coin’, it turns the asset back into what it sees as the comparative safety of fiat.

Pictured: Katharine Wooller

There is another investment philosophy, one aimed not at spinning-off short term cash but on the principles of accumulating long-term wealth. A far less noisy space where deeper strategic thinkers are quietly building crypto portfolios of significant size, this is where the ‘whales’ (a crypto industry term for those who hold at least 1,000 BTC) hang-out.

Whales have no interest in timing the market, rather their focus is ‘time in the market’. Not driven by market sentiment, their focus is buy-and-hold. 

So where does this leave the minnows, the small investor who might be wondering if now is the time to think about cryptocurrency as an asset class to add to a pension or an ISA. Somebody looking to diversify out of equities. A prudent saver who thinks structured saving in a digital wallet is something that would add value to a retirement strategy. Where does the minnow look?

Currently if the minnow looks below the surface, at what the whales are doing, he or she would see something very interesting. Since 19 May's price crash, the bottom feeding whales have been hoovering up BTC. Quite simply, they are ‘buying the dip’ – as the sardines rushed to sell, the whales were happy to hunt in the bargain basement. They have been accumulating wealth.

To my mind, the smart, forward thinking retail investor, with a buy-and-hold mentality, might consider this a buying signal. In which case the question becomes how to dip a toe in the water. 

This article was contributed by Katharine Wooller, Managing Director, Dacxi UK and Ireland

Dacxi has established one of the UK’s leading cryptocurrency wealth platforms, where small to medium investors can buy individual coins or ‘bundles’ of Blue Chip or selected altcoins to build a diversified cryptocurrency wallet.

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Jul 30, 2021

The Ultimate FinTech & InsurTech LIVE Event

Fintech
Insurtech
live
event
4 min
New speakers announced for FinTech & InsurTech LIVE Event, where innovation meets implementation, coming to you live from London

Whether you attend virtually or in person, it will give you a chance to network with C-Level executives, share ideas with industry pioneers, and walk away with actionable, unique insights to bolster your business and career. 

By the end of the three-day event, you will have seen the latest innovations in both FinTech and InsurTech. You will be able to see how companies like yours are tackling the problems that keep you up at night, engage in a community that many struggle to access, and share your ideas with people who care as much as you do. 

Order your tickets now to take advantage of our limited-time Early Bird offer. 

 

How can you attend?

In the post-Covid era, not everybody wants to travel for events. So FinTech and InsurTech Live will be completely hybrid. That means you can attend the event in person or virtually - with no disadvantages to people who don’t make the trip to the Tobacco Dock. 

In-person

 

FinTech and InsurTech Live is happening in the Tobacco Dock in London, a ten-minute walk from Tower Bridge. For more information on the location, click here

Virtually

There’s no need to worry about missing out if you choose not to attend in person. You can still absorb all the information, interact with other attendees and enjoy the conference experience on our virtual platform. 

There will be live feeds from all of the stages (also available on-demand after the event) as well as virtual networking areas. So not being able to travel is no reason to miss your chance to gather with the industry.

 

New Speakers

 

Jonathan Holman

Head of Digital: Corporate & Commercial Banking at Santander

Jonathan Holman is a technologist and banker who runs Digital for Santander in SME, Commercial and Corporate Banking in the UK. He and his team have won 8 global industry awards in recent years for their work in banking technology, and he has held roles in coverage (relationship banking), credit risk, operations, strategy, change and leadership. 

For his master’s degree dissertation, he researched and wrote it using scale social data in credit risk modelling, using ML / AI, which was a global first. Jonathan has expertise in Fintech, small to medium enterprise (SME), data and AI, corporate credit risk, digital disruption, banking, and macroeconomics. We look forward to hearing his insights. 

 

Tevi Legge

Vice President at ATB Financial

Tevi Legge and her team focus on the end-to-end customer experience strategy and collaborative execution of the strategic roadmap for the Everyday Financial Services segment within ATB and will partner with leaders to ensure that customer experience is a top priority in all plans. This involves understanding the customer, prioritising initiatives, product leadership, product strategy, product development of both core and technical products and the manufacturing of the value chains that will create those exceptional everyday banking experiences through our channel distribution endpoints. 

No stranger to accolades, Tevi has been named one of Lethbridge’s Top 40 under 40 as well as one of Alberta’s 60 She-Innovators, and she’s also an ATB President’s League winner, which represents the top 1% of achievers among ATB team members. In 2019 she was named a Women's Executive Network (WXN) Canada’s Most Powerful Women: Top 100 Award Winner, and most recently recognised in FinTech’s Magazine top 100 women. 

 

Elona Ruka-Wright

CRO at Finastra

As Chief Risk Officer, Elona is responsible for a broad portfolio of risk management matters across Finastra and leads the company’s continued focus on world-class risk management strategies, including information security, regulatory compliance, enterprise risk management and governance, working closely with regulators, clients, and partners.

Prior to joining Finastra, Elona was SVP, Enterprise Risk Management, at Black Knight, with overall accountability for development, implementation, and governance of the company’s risk framework and supporting programs. She brings more than 15 years of experience from large financial institutions, building foundational components and driving transformational maturity efforts in Enterprise Risk Management, Information Security, IT Governance, and Regulatory Compliance programs at U.S. Bank and Wells Fargo Bank.

 

Order now to make the most of our early-bird offer. Ticket prices increase over 50% soon! For tickets and information, head over to our event site.

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