China’s latest regulations on cryptocurrencies have caused mayhem. Beijing’s three of the biggest financial industry associations directed their members not to offer clients any services involving cryptocurrency on Tuesday. These members include banks and online payment firms and the regulations restrict currency exchanges, registration, trading, clearing and settlement. The effect of the same can be seen as a global crash in the crypto trading market.
The most trusted ones, Bitcoin and Ethereum, dropped to as low as $32,000 and $1850 respectively and multiple small-cap coins reached a vanishing point. Many exchanges saw server crash and social media was abuzz with the biggest crash of the year. Many of the amateur traders saw their wallets going zero.
Bigshots Ankit Saini and Siddharth Ponkshe are, however, laughing to the bank today.
Did we ask them why?
“One needs to understand the market before entering it,” said Ankit Saini. The 25-year-old is the founder of Connect India Technologies and has been trading for years now. “See, we all knew the market was to see a huge crash. The news from China was such a powerful one. And we too had some losses. But we also knew that it was meant to go down further. So, we went on to Short our portfolio,” said Mr Saini.
When asked to explain what Shorting is, Siddharth Ponkse said, “The market had been seeing a bull run for a long time. So, we all knew that a market correction was unavoidable. The news from China seemed like the perfect catalyst. So, we bet our money on the falling rates. The more it fell, the more profit we made. That’s Shorting.” Siddharth Ponkshe is the founder of Mumbai-based digital firm VirtualShield Solutions and says that trading is where the real money is
An ecstatic Mr Saini added, “I’m yet to do the PnL but today was one of the brightest days.”
Talking about what makes him win the market, Mr Saini said, “One needs to understand that trading is all about the relocation of money from one trader to another. And the trader with more experience and knowledge and control over his/her emotions wins the game.”
That’s interesting!
When asked to advise young traders, Ankit Saini said that one must do their homework and start small with the most trusted coins. “Only when you’ve traded 30-40 times, you should start taking risks. Or, you’re bound to lose money in the long run,” he concluded
