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EFI Week Online: Crypto Asset Market


Continuing with our coverage of the event on Economy, Finance and Investments, the EFI Week Online, organized from Argentina for all of Latin America. For today, the people of the event called Ripio to explain about the basic foundations of what we call “Crypto Market”. For this, we have the support of Nahuel Tamagno in his talk titled “Crypto Asset Market: Bitcoin & Stablecoin”.

Ripio and the crypto assets market in Argentina

Before listening to Nahuel’s words, it is necessary to know Ripio’s experience and relevance in this matter. However, this is only necessary if you are not from Argentina, given that this crypto assets platform is one of the most influential in the country.

Ripio offers cryptocurrency portfolio, exchange and trading services for all Argentines who wish to grow in the crypto world. Therefore, it can be seen that they have the knowledge to explain about the crypto asset market.

Once we know the power of Ripio, we can find out why they trusted Nahuel to give this paper. Although, it is not very difficult to decipher, since Nahuel is the director of the trading and OTC branch of Ripio.

Let’s talk about the basics

Once we have gained the confidence to listen to his words, we can proceed to learn from his experience. And, Nahuel developed his panel as if he were telling a tale of the life of the crypto asset market.

In this sense, he begins his narration explaining that the market was once made up of a single asset, which we know as Bitcoin. But, over the years, more crypto assets appeared, diversifying the market more and more. Even, says Nahuel, a unique type of asset was born, which 10 years ago was unimaginable: stablecoins.

He then comments that while each cryptocurrency works differently, Nahuel exposes that its spirit is the same. There is an address that has a certain amount of crypto assets, there is also an address that can receive them. The path that assets travel is possible by a group of people called miners, validating each transaction.

While we know that this process can be more complex, it involves more technical areas. What Nahuel says is the most basic thing that should be known to carry out operations.

Trading with crypto

By simplifying transactions with crypto assets in this way, studying trading with them is also made simple. Like traditional assets, such as gold or oil, to invest in cryptocurrencies you need a broker that allows you to enter the investment market.

Therefore, by behaving similar to other investment assets, you can analyze their rates of return. This means, comparing how much the investment is worth against how much it was worth at the beginning of it. At this point Nahuel highlights a fact that we have exposed on various occasions on the page, being that Bitcoin is the most profitable asset among all.

Rate of return of crypto assets against traditional assets.
Rate of return of crypto assets against traditional assets.

In addition, a curious fact that we can contribute to Nahuel’s comments, is that crypto assets in addition to behaving like assets. You can analyze the crypto asset market as the Forex market.

Returning to Nahuel’s presentation, he proceeds to explain two terms that we have used on various occasions: Los Toros y Osos. In simple terms, the Bulls are those people who are interested in the price of crypto assets being low, so they can buy in large quantities. While the Bears are the opposite, people who are interested in a high price to sell at the best time.

Nahuel Tamagno tells us about crypto assets at the Zoom exhibition.
Nahuel Tamagno tells us about crypto assets at the Zoom exhibition.

Are there differences between technical analysis and fundamental analysis?

Subsequently, Nahuel reaffirms an idea that we have defended on the page, since information is power. Therefore, it is necessary to understand the analyzes that exist on the Internet, as we do.

However, a common mistake is not knowing the difference between a technical analysis and a fundamental analysis. Again, in layman’s terms, a technical analysis is to study the behavior of an asset to date. For example, every time our analyst Claudio decides to study the crypto asset market, he carefully reviews the variations of crypto assets.

Meanwhile, a fundamental analysis is to compare the value of the asset in the present against a projection in the future. However, doing this sounds easier than it sounds. We must remember that crypto assets are extremely volatile, so trying to project into the future is complicated.

For this reason, alternative variables that work to analyze the asset are sought. Nahuel explains one of the most used, which even Claudio and Alejandro use often, being the hash rate. In this way, they analyze the rate at which crypto assets are mined, allowing to estimate how the assets will behave while circulating.

Although, like the crypto asset market, Nahuel mentions that there are several variables that can be used as alternatives to study the market. It even mentions one of our analysts’ favorite platforms, being Glassnode.

In it you can find from how many new wallets have been opened, to how many have at least 0.1 BTC.

To finish, he comments that it is necessary to know about the platform that is necessary to obtain the data to be studied, being the old and reliable CoinMarketCap.

Final reflection

After the presentation of Nahuel, in the opinion of the author of the news, invites us to reflect on what we know about the crypto asset market. In this sense, it is interesting to ask what is really necessary to live in this crypto world.

When considering Nahuel’s presentation on EFI Week Online, it seems to disprove the existing taboo that to use crypto assets you need to have a diploma in finance or work in application programming.

In addition, to close the article, we invite you to join us to continue listening to the EFI Week Online panels of crypto assets.

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