Hedge Fund Manager: “I Was Drawn To Crypto Because Of The Volatility” Part 2

Hedge Fund Manager: “I Was Drawn To Crypto Because Of The Volatility” Part 2

If you’re an altcoin enthusiast then you may be asking when the next altseason is going to occur. The average investor will most likely draw insight from crypt-sector leaders and crypto twitter influencers who commonly post new charts of different cryptocurrencies with a brief explanation of what is happening in the chat and what they believe is going to happen with the price of a certain coin.

Cantering Clark, hedge fund manager and co-founder of Blockroots, has recently given his thoughts on the market state and whether altcoins will ever recover in another season.

If you didn’t read the first part you can catch up here!

The interview went on to the topic of Clark’s firm, Blockroots. In explaining the company, Clark said:

“Our main objective is to educate new traders and separate the truth from the noise. There are a ton of paid groups and these are not always the best way for new traders to learn how to understand the basics of investing. 

One of the troubling aspects of the cryptocurrency market is there are so many trading groups and newbies who copy the trading systems proposed in paid groups a kind of taking a shot in the dark. New traders really aren’t fully aware of how effective these trading systems are they don’t have transparency regarding the trader’s success rate. Blockroots provides an academic, base-level trading approach to help new traders find their way.”

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CoinTelegraph also asked Clark on whether he could explain how leveraged trading actually works and how an investor could utilise it to their advantage.

“In crypto, people use leverage to amplify gains through greater capital exposure. More often than not, traders take on losses because they don’t truly understand how margin works and what it is truly designed for. 

Margin/leverage mitigates counterparty risk, and this is especially beneficial for crypto. With leverage, if I own 1 BTC, I can keep 90% of my BTC in a cold wallet and just put 10% of the BTC on exchange and protect myself from counterparty risk. 

Leverage also gives the opportunity to trade both sides of the market. Frequently, traders use too much leverage and get liquidated as the market moves against them but a healthy amount of leverage gives the opportunity to take advantage of market trends.  2x and 3x leverage allows one to play the trend, especially when Bitcoin is in a strong trend with clear support and resistance levels.”

There are many reaosns why we, as investors/enthusiasts/general fans of the crypto space, decided to one day get involved with cryptocurrency. For a lot of people, the idea of making mounds of wealth was probably an appealing thought…

But for Cantering Clark, it was the simple state of the space and action of cryptocurrencies that brought him into the emerging industry.

“I was drawn to crypto primarily because of the volatility.”

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