Exclusive: Dubai’s Bitex says ‘Now is the time to buy crypto’
AMEinfo recently conducted a private interview with Monark Modi, Founder, and CEO of Bitex UAE.
Bitex is a Dubai-based online professional cryptocurrency trading platform that provides a beginner’s guide to getting started to those considering an investment in cryptocurrencies.
Modi made it clear that Bitcoin (BTC) had been stable over the last few months, staying in the $3,500-$4,000+ range, in contrast to a wild end to 2017 when it reached $20,000 per BTC.
“I see a positive 2019 for cryptos and Bitcoin, but I don’t see $100,000 or $1 million BTC any time soon. We could say a 6-8% higher value for BTC, perhaps trading in the $5,000 range, and getting no lower than $2,800,” Modi told AMEinfo.
Bitcoin, at tthe ime of publishing, is trading at AED12,551 ($3,418).
Well, that will have to be determined in the extremely volatile crypto markets.
Does the market agree?
A new analysis in Bloomberg suggests that the Bitcoin bottom is somewhere around $3,000, adding that BTC is probably oversold at this point.
“The bear market may continue for several more months or even years as industry participants figure out the best use cases for cryptocurrencies… All the same, bears and holders are having a great time right now with discount prices expected to continue for some time,” warns CCN, an industry site.
Regardless, Bitex is listing ICOs and has executed a respectable amount of trades, while also playing an important role in educating on BTC, blockchain, at a time when education could be the best policy.
Bitex: Train and Trade
Although only 2 months since a Dubai launch, Bitex is one of the early exchanges to establish a presence, with BitOasis, a leading digital asset wallet and exchange service in the MENA, having a more established presence.
“We’re getting inquiries about the workings of blockchain, and Bitcoin and people are learning more about digital currency trade, which are mostly retail investors who can now profit from having up to 6 cryptocurrencies at their disposal,” Modi said.
“70-75% of our investors are local residents who want to learn more about cryptos, invest small amounts and speculate while prices remain volatile.”
He said that people knew that BTC was highly volatile and that it was an asset that they could buy and sell, but they may not know about blockchain that much.
“And they need a platform they can trust and feel safe putting their fiat money in. We plan on releasing facts and stats, publishing feedback and suggestions to improve the trading experience. This is a word of mouth business,” said Modi.
Modi added that Bitex got inquiries from traditional institutes with several of them requesting OTC trades and often looking to trade in higher quantities of cryptos.
“APIs, not based in the UAE, would like to list their tokens as well,” said Modi.
A trading API is for traders who run algorithmic models on their own trading systems and want to receive live pricing and be able to execute trades — either manually or automatically through an algorithm — once their model generates a trading signal.
Serious business already underway
Bitex is engaging with up to 200 B2B dealers and supporting ICO platforms of businesses tokenizing their blockchain business to enable robust crypto exchange activities.
“We are supporting ICO platforms to list and sell. As an exchange, we would only list a token when we are clear on who the developer is, the team behind the ICO and their experience in the sector, to ensure no misuse of tokens, and to mitigate risks associated with fraudulent listings,” said Modi.
“Investors need to know everything about the cryptocurrency, the potential returns, the value of tokens, and it’s our job to make sure this is secure and transparent.”
Bitex is targeting 500 BTC volumes per day by end of February 2019. The exchange makes its money in what it calls a maker/taker fee, charging a total of 0.6% of each transaction involving making an order and that order leaving the books.
Opportunity to buy is now
Modi said with today’s prices near those registered 1.5 years ago, this presents a unique opportunity to buy.
“It’s an opinion based on personal research. We feel as a team that it’s currently a good time to buy. BTC has been relatively stable, and investors who previously could not understand why it went to $20k so fast, and back to $3500, a tumble of over 80%, in a short period of time, now find comfort that BTC has somewhat stabilized,” explains Modi.
“Cryptos are not a replacement but an alternative to fiat. It’s low cost, efficient, and faster compared to centralized banking operations, so it’s here to stay.”
How does a blockchain work?
Let’s say you want to send some Bitcoin to your friend Joe. When you make the transfer, the blockchain creates and sends a restricted entry, also known as a block, into the Bitcoin network, which makes sure you haven’t tried to make the same entry twice. This ensures you cannot spend the same Bitcoin more than once. The blockchain does this without input from a central server or authority.
According to Coin Market Cap, there are around 2,070 cryptocurrencies, and the total market cap today is over $120bn.
Once you have sent a cryptocurrency and the network has confirmed it, there is no way to retrieve it. Transactions are permanent.
Cryptocurrencies were built for security and utilize the latest cryptographic techniques to protect transactions from being tampered with and to protect the identity of parties acting in a transaction.
Once you pick a cryptocurrency, you will need to get yourself a digital wallet that acts as your gateway into the blockchain and allows you to send and receive crypto coins and lets you view your balance. You have a choice of wallets including desktop wallets, online wallets, mobile wallets and hardware wallets using a device such as a USB.