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About the new crypto-only Collective2 strategies


#1

Hello.

I think that the idea of the new crypto-only strategies that Collective2 is launching now is really interesting, but I have 2 main concerns about it. Maybe some of you think the same as me and maybe those are two things that Collective2 developers are aware of and they are working on it, but anyway there it is.

First of all, I think that there is a good kind of asset to be launched in this platform, I’ve been looking around in other social trading platforms and none of them appear to have this kind of asset in their lists (only through CFDs, but I personally don’t think that that is a good idea due to the overnight swaps and the fact that they are not traded on weekends as happens with normal crypto-trading), so I think that new people will reach this platform and it will be good for everyone.

Now let’s talk about the two concerns.

1- It is not possible to trade in fractions. I’ve tried with Bitcoin and I only can trade in whole bitcoins, for example I can trade 2 bitcoins, but not 2’3 bitcoins. In my opinion a good thing about cryptos is that they are very flexible when trading with them, but if you limit it to whole units we can’t trade the exacts amount we want with the leverage we want, only approximations.

2- It is not possible to go short. You only can buy the cryptos and hold them. I think that this kind of asset is really volatile and there are good opportunities in being traded both sides (at least for my strategies). The possibility of only buy and hold makes me think that if we get a super bullish year like 2017 the strategies will be successful, people will jump on them and then lose the money in the next crash (kinda reminds me of what happen this February with most of the volatility strategies). Also I don’t think anyone will be willing to pay a strategy developer for just buy and hold during months in hopes of a bull run.

Those are the two things I’m worried about. What do you think? Is it going to be something that it is going to be implemented or it will remain as it is now?


#2

I strongly agree with you on the bull run matter. As long as you can not mix crypto into usual strategies to pursue a diversified portfolio concept it´s rather pointless to have such a strategy. Shorting and trading in fractions is elementary. However, shorting “physical” crypto is not so easy because you have to actually borrow the coins so I can see the reason here.

For your personal case, if you have a working strategy and want to short real crypto you may want to have a look at the “celsius” project. They pay you interest on your coin deposit in their wallet, provide asset backed loans against your crypto and you can borrow crypto from them to go short. I just discovered the project a few days ago so I can´t really tell you much more.