Hackernoon logo"Cryptocurrency is Becoming so Widespread, That it is Better Not to Shy Away From it" - Andreas Berg by@Sergeenkov

"Cryptocurrency is Becoming so Widespread, That it is Better Not to Shy Away From it" - Andreas Berg

Andrey Sergeenkov Hacker Noon profile picture

@SergeenkovAndrey Sergeenkov

Cryptocurrency analyst. Founder and editor at btcpeers.com

With cryptocurrency becoming a new investor frenzy on the face of a rapidly inflating global economy, it once again proves the importance of alternative investment instruments in the times of a crisis.

Lately, it went as far as to seize banks under the circle of cryptocurrency-related movement – the US banking regulator recently gave a green light for the banking institutions storing crypto for their clients.

This all points to the new helix of cryptocurrency development, where digital currency slowly but steadily becomes an indispensable part of a real-world ruled by financial institutions.

As the main driver of a new crypto economy, exchanges emerged as neo-financial institutions, all the way back in 2010.  The pioneer in the space was Bitcoinmarket.com, who was the first one to introduce the exchange of fiat to BTC with the help of PayPal used for intermediary top-ups.

This feature of swapping one currency type for another remains at the heart of modern crypto exchanges the same as before, only nowadays a number of advanced functionality is added up on top.

Newer versions of them encompass the whole range of cutting-edge instruments ranging from margin lending to futures contracts, which makes them hardly distinguishable from best-in-class Forex trading platforms.

That’s why none of a surprise that most progressive crypto exchanges go as far in their ambition as to get listed on a stock market.

As the space for crypto exchanges grew increasingly competitive, each one of them is trying to come up with a plan to seize a larger bite of a customer base. For that, there are various kinds of incentives that typically range from bonus campaigns to bounty programs.

Some of the most generous ones can bring an additional income of 50% on commission fees for introducing a new user into the exchange ecosystem. Understandably, this may explain why the platforms introducing affiliate programs grow their user base much faster in the first few months than similar non-promotional platforms.

Among platforms actively conquering the crypto space, Buytex steps up with the reward network comprising 6 different income models. By creating a plan to encourage users through generous token bonuses (up to 3X the original investment) and referral bonuses reaching up to 13%, this exchange also comprises a trading platform with low transaction fees, high-security grade, and undisrupted availability.

Today, I’ve been given an opportunity to speak to the CEO of Buytex, Andreas Berg. We found out more about the trends and pitfalls of the current crypto landscape, as well as looked deeper into the future potential of the Buytex exchange.

Andrey Sergenkov: These days, the rising wave of crypto exchanges is flooding the market. In this situation, what is important to succeed and not to sink under the ever-growing pressure of the current competitive environment?

Andreas Berg: When you are running a crypto exchange, it is important to understand what your strong and weak edges are. Focus on improving strength and mitigating the weak ones, that’s the golden rule. For now, our weak edge is increased competition. But we are overstepping that by focusing on creating an enhanced market offering, particularly through the number of referral and token bonuses. They will be especially attractive for the ones who haven’t experienced cryptocurrency trading before. In Buytex, we beat on the rising popularity of crypto and on the rapid growth of DeFi, what will most likely make our exchange with the rising wave of the neo-finance solutions.

Andrey Sergenkov: Although the field of cryptocurrency is relatively unoccupied and presents a lot of fresh opportunities, it is still becoming more challenging to come up with something dramatically new, as various crypto niches already become taken. What is the key to staying innovative on this dense crypto playground?

Andreas Berg: Add value. That’s the key. In our case, we are trying to make our platform as easy and attractive for new entrants as possible. Although the niche of crypto exchanges is not that novel, we are still trying to make things differently by encouraging customers to participate through token giveaways and reduced commission fees. Also, our platform gives a level of security which is almost unbreachable, what is clearly one of the most important criteria of any crypto exchange. I think, there should be no problem finding these features independent from one another on various platforms - but where can I find it all in one? Buytex is a clear answer.

Andrey Sergenkov: It all sounds very promising, but let’s be frank - the regulatory framework of the current crypto markets remains somewhat swampy. It seems to me, it is yet hard to say what future will crypto face once fully incorporated there. What is your take on this?

Andreas Berg: To be honest, I don’t know. But I can only guess. Cryptocurrency is becoming so widespread, that it is better not to shy away from it - otherwise, there’s a risk of abolishing the dominating part of the future to-be economy. Let me give you an example. In China, they have already built a ground for accelerating the blockchain sector, which means they are betting on the future growth of this sector. Possibly, it will bring them enough potential for solid returns. This is perfectly compliant with law - or, to put it the other way, it is better for China to make it fitting into their legal system. Blockchain sector may become an economy’s driver and the way to solve some of the fundamental economic problems, such as the country's debt, which has been there for many years. Many countries may then follow a similar model.

Andrey Sergenkov: That sounds optimistic. But lately, the world was severely crashed by a global pandemic, and the markets are on a long recovery trend which is not likely to reach resolution any time soon. In a situation of this increasing uncertainty, how likely are ordinary people to switch over to investment in digital assets instead of conventional fiat?

Andreas Berg: I’d say, this is very very likely in the near future more than half of the population will hold cryptocurrency. Why? First of all, even during the times of economic stability a lot of people were deprived of the benefits of conventional banking, especially in the poorer areas of the world. They felt themselves like outsiders, being unable to perform simple operations we all so got used to, like sending money within the country or abroad. This also pushed forward the fraction of the shadow economy, which is not of a clear benefit to any government. So the advantages of digital currencies and their transparent system are rather straightforward. And now, try to add to the equation a halo of uncertainty surrounding all global markets after COVID-19. It seems like digital assets are a lifeline of our days, and sooner or later more people will realize it.

Andrey Sergenkov: Continuing this topic: in the climate of increasing uncertainty surrounding the stock markets, how do you see the role of crypto exchanges in the future post-pandemic economy?

Andreas Berg: It will rise, that one I can tell for sure. Look at how many DeFi startups have been there, how many tons of tokens are getting released each new year. This is a clear sign that this field is on the way towards an even bigger growth. Especially in the face of pandemic, people will try to stay away from everything that has a potential to fail again, may the second wave of COVID start. This actually means that crypto is one of the few, if not the only way, to secure the growth of your assets which is almost guaranteed to happen within the future year to come.

Andrey Sergenkov: It must be good news for anyone standing at the helm of a crypto company. As CEO of a crypto exchange, what would you say are the risks and rewards of running this compelling business? 

Andreas Berg: Interesting question. Any kind of business is constantly exposed to risk and rewards, in one form or another. For instance, on a daily basis we are exposed to a risk of not being able to break-even, as if we got underfinanced or overestimated our ability to generate solid and stable returns which we will soon be able to return to our creditors. On the other hand, if to calculate rationally, the risk of such failure is almost none. For example, after running a seed round, we were already able to secure 15M dollar in funding. Even more we get once our tokens start being traded publicly - that would be our reward. The chance of losing out is almost close to zero. Unless some fundamental changes in the legal system will take place, of course.

Andrey Sergenkov: I still have another question. It is widely known that crypto market share is already split in between massive exchanges in the following proportion: Huobi Global handles 20% of global trading volume, followed by OKEx with 19% and concluding with 16% belonging to Binance. Is it still economically viable to enter the field and if yes, what would be the reason customers should prefer you over well-established market platforms like Binance?

Andreas Berg: Well, we are not forcing them. *laughing* However, it is always more fun to see and try something new. Compared to these well-established platforms, we see ourselves as a provider of generous rewards for the ones who have never tried cryptocurrency trading before. We make the adoption process easier by providing a more convenient solution which is sure to gain more spread in the coming future. We store all of the customers’ funds on a blockchain, this is also important to note. They don’t have to be concerned for security, because that’s the most reliable technology for crypto transactions up to date. Also, we make sure that our operation model is completely legal and fully compliant with the jurisdictions. This already helped us to secure the place in many countries around the world.

Andrey Sergenkov: Now I’m curious about the Buytex rewards programs. How do you keep the golden mean between the increase of a customer base and stress on a bottom line brought by attractive incentive programs?

Andreas Berg: Yes, good question. In a situation like this, balance is key. You have to come up with an effective model which will be appealing to your customers and your business alike. In case with our incentive program, I don’t see any flaw. It’s essentially made up in a way that we attract customers by giving them more benefits than they could expect, which makes us look better than our competitors. So we are winning new users each time we are sharing with them something that could be of their benefit too. That’s how the law of attraction works - you give something generously to get even more in return. Eventually everyone is better off.

Andrey Sergenkov: The idea of giving investors an opportunity to benefit from future stock growth of your company is quite novel. Would more companies think about this model in the future?

Andreas Berg: Well, this model has already been working for other companies already for a while. Many well-established organizations create a stock purchasing plan for their employees, which makes the workers too motivated in success of the company, as they feel themselves engaged and become a part of something bigger. They are willing to dedicate themselves and contribute more. In a crypto world, it works slightly differently. Although investors do not work for us, they can gain this feeling that we work for them. We are trying to communicate the idea that this project is our common goal and will work for our mutual benefit. This will create trust between ourselves and nurture a sense of self-reliance, make sure that by issuing a BUX token we are willing to grow together.

Andrey Sergenkov: To my understanding, traders are the main target group for Buytex exchange. What are they most seeking for when deciding on their choice of a trading platform and how do you manage to provide it?

Andreas Berg: As a trader, it is important that the platform you are investing in is: a) secure and the funds will not get lost; b) provides trading instruments for more advanced trading options (e.g. future contracts); c) synchronizes well-developed and proactive customer support. However, the problem comes in when you see a similar picture among many other exchanges. As an investor myself, I know that it is sometimes not apparent which choice is best, other things being equal and having so many offerings on the market. However, what I would do is to analyze the available options. From which exchange I would benefit more while just getting started? And where do the better growth opportunities lie? By receiving a BUX token in rewards, I think I will be honest if I say that every investor becomes better off. This is mainly linked to the fact that our platform will expand and bring more users, which will make the token price to pump up. 

Andrey Sergenkov: I’ve heard that Buytex recently launched its own original wallet. Could you share with our readers how does it stand out among many alternatives on the market?

Andreas Berg: Sure, thanks for asking. Our company did invest a lot of enthusiasm and creativity to work out the idea of a wallet that will be secure, effortless, easy to use for users and bring a pay-back in the form of commission fees. Buytex wallet matches this description on each and every aspect. It is a cold storage wallet which allows exchange of currencies and entangles instant transaction execution due to blockchain technology we base our wallet on. What is more, we allowed an option of receiving a bank card, which will make our users pay straight from their crypto accounts. The app will very soon be launched in AppStore, so it is highly recommended not miss out and follow the updates.

Andrey Sergenkov: The Buytex exchange will soon officially open its doors. The question which I’m sure many investors are ruminating on is how this occasion will be reflected on the price of BUX token. Are you willing to share your perspective on this?

Andreas Berg: I can, why not? We are not infringing somebody else’s rights from it, I hope. It is not a secret that the price of a token most likely will pump. At least, that’s what is expected. We have a limited amount of tokens in circulation, only 1 billion. This cap on a market essence, which essentially leads to a conclusion that once the demand for a token goes higher, the price will climb up as well. Obviously, that makes BUX token more attractive for investors, especially at an early stage. That’s why we aim to spread more word about Buytex and our platform, so that everyone interested has enough time to jump in.

Andrey Sergenkov: In October, the company will hold its first international forum in Bangkok. What should an ordinary community member expect to learn from it?

Andreas Berg: We will hold an open event, where we will raise the discussion about the field of DeFi and the prospects for the new entrants. This is also an excellent networking opportunity, which gives a chance to meet other community members and to create valuable connections for future partnerships. Our CMO Anshel Gear will represent our company and talk about issues that concern everyone in crypto. That’s a chance not to be missed for all who will be around.

Andrey Sergenkov: What is ahead of BUYTEX Exchange for the next five years? How will you achieve these goals?

Andreas Berg: We plan to consolidate ourselves in the leading positions on the crypto exchange market, we have a unique development model and all the tools to reach this goal. Right now we are focused on developing our community, and I'm sure that in the end we will reach all of the goals we are aiming for.


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