Maslatón cautions that leverage poses risks of loss in any financial market. The lawyer believes that no one should put their BTC on unregulated investment funds or platforms.
Argentine attorney and market analyst Carlos Maslatón recently spoke about the market for Bitcoin (BTC) and other cryptocurrencies. He discussed various issues related to trading with crypto assets.
The former treasurer of Bitcoin custody company Xapo mentioned four categories of financial products: stocks, bonds, commodities, and currencies. In this last category, he included Bitcoin and other digital assets.
Regarding his activity with those assets, Maslatón said that he conducted transactions, analyzed, and made predictions. He added that he followed the cycles of the markets and tried to buy and sell at the best time.
Maslatón Warns about the Risk of Using Leverage
Leverage is a financial strategy to increase returns on investment. That method involves going into debt through loans so that the profitability of a commercial operation grows.
If the degree of leverage is high, the risk of loss increases. For that reason, it is often a risky practice, especially in highly volatile markets such as that of cryptocurrencies.
Regarding those warnings, Maslatón spoke against that practice in any financial market. He explained that whoever leverages a certain number of times on his capital can lose everything. That is what happens when the market goes the opposite way from where he thought it would go, in a matter of minutes.
Maslatón compares those who use leverage with those who play Russian roulette or jump into the void. The latter can survive if they fall into the water or die if they hit a stone.
There are Good and Bad Regulations on the Bitcoin Industry
The lawyer also spoke about the existing regulations on the Bitcoin market. Although he claimed to favor free, unregulated, and tax-free trade, he refuses to view those rules as wrong in and of themselves.
When Maslatón was treasurer at Xapo, he argued that Bitcoin companies should set KYC policies and regulatory standards for themselves, as banks do. He stated that both industries would eventually work together.
The analyst defines himself as a liberal but advises investors to accept those regulations that are good and rational. Regarding cryptocurrency services, Maslatón explains that the rules help the investor monitor what happens with his assets.
For example, the analyst mentioned that a neighbor told him that he had invested USD 800 thousand in an unregulated investment fund. However, that person explained that they asked him for more money, which he sent to an island in the Indian Ocean. He will most likely never see that money again because he does not know where it went or what happened with it.
Many bitcoiners argue that they do not like to keep their crypto assets on exchanges and escrow services. The proverb says: “Not your keys, not your bitcoins.” For that reason, Carlos Maslatón considers that self-custody wallets are the best option to stay away from intermediaries.
By Alexander Salazar
