Interview with Alexander Naverniyuk

Cryptoindex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 1800 coins applying over 200 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.

Dear Community members,

We would like to introduce our investor — Alexander Naverniyuk!

He graduated from the Faculty of Cybernetics and Information Security MEPI in 1986. After the institute, he was engaged in the automation of experimental atomic reactors. In the 90s he worked at IBS, participated in the development of banking systems. In 1997 he moved to Canada, worked in various Canadian IT-companies. Currently holds the position of CTO PressReader. Alexander is an early investor in numerous crypto projects.

-Hi Alexander, please tell for our community how you choose projects in which you are going to invest? What are the criteria?

I will probably start from some basic points. I think that crypto technology is something huge. And I really, honestly believe it is more important than the Internet itself. And the reason for that is the Internet is all about information, so it made the information fluid, transportable, and instant. But the problem is that the information itself does not necessarily have some value — it might be empty, it might be just noise, it might be dumb. Buy crypto technologies are all about value directly. It is about something that is meaningful, something you can pay for. They made the value fluid, transportable and instant, and it opens the whole new world of the possible value-based relationships. So what I’m trying to do — I think this is important for all of us — I’m trying to support the movement itself, so I’m not focused on a return of an investment, it’s not my primary vision. I’m trying to support exciting projects to contribute to basic crypto technology itself, or maybe open some new applications, how we can apply these new technologies in different industries.

-Very interesting! Thank you for becoming our investor! What is your success formula when it comes to investing? Are there any additional criteria how you would choose which project is more interesting to you and which one is less?

There’s no simple formula of course (laughing). So I’m trying to recognize the value of some technologies and projects — as soon as I can (and sooner is better). For example, you know, it took me a year to recognize the possible value of Bitcoin itself. So, when I first read about bitcoin, the price was below $1, somewhere around $0.8. But I bought my first bitcoins a year later, for, like… $80. And that was like a hundred times… kind of painful. I learned two important lessons. The first is: the sooner you recognize the value, the better investment it might be. The second one: it is never too late to buy bitcoins.

-It’s so true. How to reduce the influence of stress and greed in investment business? Yoga practice, education or something else. What helps you? Hobby?

I know it’s quite difficult to stay emotionally disconnected when your portfolio keeps losing value. That’s not easy, believe me, I know how stressful it is. First of all, try not to be focused on a price every single day, and remember there are more important things — your family, loved ones, kids. So just play with your kids and forget about everything — that’s probably the best piece of advice.

-So let’s go to the next question. As we know all the crypto market is falling. What should we expect in the next couple of years? In your opinion how the situation will change?

Regarding price, I think it should, but, you know, price discussion is the most boring topic in the crypto industry, so I don’t have much to say about. Honestly, I don’t know what price will be next year. What I do know is that for many projects we will have a lot of interesting stuff released. So, for example, I have high expectation for cryptocurrency Dash — what they call Dash evolution project, and it might be huge because they are trying to solve the most challenging problem of crypto technologies. Do you know what it is?

-There are many of them right now. The legislation, the crypto community… I mean, there are many of them, there are questions of the government, a question of the amount of data which crypto uses and which it’s going to use.

All true. What I think: the most challenging problem is how to make this simple enough, so regular people can use it. Because still, it’s so difficult, you need a lot of skills to make a simple transaction. To do it properly and save all your keys is so difficult that for some people it’s just beyond the capability. So what they are trying to do is to reduce the complexity of clients’ software to the level of PayPal, and many people call this project “the crypto PayPal”. And, as we know, PayPal has hundreds of millions of users, although they never publish the actual number. So, if you reduce the complexity to that level, you might expect that millions of people can actually start using these technologies every day. If that really comes true, I think that Dash might become the cryptocurrency of the year. By the end of the next year, they might have a million active users. This is what excites me. The price of Bitcoin does not excite me a lot, but all these new technologies and new ways to use it — this is what makes my life interesting.

-So, is that why you believe in Cryptoindex as well?

Yes, it is an interesting project, and what I can say: money comes with responsibility, so once you are lucky enough to have some portfolio and crypto assets, you have to make decisions every single day. Which tokens to buy and which tokens to sell? There are a lot of opportunities how you can profit and how you can lose, so it’s quite stressful, and you can give a part of your portfolio to ???? some fund. And there are some quite good crypto funds already, and, actually, I worked with several of them. They are professionals; it is their full-day work, they should do the job better, theoretically. But the problem is: they are also buyers, as all of us, and they only see a fragment of reality, they cannot handle the load of the information every day. The amount of information you need to process every single day is to be aware of what is going on, is so huge that it’s probably beyond human ability. So I always thought that it would be great if computers would help us to analyze all this information. That’s exactly what Cryptoindex does, what they have is a machine learning algorithm that analyzes hundreds of different factors every single day in real-time, and rebalances the portfolio. It’s a nice idea; I’m glad to be a part of it.

-Okay, so do you think Cryptoindex can transform the investment market and become PayPal for the investors, or some kind of Forex Club?

I’m not sure about transforming the whole market, but I believe that Cryptoindex might be a very useful tool for many investors, and possibly quite popular. Because investment in indices is just a common practice, it’s much less stressful than picking the particular tokens to buy — you just purchase ???? and you’re kind of covered. So I really think it might be a very successful project.

-You had an opportunity to meet some people standing behind Cryptoindex. What do you think of the team?

I know CTO of the company Sergey Shashev, we met in Moscow a year ago, and we discussed my possible investment in some other crypto project, and we had a really nice conversation, and he’s skilled, knowledgeable professional IT engineer, so we quickly found a common language, and I like him a lot. Once he started working for Cryptoindex, he called me, and we discussed the project in all the details, such as the architecture of the technical solution, and the algorithm. He showed me how it works. It was impressive, I liked it and said: “I’m in”. That’s how it happened.

-Thank you, that is a very fair answer. What would you advise for real sector investors who are new to the crypto market? What is the main thing that you would recommend them?

I’m trying not to give advice, it’s not that good predicting price, and the beauty of cryptomarket is that everyone makes his decisions. One thing I can probably say is that if you call yourself an investor these days and you don’t own any crypto assets, it might be that you just fool yourself. That’s probably the only thing I can add — you have to make your own decisions.

Thank you so much for your time, it was a pleasure speaking to you!

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