It’s time for another exciting meeting with a talent from the iCard team. Today, we present a colleague who knew from an early age that his professional journey would be finance-related. To him, studying the financial markets and making investments is a passion to which he devotes both his work and personal life. Meet the person at the heart of our partnership with Bitpanda – Daniel Ivanov, “Treasury and Liquidity Specialist.”
How did you get interested in investing in stocks?
I got into investing when I was a child. At the age of 13, I watched the movie “Wall Street” with Michael Douglas, and I was captivated. I immersed myself in books and movies about finance. When my father bought me the book “The Financier,” I took it as a sign that my future would be in the financial sector.
I was counting the days until my majority so I could sign a contract with an investment broker and start trading. During the summer, I was saving money, and just a few days after I turned 18, I bought my first shares in a popular Bulgarian bank, of which I was a client at the time. I had absolutely no idea what I was doing – I bought my shares directly from the bank, which was probably the most expensive option regarding taxes. But I got lucky, and a while later, the shares doubled in price, and I sold them at a profit. To this day, I still keep a copy of the depository receipt as a memento. In the beginning, I was losing money, as could be expected. I am very grateful to my parents for never criticizing me for the losses. Instead, we all accepted them as a “tuition fee.” I believe you have to “take some hits” by the financial markets before you start getting it right.
Do you follow a specific investment strategy?
I am a big fan of Warren Buffett, who is willing to pay a fair price for a great business, stating: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Buffet is a disciple of Benjamin Graham, the founder of value investing. Graham’s book “The Intelligent Investor” is widely recognized as the value investor’s bible. His strategy is based on buying promising companies at low prices and selling them at higher prices in the future.
I strive to keep my investments as diversified as possible, but not too much. I follow my own rules and do not limit myself to specific sectors. Coming to a final decision on whether to invest in a company is a long process. I spend a lot of time examining the business model it follows, and if I don’t understand it, I don’t take а chance. One of the reasons I like investing so much, apart from the generated profits, is the process of researching different companies – learning about their particular business challenges and the obstacles they overcome. If I determine that a given company is worth it, I start calculating to see if the share price is currently favorable. Only after that do I make my final decision on whether to invest.
Have you ever made emotional decisions?
Emotions in this “craft” do not affect you well. Researching a company for investment purposes should be а calm process because if you really like it, you can end up convincing yourself that it’s worth it when, in fact, it isn’t. Of course, I also try not to be too relaxed to avoid making a mistake due to an oversight. It is important to analyze the numbers and all available information correctly.
Of course, I’ve also made some emotional decisions over the years. For example, in 2021, there was euphoria about some meme stocks – companies that do not have enough fundamental value. Reddit users decided they would pump the prices of some of these businesses sky-high, and somehow, they succeeded. I had shares in one of these companies, and their price increased fivefold compared to when I bought them. Once again, I got lucky. I realized that the company lacked good fundamentals, and I just liked the brand. I sold all my shares at a profit, except for one – which I decided to keep to be part of the Reddit movement. The market developed in such a way that eventually, I had to sell that one as well, but I don’t regret it.
Did your education have a financial focus?
My high school education did not. I grew up in Stara Zagora (Bulgaria), where I graduated from the foreign language high school. My parents wanted me to go in a different direction, but I had other plans. There were legends in town that the most beautiful girls studied at this high school, so I told my parents that I really liked French and that’s what I wanted to study. Languages opened up the world to me, especially English. After I graduated from high school, I got into The University of National and World Economy in Sofia. For a year, I enjoyed student life, and then, I finally decided it was high time to start studying. I moved to Varna city, where I graduated with a Bachelor’s degree in Finance and a Master’s degree in Banking Management at Economy University-Varna.
I also recently completed an online “Capital Markets and Securities Analyst” specialization at the Canadian Corporate Finance Institute. I successfully finished the course in two months, which was very demanding. I used the cold days to focus on the material, and I spent 4-5 hours studying after work and a lot more on weekends. The training was very interesting and enriching. Of course, some parts of the material were familiar to me, but I also learned a lot of new things. I got acquainted with complex instruments and derivatives that you can combine to properly neutralize an enterprise’s risks, regardless of its field of activity. The most exciting modules in my training were those on currency trading and risk assessment because they have always been a part of my professional life.
What does the Liquidity and Financial Markets department at iCard do?
Most colleagues think Nikolay and I are part of the “Payments” department because we share the same office. But in reality, we both form the “Liquidity and Financial Markets” department. Yes, we work very closely with the colleagues from “Payments,” and this is the reason for the common misconception.
Our work has two main directions – the first is managing the company’s currency risk, and the second is to provide liquidity so that iCard can always be solvent. To explain it more clearly, I will give you an example. I’ll start with currency risk. Let’s say a Bulgarian customer of the iCard digital wallet has a euro account and wants to transfer Romanian lei to a friend. When they transfer the euro as lei, a currency risk occurs for iCard. Our job is to buy the lei back from the Foreign exchange market and ensure that iCard will not be exposed to the risk of losses. Liquidity management provides the necessary amount of Romanian lei the client wants to transfer. This way, we are sure our customers can make transfers anytime. In general, our work consists of moving funds between correspondent banks and planning the company’s incoming and outgoing cash flows.
What are the specifics of the foreign exchange market?
The foreign exchange market is one of the largest financial markets. Every day, there are millions of transactions between travellers, banks and brokers. Most people are connected to currencies in one way or another. The market is very dynamic, and rates are constantly influenced by macroeconomic news and events. We monitor the main currencies (dollar, euro, British pound, and Swiss franc) and use specialized calendars to follow who will speak next and which macroeconomic topics will be discussed. We are interested in what the major central banks (European Central Bank, US Federal Reserve, Bank of Japan, others) are informing us. Hence, we know what to expect and how the respective currencies would trade. Reading and updating financial information is a never-ending process.
Do you trade in cryptocurrencies, and what are the specifics of this financial market?
Yes, I trade cryptocurrencies. Before starting to invest, however, I spent about two years exploring how the technology works and how trading develops, and I only dared to invest after that. The crypto market is also very dynamic—today, you can be among the gainers, and tomorrow, among the losers. You must not invest more than you’re willing to lose. The risk is high and not for the faint of heart.
March was highly dynamic for the crypto market because the currencies rose in price. It is difficult to say what influenced it, but I believe one of the main reasons was the increased risk appetite. There have been expectations that the US Federal Reserve will start cutting interest rates. As a risk asset, cryptocurrencies benefit from these market movements and the price rises. Another thing that had an impact is that Bitcoin-based exchange-traded funds were approved in the US. This opened up the market to the big institutional players. The third possible reason is “The halving”. It occurs roughly every 4 years, halving the reward for miners and limiting the supply accordingly. The market is slightly calmer in April, with no significant deviations.
You are at the heart of our partnership with Bitpanda. Tell us more.
When I became familiar with the crypto market, I proposed to iCard’s management to implement an investment product. They appreciated the idea and fully supported the project. Thus, since September 2023, iCard customers have had a fast, easy, and convenient opportunity to trade in the cryptocurrency and precious metals markets.
The biggest challenge turned out to be choosing a reliable partner. We insisted on working with someone who meets all our requirements – to be regulated in Europe, to offer a service that is accessible and financially feasible for customers, and to have security in storing the assets. I am thrilled that we chose to work with Bitpanda. The process of implementing their services is very well structured, and they are all excellent specialists and have supported us throughout the journey. What I like most about our joint product is the competitive pricing and the fact that we don’t have a fixed minimum fee, which sets us apart from many other players in the market. It’s important not to make distinctions between clients and whether one can invest 10 and another – 10,000 euros. We worked hard to attract Bitpanda as a partner and to implement their services. I am happy with the result, and I can safely say that to this date, this is the project I am most proud of.
Download iCard digital wallet and make the most of your finances:
