Blockchain-powered cryptocurrency comes with a promise to simplify financial networks and the process of exchanging value, but its technical nature is often overwhelming. The layered platforms that have emerged to trade cryptocurrencies make the process needlessly complex. Indeed, despite the rapid rise of bitcoin, for instance, the number of people trading it remains low compared to the overall size of traditional equity markets.
The need to expand the market and improve efficiency has led some in the industry to find ways to untangle the way trading works. A large part of this comes from providing tools that can automate and simplify how trading works without sacrificing the aspects that make cryptocurrency so disruptive.
To reach critical mass and become a mainstream investment alternative, cryptocurrencies must find ways to become more accessible. These new trading models and tools offer ways for even newcomers to enter the market without any knowledge barriers. For a new truly decentralized market to emerge, cryptocurrencies need to automate many of the more complex aspects of trading.
Around-The-Clock Trading Demands Automated Tools
One of the unique attributes of cryptocurrency investing also makes it among the more difficult assets to trade. While traditional asset markets like stocks have set trading hours and no weekend trading, cryptocurrency prices move around the clock, every day of the year. For most investors, staying alert and monitoring an investment portfolio around the clock is not just unfeasible, but also impractical. While automated trading has been around for years, it was largely inaccessible for most ordinary traders, remaining in the purview of sophisticated investors until this point. However, in keeping with the democratization of finance instilled by cryptocurrency, algorithmic trading is being simplified for mass-market consumption.
One company, Capitalise, has developed a tool that requires little to no familiarity with technical terms or coding abilities to create and deploy automated trading strategies. The company’s natural language processing system enables users to program rules by entering sentences in plain English. By abandoning the coding requirements that traditionally characterize trading automation, the platform gives users an opportunity to manage cryptocurrency portfolios 24-hours a day without requiring any manual intervention. Users can simply create alerts, set different conditions, and monitor their trades at their own leisure.
Capitalise gives investors tools to run simulations against real-time data, optimize strategies, and monitor performance. Moreover, by centralizing trade execution across several exchanges, users can take a more streamlined approach towards execution that ensures they have access to the best market prices and liquidity available. By boiling down advanced features into user-generated text sentences, the platform is helping show the way for the entire blockchain industry as it battles for more widespread adoption.
Simplifying Value Storage
Once trades are completed, users still need to store their cryptocurrencies. This step remains a roadblock for many everyday traders. Unlike opening a normal brokerage account with a bank or financial services provider, there are multiple steps involved with moving funds into a cryptocurrency exchange for trading. Even worse, many users still do not comprehend the basic concepts underpinning cryptocurrencies like wallet addresses and private keys.
To that end, companies already dedicated to the popularization of blockchain are making headway, like the Trezor hardware wallet. The idea of carrying around a wallet is already very relatable for many consumers and investors, making it the perfect juncture for greater retail inroads into the cryptocurrency ecosystem. More importantly, instead of having to traverse multiple steps to open a trading account, customers can make deposits into the wallet and move funds throughout the cryptocurrency trading ecosystem quickly and efficiently, similar to PayPal, an already highly relatable service.
Strong Analysis Requires a New Dimension
Apart from the continuous activity that defines one of the major hurdles facing cryptocurrency traders, another major hurdle standing in the way of greater retail investor acceptance is analysis. Whereas numerous resources provide daily insights and research relating to stocks and the catalysts for their directional momentum, cryptocurrency’s decentralized nature makes analysis significantly more complicated. There is no centralization of research and resources, contributing to a very fragmented environment for traders seeking more information.
Because cryptocurrency pricing depends a lot more on news and sentiment compared to more established investing assets, Taklimakan Network is building a decentralized hub designed to help investors overcome these challenges. With its blockchain-based educational platform that connects experts and analysts to investors, those without ample time to conduct their own due diligence and research can depend on a new destination to assemble their cryptocurrency acumen. Furthermore, with trading signals, Taklimakan enables users to follow automated strategies for more medium and low-frequency trading opportunities without the constant need to manually determine investing allocations. Between trading signals, crowd predictions, and a knowledge library, Taklimakan intends to help bring knowledge to bigger audiences by focusing on user-friendliness and simplicity.
Easing the Path To Cryptocurrency Investing
While technology is gradually narrowing the gaps for retail investors, blockchain-based solutions are serving as the spark for an even quicker transformation of the investing landscape. By introducing tools that automate cryptocurrency trading and make it more accessible for ordinary investors, blockchain is setting itself up for the next phase of investor adoption now that the momentum from early adopters is waning. With a long way to go towards reaching critical mass, these novel solutions that break down complex cryptocurrency structures and concepts into more easily digestible formats will be the catalysts for moving the needle in the direction of mass appeal.