Crypto trading is really picking up popularity. With a wave of new upcoming ICOs and coins, generally upward trends in coin prices, and a ton of hot publicity, it’s hard to ignore this new hobby. What’s more, the benefits can be enormous. Stories of Bitcoin millionaires and crypto success stories are everywhere, and it’s hard not to be tempted by these new possibilities to get rich overnight.
In Q1 2018, there are estimated to be around 23.9 million Bitcoin wallet holders. That’s a big – and growing – group of people who see crypto trading as something worth being part of.
Still, beyond all the glamour, the reality of trading cryptocurrency isn’t all sunshine and rainbows. Doing this properly requires a lot of hard work and comes with a set of challenges that other types of trading avoid. There’s a huge amount to be gained from wise crypto trading, but it can be tough and confusing, especially for the beginners.
Fortunately, there are solutions to many of these issues, which companies in the space are working hard on. First, let’s take a look at why crypto trading can be such a hard industry to break into.
The challenges for crypto traders
There are a few major hurdles for newcomers to the crypto space. One of the biggest is the technical aspect — most people don’t have enough coding knowledge to execute the kind of trading algorithms that are key to success in crypto.
That makes it tough to properly manage trades and stay ahead of the competition. It also means that traders are ultimately reliant on experienced programmers. That’s great if you’re lucky enough to have a good programmer friend, but for many people, it means paying a high price. That adds a layer of exclusivity to the industry, making it the domain of the rich and highly qualified.
Another of the issues with trading, in general, is the risk of human error. Generally, humans are much more prone to mistakes and blunders than machines, which can equate to massive losses in the world of trading. There’s a reason most big financial firms rely heavily on technology and automation.
Also, crypto trading is a 24/7 job. Unlike traditional stock markets, crypto never sleeps, and markets can undergo huge changes literally overnight. That makes it imperative to monitor your trades on an ongoing basis, something no single human can realistically do.
Finally, if you’re talented and savvy enough to find a successful trading algorithm for the crypto market, you can’t really share it with other people right now. There aren’t many options for smart traders to make money from their algorithms.
So, lots of issues. But what’s the solution? Well, it involves making this kind of exclusivity a thing of the past.
A fairer way to trade crypto
One of blockchain and crypto’s greatest strengths is their ability to build decentralized systems and networks. That principle allows for greater equality and democracy and is at the core of what these technologies stand for.
In the trading space, these principles equate to more inclusivity and an easier way for newcomers to break into the industry.
Companies like Capitalise are built with this goal in mind — to level the playing field for crypto traders. Their platform simplifies the process of executing trades, allowing users to give instructions in English rather than code. This allows anyone, regardless of coding ability, to create their own trading algorithms and fine-tune their trades. The instructions users enter can be as simple as ‘Buy X amount of Bitcoin and sell if Y happens’, or much more complicated than that.
Here is a random example of strategy you can create using Capitalise:
“buy 5,000 XRP if daily volume increases by 10% and Exit: Sell if volume drops by more than 5%”
You can program something like this and immediately connect to an exchange that will execute your strategy.
This system gets around many of the above issues. By automating trades and using algorithms to control them, traders don’t need to monitor the market 24/7 and can enjoy more peace of mind knowing that they’ll be prepared in the event of a sudden market shift.
They’ll also no longer be forced to rely on paying high rates for programmers to build algorithms for them. That could lead to equality in industry, one which isn’t dominated by those with money to burn.
In addition to that, in Capitalise users with successful algorithms will have the ability to package them up and sell them to others. This way, they can not only profit from trading but also monetize their success in other ways.
Platforms like Capitalise could really change the way we trade cryptocurrencies. This market is brimming with opportunity, but too many would-be traders are discouraged by the high barrier for entry and the amount of technical know-how required to even get started.
This technology can help build ways for newcomers to enter the market more easily, without having to learn a vast array of new skills and encourage more people to get involved for the benefit of everyone.