A market-maker and investor ecosystem for stock and crypto trading.
One of the hindrances to crypto-market’s further growth is the lack of verifiable performance history aggravated by the complexity of crypto-investing. Although this doesn’t stop the increasing number of veteran traders from stepping in and embracing the opportunities for gaining profit with crypto, many traditional traders find it rather intimidating.
Currently, first-time traders and beginner investors remain the most disadvantaged and massive group of potential crypto users. They are both equally challenged to compete with day-traders for profits. At the same time, they represent a customer segment that many exchanges so desperately need to continue growing.
As of today, many among the biggest crypto-exchanges are missing a significant trend that existed in stock markets for decades, namely, brokers trading on behalf of their clients on the stock market. Let’s face it, crypto day-trading is not for everyone, but it doesn’t mean that it should remain inaccessible for crypto investors especially at the entry-level.
Facing The Challenge
Unlike the traditional stock markets, where investors can passively select managed funds, there’s no way crypto-investors can do it without having to search for traders with proven and verifiable track records. That also puts them under a lot of risks of being approached by fraudulent brokers. Without sufficient research, many beginners buy into the so-called ‘inflated claims’ – promises of huge profits by a group of day-traders with a strong presence on social media. Many rely on social media too much when making their assessment of the broker who one day disappears with the investors’ funds. Thus, the trust continues to be an unresolved equation in the crypto-sphere.
Crypto-market is open 24/7, and the correct timing here is everything. It means you have to be vigilant at all times and you have to react to the rapid change of trends that happens in minutes due to cryptos’ high volatility. Not every entry-level trader can make a correct assessment of where the trend is heading when the time is short.
As you’ve probably guessed by now, there is a player on the market who can fix this and deliver inexperienced crypto-investors from risks. A Malta-based company called CryptoFollow came up with a viable solution to the issue and is currently developing a decentralized ecosystem for crypto-investment brokerage that helps crypto-brokers and investors alike to meet each other in fraud- and scam-free environment.
How Does It Work?
The platform provides a safety zone where trust can be sustained between the parties (the brokers and the investors) in a decentralized way. Both parties have a predefined set of criteria that they expect the other party to match. It can include a specific exchange, market, assets, balance use or service fee. The software architecture of the platform serves as a mediator that helps them to approach each other and benefit from such collaboration.
On CryptoFollow, the traders are referred to as investment professionals because they are hand-picked by the team. That means you can apply to become an investment professional if you have received an invitation or a recommendation from the other members of the community and your trade record matches the evaluation criteria. The main criterion is sufficient positive performance. Even if you are a beginner, you have a chance to become an investment professional. You just have to be able to prove it through your trading history on one of the crypto exchanges CryptoFollow teams with. They are Binance, Bitmex, and Robinhood. If you don’t intend to trade consistently, you can use the platform in the status of an investor.
The reason why so much attention is focused around the investment professionals on CryptoFollow is due to their key role as community leaders, network and contract creators and trade executioners. They are authorized to invite other users to join the network and to place orders on behalf of investors similar to traditional stock markets. That’s a huge responsibility, as you can imagine. That’s why they have to be chosen so carefully. As an investor, your risks of losing profits are much lower because the framework of the platform shields you from fraudulent traders.
Why Is This Model Effective?
The CryptoFollow platform is backed by the EOS blockchain, and all interaction on it happens through smart contracts. With the help of customizable smart contracts, both the trader and the investor can decide their risk-comfort level and other criteria.
Investment professionals are authorized to draft contracts, create networks and invite users to join. Investors sign the contract with a digital signature and allow investment professionals to place orders on their behalf. Entry-level investors are guided by expert traders. Each of the investment professionals’ orders is matched with an appropriate contract, so both sides receive mutual benefits from the trade. The investment professionals’ performance is incentivized by the investor’s fee, while investors’ funds are provided with due safety.
Interested? Click here and signup for CryptoFollow’s beta, limited positions available.