While cryptocurrencies have taken the financial landscape by storm, crypto trading is yet to surpass the volume observed in the case of traditional markets, like equity and forex trading.
There are several reasons behind this delayed migration, but all sources point towards a huge inflow of retail traders to occur within the medium term.
A Much-Needed Comparison
Statista reports a global equity trading volume of $34.8 trillion USD in the fourth quarter of 2020, whereas a 2016 study concerning the foreign exchange (forex) points towards a $5 trillion daily volume, a figure that has notably increased since then. On the other side of the spectrum, cryptocurrency indexes report daily aggregated volume records of $225B, with the value increasing by the day. These figures include both institutional and retail traders, with little data available on each category.
Nevertheless, the cryptocurrency industry provides significant potential for profits, albeit being riskier as opposed to traditional markets due to volatility – yet this is the ying-yang that empowers price swings, leading to the securement of higher yields.
Institutions Move to Crypto
You’ve likely heard about Tesla allocating a part of its investment portfolio to digital assets, but truth be told, Elon Musk is quite behind on the migration. Companies like Microstrategy and Grayscale have introduced considerable capital in the cryptocurrency revolution, with the latter owning over 91,000 BTC.
However, it’s not only hedge funds, investment funds, and huge corporate enterprises pouring money into crypto. It’s also payment processors like PayPal and Square’s Cash App who want a slice of the pie. Big names on Wall Street like Goldman Sachs, BlackRock, and Citigroup are making similar moves, further highlighting the institutional move that’s happening behind our very eyes.
Moreover, it also looks like governments and institutionalized wealth distribution enterprises are eyeing cryptocurrencies – for instance, a New Zealand retirement fund has reportedly allocated 5% to bitcoin. The trend continues, and it’s showing no signs of slowing down. Statista discusses how the value of digital assets under the management of worldwide crypto funds has long exceeded $25 billion in 2020.
It’s therefore time we see retail traders embarking on a similar journey, as it’s become common knowledge that cryptocurrencies hold unparalleled potential when compared to any of the traditional asset classes.
Number Goes Up – Retail Investors Are Sold on Cryptocurrencies
Data showcases that while numerous retail investors have realized the value proposition behind crypto trading, many are yet to make the move. The main reasons behind the initial hesitation include risk aversion, insufficient market understanding, and of course, the prior lack of powerful trading ecosystems that improve on the traditional tools available on traditional trading software.
The move commenced with increased search engine interest on bitcoin, cryptocurrencies, blockchain technology, and digital asset exchanges. We’re currently looking at a crypto market capitalization of $2 trillion, a figure that remains way below the standards set by the equities market.
Yet, the trends do not lie – more and more traditional traders are making the move – for instance, the no. of Americans who own bitcoin has rapidly increased, with a 2% ownership reported in 2018. Nowadays, the number is likely much higher, especially when gauging the impact of the current bull market. In fact, Blockchain.com, one of the leading wallet providers, reports that over 63 million wallets were registered in December 2020.
How Cryptonovae Will Empower the Retail Move to Crypto Trading
Let’s admit it – today’s digital currency exchanges do well in allowing the sale and purchase of cryptocurrencies for investment purposes, but they’re far behind on building sophisticated trading tools that make magic happen.
Retail traders often find themselves surprised by the crypto trading market’s lack of complexity, with unsatisfactory solutions being pushed. There’s no longer a need to settle for less, with Cryptonovae building an unparalleled ecosystem for any and all crypto trading needs.
Featuring multi-exchange support, a powerful native charting engine, highly modular tools, and a P2P marketplace for indicators and trading algorithms, Cryptonovae positions itself on the road to positive market disruption. Its $YAE native token offers significant utility to holders, facilitating payments, discounts, and ongoing revenue streams.
Staking and liquidity mining incentives will reward loyal $YAE hodl-ers looking to tap into additional opportunities. $YAE was launched in partnership with the well-known DuckDAO incubator, and is already trading on Uniswap.
Cryptonovae will soon launch its beta, with the go-to-market version including integrations with Binance, Bitfinex, Kraken, Uniswap, and FTX. As such, there’s support for both CEX and DEX platforms which seamlessly integrate within a singular, but modular platform designed to push traditional traders to the ever-growing crypto market. It is now clear that a crypto trading revolution is imminent. Will you be a part of it?