Even for traders with moderate technical knowledge, there are a number of drawbacks to incumbent solutions. Automated and semi-automated trading products come with their own pitfalls and peculiarities. Challenges faced by rookie crypto traders include the following:
Even with the right signals, timing the market is hard. Identifying the market bottom and the next profitable trade is difficult. Most active traders take their opportunities based on trading signals e.g. a call-to-action recommendation to buy or sell an asset. Such signals can account for technical, fundamental, and sentimental strategies to spot the right alpha. Trading signals can be an efficient tool to level up trading, but even the best signals can fail without proper risk and order management.
Manually managing or executing orders can screw up your signals. There are a variety of tools for developing trading signals or alerts such as TradingView and Nansen.ai, and savvy traders use these to simplify their trading experience. Charts, technical analysis, fundamental or sentiment analysis help traders know when to enter. But the market never sleeps and in active trading, speed is what counts. Even once a signal is established, manually managing and executing trades often results in losses.
Sharing trading know-how is still tricky. Expert traders who are aiming to monetize their trading ideas find it difficult because there isn’t a user-friendly platform to which any investor can commit capital. On the flip side, investors have little choice on where to invest with low capital and management fees. Current investment platforms lack the transparency and flexibility required to create a fair reward system for all participants.
There is a compelling case for a crypto trading platform that empowers retail users, generating profits for novices while incentivizing experienced traders to share their knowledge and reap the rewards.