Undoubtedly the crypto market is on the surge. Its growth has been faster than before, especially since the pandemic began. Yet, there remain many roadblocks for the industry to overcome.
An abstract glossary
Many beginners and new entrants find the industry and the blockchain technology that is at its core to be a complex subject to grasp. The concepts of mining, consensus mechanism and similar segments of the crypto industry often appear abstract. Any regular user working with the simple objective of making an investment through cryptocurrencies often feels frightened hearing about the concepts of cryptographic security or the reasons why one should take good care of their private keys.
The problem of volatility
Another reason why even enthusiastic traditional finance investors find crypto limiting is its volatility. The crypto market is a fragmented one. According to the latest available numbers, there are more than 17,000 crypto assets↗ in the market, traded across more than 450 exchanges. However, only two assets - namely Bitcoin and Ethereum - occupy nearly 60% of the market. Even in this 60%, Bitcoin occupies double the share of Ethereum. CryptoSimple takes care of managing our client's assets so they don't have to spend hours researching which crypto asset to invest in and how to rebalance their crypto portfolios.
Studies have shown that the fluctuation in Bitcoin’s prices can be as high as more than 250% in a gap of a few months or 20% in a day. One upside of such fluctuations is that if traded well, experienced traders can make huge profits in a day or a short period. But, such high levels of fluctuation also make it difficult to adopt as a reliable and resilient medium of exchange. While such volatility, if working in favour of the investor, leads to a boost in the purchasing power, it can also reduce it significantly when flowing in the opposite direction.
A demanding infrastructure
Becoming ready for mass adoption also means that cryptocurrencies should accommodate a large number of transactions, proportionate to the increasing number of users and growing traffic in the blockchain. Some new projects die a premature death for trying to attract many investors hastily in a short span, without getting the infrastructure ready.
Some projects have managed to grow with time by continuously improving their scalability properties, but many have failed to cope with the transaction traffic and congestion on the network, resulting in excessive transaction fees. Luckily, with CryptoSimple, you do not have to worry about the transaction fees, which otherwise would have eaten up a considerable portion of your crypto investments.
The complexity of transactions
Another aspect of the crypto industry that baffles the newcomers is the complexity of buying, holding, and transacting with cryptocurrencies. It all starts with creating a crypto wallet, which may look like an easy thing to do for a user that has been in the crypto industry for a while. But when it comes to new users, they find it quite difficult to create a wallet. That’s where CryptoSimple makes a difference, as we have removed the need to create a crypto wallet to invest in cryptocurrencies. So, all you need to do is answer our questionnaire, depending on which, we suggest a suitable plan to you.
The Ways to Take it to The Public
The complexity of the concept is something that can only be eradicated through knowledge and the right type of promotion of the blockchain’s benefits. Large exchanges are doing that by spending money on marketing and promotions, creating knowledge hubs and ways to become more engaging, interactive, and intuitive.
CryptoSimple is working with the vision of becoming the investor’s financial advisor, and we aim to do this effectively by mixing smartness with simplicity. Our investment strategies are based on Nobel-Prize winning research but could be applied by anyone, regardless of their financial or crypto knowledge.
It is also crucial to offer avenues that help investors round the clock. Delayed response is one of the most vital reasons why investors lack confidence from many crypto service companies.
The entry into the crypto market often appears cumbersome. While, as cited earlier, technological complexity is one of the primary reasons, there is also the lack of transparency working as a barrier. Terms like gas fees often dissuade the public at large to take a plunge into something as new as cryptocurrencies. But some players have been working relentlessly to make the space more transparent.
At CryptoSimple, we charge a low management fee and have also straightened out the fee structure by removing the setup fees, deposit fees, gas fees, withdrawal fees, rebalance fees, and maintenance fees. Our complete no-hidden fee structure will help enhance investor confidence in the market and make their experience with the crypto market engagingly accommodative.
The blockchain and crypto space also spends a lot of energy fighting the perception battle around its security mechanism. Proper adherence of the industry players to standardised compliance markers is a definitive way of getting rid of this problem. Working with industry-leading security suppliers and widely recognised financial authorities such as the AMF would boost confidence in the sector. CryptoSimple, for example, is a registered French company and is certified DASP by Autorité des marchés financiers (AMF), the French financial regulations authority. Hence, our users do not have to worry about regulatory constraints while investing through us, as we ensure strict compliance with European financial regulations.
A lot indeed needs to be done. But, the corrective measures have been gaining momentum. People are increasingly realising the benefits and growth potential of crypto. Working with the right types of platforms would help investors grow in their confidence towards the sector, and the stories of investor confidence, spread through word of mouth, would result in mass adoption.
It is our goal at CryptoSimple to provide you with the simplest and most straightforward way to invest in a diversified crypto portfolio. Download CryptoSimple today!