Throughout 2018, we saw regulators across key crypto markets including, but not limited to, China, India, Japan, and South Korea, clamp down on what was commonly referred to as the Wild West of the Global Financial Markets.
Over the course of the current year, however, the public attitude has shifted.
There are numerous reasons behind this, including significant steps by regulators and governments to shut down the more cavalier exchanges permitting the trading of cryptocurrencies, without the need for the standard disclosures seen across exchanges offering to trade of more traditional asset classes.
While jurisdictional restrictions continue to be a thorn in the crypto sphere’s side, crypto exchanges have also made significant strides in delivering more technically advanced trading platforms.
Not only have exchanges delivered the platforms for the effective trading of cryptocurrencies, but a number have also been built on blockchain tech, adding an additional layer of security.
Since the early days, when investors were only able to invest in the actual cryptocurrencies across exchanges that were no able to protect investor funds, times have changed.
The crypto trading market has evolved from exchanges offering crypto to crypto trading, into trading between cryptocurrencies and fiat money, but also the trading of certificates of deposits, derivatives and more.
As crypto exchanges have developed, risk management and other platform capabilities have been introduced. Encouraged by the volatility and potential earnings the crypto market offers more seasoned investors crossed over.
Across the crypto exchange spectrum, the types of exchanges on offer vary. While some are under the more standard web-based models, others are built on a blockchain platform.
As the blockchain world expands, the number of exchanges and trading platforms based on blockchain is also on the rise.
One such trading platform is Torex.
Torex is a multifunctional blockchain platform supporting cryptocurrency trading.
The advantage of using Torex is that it consolidates different exchanges, coins, and analytical tools onto the Torex platform.
In the first quarter of 2020, traders will be able to trade, gain experience and share trading strategies.
The Torex trading platform delivers the following capabilities to support both more novice and advanced crypto trading:
Centralized Parallel Monitoring
Enables the tracking of cryptocurrency rates on different exchanges on the Torex platform.
The platform is planned to provide diverse analytics, ranging from embedded news aggregators to detailed technical analysis.
Multi-Exchange & Multi-Coin
Fast operations with any coin or token (like Bitcoin and Ethereum for example) from different exchanges.
Diverse Trading Tools
The platform, in 2020, will allow traders to choose between API-trading, copy trading, arbitrage trading, crypto betting, and more.
Advanced Cryptocurrency Arbitrage
Torex’s Arbitrage Tool analyzes the liquidity and depth of order books across multiple crypto exchanges, providing traders with easy access to liquidity-driven price arbitrage.
Cryptocurrencies are considered to be the most volatile of asset classes, with values capable of rising or falling by a few percentage points in a matter of minutes.
The volatility delivers traders with the rare opportunity of inter-exchange arbitrage.
Torex provides traders with the platform to take advantage of arbitrage windows. An arbitrage window develops when the strike price of a cryptocurrency at one exchange is higher or lower than found on another.
Using the Torex Arbitrage Tool, traders are also able to adjust the parameters. Traders are able to select the exchanges, cryptocurrency pairings, minimum trading volumes, and the minimum percentage of profit expected.
This capability is delivered through the manual mode of the Torex Arbitrage Tool. In automatic mode, an arbitrage assistant will carry out the functions, with the trader being required to make only minor inputs.
Torex is fully functional on PC and mobile devices. (A fully functional mobile version for Android and iOS is due out in Q4, 2020)
The Future of Crypto Trading
The nascent nature of the crypto trading world means there are plenty of opportunities for traders, both the novice and more advanced alike.
Crypto exchanges will need to continue to develop and introduce greater capabilities to hold onto existing liquidity and fee income.
Additionally, being flexible as such to meet the ever-fluctuating demands on the regulatory front, is also an important factor for traders domiciled across multiple jurisdictions.
The minimum requirements for the vast majority of crypto traders now include:
Stop loss, take profit, and trailing stop orders. Traders now can simultaneously place stop loss and take profit orders.
Trailing stops have become more popular in the volatile world of crypto trading.
Trailing stops allow traders to adjust the order limit along with the price, which is essential within the more volatile crypto sphere.
Other Modern Trading Platform Capabilities
API Trading allows traders to make transactions and monitor currency rates across different exchanges. The added advantage is that it supports the managing of several accounts on one exchange.
Torex uses the official APIs, developed and released by the leading stock exchanges. These APIs allow users to manage all of their exchanges on the Torex platform.
Crypto betting is similar to the futures markets, where investors and traders forecast future prices.
Another development in the crypto world is the offering of crypto betting. In crypto betting, the user needs to predict how the rate of a coin or token will change in a given period of time. (Due for release in Q3, 2020).
On the Torex platform, there is also the opportunity to share trading tips through an encrypted TOREX end-to-end messenger.
Trader ideas is a recommendation to open a transaction that a trader creates and makes visible to all users on the platform.
Within the Torex world, traders will be able to purchase a subscription for a given number of published ideas for a given number of days. In 2020 traders will have a possibility to make payments in Torex tokens, called TOR. Basic Torex functionality is and will be available free of charge.
For an investor, the investor pays a commission for the ability to view and accept trading ideas.
The platform uses a Telegram Messenger bot to ensure both quick and easy to view trading ideas and signals in support of the network.
Trading ideas provides traders and investors alike with the opportunity to seize on a series of trading ideas.
Torex will release the idea-sharing capability in Q1, 2020. The copy trading capability is due to roll out in the 2nd quarter.
As the cryptocurrency world has evolved, the number of exchanges developed on blockchain technology has also increased.
A key attribute to the use of blockchain technology is the level of trust and transparency it delivers.
There are a number of increasing advantages of using blockchain tech. These go beyond the recording of transactions on the exchange.
The use of smart contracts is certainly one, which delivers even greater transparency.
As the crypto trading world evolves, more traders and investors continue to cross over from more mature asset classes. Trading platforms, including Torex, will need to continue to deliver equivalent, if not, more advanced trading experience than seen across traditional exchanges.
Catering to the need of both traders and investors will further fuel interest in crypto trading.
Alongside the necessary tools to trade and the appropriate transaction logging, security and speed are also significant priorities.
Since the early days, when hacking and theft was rife, cryptocurrency market players have begun to provide a far safer environment.
Exchanges are increasingly using cold wallets, which holds funds offline and out of reach from hackers. 2-factor authentication (“2FA”) is widely offered to further protect investor and trader accounts. With that in mind, 2FA authentication is implemented in Torex universal trading platform as well.
Coding has also become more sophisticated. Ensuring that hackers are unable to break into the system and take what very little is online is key.
We can expect the use of blockchain and an ever-increasing number of capabilities across the exchanges and trading platforms to further support the cryptomarket.
By historical standards, more recent crypto exchange offerings are certainly more sophisticated.
This is not surprising when considering the risks associated with trading in cryptocurrencies.
For investors looking forward to Torex, the IEO is coming soon. The soft cap has already been reached. Torex’s intention is to create a sophisticated, transparent and truly universal platform to meet the needs of every crypto trader.