Benefits of online investing are many. The creation of the Internet was the driving force behind online investing and communication. Trading applications brought with it improved functionality for investors in many markets. Financial markets are now faster and cost effective.
Platforms such as eTrade and Interactive Brokers have brought in a vast range of tools, asset classes and education to retail traders. These platforms have centralized functions and provide liquidity from many exchanges which is a added benefit to online investing.
One such example is the UK-BASED robo-advisor and online wealth manager ‘Nutmeg’ – who raised more than £1 billion under asset management in 2017. Crypto trading is different and faces many challenges in its youth – which brings much uncertainty to less-knowledgeable investors.
It is obvious there is a need for crypto asset management tools and many are now available to assist retail investors who wish to embark in the crypto market. As is, the crypto market cap is close to $400 Billion – a sign that it is stabilizing.
When a market is mature and established it gives the less knowledgeable investors the courage to jump in, requiring a joint platform that can deliver accessibility unlike the current trading ecosystem.
Buying cryptocurrencies is not as simple as buying traditional equities. The cryptocurrency market is growing and it is obvious that there would be a need for user friendly tools designed to manage crypto portfolios for traders of all markets.
New traders first have to find a wallet that will accept the tokens they wish to trade and then an exchange that lists them – only then can they complete the verification process. Thereafter, the investor must spread out to other wallets and exchanges to diversify their stock.
Although possible, the process difficulty is a big obstacle for many would be traders. Alon Muroch, CEO of Blox recognizes the problem:
“keeping track and managing your crypto assets is no walk in the park, even, or especially for the more experienced traders. Knowing where your coins are kept, how they performed and what their real- time status is, can be a challenge“
Crypto asset management tools are being used and asset management is common practice in traditional financial markets. Now investors don’t need to manage multiple wallets and accounts as crypto asset management platforms are making it simpler by consolidation of users diverse holdings and providing improved portfolio management tools.