Crypto trading has become a stale experience. Every platform today offers the same thing. The market is crying for something new and exciting.
This in part is responsible for low engagement among traders of all levels. There’s nothing new for experienced traders to turn to, while novice traders find it hard to enter the market. The barrier of entry is stopping a lot of new money from entering crypto, and stunting growth.
This is what Streamex, a unique platform, is addressing, with the introduction of community trading pools.
Lowering Crypto’s Barrier for Entry
For crypto to break out of the bear market, something needs to change. It needs to be easier for new traders to start.
A significant barrier of entry - price - has already dropped considerably. Crypto prices are mostly down 80-90% (or more) since the market’s all-time high at the beginning of 2018.
It hasn’t been this affordable to start trading crypto for some time.
Yet a large barrier remains in today’s trading platforms. As it is now, trading requires a significant investment in time and knowledge. Many have the money and are ready to invest in the market. But, while they’re ready to take some risks, they become too much when you don’t have the knowledge of the market or the time to invest in trading.
Trading pools offer a great alternative for novice traders with money to spend. Pools allow traders to put money into the market, to be managed by an experienced trader. A trader who does have the time and experience to dedicate to trading full-time.
New traders have the chance to get into crypto and start reaping rewards when the market turns around. Experienced traders get the chance to double down on their market knowledge. Everybody wins.
The problem is, there is no safe option to do this today.
The Market Needs a SAFE Way to Enter Trading Pools
Trading pools do exist. However, it's impossible to tell if they're managed by a reputable source. To take part in a pool, you have to put your money into some dodgy operation, many of which will take your money and run.
Trading pools run by verified traders, on a platform you can trust. There’s still a risk of losing through bad trades, but contributors don’t have to worry about the pool being a scam.
This is how it solution works:
KYC verified traders can create trading pools on the platform.
Pool creators must contribute a percentage of the total pool themselves (10% at first, decreasing as they earn a higher ranking).
The creator sets their profit share, the time period the pool will run for, and the total amount of the pool.
Users can view all these details, as well as the creator’s history, when deciding whether to contribute.
Contributors receive pool shares relative to how much they put in. Pool profit, after taking out the creator’s cut and platform fees, is distributed based on the number of shares held.
Basic users can start a pool up to 10 BTC. With more experience and a higher ranking on the platform, users can create pools with a higher limit, up to 500 BTC for the top traders.
This is not eToro, this is not social trading. This is unique because the creator has a vested interest in the success of the pool. The more successful, the more their cut, and the more they can make with future pools.
Advantages for New and Experienced Traders
Through pool trading, both novices and experts have a new way to start making money on the market.
The main focus, and the biggest point of difference in the Streamex exchange, is making it easier for new people to get into crypto. Yet the introduction of pool trading also offers a new and exciting way for experience traders to make money - encouraging more traders to stay engaged and active in crypto.
More activity, and more people putting their money into cryptocurrency can only benefit the market. More money means a better chance of the bear market finally breaking.
Now Let us Conclude all this with an example to have a clearer understanding of all that.
A registered trader starts a pool of 10 BTC for 30 days and with a 20% profit. Past 30 days, the total profit share of the pool reaches 50%. So if there was 10 BTC, to begin with, after expiry, it stands at 15 BTC i.e. profit of 5 BTC.
20% of all the profit (1BTC) goes to the pool creator while the rest of the 80% (4BTC) is shared among the pool members. Creator pays 5% of the profit share that 0.05 BTC of 1 BTC to the platform as charges.
The process follows the same methods for longer period pool and it's up to the traders how long they want to invest for. The technique is new and looks promising and investors are responding well. It could soon be expected to become a hot trend if success continues and if the crypto market rises fast.