Learn about the case for trading crypto on the traditional stock exchange with Blockstation
Seasoned crypto investors know what they look for in a trading platform: security, user friendliness, and the appeal to expand the crypto community.
Unfortunately for enthusiasts, bitcoin and other cryptos will only gain so much traction before hitting a wall. Too many mainstream investors (a.k.a. the ones who only feel comfortable investing through traditional financial institutions) won’t dive into the crypto market so long as it remains unregulated and “different” from other securities on the stock exchange.
If growing the community is so difficult, why should die-hard crypto supporters be celebrating? Because traditional financial institutions are finally starting to embrace digital assets, including cryptos like bitcoin and Ethereum, providing the familiarity and sense of security that mainstream investors need to dive in and add new liquidity to the market.
Blockstation, a Canadian FinTech, has developed a best-in-class trading platform for bitcoin, Ethereum and digital assets like security tokens, partnering with global stock markets to bring the regulated, insured exchange of cryptocurrencies to mainstream investors. Its live pilot with the Jamaica Stock Exchange is now open, welcoming investors all over the world to sign up and begin trading.
Why celebrate bitcoin on a regulated stock exchange?
Some could argue that crypto is doing just fine. There are over 32 million wallets worldwide for bitcoin alone, with more added every day, so the crypto community is clearly growing. That said, there is little standardization in how cryptos are regulated, which businesses and banks accept them, if there is insurance coverage, how to cash out, and whether or not the exchange itself is secure from Mt. Gox-style hacks or Quadriga-style collapses.
Is this an acceptable level of risk? The answer depends on if you’re a crypto enthusiast or a mainstream investor. Consider that just 5 percent of Americans hold bitcoin, compared to over 50 percent who invest overall. That’s a massive gap, meaning crypto has a lot of room to grow.
Compared to crypto, the exchange of traditional securities through the established network of stock exchanges and brokers is familiar, predictable, and welcoming for mainstream investors. The Blockstation platform taps into that familiarity, allowing that network to list crypto like any other security.
In other words, the mass market is coming for crypto, providing investors of all stripes with:
- KYC processes ensure trading only with trusted parties
- No need for personal cold wallets; decentralized custodianship of crypto assets in secure cold vaults with multi-signature authorization keep your crypto safe with regulated depositories
- 100% insurance coverage on crypto assets
- ChainWatch security tool for regulators to track the source and flow of assets in real time, ensuring legitimate and compliant transactions
- Cutting-edge user experience
- Unlimited withdrawal and conversion of digital currencies with end-of-day settlement
- User-customized dashboard showing the bid book, trading interface, candlestick charts and market activity in any currency at a glance
- Mass-market appeal
- Accelerated digital currency adoption by opening the market to mainstream retail investors
- Increased trust in crypto by traditional financial institutions, making it easier to transfer funds through everyday banking
- Additional liquidity in the crypto market through inclusion of new investors
Blockstation has worked hard to build a trusted, competitive and user-friendly platform for bringing Bitcoin to the mainstream, growing the community and helping advance the adoption of crypto worldwide.
So, it’s time to weigh in. Is Blockstation the answer for getting mainstream investors into the crypto market? And is it the right platform for seasoned investors? Take our platform for a test drive and let us know on social media with #Blockstation!