The cryptocurrency industry has come a long way from where it was only a year ago. Aspects of crypto that were once only accessible by command line can now be tapped into with a few taps on a smartphone screen.
As the cryptosphere becomes more easily operable by the average person, many of the threats associated with losing money to hackers or technical problems have eased considerably. However, there are still a number of things that need to be done to stay safe in the crypto markets.
Recently, Finance Magnates spoke to Blockbid CEO David Sapper about entering into the cryptosphere for the first time, the ways that user-friendly platforms are changing the space, and the best practices to avoid losing money in the cryptosphere.
At the End of the Day, Adoption Drives Industry Growth
In an industry as new as blockchain, everyone has a unique tale of how they entered the space. For David, “it came down to ‘what sort of knowledge do I have?’ and ‘what can I apply to be able to help out other people as well?’”
David said that Blockbid was conceptualized out of “One of the issues that we faced when we were trading was that we had multiple exchanges open on various tabs at one time to be able to trade efficiently across many different coins. This led us to have issues [with trading] at the right time or to be able to sell or buy at the right time, or to be able to move money from one exchange to another exchange.
“We wanted to be able to create the process of making it easy for the user,” he explained. “What really drives the industry at the end of the day is adoption. The faster the adoption rate we can have, the faster we can get to people understanding [the technology] that’s driving it as well and allowing the innovation to really flourish and to grow.”
— Blockbid (@blockbid_io) July 12, 2018
Therefore, “we decided to build ourselves a site where you have more coins on one site than any other exchange while also allowing the users to have an onboarding process as easy as possible for them.
David said that because the industry is reliant upon adoption for its growth, “there shouldn’t be any hurdles that a user has to jump through to trade or to be able to participate in a certain ICO or to be able to buy a certain token because they believe in the project itself or in the team itself, or in the innovation that a project is bringing
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As Platforms Get Easier to Use, Research Remains as Relevant as Ever
Even with platforms that make cryptocurrency trading much easier in the crypto space, “research and an in-depth understanding” of the cryptocurrency industry is vital to a safe and potentially profitable experience. “It’s the same amount of research that you would put in when you go buy a car or buy a house. Why would you ever buy something without understanding it?”
“We take this idea that just because there’s money to be made out of it, that you potentially have this dramatic rise in price, that you should just put your money into it,” he explained. However, the market is changing: “the market is going to mature to a point where there’s not going to be such dramatic changes or volatilities.”
Still, “if you’re looking to come aboard, you have the opportunity to invest in a project at an early stage–or even at a later stage–if you believe in that project.” However, David said that “if you’re just going to put your money on any token and hope that its price raises, you’re basically putting your money on a roulette table. What you’re hoping for is that one of [these tokens] is going to give you enormous gains back.”
“The idea is to really do your research, understand the team, and understand the project–why is it innovative? You might find something an innovative project that sounds great, but you as a person may not particularly use that project. You may not particularly use that app or that platform they’re building.”
David said that as more industry users and consumers are becoming more educated and informed, the projects that get the most attention are those with the best technological basis.
“We’ve seen that shift in the landscape as well where many ICOs that are coming out–it’s not just about the whitepaper, it’s not just about the names on the website or a flashy website,” he said. “It comes down to them explaining a product, them reaching out to their user base, the user base having an understanding of the [team behind a project], and having a trust in that team.”
“There Are a Lot of Security Threats” for Large Firms, Too
Users aren’t the only ones that need to educate and protect themselves. David said that for Blockbid, “There are a lot of security threats. To begin with, we are a target. We are a financial institution.”
All #cryptocurrency assets on Blockbid are insured against potential cyberattacks to bring customers a trading experience they can trust. Not long anymore for the exchange to go live!
— Blockbid (@blockbid_io) July 16, 2018
“Many of the methods [of proection] we have put in place are quite proprietary,” he explained. However, “what we have found is that we are in a place where the space is maturing within the exchange industry itself. What we are doing is learning from the mistakes of others–where other exchanges have failed, we will pivot, and look to innovate in those areas.”