Volatility across cryptocurrency markets remains high in 2018, continuing to fuel demand for these instruments. In light of this growing market presence, many brokers have started to separate themselves from the pack as competition heats up. However, offering traditional instruments such as FX and newer cryptos are not mutually exclusive, with brokers successfully providing both for clients.
SimpleFX has managed to chart this course, while successfully providing both opportunities for a growing client base. For SimpleFX, offering cryptos in tandem with FX is not an either-or decision. Rather, investors who have higher risk tolerance have consistently enjoyed the thrill of cryptocurrencies – and the high returns. At the same time, even more risk averse traders have considered these instruments as a matter of diversifying their investments.
For many traders, the question is instead framed as ‘what percentage of my portfolio do I invest in cryptocurrencies’, rather than if one does it at all. Interestingly, cryptocurrencies in some ways have proven to be too popular amongst clients. Consequently, many brokers have become disillusioned with cryptocurrency offerings, seeing that traders are ‘Hodling” with a long bias.
SimpleFX however does not see this phenomenon in the same vein. Rather, whereas some brokers are unhappy with their clients hodling, the brokerage instead has chosen to focus on how its technology and system are structured and how prepared it has been for serving its respective traders with the best possible solutions, regardless the nature of the flow.
Cryptocurrencies remains one of SimpleFX’s areas of focus, however the group continues to make the most of all the different types of circumstances the markets is presenting, while also providing customers with a competitive offer.
Many brokers have also started to emphasize mobile app capabilities. SimpleFX sees a strong ratio of mobile users as well as a growing trend towards mobile usage in the crypto space. Currently more than half of its retail clients trade using mobile devices, i.e. Android app, MT4 mobile, mobile webtrader, etc.
The brokerage also foresees this trend continuing for the foreseeable future given a growing industry demand.
Diverse offering for altcoins
SimpleFX allows not only Bitcoin trading but also Bitcoin payments, which it started offering as soon it launched its trading platform. The group subsequently expanded its offer to accept deposits with other cryptocurrencies such as Litecoin, Ethereum, Dash, and Bitcoin Cash.
Its clients value crypto payments for the speed of transferring funds, while also checking confirmations on the blockchain network to verify if the payment was already processed. As for security measures, 95 percent of the group’s crypto funds are stored in an offline cold wallet.
At the same time, SimpleFX has kept the remaining 5 percent in a hot wallet to make sure payments are processed within a few hours after submitting withdrawal requests. Currently, SimpleFX’s clients have a strong interest in not only Bitcoin but a wide range of altcoins.
This includes all the large cap altcoins such as Ethereum, Ethereum Classic, Ripple, and Litecoin. At the present, traders demand a suite of cryptocurrencies and it’s important not to present clients with a limited offering. Every day it seems a different crypto dominates the news or headlines and in having a broader crypto suite to choose from, brokers can successfully cater to more clients.
Moving forward, SimpleFX’s strategy is to focus to a large extent on cryptocurrencies, which is reflective in rolling out more crypto payment options. Other actions you might want to look out for will be a brand-new desktop trading platform and expanding their affiliate platform by adding more tools to help traders build their networks.
Combatting market saturation
There are a number of companies offering FX and cryptocurrency trading however this does not necessarily mean the market is in fact saturated. Rather, it’s all about the quality of brokers’ offerings and how well it meets the clients’ needs and expectations.
While there are some FX brokers who still do not offer crypto trading, many others have offered it for some time but have since then have decided to shut it down. For SimpleFX, being successful on the current market has required the experience in and understanding both areas, which each have their own unique characteristics.
SimpleFX was created by both crypto and FX enthusiasts in 2014. Right from the beginning the group developed its own custom-made crypto solutions. Over the course of its operation, the company has worked on accepting crypto payments using in-house solutions, creating its own trading platforms, and 24/7 client support, along with a robust affiliation program.
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