Groundbreaking decision by Bitpanda exchange representatives. From now on, cryptocurrency investors can also make investments in traditional markets. Precious metals were on offer.
Taking advantage of high volatility
Bitpanda is a well-known brand, located in Vienna. Representatives of this cryptocurrency exchange, seeing the current drought in the market, decided to provide their users with more interesting investment opportunities. As a result, Bitpanda’s offerings have expanded to include traditional trading instruments such as oil, natural gas and wheat.
The commodities market is currently seeing very high volatility, which has so far been a feature of the cryptocurrency market. While this factor in crypto has dropped significantly, commodities have the right to compensate investors for its absence for a while.
Additionally, Bitpanda CEO Eric Demuth notes that the line between TradFi and decentralized finance (DeFi) is becoming increasingly blurred over time:
“People want to be able to trade multiple asset classes easily, safely and conveniently, and TradFi is catching up in this aspect.”
Mutual benefits
As experts note, the cryptocurrency market and traditional markets have a basis to benefit from each other’s experience. DeFi was until recently a much more accessible market than TradFi. TradFi, on the other hand, is far more stable than DeFi in terms of reducing investment risk.
Eric Demuth also notes that:
“TradFi has focused on increasing its accessibility, and this is driving convergence. There is still a lot of work to be done before it can be said to have the same level of usability and accessibility as the fintechs.”
According to various estimates, nearly 300 million investors were active in the cryptocurrency market this year. Moreover, the market itself accounts for just under 21,000 projects, which are also investment products. This is a wide area that institutions have taken to exploring. Thus, investors entrenched in crypto can also move into the sector from which the institutions originated.
Education a priority
Demuth also pointed out that platforms providing the opportunity to trade cryptocurrencies provide a kind of simplicity. Making assets from the TradFi world available on them allows for easier access. In his own words:
“Crypto investors are very involved in tradable markets. They also appreciate the simplicity offered by the platforms, which allow them to make quick and easy investments in multiple asset classes.”
However, he pointed out that, just as in the cryptocurrency market, education should be kept in mind for traditional markets. It is worthwhile, in his opinion, to focus on the advantages and disadvantages of individual commodities and their positioning in global finance.
