Bitpanda, by adding commodities, aims to attract cryptocurrency investors to TradFi

Vienna-based Bitpanda

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.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More News

All articles loaded
No more articles to load

Knowledge Base

Terra (LUNA)

What is Terra (LUNA)?

This time we take a look at another project that dived deep into the hearts of investors. What exactly is…

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are…
All articles loaded
No more articles to load

Analyses

All articles loaded
No more articles to load

Knowledge Base

What is Terra (LUNA)?

This time we take a look at another project that dived deep into the hearts of investors. What exactly is Terra (LUNA)? Blockchain Terra (LUNA)…

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain for investors. What distinguishes the…

What are stablecoins and how can you use them?

In recent years, cryptocurrencies are experiencing a real “boom”! And not just for cryptocurrencies – the rise in popularity applies to blockchain technology in general.…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are talking about Sandbox and SAND…

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity constantly growing? Support for Ethereum…

What is Shiba Inu (SHIB)

Shiba Inu (SHIB) is one of the most sought-after coins on the market. This is evidenced by its dynamic rallies and global interest. But does…
All articles loaded
No more articles to load