Blockchain in Crypto Trading: How Do Decentralized Instruments Work?
Julia Magas's original article for cointelegraph.com reduced by 44%
Today, next-gen decentralized instruments can help simplify the complex process of exchange trading by helping traders conduct an impartial analysis, properly hedge risks and choose a trading strategy to fit the context of price dynamics. How is blockchain useful for a trader, which applications allow for trading cryptocurrencies without having any experience, and why could brokers be left without work? Some platforms have developed automated trading bots, but in order to take advantage of them, a trader must have programming skills ?- another barrier to entry into the world of crypto trading. When trading in the crypto market, they will need to access the average price of the top-200 crypto assets quickly in order to get a macro view of the sector as a whole, without being distracted by tracking each coin separately.
Notably, users can trade directly against a decentralized liquidity pool through a decentralized autonomous liquidity pool, which allows for trading without requiring special P2P matches. In the future, the financial market may be transformed into a blockchain market, but so far only the first steps have been taken toward the widespread distribution of blockchain in exchange and over-the-counter trading. "I believe that some of the decentralized trading platforms popping up today do have the potential to compete with traditional forex brokerages.
The problem thus far for these decentralized platforms has been regulation and usability. Nobody has yet to receive universal regulatory approval to operate a decentralized trading platform, and until they do it will be tough to compete with a regulated entity. Also the platforms that have been popping up have not been user friendly at all, and until they become easier to use they will struggle to attract a userbase..
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CN [too long; didn’t read]
Summarised crypto news.