In less than 10 years of development, cryptocurrency has gone from a subculture to mainstream. In fact, CME had launched Bitcoin futures. Bitcoin launched in 2009, and had become the talk of almost every news station by the end of 2017. From 2012 to 2017, the transactions of Bitcoin rose 900% from 33,800 to 335,000 transactions according to Coindesk. There are multiple documentaries about cryptocurrency, but it hasn’t completely been mainstream yet as investors still cannot trade options for all cryptocurrencies yet, and in comparison to traditional stocks, the cryptocurrency market cap is very small.
In 2017, it seemed easier to buy a Lambo with cryptocurrency than to buy options from the financial market. There are plenty of websites that calculate when a crypto investor can get a Lambo. There seem to be exchanges opening faster than one could count, but there is yet an exchange that provides the ability to trade between financial markets and crypto markets. So currently, there is a huge gap between the two. Here are a few reasons why it is currently difficult to trade between financial and crypto markets.
Prices of the coins are different across different platforms
Due to the lack of regulations, there is no guarantee of the prices for the coins so currently, there are different prices across different platforms. Since there is no centralization of the prices, an investor could only hope that the exchange they are using is giving the best rate.
There are different exchanges listing different coins
In the cryptocurrency world, there are many exchanges. Many are secondary exchanges meaning that in order to trade on that exchange, one needs Bitcoins to begin. There are some primary exchanges in the cryptocurrency world that could trade fiat currency to coins, but there are only a few coins listed on there. So in order to trade other coins not listed at the primary market, an investor needs to not only get Bitcoin to trade at these secondary markets, they need to understand how to store the coin and how to trade at the secondary coin market.
It is tedious to get assets from coins to shares
In order to get them from the crypto market to the financial market, an investor needs grab the asset out of their wallet, then convert it back to Bitcoin, then sell the Bitcoin, and transfer the fund to the bank account. Then once the fund clears, it could be transferred to a broker service for the financial market.
It takes times to transfer
Depending on the exchange the investor uses and the volume of trades it can handle, it could possibly take days to weeks for the transaction to process.
An investor could miss out on price opportunities while transferring funds from the crypto market to the financial market. This is a very frustrating event.
Although there are some major differences between cryptocurrency and stock trading, they both unlock the ability for investors looking to profit. Currently, the gap between cryptocurrency and the financial market is huge and Zeus Exchange will solve that. With asset tokenization ability, Zeus Exchange users could make simultaneous trades between Wall Street and cryptocurrency. No one will ever miss a trade again! This will create ease for a lot of current frustrations that investors face in both worlds. The financial market investors will no longer be locked out of the cryptocurrency markets. Watch out, coinmarketcap!
lllustration by Marina Demchenko (Mamihlapinatana Studio)