How to Easily Invest in the Cryptocurrency Market
Tags: Investment, Technology, Fintech, Cryptocurrency, Bitcoin

Despite the cryptocurrency market continuing its rapid growth process in 2018, the industry still has a wall of problems to break down between its current state and successful, widespread public adoption. These issues stem from the prevalence of fraudulent ICO’s, frequent security breaches and the inefficient nature of current ‘on-ramps’ from traditional fiat currency into cryptocurrency. Participation in the cryptocurrency market in its current state remains a high-risk, high-reward endeavour without the possession of exceptional technical and financial skills. While ETFs and licensed financial advisors provide solutions to these problems in traditional markets, no entity currently exists in the cryptocurrency space that offers bespoke, risk-optimised portfolios to the retail market. Until Automata.

U.K-based fintech company Automata seeks to address the problems that I have laid out above and have consequentially created a product that allows anyone, from farmer to fund manager, to invest in the surging cryptocurrency market. The beauty of Automata is found in its elegant simplicity. Automata does not require the exchange of cryptocurrencies, nor does it limit users to a highly restricted selection of cryptocurrencies as is currently seen with major companies that specialise in fiat to cryptocurrency ‘on-ramping’. Users simply create an account, answer a short series of questions in order to allow Automata to create a personalised risk profile and you’re ready to invest. Deposits can take the form of a one-off investment or can be scheduled to suit the user’s personal preference, which is a testament to Automata’s focus on developing a product that is not only easy to use, but also consumer-minded. Additionally, deposits can be as little as £1 and adjusted simply if a user’s preference changes over time. When put into a cryptocurrency context, it becomes clear just how important a user-friendly project like Automata is in finally achieving the widespread adoption of cryptocurrency to the global public.

While the interface and transaction framework must be applauded for its ease of use, the technical element to what Automata achieves is far from simplistic. Automata uses a range of fundamental, technical and analysis of overarching market forces to formulate a proprietary algorithm capable of outperforming traditional investment strategies in both bull and more importantly, bear markets. It does so by adjusting individual user’s risk exposure depending on the overarching market trend, with an investment having a greater exposure to a greater number of cryptocurrencies in an established bull trend and a smaller level of exposure to cryptocurrencies (and therefore a higher percentage held in stable cryptocurrencies and fiat currency) in the event of an identifiable bear trend. This algorithm has been tested extensively by the Automata team in traditional markets, where it experienced great success but also in the cryptocurrency market where it showed an ability to outperform standard market strategies by upwards of 80% in an established bear trend. As mentioned previously this ability to mitigate risk and protect a client’s investment is not insignificant in a cryptocurrency market that is dually highly volatile and rampant with attempted fraud. In this respect, Automata is essentially unique as it dramatically reduces the potential downside of any capital outlay, to the point where traditionally frugal investors, renowned for being reluctant to move any money from traditional blue-chip stocks should be attracted in entering the cryptocurrency market. As a result, it would be logical to suggest that Automata could act as the true catalyst required for mass retail investment into the cryptocurrency space and a significant step towards enabling the financial independence of those who may not have otherwise had the opportunity in traditional markets.

Automata’s current roadmap suggests that this disruption isn’t as far away as might be expected. The Alpha version of Automata’s platform has been completed and the Beta version is currently in testing, with an eye to releasing the completed desktop version in Q3 of 2018 and the fully operational smartphone application by Q4 2018. In addition to this, the comprehensive whitepaper is in the final stages of editing and due for dissemination in the coming weeks. This whitepaper will outline the token economics of the Automata project in detail, as well as explaining more about the trading platform itself. If rumours are to be believed, the incoming whitepaper will also reveal that Automata is seeking to create an environment in which users can track leading portfolio manager’s investment choices and replicate them to mirror their own personal portfolios through a specialty smart contract. Leading portfolio managers will set their own fees and be rewarded in Automata’s native token if they have success.

The cryptocurrency market is not easy. The possibility for high-upside investing is not without its inevitable counter side lurking darkly around the corner. The revolutionary blockchain technology that lays the foundation for cryptocurrencies however, is an opportunity that simply cannot be missed. Automata takes this high-risk, highly liquid and immature cryptocurrency market and simplifies it. Suddenly, instead of having to navigate exchange after exchange (and the fees that come them), with Automata users have a tailored, risk managed platform that allows users to access all of this at the tips of their fingers and without the notable security risks that come with trading individually. Automata is a brilliant solution to one of the cryptocurrency’s biggest existing problems.