Crypto Benefits

Why Crypto is the best asset class
Why Traditional Finance disregarded Cryptocurrencies

Traditional finance (TradFi) has been quite cautious in adopting cryptocurrencies. Concerns about volatility, regulatory uncertainty, an association with illicit activities, and the reluctance to disrupt long-standing financial systems, and fearing decentralization due to digital currencies drove skepticism in TradFi and the media. This challenges the dominance of established financial institutions worldwide.

The Bitcoin ETF

Despite initial skepticism, the unique benefits of cryptocurrencies, such as security, transparency, and efficiency provided by blockchain technology, are gradually being recognized by TradFi and signal a shift towards acceptance.

With this acceptance comes new opportunity:

In the eve of 2024, ETFs for Bitcoin and Ethereum feed the crypto market with liquidity and have kickstarted a new Bullrun.

Now is the time to exploit this!

Why are Cryptocurrencies substantial assets?

We have often heard TradFi and newcomers believing that cryptocurrencies and crypto assets were not representing real, tangible value, and fear their digital nature might equate to a lack of intrinsic value. This skepticism is fueled by worries over cryptocurrencies' volatility, formerly unclear regulations, and a hard knowledge gap to the early adopters and builders of this disruptive technology.

Fiat backed by ...

The apprehension is that, unlike traditional assets, which have a physical presence or government backing, cryptocurrencies' value would largely be determined by market sentiment and technological adoption, seemingly ethereal. And difficult to control. What is traditional Fiat currency backed by?

From 2022 to 2023, fiat currencies like the USD and the EUR faced hard challenges. As fiat currencies are now printed in excess and distributed to create macroeconomic demand, these currencies experienced significant inflationary pressures. It turned them into relatively soft assets. The US using their currency for their conflicts for the first time adds to the dollar's decline.

... what exactly?

Due to inflating their supply without inherent value limitation, this sits in contrast to many cryptocurrencies' fixed supply, making them an ideal hedge against inflation. And one, that is still liquid. Yes, Real Estate is hard to move, decays, a truckload of costs appended to it, and can easily get exposed to regulatory attacks.

Precious metals like gold are difficult to move, rarely ever in self-custody, and difficult to sell. These are asset classes of previous generations and most of them remained side-lined.


Who would carry illiquid assets across the world in 2024 ?

The decentralized blockchain can hold similar value across the entire planet, accessible by a seed phrase and a mobile phone.

Unlike fiat, the major large Crypto tokens such as Bitcoin and Ethereum have a capped supply, presenting a hedge against the inflationary tendencies by central banks.

There will only ever be 21 million Bitcoins - not a single one more. Ethereum is inherently deflationary. These inherent scarcities are what kickstarted 2024’s bullrun. TradFi’s Bitcoin and Ethereum ETFs increase demand, which is meeting a forever limited supply.

At the end of February 2024, the size of the new Bitcoin ETF has almost reached 50% of the Gold ETF, which has been launched in 2004.

Market Capitalization

Regarding market capitalization in 2024, Bitcoin has become hard to ignore as well. Bitcoin alone is about to flip Meta Platforms and Silver. This is without considering Ethereum- or Solana-based ecosystems.

To kick things of and remain scalable, March 2024’s Dencun update of the Ethereum network further drops transaction costs considerably.

Coupled with the additional scalability of Layer 2 (L2) networks, which are networks based on Ethereum’s EVM-architecture, the Dencun update can push transaction costs down to single-digit cents, even under heavy load during the Bullrun.

Why Cryptocurrencies are useful for modern traders

To discuss why cryptocurrency offers the most beneficial markets for traders, we first must look at the downsides of some of crypto’s competitors - Forex and stock markets.

Disadvantages of Forex / Stocks

  1. Lower Volatility: For Forex and many stocks, volatility is generally lower than in the crypto market. This makes it less likely to differentiate signal from noise. This makes it much harder to gain signals to stack and become profitable.
  2. Regulation and Centralization: Both Forex and Stock markets are heavily regulated and controlled by central authorities. It imposes restrictions and limitations on trading strategies, for example regarding leverage (important for capital efficiency) and short selling regulations in stock markets.
  3. High Entry Barriers: Due to this, stock markets often require high capital to start trading effectively. Accessing global stocks can be more complicated due to regulatory constraints. Often the trader is dependent upon a broker.
  4. Operating Hours: Forex markets close on weekends and trade 24/5. Stock markets are even more limited, trading only at certain hours. This can delay your reaction times to global events. This can exclude you from markets and limit what is available to you.
  5. Additional Knowledge: Forex trading, while more accessible, often are strongly influenced and are very much in line with macroeconomic and geopolitical events.
  6. Less Privacy: Trading in Forex and Stock typically requires to go through regulated brokers and platforms, leading to less privacy for traders compared to cryptocurrency transactions.
  7. No Custody: Going through brokers and platforms, often funds are not in your own hands. This either limits the size you can trade with, introduces additional costs to you to fund leverage, or you effectively entrust your hard earned stack to a firm or company.

The decentralized Crypto markets solve all the mentioned problems

  1. Custody: Using decentralized finances and holding tokens in your own wallet, you retain full custody over your own funds. You do not need to keep it on an exchange. Web3 knows the saying and rule “not your keys, not your tokens”. Due to this iron rule, we did not lose a single token in the FTX crash in 2022.
  1. Increased Privacy: While the blockchain is fully transparent in its transactions and liquidity flows to ensure a trustless environment, it is still anonymous as long as someone does not voluntarily identifies himself with centralized exchanges. Everyone is free to participate without the need for a traditional brokerage account, making them more accessible to a global audience. If your country’s laws require personal identification, please always remain compliant and identify yourself properly.
  1. Knowledge pivot: You do not need insider knowledge to wade through noise to get signals in crypto trading. Good indicators and systems let you read the market, its liquidity and volume flows, open interest, and more. Put in a stochastically sound frame, you can stack your edges and multiply your profits.
  1. Operating Hours: You probably have a job. Or you want to trade anywhere in the world. You are not constrained by opening hours anymore.
  1. Low Entry Barriers: Anyone can create a custodial wallet through an app and participate, even the unbanked. There are many providers or opportunities, depending on where you live, to buy or sell Fiat against Cryptocurrency.
  1. Freedom and Decentralization: With freedom, security requires competence. With competence, you will enjoy freedom from restrictions and limitations that you may experience with local brokers, for example regarding leverage, lending, or short selling in timed or perpetual manners. It is important that you uphold your country’s laws: If you as a person are forbidden from using perpetuals, then do not do it. If the brokers are forbidden from offering perpetuals, then crypto enables your freedom of choice.
  1. High Volatility: Cryptocurrencies exhibit much higher volatility than most currencies and stocks, offering the potential for large gains within short time frames. That said, it is of utmost important to manage one’s risk in a statistically sound manner. It increases your chances to make it. We have a section on that, please watch it even if you already have a method in place!

These points show why Crypto Trading is something that can increase both your profits in absolute and relative numbers, as well as your profitability if executed correctly and supported by the right systems with high accuracy in signals.

Trading is a Player versus Player environment.

Your indicators and systems need to be better than what the masses out there have access to.

Why are Cryptocurrencies useful for investors?

Holding large stakes in classical assets has many downsides, like monetary debasement, economies in turmoil, regulatory dependencies, running costs mitigating profit, and more.

Crypto solves many of the issues clssical asset classes come with. Here are the key reasons why Crypto may be considered useful for long-term investment strategies.

  1. Sensitive to Global Liquidity: Crypto have shown sensitivity to global liquidity fluctuation. Whenever central banks have been implementing loose monetary policies, cryptocurrencies have increased in value.
  2. Limited Supply: Many crypto currencies have a kept supply, most notably Bitcoin. There will never be more than 21 million coins. If demand increases, this creates scarcity.
  3. Increasing Demand: The demand for crypto currencies has been increasing, driven by both retail and lately institutional investors.
  4. Hedge against Monetary Debasement: One of the most compelling arguments for investing in Crypto is its potential to act as a hedge against the debasement of Fiat currencies. With the mentioned supply limit pitted against ever increasing demand, especially Bitcoin acts as a deflationary asset resistant to inflation, further driving demand.
  5. Upside Bias/Curve: Crypto has shown a significant upside bias over the long term with prices experiencing substantial growth over the years.
  6. Worldwide Increasing Adoption: Adoption and growing acceptance not only give legitimacy to cryptocurrencies, but also expand their use cases. As adoption grows, so does the potential for increased demand and value.

An image of the Trend Aggregator Neutronstar. In the blue areas it protected investment portfolios from gigantic losses.

How to keep life changing wealth

All that sounds great, but Crypto has high volatility - also excessive trending over long terms.

Many private investors first rode the bull market up, and then the entire bear market downwards all the way into 2022. Missed opportunity, massive losses, ultimately broken dreams and regrets.

Now many seek to “sell when the hype is high”, or “sell whenever retail enters”, or some other obscure, unprofessional criteria. Not exactly optimal.

Professionals use complex quantitative systems to map trends and market movements - they rely on computational systems which are usually inaccessible. To develop these, pooling skill, domain knowledge and development time together is easily a 6 figure investment. But Software scales very well to sell, which is our benefit - hence we founded QuantraAI.

Your benefit is that you can cut your positions very much near the peak of this Bullrun by using our professional systems.

To protect and keep the life changing amounts you will have made.