One of the most fundamental rules to being a successful trader is knowing when to enter, and when to exit a market (and in some instances, when to escape the market in worst-case scenarios). You have probably come across terms like FUD (fear, uncertainty, doubt) and FOMO (fear of missing out). Inexperienced traders are usually the victims of FOMO; rushing to buy a coin when the price is increasing, and being left with bags, should the price crash. Before you hit the “buy” or “sell” button, it is expected and expedient that you know just what you are doing, and not following massive crowd actions. This brings us to our next point — information.

Just as content is king in the digital market world, information is king in the cryptocurrency world. It is key to the success of any crypto trader — from researching what projects to invest in, the team and tech behind such projects, when to execute a trade, and government’s stance on regulating cryptocurrencies, amongst others. This is what separates successful traders from those who just struggle to get by. However, finding the right and valid information in a timely manner can be difficult. Ever been in a scenario where you got to find out about a coin mooning, only when it hit an all-time-high? Well, that is it. Unless you are at the forefront of staying updated, you will lose out on a lot of potential calls.

Some of the popular sources of information for most crypto enthusiasts include:

YouTube: I think this is by far the most popular. Do a simple search of cryptocurrency on YouTube and you will see hundreds of channels each providing advice on the best coins and ICOs to invest in. Some of these are even paid promotions, and as expected, the quality of service and advice varies across channels.

Cryptocurrency News Sites: Sites like CoinDesk, CoinTelegraph, Bitcoinist, The Merkle, and several others have become popular and credible in providing cryptocurrency news on the direction of the market, adoptions or regulations, events and press releases, price review and prediction of coins, as well as other notable developments. As a matter of fact, one of the first things I did as a newbie every morning was to read the news before trading.

Researches, Reports, and Whitepapers: As part of the research process, serious investors will typically turn to the whitepaper of projects and ICOs to have an overview of what they are trying to achieve.

Exchanges & Market Data: A quick glance at any of the exchanges like Binance, Bitfinex, or Poloniex, provides some valuable insights on the state of a crypto asset. Information like trade volume, buy and sell walls, historical charts, as well as tools for technical analysis are readily available.

Blogs & Cryptocurrency Forums: Medium, Reddit, Bitcointalk, StackExchange, and a host of others all provide valuable insights, advice, and forecast on cryptocurrencies.

Chances are that you use or may have used one of these sources of information to make an investment decision. Although, it is possible to get some valuable data from these sources, it is also very easy to get deceived or miss out on an important advice. Personal blogs and forums are often filled with users who try to hype coins in their portfolio. News site may be paid to do a sponsored post about a cryptocurrency. YouTubers are not left out of this challenge. In addition to all of these, the “open-access” nature of the internet makes it easy for everybody to know what you know and act on it on a basis of first come, first serve. In general, these sources are accessible by everyone, and sometimes unreliable — fake news, pumps and dumps. And this is where Pareto Network comes in.

Why Pareto Network is so Valuable

Pareto is a decentralized network for information sharing amongst investors and analysts. Valid information is trading between both parties using the PARETO token. Typical information chains go from insiders, to those close to the insiders, influencers of the network, paid members, crypto community, and lastly, the bag holders.

We’ve seen cases like this happen time and time again in the crypto space. A vivid example was the launch of Bitcoin Cash on Coinbase. Prices spiked to $9000 and then dropped to about $3000 in few hours. Interestingly, Coinbase has been hit by a class action lawsuit over alleged insider trading. To fully understand how centralized and unfair this system is, imagine you got in at $8000, only for the price to drop down to $3000 in few hours. This is the problem Pareto is trying to solve. Having a supply of relevant and real word data is extremely important to every company, and the crypto space, being in its early stages still lack this.

With Pareto, information and useful data becomes more easily available to crypto traders and investors. The network uses a gamified system which ensures that genuine analysts get to rank higher, thus increasing the stability of the markets. Pareto creates a platform whereby actionable information can be sold. This could be events, bugs, exploits or other info that can be profited from.

How will it Work?

On the Pareto network, content with the most actionable information is prioritized. Access to such information is available through PARETO tokens, as a form of payment, and content creators are rewarded. The network runs a pay per service system, and both content providers and users are incentivized — while the former gets paid for providing information, the latter are rewarded for spending their tokens. Such an ecosystem will help sustain the functionality of the platform. According to their whitepaper, content that can be purchased on the platform includes (but not limited to):

Analyst reports

Trading alerts

Sector reports on prediction, computing, etc.

Codebase reviews

Security assessment and vulnerability reports

Surveys

Content creators may be individuals or organizations with information to supply the network. This may be a one-off or continuous stream of information. In other to get the network started, Pareto will recruit a team of qualified contributors to build a stream of information that can be used by token holders. As the platform grows and garners traction, it should naturally attract other contributors who will earn rewards and get paid by users.

Looking at such a platform, there is an obvious flaw in the ecosystem. What happens if a contributor releases spam and feeds the network with other irrelevant content? In order to tackle this, content creators are required to pay a fee to make their content available to users. This fee will serve as a deterrent to spammers.

Pareto uses a ranking algorithm tagged waterfall to determine how information is released to users on the network. Its structure is similar to a leaderboard, and there are a variety of criteria which influence how high a user ranks on the ladder. This creates a leveled playing field.

The network is creating a new ecosystem that allows investors to easily get their hands-on information of value, while those in the business of finding such info do what they do best, knowing fully well they will be rewarded.