Connecting Crypto: Why Unifying Crypto Is Beneficial For All

Across various industries, cryptocurrency has been regarded as one of the most innovative technologies of our lifetime, and perhaps the most disruptive since the internet. Yet, even the most groundbreaking technologies come with their obstructions and shortcomings. While interest for cryptocurrency is higher than ever before, core deficiencies such as low liquidity have limited the industry of reaching its full potential. Much like a fatal flaw, many of the most appealing characteristics of crypto are to blame for these limitations and its inherent volatility. For starters, the decentralized nature of crypto has enabled fragmented, inefficient processes to set precedence throughout the space.

At XTRD, we believe that unifying crypto in a strategic way will help to address its problems and will be beneficial to all parties involved. By fusing the best practices of Wall Street, one of the most robust and stable sectors on the planet, with this emerging and exciting space, an entirely new level of potential is possible.

The Main Point

Enabling big players like financial institutions, hedge funds and algorithmic traders to finally enter the crypto space without an immense amount of uncertainty and risk is the first step to taking crypto from niche to worldwide acceptance. The reason is simple: with more established institutions trading, the value of the entire goes up. Less market volatility and more stable returns will lead to better opportunities such as increased funding for crypto startups. Additionally, with the financial sector getting fully immersed into crypto, mainstream adoption of the space can become a reality. Entirely new sub-industries will arise as a result, allowing the entrepreneurial-minded to capitalize on the opportunities.

As of right now, while Wall Street is intrigued by crypto, no scalable, bulletproof solution to the turbulent behavior of the market exists. No unifying force to bridge the gap between the two sectors exists. This is precisely what XTRD is designed to accomplish. Here’s a little more about us and the problems we’re solving.

Higher Liquidity, Lower Fees and Combined Platforms

Because the volume of buyers and sellers in the crypto space is still low, the liquidity is also thin. This is one of the primary contributors to the volatility commonly seen in the industry. One event, big or small, can have an enormous impact on how the market is valued. This thin liquidity also gives rise to other potential financial repercussions. An order of bitcoin worth $1,000,000 can potentially cost an additional $50,000 to $100,000 per transaction. This discrepancy, unsurprisingly, deters many investors from getting involved in crypto entirely. Yet, with a higher volume of traders, stability becomes increasingly within reach.

On top of that, with a high number of platforms to trade on and a low number of buyers and sellers in the ecosystem, the stage is set for overpriced fees and disorganization to run wild. XTRD’s technology combats all of these issues using decades-old trading principles inspired by Wall Street’s iconic FIX (Financial Information eXchange) API. Our platform is a universal, low latency FIX-based API connecting all crypto exchanges to make it easy for major institutions to trade.

The technology also helps aggregate data and combine platforms to make instantaneous, prudent trading decisions for marquee financial players. This leads to maximum returns and a better overall user experience.

With Widespread Adoption, Everyone Wins

With major institutions getting involved in crypto, more money will be poured into the industry and circulated throughout it, facilitating more opportunities and ventures than are currently available. People from all walks of life will be in a position to enter the crypto space, much different than the engineer-centric community seen today.

This style of roll out is typical of groundbreaking technologies. First come the innovators, then the early adopters and enthusiasts, and eventually widespread adoption of the technology. We saw this firsthand with the roll out of computing, software companies, smartphone technology and more. Essentially, exponential innovation begins to unfold as people with different perspectives and professional backgrounds begin to enter a sector. After XTRD’s technology enables the financial sector to enter the crypto space, the dominoes will begin to fall in a similar direction for all who are involved at any capacity.

While the crypto space has seemingly infinite potential, the technology is still in its infancy. As is usually the case with a technology that is exclusive in nature, shortcomings and inefficiencies have developed within the cryptocurrency industry.

By unifying cryptocurrency exchanges and applying insight gained from one of the world’s most established sectors, Wall Street, we believe crypto can be catapulted to previously unimaginable heights.