Rob Maximus on de-mystifying crypto – a risk worth taking?

Crypto is largely shrouded in mystery, with many put off by scammer horror stories and the seemingly hard to access nature of the ‘Cryptosphere’. The status quo is changing, however, argues Rob Maximus founder of AI trading tools, DeepBot, and savvy investors should take a look at this relatively untapped marketplace.

Crypto can seem scary and I’d be wrong to tell you that it’s entirely risk free. Scammers do exist and the historic lack of regulation has led some to view this new frontier of digital currency as the Wild West. I can see why just 12% of people in the UK currently own crypto. To open-up the market, however, we need more investors; it’s a bit of a chicken and egg scenario.

There are changes coming that will hopefully encourage more people to take the leap. This is not about investing tens of thousands or becoming a millionaire overnight, it’s about viewing crypto a bit like stocks and shares. There is of course risk, but with some knowledge and the right tools this risk can be largely mitigated.

Safety-first

Cyber-security is the foundation of encouraging a wider audience to dip their toe in the crypto pool. The reality today is that protection from fraud is high, with the leading scam detection scanners such as Blockaid.io, providing the highest level of safety and hence used by the biggest platforms on the market.

There is also draft regulation from government in the pipeline, designed to boost investor confidence in cryptoassets. In fact, cryptoassets are cited as one of the solutions for driving growth under Labour’s Plan for Change and when the new rules come into force, crypto exchanges, dealers and agents will be brought under scrutiny in the same way as banks, with clear standards on transparency, consumer protection, and operational resilience.

Tools for the ‘average Joe’

At the moment, the Crypto world is ‘Web 3’, a mysterious place inhabited by cyber geeks, lacking the user-friendly nature of the internet that most of us are used to. Web 2 platforms are being developed that will make engaging with crypto far easier and in a language that everyone understands.

Changing currency, for example, will happen at the touch of a button, and tracking of the markets is taken care of by AI, allowing the whole process to be automated. With parameters and safeguards set, the ‘crypto-curious’ can have a go, invest a bit and avoid being stung through lack of knowledge. The best of these tools have safety at their core, using technology such as the aforementioned Blockaid.io to protect investors from fraud.

Overall, AI is a real gamechanger in this marketplace (as with most sectors…) allowing traders to sit back and let the algorithm do the work. In the past, multiple tools had to be used to track the different influences on the market – ‘whales’, for example, big crypto players whose buying habits influence price, trending tokens (new cryptocurrencies) and newly launched tokens, known as new pairs. The newest AI-powered apps coming to market will do all of this for you, which means the level of knowledge previously required to get involved is far less. I would recommend doing a bit of homework before diving straight in, however!

Why now?

The current crypto market is a monopoly with $2 trillion of the $3 trillion pot controlled by big traders. Their influence is massive, which makes crypto volatile and unstable. The more people that get involved, the less volatile the market will be, improving steady investment opportunities for the risk averse.

Let’s not forget that the central financial system also operates in the same way, we’re just more used to it. All money is owned and controlled by a few elites. If we can get Crypto to a more democratic point, then it has the potential to be less of a monopoly than the banks, with decentralised finance providing businesses and individuals with more autonomy when it comes to controlling and growing their wealth.

Overall, many in the UK are finding their money is spread more thinly, they don’t have a pension, or trust the pension they have, house prices are stagnating and interest rates fluctuate. People are looking for new ways to make and save money, side hustles that will improve their quality of life now and in the future.

Don’t believe the hype

There are of course a few people that have made a lot of money out of Crypto, particularly the early adopters, but this ‘get rich quick’ narrative is not helping the current market. Crypto needs to grow up and be viewed as a long-term investment opportunity, rather than a pot of gold at the end of the rainbow. Automated buy and sell strategies allow users to set their plan before they start buying, avoiding impulsivity and the potential to lose.

Look for AI trading platforms that take a considered view. While some focus on high value frequency trading, tools such as DeepBot identify smaller projects, which give users a much bigger opportunity to increase profits. We only follow the best traders in the market and not the same wallets that most platforms or investors follow.

Thanks to the technology now at our fingertips, the crypto barriers to entry are being broken down and practically everyone can have go.

By Rob Maximus, founder of DeepWhalesAi

DeepBot is a toolkit of automated crypto trading tools. Currently Web3 based, DeepBot is about the launch a Web2 version of its app, designed for new investors.