Crypto offers a lucrative opportunity for wealthy people

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Photo by Dmitry Demidko on Unsplash

In its early days, cryptocurrency was almost exclusively the domain of engineers and programmers. They were largely motivated by ideology and an almost religious belief in decentralization. Then came the extremely risk-tolerant investors willing to bet in an untested market in the hope of getting rich. And to be sure, many have done just that.

This Wild West atmosphere has kept many high net worth investors (HNWIs) and family offices from investing early. However, the market has matured.

A changing market

Just 3 years ago, the total market cap of all cryptocurrencies was around $ 230 billion. Today that number exceeds $ 2.2 trillion.

Institutional investors have taken note. According to Bloomberg, more than $ 17 billion in institutional capital has been invested this year alone. A survey by Nickel Digital Asset Management showed that 82% of these investors are looking to increase their exposure over the next 2 years.

Growing infrastructure

Now that the market has proven to be worthy of large-scale institutions, many HNWIs are also looking for exposure. Traditionally, one of the main barriers to entry for these investors has been the lack of infrastructure.

HNWIs have many more complications in investing their assets than retail investors. Tax complications, inheritance issues, security concerns, and unsophisticated trading tools have kept many people from getting started. These quickly become non-problems because a multitude of companies have intervened to bring solutions to the market. One of these innovative solutions is automated trading software, or bots.

Time is money

HNWIs have diversified portfolios with investments in many different sectors. Their time and attention are the most valuable asset they have. The crypto market is moving at a rapid pace, and staying ahead of it requires constant attention and a lot of time, a resource many of these investors lack. Enter the robots.

These bots manage your assets 24/7 and free you from the need to constantly monitor the market. They integrate with trading platforms like Binance or Coinbase and trade your assets on your behalf based on rules and parameters set in advance.

The story continues

While commercial robots have been around for years, their level of sophistication has increased and reached the levels of service desired by HNWIs. Some of them are: very low latency dedicated servers, the use of advanced technical indicators and integrations with platforms like Tradingview.

It might sound too technical to some, but one company is aiming to fix this problem. Coinrule, a leader in the space, created a bot with usability and accessibility in mind. You can choose from a multitude of predefined rules created by their team or define your own. It facilitates automated trading and allows you to focus your attention elsewhere, maximizing the return on your most valuable asset of your time.

As the infrastructure barrier to entry is lowered, more HNWIs and family offices are poised to enter the market. From automated trading software to tax assistants, these developments have created the conditions for a more mature market.

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