Cryptocurrency trading has evolved from a niche marketplace to a global industry in which millions of dollars of value are transferred on a daily basis. The cryptocurrency trading industry is seeing increased interest from institutional investors, retail investors and professional traders alike. These cohorts are seeking innovative financial products, safe secure digital infrastructure, and rapid, responsive trading services. We will see how Phemex is building the world’s best, most trustworthy cryptocurrency derivatives trading platform to deliver the gold-standard platform that traders demand.
Current State of the Crypto Trading Industry
Compared to traditional financial markets, cryptocurrency trading remains a young and growing sector of the global economy. Since its inception, however, the cryptocurrency trading industry has remained robust and resilient, continuously recovering from faulty exchanges, lapses in consumer confidence and future uncertainty. Those that enter the industry today see the massive potential for cryptocurrency use cases in daily life, as well as the blockchain technology that underpins it. Many, for example, see future currencies such as the U.S. dollar to be inevitably powered by blockchain. As the popularity of cryptocurrency trading has grown, so too has traders’ expectations. Phemex is here to exceed these expectations. No longer will traders have to accept poor customer service from lackluster exchanges, lax security and an overall poor user experience when trading cryptocurrency derivatives. Phemex references the Greek Goddess of fame and good repute, Pheme, and Phemex will live up to this name.
What Is Needed For Future Growth In The Cryptocurrency Industry?
Growth Driver #1: Greater Availability of Cryptocurrency Based Financial Products
A key growth driver within the cryptocurrency will be greater availability of financial products derived from cryptocurrencies. Currently there is a huge lack of supply within the cryptocurrency industry for many of the investment opportunities that are taken for granted in traditional financial markets. Futures, Exchange Traded Funds (ETFs) and Securities based on cryptocurrency and blockchain technology are extremely limited and restricted within many markets globally. Many assets that could be represented digitally through a Security Token Offering (STO), for example, are currently hampered by doing so, meaning the value remains frozen and inaccessible to investors around the world. Similarly, efforts for financial managers to create cryptocurrency ETFs, in which a basket of cryptocurrencies are managed and maintained by a third party on an investor’s behalf, are severely limited in the current trading environment. There is also a disconnect between cryptocurrency assets and traditional financial assets. Many platforms available to investors present either traditional investment opportunities or only cryptocurrency assets. This disconnect results in many investors unfamiliar with the benefits of cryptocurrencies to remain ignorant of all the amazing potential blockchain technology contains.
How is Phemex Addressing this?
Phemex is led by over eight former Morgan Stanley Executives, meaning the platform is built
with the investors’ needs as the number one priority. This means allowing trading of crypto contracts as well as traditional financial products. These traditional assets include stocks, indexes, interest rates, FOREX, commodities, metals, energy and more. Through this, traditional financial products are as easily accessible as those based on cryptocurrencies. Phemex is capitalizing on this massive growth driver by bridging the gap between traditional and newer
financial products, through combining the team’s 40+ years of combined experience in Morgan Stanley.
Growth Driver #2: Improved Investor Security
A major growth driver within the cryptocurrency trading industry in the future will be the heightened security facilities offered by exchanges and platforms. As history has shown, even the seemingly most secure platforms have been vulnerable to security risks. Due to the high value and irreversible nature of blockchain transactions, the risk of loss is simply too great for many investors to bear. For veterans in the cryptocurrency trading market, many will remember the hacking of big exchanges which sent shockwaves throughout the cryptocurrency. In today’s trading environment, many exchanges are not immune from the efforts of hackers. Despite the best efforts of exchanges, they still represent a single point of failure. Greater security facilities on exchanges will reduce the fear, uncertainty and doubt many investors feel when dealing with cryptocurrency assets. These emotional reactions hamstring the growth of the industry in general, as those willing to invest are put-off by the risk involved.
Growth will come from complete peace of mind for investors.
How is Phemex Addressing this?
Phemex ensures total peace-of-mind for all cryptocurrency assets hosted by the exchange. How? Phemex has built its own, state of the art cold storage system. Known as the Hierarchical Deterministic Cold Wallet System, this system assigns an independent deposit address to each user, so that all assets are kept in cold wallets. Bitcoin collections and transfers are all conducted through offline signatures with strict human scrutiny. This means that unlike many exchanges currently on the market, the private keys of any investor are never stored online at risk of attack, guaranteeing world-class security. In the unlikely event of any loss occurring, users can be guaranteed that it will be covered by the Phemex platform.
Growth Driver #2: Better User Experience
For many, the biggest barrier to entry into cryptocurrency investing is the technical barrier. The cryptocurrency space remains riddled with poor user experiences, clunky interfaces and a sub-optimal support structure. This leaves many investors with a sour taste in their mouth, wading through exchanges and platforms without the end-user in mind. A key driver for the cryptocurrency industry will be industry leaders addressing this poor user experience problem, to allow the same easy-access to investment opportunities as traditional financial markets. Despite the growth of cryptocurrency markets, many investors remain tech novices, with no clear picture on how to interact with cryptocurrency.
How is Phemex Addressing this?
Phemex is designed with the end-user at the centre of everything. Phemex leverages a “user oriented” approach to develop far more powerful features than any existing exchange for traders to easily buy and sell contracts with trust. Key members of the Phemex team are always available for rapid support through the most popular social channels. Developments, comments, requests and feedback can also be sent directly on Twitter. Phemex works with more than 35 technical talents in China, Korea, Japan, USA and Singapore, and provides 24/7 multilingual, human customer support online. Phemex believes that a “user oriented” approach is the best way to build a next generation trading platform.
Conclusion: The Vision of Phemex
Over the course of just five years, the world has become increasingly interconnected. This
connection means that anyone with a phone can trade financial products globally. Blockchain
technology has the potential to include billions of potential users who are currently locked out of the financial infrastructure into a more inclusive ecosystem of financial products and opportunities. Phemex believes in this future of a more equitable global system, in which users will have access to cryptocurrencies through a safe and efficient trading platform. This will allow both users and products to improve everyday, through mutual support and growth.
Phemex, combines the words Pheme and MEX. In Greek mythology Pheme is the personification of fame and the public voice, and MEX refers to any mercantile exchange. The name was chosen to highlight Phemex’s vision and dedication to becoming the most trustworthy trading platform. Phemex works together every day to create a platform that allows users to transact with efficiency, simplicity and more importantly, trust. Phemex’s mission is to empower everyone to efficiently manage risk and trade simply. Blockchain technology empowers individuals to access assets that they may never have had access to in the past. Phemex will support this mission by providing a safe, user-friendly and rapid experience, providing access to the world’s most exciting asset classes. Phemex is building the world’s most trustworthy cryptocurrency derivatives exchange.
Learn more at www.phemex.com