'The Smart New Tools Powering The Crypto Trading Boom' cryptocurrency cryptocurrencyinvestment
$9.2 billion in 2022, an almost 5% increase from the booming year before. New digital currencies and platforms are emerging at a pace that can feel impossible to keep up with. Those who can develop an understanding of how this space is changing quickly may be in a prime position to take advantage.
All of this is a lot to take in, and even more to navigate. Naturally, these coins are subject to a lot of volatility, particularly the smaller market cap coins, but even the top ten have taken a beating recently. Taking advantage of this market, in terms of financial investment, requires being able to parse through the information overload.One of the largest differences between Defi markets and the traditional stock market is the makeup of its participants.
So with access to all that capital, why are the market makers not diversifying into the world of decentralized finance? The main reason seems to be related to risk aversion. Because these firms are responsible for managing the money of so many clients, they often make their large investments in a relatively safe manner.
Those who believe in the power of and technology behind decentralized finance may see these risks as a side effect to be navigated in an emerging market. Institutional investors aren’t quite there yet. A lot of that hesitancy also has to do with a lack of understanding that comes from the novelty and complexity of decentralized finance. But that may be changing sooner than you think.The market makers have likely already arrived in crypto.