Trading has always been popular in the crypto community, but it’s a high-risk activity and many newcomers get burned. Simdaq’s platform aims to help novice traders learn the ropes and share strategies with established experts.
Trading has always been a part of the crypto landscape. Ever since the first bitcoin exchange, MtGox, opened in 2010, individuals have sought to make a profit from the markets – whether that means the day-to-day movements of the most volatile cryptocurrencies or the months- and years-long patterns they follow.
It’s also fair to say that crypto trading is an extremely risky activity. Even in the traditional financial world, daytrading – seeking to jump in and out of high-risk, high-return trades on the scale of minutes to hours – comes with major warnings to your wealth. Anecdotally, some 80-90 percent of daytraders lose money. And that’s before you factor in some of the specific quirks of the crypto markets: extreme volatility, relatively illiquid markets, and in some instances, outright manipulation. Over a recent two-day period, bitcoin – the most popular and liquid crypto – lost an incredible 25% of its value. And that’s nothing compared to the multiple consecutive double- or even triple-digit daily swings that some altcoins experience. The bottom line: there’s an awful lot of money to be made if you know what you’re doing, and a lot to be lost if you don’t.
Clearly, there is a market for teaching and mentoring in the crypto trading space. Whilst a few examples of this exist, there are no comprehensive approaches to the problem and little tailored specifically to the crypto world. Simultaneously, there are relatively few resources for crypto traders. Some tools exist, but the small amount of useful trading instruments can discourage traders and investors. And that’s where a new initiative, Simdaq, comes in.
The creators of Simdaq are experienced crypto investors and traders who realised that there was an opportunity to help newcomers learn the ropes before they got burnt – and hopefully then to stick around for the long term. The startup’s founders have already invested over $1 million in the initiative, and are now seeking to expand their project by means of a token sale. SMQ, which will be sold to investors, will also serve as the internal currency of the platform, a way of purchasing valuable services.
Simdaq’s emphasis is on training up traders by allowing them to share information and strategies, and to practise trading without putting real funds at risk. There are three elements to the platform:
1. Trading simulator, based on large amounts of historical market data. This is designed to allow traders to acquire basic analytical skills and an understanding of the market. New traders can test hypotheses and ensure that their trading strategies make sense.
2. A Decentralised Marketplace, which will serve as a way of sharing knowledge and experience within the Simdaq community. The marketplace allows community members to create content and provide different services such as giving trading signals, trading with a mentor, social trading, and trade streaming. Other community members will be able to access these by purchasing them with SMQ tokens. The Simdaq Marketplace will also host decentralised trading tournaments.
3. Bot creation. Using automated trading bots has become a popular way of generating income from the crypto markets, but they remain the preserve of coding and trading experts. Simdaq will provide a visual environment for building trade bots: the Community Hub. This will allow anyone to formulate the trading algorithm they wish to use, and test it on a large amount of historical data before deploying it on the real markets.
The overall intention behind Simdaq is to democratise crypto trading: to take an arcane, complex and often expensive activity and make it available to an order-of-magnitude more people. There is value in that beyond narrow individual financial gain. It helps to normalise cryptocurrency investment, and it helps to keep involved and engaged those who might otherwise have dipped their toes in the water, had a bad experience and never returned. Additionally, it brings more liquidity and depth to the markets, the lack of which are among the problems experienced by many crypto traders in the first place.
The SMQ token is currently being sold at pre-sale, which will last until 25 January. The standard ICO price of the token will be $0.50, but after the platform launches in the first quarter of 2018, the cost of each token will be $2.50. A maximum of 25 million tokens are to be sold, with a minimum funding target of $500,000 – a far cry from many of the multi-million-dollar ICOs of recent months.
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