Remember how traditional and crypto traders clashed with each other in the 2010s. There were two different hostile camps. "Old school traders" said that crypto is a bubble and gambling, and crypto traders said that the income from traditional trading is negligible compared to crypto.
Today, many traders already use both tools, balancing between profitability and security. But why do we still have to use different trading platforms for this?
Historical Context of Traditional Trading
Long before the buzz of blockchain and crypto began, traditional trading laid the bedrock of the financial world. Originating in the coffeehouses of 17th century London and the bustling street corners of Wall Street, stock trading, along with commodities and forex, has shaped global economies and personal fortunes for centuries.
These systems are deeply entrenched in structured regulatory frameworks, ensuring a level of investor protection. With household names like the New York Stock Exchange, Nasdaq, and the Tokyo Stock Exchange, traditional trading avenues are often perceived as stalwarts of financial reliability, anchored by brokers, institutional investors, and regulatory bodies. Although, to be fair, the stock market has also collapsed (and more than once).
The Rise of Cryptocurrencies
The crypto age started with the inception of Bitcoin in 2009. The idea of a decentralized, peer-to-peer electronic cash system quickly gained traction. This rise was bolstered by the innovative concept of blockchain, a decentralized ledger providing unparalleled transparency and security.
Unlike traditional markets, the crypto market saw a democratization of access. The once elitist world of investing was now accessible to anyone with an internet connection. From prominent crypto exchanges like Binance and Coinbase to DEXs, the barriers to entry in the financial world were rapidly dismantling.
Today, both markets are equally accessible (except for restrictions in certain countries). It would be logical if the two worlds united. So why do traditional and crypto traders keep trading on different platforms?
Potential Benefits of a Converged Market
The harmonization of the traditional and crypto trading paradigms can open up an array of benefits for investors:
- Diversified portfolios. A single platform that caters to both assets can allow investors to seamlessly diversify their holdings, thereby spreading risk and capitalizing on multiple growth opportunities.
- Ease of trading. One platform is more convenient than two or more.
- Innovation boost: The tech-forward practices of the crypto world can introduce innovative tools and practices into the traditional trading sector.
Building the Bridge
You may be surprised, but in fact, a universal platform already exists. Meta Trader 5 (by FIXONE Global Trading) is a new platform launched in 2023. This is the bridge between traditional and crypto trading. The new trading platform unites 9 financial markets:
- Cryptocurrency exchange
- Currency conversion
- CFDs of the world's largest companies
- Physical goods
Merging different market sectors is a trend that is shaping the future of the financial world. With platforms like Meta Trader 5, investors can look forward to a world where the best of both worlds come together, bringing both security and innovation.