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November 26, 2020

FINTECH START-UPS: SHOULD THEY TRADE IN CRYPTO?

Whether transferring some dollars to a friend who is stuck somewhere or managing finances through technology, we all contribute to fintech in one way or another. Fintech means Financial Technology, which refers to any industry that uses technology or software to expedite financial services to both businesses and consumers. From mobile payment applications to cryptocurrency, for instance, apps like PayPal and cryptocurrency apps. Integrating the newest and advanced technologies with financial services has enabled businesses platforms such as Karl Schranz and individuals to access better and convenient financial services.

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With technology as the core of financial products, customers can transact and trade with more security and cut down on expenses that occur with traditional transactions. Such advancement comes out in cryptocurrency stocks. Cryptocurrency stock trading occurs just like traditional stock trading, only that it doesn’t involve tangible assets. It involves digital currencies such as bitcoin, so it eliminates the middlemen and agents. The virtual coins are developed from the blockchain technology that makes them secure and decentralized.

Why crypto trades attract fintech companies?

Cryptocurrency stocks are the only decentralized and most secure way of trading in virtual currencies. That is what attracts fintech companies. Since fintech focuses on financial products backed up by technology, leaning towards cryptocurrency stocks enables them to make the most out of blockchain technology. For instance, in a similar way a private company would go public and allow the public to purchase shares, fintech companies open up cryptocurrency exchanges and allow investors to trade.

The extended scope of crypto stocks is what attracts fintech companies into the crypto market. In cryptocurrency trading, there is no trouble with double-spending, and it facilitates reliable transactions. Although there are many technicalities involved in cryptocurrencies, that is what makes the trading exciting and dependable. Fintech companies analyze every cryptocurrency on the exchanges to determine the most promising one for investments. Such investments have been an open source of income for fintech companies while supporting their bid to provide financial products based on technological advancements.

What advantages do fintech companies enjoy by trading in cryptocurrencies?

The most apparent advantage is anonymity and independence. The fact that fintech companies can facilitate transactions without having to expose their real identities in addition to more private transactions is fascinating. Furthermore, they can self-control the interactions, which results in confidentiality and fewer threats to

their businesses.

Another benefit is that transactions are seamless, making it easier to facilitate international trades. Typically, when any trade crosses the borders, many factors come into question, such as transaction charges and exchange rates, making it challenging to facilitate transactions. The best thing with crypto is that such factors do not affect trading making the transactions seamless.

Should fintech start-ups trade in crypto?

Given the advantages mentioned above, it is safe for fintech start-ups to trade in crypto. They have a lot to gain if they can expertly speculate the market conditions depending on various factors and select the most stable cryptocurrency stocks for their exchanges. The fact that cryptocurrency technology provides a more secure, quicker, and efficient transaction process is a proposition too good to ignore for fintech start-ups.

The bottom line

It seems like cryptocurrencies are here to stay, and its time fintech companies made the most out of them. since there are several cryptocurrencies in the market, fintech start-ups can select the best-suited stocks that align with their goals.

Janet Mason

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