What is Digital Asset Trading?

What is Digital Asset Trading?

Bohdan Kachur
May 3, 2023

A significant breakthrough for trading, traders, and brokers at one time was the fact that asset trading has moved — at least partially — into the digital realm. Just imagine no more waiting for the morning to place your bet, no more calling the stock exchange, no more talking to trading agents… All the tools for asset trading are now available online. This also means that some assets have become virtual — we are talking about the so-called digital asset trading. Read our article to find out what it is, its advantages, and how you can use this type of trading to your advantage.

What is it?

First of all, it is worth understanding the terminology. In simple terms, digital asset trading involves assets that exist online. It can be:

  • Cryptocurrencies.

Bitcoin, Dogecoin, Ethereum, and many other cryptocurrencies have emerged thanks to blockchain technology. This distributed database has allowed humanity to make payments with a much higher level of security than before with physical currencies. After all, the technology reduces the number of intermediaries, and the history of transactions conducted with a token is stored directly in its code. Of course, there is also a disadvantage: generating, for example, one bitcoin may take some time, and this process will require a powerful computer. Nevertheless, cryptocurrencies are one of the so-called digital assets.

  • NFTS.

Unique tokens are also a new word in trading, but you can make good money on them. Connoisseurs are even creating their own NFT collections, especially regarding art. However, anything can become such a token — even a Twitter meme.

  • Stablecoin.

The name implies that it is a cryptocurrency with a stable value. They are linked to a physical item or currency whose price they reflect.

These and some other types of assets are digital assets. You can create your digital asset trading platform to provide services to traders as a broker — or for various other tasks. Either way, such a business can bring you significant profits.

Why is it convenient?

What are the advantages of an advanced digital asset trading platform if you compare online trading with trading on a physical exchange? There are many advantages:

  • Transparent transfers and payments.

Well-designed software allows you to make all payments as transparent as possible, which is extremely important for large amounts of money. Blockchain technology is designed so that all this data is publicly available, so any fraud becomes physically impossible in principle.

  • Decentralization.

This is one of the most positive features of professional digital asset trading. With centralized transactions, money flow somehow passes through a chain of intermediaries. And each of these intermediaries will want to get their commission from the transaction somehow. This leads to the fact that global banks have an incredible influence on the financial market. DeFi has no intermediaries, and a person can conduct transactions with their funds as independently and conveniently as possible.

  • Exchanges.

This may be the most exciting part for you as a business or its representative. Online exchanges, first of all, are designed for the convenience of customers. Many settings, indicators, and functions are designed to help traders earn more, faster and more comfortably. However, this is also beneficial for the exchange itself, as it can make money on commissions, advanced tools, and additional features for traders. In other words, you increase your profit by allowing your clients to earn money.

There are other advantages as well. A so-called global digital asset trading platform can provide services to people worldwide and allow the trading of different types of assets, including other cryptocurrencies, cryptocurrency + real currency pairs, NFTs, and more.

What to consider if you want to create such software?

It is possible to develop your digital asset trading platform. We have the following tips for those planning to do so:

  • Consider the experience of competitors. You might think that everything in the world has already been invented, and the market is oversaturated with various software for traders. However, this is only partially true, and by studying your competitors in detail, you can ensure this. From their experience, you can learn what is worth adding to your platform at the MVP stage and what features are optional and can wait.
  • Add artificial intelligence tools. It is only possible to do with it nowadays, as successful forecasting and strategy customization will require a lot of computing. There is no point in making calculations manually because the human brain cannot match the power of a computer. Artificial intelligence will become a reliable assistant for traders who will use your software.
  • Automation. This is one of the best features of modern trading. A person can place an order according to specific parameters, close the software, and go about their business. Your platform will monitor the market situation by itself, and when the case meets the set parameters, it will make a profit for the trader. Automation is also needed when someone places multiple orders or uses a grid strategy.
  • Mobile version. It must be linked to the desktop version of your software. This way, a person who places an order in the morning from a laptop and leaves for business can open the app on their smartphone anytime and check how their trade is doing. In addition, there is a widespread practice called Mobile first, which means that you should develop a mobile version of the software first and only then a desktop version. This is because the lion’s share of devices worldwide is now mobile. Moreover, the screen size affects the design, and it is easier to make the difficult part first, i.e., to develop the mobile version. After all, from a design perspective, there are many rules that mobile software must meet to be usable. By placing all the necessary elements — buttons, menus, tabs, and so on — on a small screen, you can fit them into a desktop later.

These small recommendations will help you create a high-quality and modern trading platform.

Where can you ask for software development?

The team that will create software for you is an essential factor that affects such things:

  • How quickly will you receive the software?
  • How good will the software be?
  • What modern technologies will be involved in your platform?
  • How much will the development cost you?
  • Will your product be profitable?

Therefore, we recommend that you choose a contractor very carefully.

The Fintatech team will be happy to develop a trading platform for you. We specialize in creating software for traders and brokers so that you can rely on us. Our Trading Platform Designer will speed up the development process, as it is a set of ready-made components that can be customized to the maximum extent possible to meet the needs of your business.

To discuss the details of your project, sign up for a consultation. Our experts will answer all your questions and advise you on the best possible approach for your project.

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