Free Crypto Trading: a Mousetrap For Users
On the crypto trading market, there is a long-standing model of the exchange system, which came from the world of the traditional exchange trade. Each trader on the market usually pays a fixed fee for each operation, depending on the appetite of the stock exchange and its impudence (thus they make a profit). In fact, there is a fee for any activity on the stock exchange. The situation has remained so since the beginning of time and in general terms suited everyone simply because "this is the way the things are done". But the situation began to change.
There are trading companies appeared offering options for the commissionless trade. It would seem like a trading paradise! But the traders themselves do not believe in the commissionless option. Anuzh R KHANA, a venture capitalist from London, generally calls it just a marketing vehicle.
“Such thing as a commissionless exchange doesn't exist in reality! If the exchange does not take payment for transactions, then this money is compensated by something else. Any transactions cost money, such as currency exchange, payments and everything else. The exchanges need funds to ensure the functioning of the company, pay their expenses and resolve other issues. Due to this reason I can say: all the talks about a free trading platform is nothing more than marketing”.
And indeed, the question arises: how is this possible? After all, altruism is certainly good, but business is business and it makes money primarily. But a well-known to everyone watching financial media Vlad Tenev from the Robinhood crypto exchange, who was included into Fortune's "40 under 40" list, says that it doesn’t work that way. According to him, they "will leave the market of commissions behind". And it really can be called a brave statement.
Supposedly, they can do this due to their technical development, since by the time the sales of the cryptocurrency began, they had reduced all the activities of the company to maintaining the functionality of their application and the engineering development to ensure its uninterrupted operation. And indeed unlike many exchanges, the company named after the legendary altruist-robber is, in fact, an application, and for the phone. The following causes distrust in some potential investors: it seems a little ridiculous to make a large portfolio for an entirely mobile application. But, as practice shows, the problems of individual investors are their personal troubles. For the year the value of the company has quadrupled - today their "price" of $5.6 billion is forcing their original capital from 2014, which was only $363 million, to nervously "crackle" aside.
However, the "digital robbers" have a dark side. In fact, all this is very similar to the format of the formal free-of-charge basis, common in various types of software, not sold in total, but working as a "service" for which you have to pay. And the reason is that the main audience of such “free” exchanges is millennials. Streaming and gaming services, where one part of the functionality is free, and the other part is restricted are a phenomenon much more common for the younger generation than for older people. The same situation is here, a free account and a "golden membership" do not cause rejection from the millennials.
But the main disadvantage of this, according to the information received from an anonymous insider, is that the average account size for Robinhood does not exceed $ 100. The younger generation often simply does not have much money to invest in their future financial well-being. According to the research, most of them have too much debt to save or invest. In addition, the cryptocurrency is not the most ideal investment: because of their properties investments into the cryptocurrency cannot be considered as a way to invest all the money and wait that they will bring double profit quickly.
In fact, the love for technologies played a pretty mean joke with the millennials. The idea that cryptocurrency is their way to wealth and comfort, cheated so many of them. Having brought all their savings to the crypto "Field of Miracles", they found themselves in the dumbland. Well, as we understand, this is "nothing more than marketing".