Swissquote to give Bitcoin traders a financial cushion

Now you can apparently invest in Bitcoin without fearing investment risks, tells Bloomberg. At least, Swissquote Bank SA claims it has managed to develop the mechanism that would ensure doing this. An algorithm designed to detect the market sentiment and “technical signals” will automatically change bitcoins for fiat money so that the funds stability never ends.

SIX, a Swiss exchange, will be a marketplace on which this trade mechanism is going to be used. Swissquote will use a buffer sum of dollars for every holder, the exact number depending on the chosen algorithmic strategy.

Financial institutions are now willing to work with Bitcoin, but they seem to be aware that the members of the traditional market, who are very used to consumer protection and assets stability, would not be thrilled with sudden drops of the value of this cryptocurrency. Bitcoin futures, being separately developed by CME Group and some Swiss organizations right now, will have such measures pre-installed due to governmental demands. This Swissquote project goes even further and offers a financial cushion.