Vienna-based fintech unicorn Bitpanda returns to the ways of traditional finance (TradFi) through new offerings on its exchange platform.
By adding commodities to its list of available investment options, Bitpanda intends for its users to benefit from short-term price fluctuations in more traditional instruments such as oil, natural gas and wheat.
Bitpanda CEO Eric Demuth told Cointelegraph that due to investor demand, the line between TradFi and decentralized finance (DeFi) is becoming increasingly blurred:
“People want to be able to trade multiple asset classes easily, safely and conveniently, and TradFi is playing catch up with that idea.”
In both financial arenas, there are lessons to be learned about what benefits consumers most. TradFi is taking notes from DeFi in terms of accessibility, while DeFi has lessons to learn from traditional financial mechanisms in terms of risk mitigation:
“TradFi has been focused on expanding its accessibility, and that is driving a convergence. There is still some way to go before [pueda] pretend to have the same level of usability and accessibility offered by fintech”.
With estimates of over 300 million cryptocurrency users as of this year, traditional traders and DeFi are most likely on a path somewhere in between.
As major institutions around the world have caught up in investing in cryptocurrencies, the opening of trading opportunities with assets such as commodities on a digital asset exchange could also serve as a gateway to traditional instruments for crypto investors:
“Crypto investors tend to be heavily involved in tradable markets. They also appreciate the simplicity offered by platforms that allow them to make quick and easy investments across multiple asset classes.”
Demuth affirms that if the platforms can offer the accessibility and simplicity of cryptocurrency trading, but with listings that include TradFi assets, the investment possibilities are expanded.
Although it also emphasizes that in these cases, education about the pros and cons of each asset within the parameters of its place in the financial world must be emphasized.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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