Tradelize enables professional crypto traders to earn extra income by recording their trades on the blockchain for others to copy.
What is Tradelize?
Life can become a whole lot better with multiple sources of income.
As profitable as cryptocurrency trading can be, professional traders are currently limited to only one source of income: their trading profits. Up till now, many traders do not earn additional income from their most valuable asset – their trading knowledge.
Tradelize, a company that is creating a blockchain-powered crypto trading ecosystem, will enable professional traders to earn additional income when others copy their trades.
Basically, Tradelize will record all professional traders’ trades and statistics on the blockchain. Other followers on Tradelize’s platform will be able to copy the trades of professional traders. If the copied trades turn a profit, the original professional trader will get a share of the profit in the cryptocurrencies that he/she traded.
Tradelize seeks to appeal to both professional traders and inexperienced crypto investors and enthusiasts. The ecosystem will be powered by the Tradelize (TDZ) utility token.
The Tradelize ecosystem will feature the following components that connect inexperienced traders, investors and professional traders:
- Terminal: serves professional traders by allowing them to trade across multiple global exchanges. All trading happens on the Tradelize.Terminal
- Web & App: allows newcomers and investors to make informed decisions by copying the trades of their choice of professional traders.
- Score: integrated into Tradelize.web, will identify the top-performing professional traders. Other Tradelize users can choose which pro traders to copy based on their Tradelize.score.
How can you profit by making your trades visible on a blockchain?
It seems strange to suggest that revealing your trading strategies could make you money. However, that is exactly what Tradelize is proposing. In fact, their ecosystem is geared to allow everyone (professionals and copycats) to profit from this technique.
In short, the process works as follows:
- Professional traders carry out their trades on Tradelize.Terminal.
- Trade data, results and other statistics are recorded on the blockchain.
- Successful traders are awarded higher scores.
- Non-professional trade copiers choose to follow the professional traders with the highest scores, effectively copying their trades using Tradelize.Web and the App.
- If a copied trade turns a profit the original professional trader gets a share of the profit, payable in the cryptocurrencies that he/she transacted in.
- Over time, the successful traders will amass larger numbers of followers, resulting in a healthy alternate revenue stream.
How profitable can allowing others to copy your trades be?
Nobody can guarantee or accurately guess the extra income that a professional trader can earn by having others copy his/her trades, consider the following example (numbers used here are for illustrative purposes only).
Let’s say that a successful professional trader only has USD 50K to trade with. However, other followers may collectively devote as much as USD 500K to copy this trader’s trades. If the trades are profitable, the original trader gets a small percentage of the profit. The professional trader can set this commission rate (assume he sets it at 1%). In this scenario the trader’s additional income from other traders copying his trades is USD 5,000, or 10% of his total funds. That’s a 10% return for doing no extra work, keeping in mind that pro traders can set a higher commission rate than 1% if they wish.
Won’t my trading strategies become ineffective if others copy them?
All trading strategies lose effectiveness over time anyway. This is true both for crypto trading and for traditional securities trading.
The advantage of using Tradelize is that professional traders can potentially earn income from two sources: (1) returns from their own trades based on their limited investment, and (2) profit commissions on copied trades for which investment amounts are potentially unlimited.
Besides, most pro traders can come up with multiple strategies as needed and many traders change strategies regularly to try and beat the market. With Tradelize, they simply have an additional means to earn income on the sum of their trading knowledge.
In other words, pro traders should not feel threatened by people copying their trades. In fact, allowing people to copy your trades is like receiving royalty payments on your trading knowledge – as long as your trading reputation is high, you can continue to receive profit commissions from followers.
For more information on Tradelize’s products please visit their website.
Disclaimer: Investing in cryptocurrencies, and digital tokens is highly risky and speculative. The material presented here is for information purposes only. This information presented here is not intended to provide any sort of investment advice, nor does it recommend any company, or digital token and should not be taken as the basis for any investment decision or strategy.