Professional crypto trading may change for the better with Tradelize’s new Direct Market Access (DMA) trading terminal
Trading Crypto Across Exchanges
A major gripe for seasoned crypto traders is that they are forced to trade across multiple exchanges. This is a major obstacle to profitable trading for the following reasons:
- There are a huge number of exchanges globally, each requiring different KYC processes
- Traders must operate one account per exchange and split their funds (and reallocating funds across exchanges takes time)
- Cryptocurrencies sometimes trade at different prices across exchanges and borders (the Kimchi Premium is the best-known example, albeit an extreme one)
- Traders need to manually monitor prices, volumes and liquidity across multiple exchanges
- Traders potentially incur more trade fees since they may end up making trades on unfavorable terms on some exchanges
This is not an exhaustive list. Talk to any serious trader and he or she will come up with many more disadvantages of trading manually over multiple exchanges.
To solve this problem, Tradelize is introducing a Direct Market Access (DMA) trading terminal that allows traders to trade across multiple exchanges from one Tradelize account. The Tradelize.Terminal software can be used on most regular PCs and will have an easy and accessible user interface for trading on major global cryptocurrency exchanges. Importantly, Tradelize users will be able to trade on all connected global exchanges without having to worry about different exchanges’ registration and KYC processes.
Through the Tradelize.Terminal, users will be able to analyze liquidity on multiple exchanges at the same time from a single screen. They will also be able to see a range of statistics, analytics and charts based on data from various exchanges. Finally, they will also be able to place trade orders on their choice of exchange using the Tradelize.Terminal, all from their single Tradelize account.
Crypto exchanges will be able to connect to the Tradelize.Terminal through their public APIs.
The Tradelize.Terminal offers the following features, among others:
- A Liquidity Depth Monitor tool that allows traders to observe liquidity depth on major exchanges. This could help traders predict major price changes for a given cryptocurrency. A feature like this could be helpful in identifying very large buy/sell orders that would increase price volatility.
- A Positions Monitor that watches all trades and shows balances across exchanges in one place.
- An Arbitrage Finder to help traders take advantage of cryptocurrencies that are priced differently on different exchanges.
- Customization of the Tradelize.Terminal user interface
- Risk management settings for individual and corporate trading accounts
- A Smart Order Routing tool that allows users to pick the best execution price and liquidity among major crypto exchanges
- Comparative tables for prices across all exchanges
- Multiple news feeds in one place
- Connect accounts from other crypto exchanges
In conjunction with the Tradelize.Terminal, Tradelize will also launch a brokerage service that aims to reduce transaction fees for all traders on the platform. Each trader will have a brokerage account with Tradelize that will consolidate all the trades made across multiple exchanges. Consolidating transactions will allow Tradelize to obtain the most favorable trade fees for traders.
In future, Tradelize’s brokerage services may add the following features, among others:
- Margin trading
- Historical data (for back-testing and bot creation)
- Dark pools (the ability to place large orders that are not visible to the market)
- Training for beginner traders provided by the best practicing traders on the market
- Co-locating Tradelize’s servers close to other exchange servers for faster order execution (a key factor for algorithmic trading)
In addition to the Tradelize.Terminal, Tradelize is also creating a trading ecosystem powered by the Tradelize (TDZ) utility token where anyone can copy the trades of professional crypto traders.
The Bottom Line
One of the reasons why cryptocurrency trading has not gained mainstream acceptance yet is because it is not efficient. There are way too many exchanges out there and they tend to play by different rules. Most have different registration and KYC rules and tend to quote different prices for the same cryptocurrencies. Tradelize aims to address these inefficiencies by creating a unified trading terminal that gives traders more options while potentially reducing trade fees.
We all know how personal computers made multi-tasking easier and more efficient, enabling us to accomplish much more than we used to. If Tradelize executes its plan properly and gains a large active user base, it has the potential to have a similar effect on cryptocurrency trading.
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.