TRAKX : DAWN OF THE NEW AGE IN CRYPTOCURRENCY TRADING

For most ends of the world, blockchain, cryptocurrencies and tokenization is the first opportunity that the retail investor has for accessing the object of investment /trading e.g. shares etc directly. Generally, trading is done through a third part called the stockbroker. The stockbroker then is the one who had ever had need to master the technicalities of trading and portfolio management.

For the retail investor, it sufficed to know simply – “Did I make a gain or a loss? “. It is for the same reason that ,  inspite of the reported large wealth that can be made from it, the average retail investor standardly accepted that “ the fear of forex” is the beginning of wisdom”

In the beginning when the number of cryptocurrencies and tokens were few, it was simple enough. There was hardly any need for the complex strategies of the stock trading realm. Simply get yourself a wallet, key into a new instrument at a point appropriate to your capacity to wait – Private pre-sale, Public presale, ICO, Exchange and watch the market for a good time to sell.

As the number of instruments ballooned into the thousands and not just the number of of exchanges but also their variety increased, the old strategies of the stock broking world started getting attractive again.

The uninformed retail trader found out that luck or hope no more sufficed; deeper knowledge of strategies were needed to avoid devastating losses and maximize gains.He started hearing of terms like volatility, hedging, investment basket, FTE, CTI, Leveraged basket, Asset Under Management etc,. He became confused.

One of the main virtues of the Trakx project therefore is what its whitepaper says on p. 6 “ to make investing a seamless and straightforward experience”.

To fully comprehend the import of this help, one needs to recollect that the estimated potential worth of the market is $3,000bn. Imagine yourself the uninformed retail trader , trading without mastery of the sophisticated strategies and making consistent losses.  It is like being thirsty in the abundance of water. Then suddenly someone shows you how to access not just any water but drinkable one.That is how I rate the help that Trakx offers.


 Trakx shows all the signs of being well thought out and being in the hands of competent and sincere persons.

 Some of the signs are :

1.       The decision to make the project a one stop shop for trackers. Trakx plans to provide CTIs for all kinds of strategies, thereby removing from the crypto trader any need to register at many exchanges.

2.       The choice of passive over active portfolio strategies. Passive strategies tend to outperform active strategies on an historical basis and therefore can provide better returns based on cost saving alone.

3.        Use of cold wallet storage. The frequency of hacking and the status of the targeted victims is sometimes reminiscent of the going down of The Titan and makes one shudder . The use of a mix of cold wallets and on-site storage is definitely s sensible choice.

4.       24/7 trading time. This is one of the benefits of passive management. It reduces the cost of operations and ensures that all persons from all time zones of the world can participate in the project without any loss of convenience.

5.       Transparency. Doing business with people you do not know or see is an essential trait of on-line business and the risk is higher when you are not just doing a one-off transaction but actually handing over your investment asset on a medium to long term basis.

Trakx mitigates this through three significant provisions

a.       Auditing by a Big4 auditing firm

b.      Periodical publishing of key indices like holding  and

c.       Giving the user the ability to track what investments their CTIs hold, the relative weighting in the structure and whether or not the CTI has changed in position in any particular investment

From my interaction with other potential users of Trakx, the provision for Inverse CTIs and Leveraged Inverse CTIs seem to give the project a more than ordinary attention. This is not surprising. After all,  one of the main reasons for trading through a more informed third party is to hedge against possible losses. 

I have heard the following  portion of the Whitepaper quoted  again and again. 

“ Inverse CTIs move in the opposite direction of the underlying asset. For illustration purposes, if Bitcoin declines by 10% on a given day, the Inverse Bitcoin CTI will gain approximately 10% on the same day”

Trakx is exciting. Trakx is the dawn of the new age in cryptocurrency trading.

It probably would still be in place to advise every potential user that while Trakx is sure to be a good hedge, there are still choices to be made and he, the user , looses nothing from acquiring some more knowledge about how Trakx particularly and the entire investment environment operates.