Caspian: One Interface That Gives Crypto Traders Unrestricted Access To Trade On All Exchanges

in #cryptocurrency6 years ago (edited)

IMG_20180813_174058_101.jpg
Whitepaper

Growth of digital assets inform of cryptocurrencies has increased, since mass adoption of Bitcoin started in 2014. It led to development of new currencies call alternative currencies, previously referred to as Bitcoin 2.0 in early days of Doge and HTML. Fast forward to 2016, we now have several hundreds of currencies listed on coin market. For new adopters, the confusion start when there is need to choose exchange that will be used for trading, there are more than 200 cryptocurrency trading exchanges as at the time that information used in this article is being compiled. Professional traders are not spared in this pool of choice, they have tokens in many exchange platforms, to the extent that trading becomes burden for traders.

In this article, a platform that focus on improving traders experience, providing one-stop website for all kinds of traders, giving improved alerts and limits functionality, and increasing cryptocurrency adoption rate will be articulated.

Available Solution And Inherent Problems

Tab Trader Mobile App

For a good number of times, tab trader app was used by millions of traders because of it ability to provide spot prices of coins and tokens as it changes on different exchanges. It allow users to trade using accessible data from different exchanges in form of API (Application Programming Interface).

Problems

I. In-app trading tools are not sufficient enough for professional and advanced traders.
II. No web interface to interact with and the application have only one point of failure
III. Traders must open and close their position on multiple exchanges.
IV. No Order and Execution Management System (OEMS), it makes trading activities feel cumbersome to investors.

Without doubt, jumping from one exchange to another will reduce traders' productivity and profit. Risk and position management is made difficult because of multiple exchanges. Due to the fact that it is a big task to harmonize the outputs of various exchanges, having good report and compliance requirements can stand in the way of investors.

Caspian's Solution

Caspian is the brainchild of reputable institutions (Tora and Kenetic), it is a platform created to increase interoperability and connectivity across several cryptocurrency exchanges. It gives investors opportunity to analyze their trades using compliance and reporting functionality without signing into multiple sites.

Caspian will provide traders with management tools like Position Management System (PMS), Order and Execution Management System (OEMS) and Risk Management System (RMS).

Caspian Will Improve How People Interact With Digital Assets

In the ecosystem, learning to understand how cryptography system work and how people can leverage on it, is already a big issue for new adopters in the blockchain industry, having to register on dozens of exchanges is going to serve as great turn off for potential investors amidst security concerns.
By defragmentating exchanges, entry barrier to trading is lowered, since one powerful tool can be used to trade on other exchanges, thus more people will find it easy to trade, there will be more volume through increased trading activities.

Having Access To All Portfolios In One Place Provides Comfort For Asset Managers

IMG_20180813_134913_692.jpg

To institutionalize investors, the followings are important factors; liquidity, reliability, speed, security and well documented trade history for compliance and reporting. Now let us examine these.

Unreliable Trade Execution: in the industry, no tool is available for monitoring of capital deployed by a large portfolio trading or transacting on multiple exchanges, this is causing rebalance problem. There have been many cases where users got locked out of exchanges for days due to technical issues. Also, not many exchanges have capability to handle large order volume.

Lack of Security: without proper risk management, traders would be faced with counterparty risk on individual exchange. When an exchange is hacked, investors funds go down the drain. Fragmented market run the risk of low liquidation for users to fully exit trading position. This is bad enough.

Lack of Reporting and Compliance: If asset mangers have to pull basic information like liquidity risk, performance summary and portfolio returns from different sources, it lowers confidence of investors and stakeholders.

Caspian gives tools that will help us address current market derelicts. As the ecosystem get bigger, institutional investors would need more robust tools for decision making. These tools are available on Caspian.

Investors are given important trading tools like OEMS, RMS and PMS on a user-friendly interface. This will onboard institutional and experienced investors, because they will have access to top notch customer support, reporting capabilities amidst position management.

Why would you go wider, when you can go deeper?

Benefits of Being Able To Set Limits and Alerts

As one who have mentored several people on digital asset exchange in last two years, order limits and alerts are primary factors to be considered in selection of exchange. Without alert, traders will miss out of good positions. Without flexible orders, investors can lose funds or entire asset due to market volatility. The benefits of Caspian can be categorized into three;

  • Position management
  • Execution and
  • Compliance

Execution

Caspian unified control center is well optimized for fast trading, this is a huge benefit to traders and fund managers. This is design to cater of users need in cryptocurrency ecosystem. With single interface, you have access to major digital asset exchange, SOR (Smart Order Router), live price actions in each exchange. Also, you can set buy and sell order in multiple exchanges, use messaging services in those exchanges, then view and manage margin across them. Read more about Smart Order Router on page 11 of the whitepaper.

Position and Risk Management

Caspian tools allow users to fully monitor risk and positions using tested and trusted tools. This allow managers to maintain consistent record of trade actions, the tool is designed to track every piece of information. When reliable data is available, traders can have a bird eye view of their historical data, and informed decision would be made.

Compliance and Reporting

This tool offer extremely low latency, good functionality and framework. It is designed in a way that multiple levels of limits are effectively implemented.

Alerts

This is a tool that allow users to configure alerts, which can be sent via email or pop-ups. Alerts can be programmed so it will trigger at various conditions, indications and parameters.

On Caspian, you won't miss out of good deals

How Caspian Will Increase Cryptocurrency Adoption

images (20).jpeg
Source

With robust architecture and easy to understand functionalities, users would be encouraged to give priority to trading since thought of managing assets across multiple exchanges is mind boggling. Caspian guarantees security of funds, high performance, reliability and scalability- these features are important in modern trading.

Developer who can build useful trading tools would be rewarded with CSP token which is the base currency on Caspian. This will encourage technology innovation that will be beneficial to the community.

There will be development bounties for developers, and community bounties for all users. The company will reach out to asset management institutions, expand into cryptocurrency communities, organize trading competitions, promote Caspian through events, tech meet ups, events and conferences. All of these, when combined, will bring new adopters into cryptocurrency ecosystem.

NOTE: CSP to Caspian is what BNB is to Binance, it is a token that guarantees some form of discount. However, not having it is not a barrier, users will have access to almost all tools, except staking, and access to tools that require subscription or purchase.

Shortcomings of Managing Assets In Multiple Exchanges

For a trader to be successful, he must be productive. Productivity is not achievable without good time management. Now, how is it possible for a manager to save time when assets are scattered all over multiple exchanges? Navigating through tabs is a huge task, it should be avoided, now that Caspian has arrived the scene. Poor time management is actually one of the demerits of trading in many exchanges.

Low liquidity is another problem. Only top 10 out of over 200 exchanges can provide reliable liquidity, so this is a big problem that big investors would face.

Lack of adequate trading tools. Currently, users depends on external tools offered by trading view and similar websites, many advanced technical analysts do not find it so easy to chart using old and unreliable tools offered by old exchanges.

Final Thought

Caspian is not designed to disrupt anything in exchange system, rather, it aims to harmonize all of them. A single trading tool for all of exchanges means more volume for them as trading activities increases across the world.
Many exchanges offer tokens through ICO to raise funds, but this is this first time a company is offering what we can truly refer to as utility token on ethereum blockchain.

Meet Caspian Team

1534164239465.jpg

Images were sourced on Caspian website and compiled by @autofreak.

Strategic Partners

IMG_20180813_135254_202.jpg

Project Road Map

IMG_20180813_174035_229.jpg
Page 19 of whitepaper

Additional Use Cases

1. Every blockchain project developer is aware of barriers involved in listing their coins/tokens on exchanges, especially the top ones. Caspian can actually reduce or eliminate this barrier by forming alliance with other exchanges in a way that assets that are listed on Caspian are automatically listed in partners exchanges.

2. CSP can be used in supporting educational services on video host websites like Youtube. For instance, professionals can be rewarded for creating quality video that will enlighten people about trading and how to use Caspian. These contents will become exclusive property of Caspian and they can be made available in the blog, which is going to be a subdomain of https://caspian.tech/.

Whay I Have To Say About Caspian

For More Information About This Project

Kindly visit Caspian website or talk to the project team on telegram. To have a good understanding of how the platform work, read project whitepaper.

Additional Information

This project was brought to your notice by @originalworks, read more about it here

Most images are from Caspian websites and whitepaper, and those that are not were properly sourced.

Tweet

Caspian2018

Sort:  

This post has been submitted for the @OriginalWorks Sponsored Writing Contest!
You can also follow @contestbot to be notified of future contests!

Coin Marketplace

STEEM 0.35
TRX 0.12
JST 0.040
BTC 70753.86
ETH 3589.34
USDT 1.00
SBD 4.75