Amsterdam-based crypto exchange platform Bitvavo has announced that it has partnered up with DemaTrading.ai, another Amsterdam company that specialises in algorithm optimisation and automation for traders.
According to a statement, the partnership will “allow Bitvavo users to minimise exposure to single coin risk…this can be particularly interesting for investors who are not experienced in trading, don’t know which coins to pick or simply HODL.”
HODL is a term derived from a misspelling of “hold”, in the context of buying and holding Bitcoin and other cryptocurrencies. It stands for “hold on for dear life”.
Buy, sell and store over 175 digital assets
Launched in 2018, Bitvavo’s goal is to bridge the gap between traditional currencies and digital assets. The company offers an online exchange platform that makes it possible to buy, sell and save digital currencies in a simple and safe manner.
According to Bitvavo, the crypto market is growing in the Netherlands and becoming more mature. More than 1.6 million people own cryptocurrencies in the country and more than a million of them are Bitvavo customers. The company is registered as a digital currency exchange at the Central Bank of the Netherlands (DNB).
The company makes digital currencies available by providing low transaction fees, and a large scale of different digital currencies through its app.
Aim of this partnership
Investing in crypto indexes spreads the risk among the coins included in the index. With this partnership, Bitvavo users can now choose to invest in index strategies.
Users simply need to select the index and the investment amount; everything else is carried out automatically. The automation continuously analyses the market and updates the index frequently. As a result, the risk profile of the index is improved and the loss from single coin price swings is minimised.
In 2021, bots transacted billions of dollars’ worth of assets, and this number will only rise, says DemaTrading. There are two related implications. Firstly, investment choices will be less emotionally driven and more data-driven. And secondly, computerised portfolios will be beneficial to exchanges. As a result of passive investors now actively participating in the market through these indexes, investments will carry lesser risk while total trading volume grows.
Demian Voorhagen, CEO of DemaTrading.ai, says, “We believe in the enormous potential of crypto as a source of passive income for many people. The S&P 500 is very common for traditional investors, why don’t crypto platforms offer something similar? At the moment crypto is not so accessible for new investors, we want to solve that.”
What does DemaTrading.ai offer?
Founded in 2021 by Demian Voorhagen and Marijn van Rijswijck, DemaTrading.ai’s mission is to create an automated trading bot platform for anyone to create and activate trading algorithms within minutes.
The startup looks to provide both novice and experienced cryptocurrency traders with an equal playing field. Its goal is to give traders who are just starting out the tools they need to compete with expert traders, including simplicity, full control at all times, and internal automation and algorithms.
“We enable advanced traders to automate and sell their investment strategies, while we strive towards a future of straightforward trading by effortlessly implementing strategies with the click of a button,” says DemaTrading.ai.
The startup also publishes lists of indexes such as the top 5, top 10, or top 20 portfolio bots. The BOTS app, Bitvavo, has these accessible. Currently, most exchanges offer coins but barely indexes as the traditional market does. DemaTrading hopes to change this and offer indexes on every partnered exchange.
The company has raised €250K in funding and is currently preparing for its next funding round.