Since the launch of the bitcoin and the blockchain technology, there has been a rapid growth and high rate of adoption over the past few years because of the great advantages this innovation presents to traders over centralized systems of fiat currencies. Bitcoin made payments and transactions easy, fast and secure online. There are many other advantages of bitcoin like transparency and ease of handling funds that made investors and onliners alike to massively adopt the innovation. Ever since then, the blockchain technology has found many other applications like the use of smart contracts in Fintechs, health, the building of neural networks to solve problems in Artificial Intelligence owing to it security, transparency, and ease of handling among others. All of these are made possible by the Etherium blockchain and other blockchains that allows projects (alternate coins- Altcoins) to be built on them. Because of this growing applications, there has been the blockchain ecosystem has known the launch of many altcoins.
But the blockchain technology and cryptocurrency have a major downside which has made many investor loose part or all of their investment in no time. This is because the cryptocurrency market is largely unpredictable. It is not like trading the fiat currency and other traditional stocks which by study and expertise, many experienced traders can profit. The blockchain technology is new and many still have a hard time understanding it. Just because of this many investors have a problem to break even. Many altcoins have decreased dramatically in value over time opening many investors to a high level of risks and fear to invest in other altcoins. Present risk management solutions are inadequate
If anyone will be able to profit on the blockchain, they need a measure to adequately and securely mitigate risks associated with high market volatility. This is what Bitrust offers, to help investors to adequately and securely mitigate risks associated with high market volatility thus allowing an increase in entry level for new adopters,
BITRUST is an affordable, decentralized, easy to use peer-to-peer (P2P) cryptocurrency insurance marketplace that is based on Ethereum, a blockchain-leveraging smart-contract technology. The objective of BITRUST is to be affordable for retail digital currency investors with an average monthly trading volume of between $100 and $100,000.
Bitrust is an easy to use insurance solution for investors so that new or experienced investors can protect themselves from risks associated with loss of value in altcoins. The platform allows the trader to meet insurers to insure a certain cryptocurrency position (either rise or fall). This is to serve retail Cryptocurrency investors who have an average monthly trading volume between $100 to $1000.
How it works
The platform allows traders and insurer to come to terms to insure a cryptocurrency position against other cryptocurrencies. For example, if a trader wishes to insure his funds against a percentage drop in the price of a particular altcoin with respect to another altcoin for a specific number of hours. He pays an insurance fee which is locked on the platform for the number of hours specified. An insurer comes to insure the trader with an amount, paid and locked on the platform. Their terms are sealed with a smart contract which is self-executing on the platform. If the price drops below the set percentage after the period of time, the insurance fee with the insurer’s funds which is locked on the platform is automatically paid to the trader by the smart contract (after a 0.1% fee is deducted). Thus the trader is able to mitigate risks associated with high market volatility. But if the price does not go below the specified by the trader for the length of time as agreed by the trader and insurer, the insurance fee with the insurer’s funds (minus 0.1% fee) is automatically paid to the insurer by the smart contract on the Bitrust platform.
For further information on BITRUST, you can read:
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