Crypto Paper Trading
We had an interview with the CEO of Brokerless.CC, Mark Sea. This post recorded a dialogue between us.
Brokerless.CC is different from crypto exchanges. A lot of crypto enthusiasts are interested in our business and asked many questions. Interestingly, I found they got us wrong. That made me think that an article to clarify our business is really important and necessary.
Once I had the experience to introduce our business to some adviser for exchange listing. He told me to get a license for crypto wallet , license for security regulation and something else that I don't think is necessary for our business. So I explained further regarding how we do business, what the business model is.
He finally understood that we are not exchanges, we don't do the delivery of the crypto coins. He told me, in his terminology of finance, trading means delivery and exchange for some security.
What does ‘trading’ mean in our business?
In the OTC trading platform, trading means opening trade or order executed to make a deal. For example, we can use Fintechee as our trading terminal. Actually, the definition of ‘trading’ in our business – Brokerless doesn't change at all.
Because it's crypto paper trading and there are financing and margin in the open position, the instrument that traders bought is unable to be delivered. It only appears on your trading history and open trades list. Not like a crypto exchange where the trades will be settled and coins to exchange will be delivered when traders send orders to buy or sell some coins.
This mechanism is very flexible because traders have more instruments to invest in. Not just limited in the crypto world. We all know in the crypto world, a lot of coins are issued by scammers and they have no value.
So, trading an instrument existing in the real world can make the deal more solid.