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Investing - Apr 28, 2018

The Cryptocurrency space often moves at an incredibly frightening pace.

Qompass (QPS) - Taking the exchange philosophy to another level- @QompassMarkets

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If a person misses one day in the world of crypto, it can often feel like he or she has missed a month in comparison to other world events and markets. This incredibly fast paced world of blockchain and cryptocurrency is due to the constant innovation of current and future projects. It seems every day there are more projects trying to improve on other projects, or bring new ideas to fruition. The cryptocurrency space has some incredibly brilliant people involved, as well as innovations that would have once been thought impossible.

In keeping trend with such innovation is the Qompass project. Qompass looks to provide further innovation to an already incredibly innovative space. Qompass looks to provide a product, service, and crypto asset, that are on another level than what is currently available. A step up from the competition if you will. What sets Compass apart from the competition? Lets find out.

There are many options with regards to current cryptocurrency exchanges. Some can be considered good, some average, and some very suspicious. It can often be the norm for traders to require use of multiple different exchanges in order to perform certain functions, with the lack of a “one stop shop” option at this time.

Current Crypto Exchanges - Leverage:

It can be very frustrating at times to find a reputable exchange to trade with leverage, while at the same time offering high leverage and low barrier for customer entry.

Qompass Solution - Leverage:

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Qompass will offer up to 100:1 leverage for customers, depending on deposited amount of funds/subscription package. There are many reasons this may be of high value for customers. For example, lets say Trader A has $10k saved for trader crypto, but he doesn’t want to send all $10k to the Qompass exchange for security reasons (fear of having that amount of money on one exchange as possible hacking risk). If he only transfers $1K to his account, he would still be able to trade up to $40k of value (based on subscription), while also having the peace of mind that if his computer or account were compromised, there would only be risk of losing 10% of his equity, versus all 100% (only 10%, $1k, would be on exchange).

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Take another example. Trader B also has $10k saved for trading and investing purposes. Trader B is not concerned about security, but only wants to trade with $1K and invest the other $9k into longer term crypto assets. Trader B would be able to do this much more effectively and have the best of both worlds with Qompass, so to speak. He or she would have the trading leverage of $40K, while also being able to simultaneously invest $9K for the long term in other crypto assets.

(*Trading with leverage can be an excellent tool for experienced/professional traders. However, customers should be very careful, in that trading with leverage also has very high risk of loss associated. Use at your own risk.)

Current Crypto Exchanges - Liquidity:

Many current exchanges can have liquidity issues, even with smaller amounts of funds. This can be anything from customers having difficulty getting orders filled at exact pricing, to customers not not being able to withdraw large amounts of funds in a short time period.

Qompass Solution - Liquidity:

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Qompass looks to employ an innovative approach to providing large amounts of liquidity, often unavailable to the current crypto world. Qompass has secured five agreements with financial institutions (with more in negotiation), in order to look to provide significantly more liquidity.

Why is this important? In concept, Qompass looks for these institutions to buy large amounts of top crypto assets. This should in turn, mean that institutions will invest large amounts into top crypto assets for longer term holdings, and then have those assets available for Qompass to use as liquidity. This seems similar to how banks operate. Normally, banks do not have cash of all their customers on site all at one time. Customers put their money into banks and receive interest on those funds. In return, the bank uses that money for liquidity, but also ensures that the customer has those funds if he or she needs to withdraw funds, due to the added liquidity of a large customer base. So by having multiple institutions on board for their system, Qompass should have enough liquidity, even if one of the institutions needed to cash out. If that is the case, then smaller customers should have no problem cashing out large amounts, or seeing greater levels of liquidity for trading.

Technicals of Institutional Liquidity on Qompass:

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This level of liquidity will be possible through an open API platform. APIs are keys/passwords that allow certain approved users to access information and accounts. “An open API platform allows financial institutions, banks, centralized and decentralized exchanges to integrate directly into Qompass’s liquidity pool offered through interlinking” (Qompass whitepaper, p. 23).

Current Crypto Exchanges - Artificial Intelligence / Neural Networks:

To the knowledge of this writer, current exchanges do not have any options for AI, neural networks, price forecasting, trading intel, etc. Current exchanges do have certain charts and TA tools/algorithms available. But even in this regard, customers often must use a third party source for their charting and technical analysis, in that most exchanges currently have inadequate tools available within their system.

Qompass Solution - Artificial Intelligence / Neural Networks:

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This aspect of Qompass appears to be a truly next-level innovation from what is currently available commercially to retail crypto traders and investors. Someone who is highly tech savvy may indeed be able to come up with there own system to use AI / neural networks to their advantage. But this would seem rather difficult for most. Qompass looks to make this aspect of trading available to customers.

Artificial intelligence has been shown to have the capacity to learn from previous mistakes and events. Artificial intelligence can be defined as the outermost layer of machine learning, where neural networks are the innermost layer. The Qompass system uses this artificial intelligence to attempt to predict future events based on previous events and outcomes. As one can imagine, this may prove very helpful with trading, where people are trying to make money based on the future.

“In recent years, many studies have demonstrated successful applications of Artificial Neural Network (ANN) for accurate predictions in finance. [Gurusen et al.] presents a detailed survey of more than 25 contributions available in scientific literature on the application of ANNs in the financial field in the last few years… [t]heir conclusions have confirmed that ANN-based solutions outperform other statistical and mathematical approaches in most cases” (Qompass whitepaper, p. 14).

Current Crypto Exchanges - Fiat Gateways/Cold Storage:

Sending fiat money directly to exchanges is somewhat of a difficulty at times. Many exchanges do not have this option. And the ones that do, often have a lack of variety with regards to crypto assets to choose from, when referring to fiat-to-crypto asset trade pairings. A limited amount of current crypto exchanges have fiat gateways paired with variety at the same time. Cold storage is also often an issue as current solutions are limited with regards to in-exchange solutions.

Qompass Solution - Fiat Gateways/Cold Storage:

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Qompass looks to provide a fiat gateway to their platform, with the added innovation of a payment/debit card, that can also double as a cold storage option for customers. This is a unique aspect for an exchange, in that it will look to provide much greater amounts of convenience to customers on many levels. Card holders can use the Qompass card “to withdraw fiat from any ATM and make payments at POS. Qompass also offers payment options using Mobile Wallet, and facilitate contactless payments via NFC, and QR” (Qompass whitepaper, p. 21).

When all the positive information about Qompass is taken into consideration, one cannot help but feel excitement for their platform, and to hopefully see this next level cryptocurrency experience come to life and thrive in the space.

*Article written based on my interpretation of the data.


Qompass Whitepaper

*This is a sponsored content post. All opinions expressed in this post are based on my personal view and should not be considered financial advice for anyone to buy or sell anything. Always conduct your own independent research before making decisions for your portfolio.


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