Cryptocurrency Will Explode The Personal Finance Market
Over the course of the last 3 years, the number of investors in the cryptocurrency market has simply erupted. In 2017, investors were onboarding into the crypto market at such a rapid pace that countless exchanges would consistently crash due to the unprecedented server load.
In 2017, Coinbase even became the #1 app on the Apple app store. Since then, the rate at which investors are jumping into the market has only slightly slowed. In 2019, Coinbase announced they had crossed 30M users. That’s more users than Schwab.
Simply put, the cryptocurrency market is growing far quicker than the traditional finance market. Especially in one area in particular.
There are currently over 40 million cryptocurrency investors. While all these people share an interest in cryptocurrency, there is another attribute nearly every one of these investors share. That attribute is they manage their own portfolio.
Cryptocurrency investors don’t go to 3rd parties to manage their funds. Nearly all investors either store their digital assets on a personal hardware wallet, in their trusted exchange account, or in an online wallet account like Coinbase. The entire process of transferring, managing, and trading the assets is manual. Each individual person painfully keeps track of their assets while implementing a strategy that works best for them.
Personal asset management has become a cultural norm in the crypto market. It has become ingrained in the belief system of independence that is perpetuated by crypto. The simple idea that you can and should have the power to manage your own wealth.
But, there’s a problem.
Accelerating at such a breakneck pace has led to a shortage in the tools and services which are required to conveniently manage a portfolio of crypto assets. Essentially, they are non-existent. The market has grown so quickly that innovation in the asset management space hasn’t been able to keep up with the demand. There is a significant gap in the market which currently isn’t being filled.
Looking At The Traditional Market
There is a multi-billion dollar industry in the traditional financial market that focuses on personal asset management. Services like Wealthfront, Mint, Acorns, FutureAdvisor, Betterment, and SIGFIG. Each of these companies has found a way to serve consumers in compelling ways, making a lot of money in the process. That’s not even considering the countless other companies which compete in the traditional personal finance market.
The core reason these companies have started to become so lucrative is because of a slowly building movement by individuals to take control of their finances. To carefully manage the way we allocate our funds, track our financial goals, and align our assets with the personal ambitions we have in life.
This movement has grown slowly over the last decade, providing an opening for personal finance solutions to inject themselves into our lives.
Why does this matter?
The cryptocurrency market is saturated with investors who manage their own portfolios. Unlike the traditional market where the movement has built over the years, cryptocurrency was born with the philosophy of personal asset management from day 1. In fact, the concept of having someone else manage your Bitcoin when the first block was mined didn’t even exist. A personal estimate would place the percent of crypto investors who engage in personal finance practices to be in excess of 90% to this day.
90% of the 40 million market size places the current addressable market for personal asset management to be around 36 million investors who are engaging in personal finance. This market is growing by as much as 50% year over year. Quickly overtaking the traditional market.
Based on our projections, we expect the number of people in the cryptocurrency market who are participating in personal finance to overtake the number of those in the traditional market by 2023.
This is the fastest growing market for personal finance – and nobody knows it.
Not only are there insufficient services to fill the massive gap in this market, but the space is growing so quickly the needs of crypto investors are changing year to year, making it difficult to track.
Why should you care?
In the next market cycle, the largest opportunity won’t be in exchanges or ICOs, the largest unseen opportunity will be in the personal crypto asset management market. Millions of investors are flooding into the crypto space and they need better ways to manage their personal investments.
What’s happening in the traditional market is going to consume the crypto market, but in an amplified way. As previously discussed, almost every crypto investor manages their own funds. That doesn’t happen in the traditional financial system.
Crypto is a new way of thinking about personal finance. Taking ownership of your funds, managing your investments, and taking control of your money. We need personal finance solutions to meet the demand.
What can we do about it?
It’s time we divert our attention to personal finance in the cryptocurrency space. We’re calling developers to take a look at this emerging market and help us launch the services which will change the way we take ownership of our finances.
If you’re interested in building the future of personal finance, check out our developer APIs. These APIs can get you started connecting to every major exchange, collecting data, and managing user portfolios with only a few lines of code. It’s the quickest way to start developing without a lot of infrastructure overhead.
Let us know what you think! Do you have a different opinion on the personal finance market?
Shrimpy leads the market as the premier crypto portfolio management application. Users are able to configure a custom crypto portfolio and implement a passive portfolio strategy, removing the hassle of having to actively trade crypto.
Shrimpy Web Application: Shrimpy – Cryptocurrency Portfolio Management
Shrimpy’s Developer Trading API is a unified way of integrating trading functionality across every major exchange. Collect historical market data, access real-time WebSockets, execute advanced trading strategies, and manage an unlimited number of users.
Shrimpy Crypto Trading API: Shrimpy | Crypto Trading APIs for Developers