If you think traders give crypto a bad name, just imagine an industry without them. This op-ed is part of CoinDesk’s Trading Week.
A disclosure: I have always thought that the price of crypto assets is their least interesting feature. By now any traders reading this are probably howling in disgust, and I don’t disagree with that reaction – my point is that crypto is about so much more than “alpha.” Nevertheless, I acknowledge that trading is a key factor in the industry’s growth, and deserves more respect than my glib comments might imply.
This op-ed is part of CoinDesk’s Trading Week. Noelle Acheson is the former head of research at CoinDesk and sister company Genesis Trading. This article is excerpted from her Crypto Is Macro Now newsletter, which focuses on the overlap between the shifting crypto and macro landscapes. These opinions are hers, and nothing she writes should be taken as investment advice.
This is worth unpacking a bit. First of all, what do I mean by “trading”? For the purposes of this discussion, “trading” involves the buying and selling of crypto assets and related derivatives on a short time horizon with a view to making a profit. I also have in mind individuals and institutions who explicitly are there to make a profit based on their decisions, rather than market makers who trade based on client moves and who provide a necessary market infrastructure function. Of course, this is a simplification, but it helps to differentiate “trading” from longer-term “investing.”