Navigating the ever-changing cryptocurrency market can be a challenge for investors, who often descend into the depths of the industry without any guidance. Some have taken up the task of developing tools to help traders direct their strategies and try to maximize the performance of their investment portfolio.
3Commas, an automated platform for cryptocurrency trading robots, is one of those companies that aims to provide users with technology that helps their trading strategies. In a conversation with Bitcoinist, Yuri Sorokin, CEO of 3Commas, shared valuable insights into the role of automated trading tools in the market, what has changed over the past two years, and where the industry could be headed in the coming months.
Q: Can you tell us a little about yourself and 3Commas for those who aren’t familiar with the platform?
A: I’m Yuri Sorokin, CEO and co-founder of 3 breaks. Our platform was launched in 2017 with the goal of empowering traders by making professional Wall Street tools available to everyone.
Today, thousands of traders and developers use our platform to automate strategies and build their own products and services. And this is where we believe our core strength lies – a reliable and scalable infrastructure that simplifies complex trading processes for advanced and professional traders.
Q: If a trader is looking into an automated trading method to navigate between different states of the market cycle, what should he consider before making his decision? How is 3Commas different from similar tools on the market?
A: When considering automated trading, traders need tools that provide accuracy, flexibility, and the ability to adapt to different market conditions. 3Commas is specially designed for experienced traders who already know the market and need advanced solutions to optimize their strategies across multiple exchanges.
With flexible integration options like custom signals, webhooks and TradingView strategies, we help traders focus on what really matters – executing their strategies efficiently without getting bogged down by technical hurdles. Our tools are designed to make your trading life easier, which is why so many traders trust 3Commas to keep them ahead. Since 2017, we’ve processed over $450 billion in trades, and it’s this trust that keeps experienced traders coming back to 3Commas as their solution of choice.
Q: Are you still “builders and tinkerers at heart”? You previously mentioned that 3Commas arose out of the need to manage your cryptocurrency portfolios, what has changed since the company was created, what new features and products are available to your users?
A: We are certainly still builders and problem solvers at heart. What started as a tool to simplify our trading has evolved into a trusted solution used by thousands of traders. We are now shifting towards institutional clients, such as fund managers and family offices, who need more advanced tools.
One of our biggest developments was the launch of our asset management product, which is specifically designed for professionals managing multiple accounts. It enables them to efficiently implement advanced strategies at scale. As we have grown, we have always kept reliability and performance at the core of what we do. Our system now handles over 1 million active trades, giving advanced and institutional traders the speed, stability and efficiency they need. We constantly work to stay ahead of the curve, building tools that evolve with the market and meet the changing demands of professional traders and investors.
Q: At EBC10, you discussed the future of asset management in a world where tokenization continues to grow. What is most exciting about the role of crypto and blockchain technology in asset management? Do you think coding will be the gateway to mainstream adoption in the long term?
A: I believe tokenization will be a critical driver for mainstream adoption, especially as it bridges traditional finance and the cryptocurrency space. What’s exciting is how blockchain technology can create greater liquidity and access to assets that were previously illiquid or out of reach for many investors. This opens up new possibilities for asset managers and institutional players, providing a more efficient and transparent way to manage and transfer assets.
For us at 3Commas, this shift aligns perfectly with the tools we build, particularly in the asset management space. As tokenization grows, we are focused on providing advanced traders and institutions with the automation and infrastructure they need to efficiently capitalize on these opportunities.
Q: Where is the cryptocurrency industry in terms of adoption? This year we have seen the sector take decisive steps towards mainstream recognition and adoption by approving cryptocurrency-based exchange-traded funds (ETFs). What do you see as the next milestone that could attract more traditional investors?
A: The cryptocurrency industry has seen two distinct types of adoption. In wealthier countries, this is often part of the investment strategy, while in regions with less stable currencies and unreliable payment systems, cryptocurrencies have become an essential part of the daily economy.
This divided adoption is not a drawback, it is actually a testament to the diversity of cryptocurrencies. For investors in developed markets, cryptocurrencies provide portfolio diversification and risk hedging. In emerging markets, it provides a safer alternative to cash and allows access to global financial systems, enabling loans, currency transfers, and more.
Now that the ETF barrier has been broken for Bitcoin and Ethereum, the next major event will be the creation of ETFs for other promising currencies such as Solana, XRP, and Cardano. After that, I see the next big step being integrating cryptocurrencies into more traditional investment vehicles, such as allowing people to include cryptocurrencies in their 401(k) or Roth IRA portfolios. These developments can significantly increase mainstream adoption and attract traditional investors.
Q: Finally, as we head into Q4 2024, how can investors best leverage automated trading platforms during the second phase of an uptrend?
A: Timing is crucial in a bull run, and it’s easy to get caught up in the hype. This is where automation comes in. The key is to let automation handle the emotional side of trading and optimize the bots for cost efficiency with the amount of risk you are comfortable with. There are a lot of peaks and valleys during a bull run, and these are opportunities for experienced traders to achieve a lot of success.
Perhaps the best part of automation, besides being able to use strategies that cannot be achieved through manual trading, is the ability to step away from your computer and go do something else while your robots continue to work. For professional traders and asset managers, this means more time for technical analysis and client relations and less time spent entering transaction parameters.
If trading is a strong interest of yours, or is your profession, I invite you to see our software for yourself and see how 3Commas automation can make your trading more efficient.
Bitcoin (BTC) is trading at $74,279 in the three-day chart. Source: BTCUSDT on TradingView
Featured image from Pexels.com, chart from TradingView.com