During the early 19th century, members of the New York Stock Exchange had to follow a strict dress code and could only go onto the floor to make trades if they were suited up in top hats and dress coats.¹ In addition to their formal attire, members had to pay a $25 member’s fee - that’s about $560 today.² Needless to say, most individuals didn’t have the education to understand the market or the cash needed to invest, making the market’s barrier to entry pretty high.
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How Plynk is helping lower the barrier of entry to the crypto market
However, over time, investing became easier for the average person. The creation of cryptocurrencies like Bitcoin made investing more accessible and financial investing apps like Plynk made it easier to get started. Despite these advances and its increasing presence in mainstream media, there’s still a gap in the crypto space. Only 16% of Americans say that they have ever invested in, traded or used crypto.³ So, what’s holding investors - specifically new investors - back and how can they jumpstart their crypto journey?
Unlike the standard trading hours that investors in the stock market have to follow, crypto investors can trade crypto 24/7, worldwide.⁴ This all-day, everyday nature makes crypto more susceptible to volatility, compared to the stock market. This is due, in part, to rapidly changing prices, inciting investors to trade in response to late-breaking news or public sentiment. The crypto market’s breakneck pace itself can pose a challenge to new investors.
There’s also the potential for a lot of hoops to jump through if you’re just getting familiar with crypto, which may overwhelm new investors before they even get started. From not having enough money to not possessing the skills to navigate it, investing in crypto and the stock market both have had reputations for being hard to understand and navigate.⁵
What’s more, there are plenty of differences between the nature of cryptocurrencies compared to fiat currencies, like the dollar or euro.⁶ Unlike the US dollar, crypto isn’t owned or controlled by the government, which decides how much cash is in circulation at any given time, by printing more money or removing cash from circulation.⁷ These actions can drive inflation up or down, which translates to the purchasing power of a given currency. Cryptocurrencies like Bitcoin, Bitcoin Cash or Litecoin, however, have a finite supply. There can never be more than 21 million bitcoins in circulation and no single authority can control the value of Bitcoin, meaning it’s decentralized.⁸ These are only some of the many differences between the two currencies.
While successfully investing in crypto may seem out of reach for some investors, it doesn’t have to feel like a shot in the dark. Loaded with in-app educational materials, Plynk is designed to help beginner investors start investing and give them the confidence to keep going. With Plynk, new investors can learn about the market, understand the volatility of crypto and get into the market for just a buck. It’s investing that just clicks.
Keep in mind that investing involves risk. Screenshots are for illustrative purposes only.
Fees apply to individual crypto trades.
Cryptocurrencies are volatile and highly speculative, and you may lose the full value of your investment. You should carefully consider your financial circumstances and risk tolerance before trading crypto. None of the legal protections associated with your brokerage account at DBS (such as insurance under the Securities Investor Protection Act (SIPC)) apply to your crypto assets. Crypto assets are also not protected by the Federal Deposit Insurance Corporation (FDIC).
Plynk is a service of Digital Brokerage Services LLC, Member FINRA, SIPC. Buy, hold, and sell crypto through Paxos Trust Co.
1. The History Channel. Wall Street Timeline https://www.history.com/topics/us-states/wall-street-timeline. Accessed December 8, 2022.
2. Official Data. CPI Inflation Calculator https://www.officialdata.org/us/inflation/1817?amount=25. Accessed December 8, 2022.
3. Pew Research Center. Faverio, M., & Massarat, N. 46% of Americans who have invested in cryptocurrency say it’s done worse than expected https://www.pewresearch.org/fact-tank/2022/08/23/46-of-americans-who-have-invested-in-cryptocurrency-say-its-done-worse-than-expected/. Accessed December 8, 2022.
4. Plynk. Riding the crypto ups and downs https://www.plynkinvest.com/crypto/crypto-volatility/. Accessed December 8, 2022
5. Forbes. Muroch, A. What’s Preventing Crypto From Going Mainstream? https://www.forbes.com/sites/forbestechcouncil/2019/06/25/whats-preventing-crypto-from-going-mainstream/?sh=509ff25717d0. Accessed December 8, 2022.
6. Investopedia. Chen, J. Fiat Money: What It Is, How It Works, Pros & Cons https://www.investopedia.com/terms/f/fiatmoney.asp. Accessed December 8, 2022.
7. Plynk. Crypto basics https://www.plynkinvest.com/crypto/crypto-basics/. Accessed December 8, 2022.
8. Plynk. What is Bitcoin? https://www.plynkinvest.com/crypto/what-is-bitcoin/. Accessed December 8, 2022.