Let’s take a look at two recent real-life scenarios:
At this time of writing, the entire cryptocurrency market is facing a significant downturn. Portfolio values are quickly being halved, and an abundance of fear, uncertainty and doubt seems to be present in every corner of this industry. Even some long-term investors are re-evaluating their hold strategy, as many others sell off their positions.
On the other hand, last year plenty of crypto projects in the market also saw positive gains like never before. Many people saw this large initial increase and made the decision to cash out early in the year, only to miss out on serious gains as prices continued to skyrocket through the 2nd half of 2017.
The Volatile Nature of Cryptocurrency
Both of these scenarios pose a common problem for investors. As we all know, the extreme volatile nature of cryptocurrency can make even the strongest hands question their decisions. Whenever emotion or market sentiment clouds the judgement of an investor’s original strategy, poor/impulsive trading decisions can easily be made. The need for a solution to this problem has never been greater than now. What if there was a way to use technology as a means to prevent this from happening?
Fortunately, there is a solution is already available. It is found within BitBay’s Enhanced Web Wallet — one of the most advanced and secure web wallets in the cryptocurrency space.
Prevent Impulsive Trading Decisions During Market Volatility
This Web Wallet is no ordinary crypto wallet. It has many practical features, including the ability to create a TimeLock address. Essentially, this is an extremely useful tool that allows an individual to lock up their funds without a 3rd party, and is set to release the funds at any point of time in the future, to anyone of choosing. This almost completely prevents impulsive trading decisions during market volatility. Whether the market is crashing or exploding, you won’t even have to think about whether to buy or sell. You can sit back and let your wallet HODL for you.
Using this tool within BitBay’s web wallet is a fairly straightforward process. It involves creating an individual wallet address (if you don’t already have one), and then creating a separate Time Locked address within the wallet. After the Time Lock address has been created and funds have been sent to it, the funds will no longer be accessible until a specified date and time. When that time comes, a shareable URL can be used to access and redeem the funds for spending.
When you look back at the the charts, where might you have panicked and sold? This method provides a perfect way to keep your funds safe… from yourself. The exact details of this process can be followed using this tutorial.
Additionally, this unique Time Lock capability isn’t just for impulsive investors either. There is literally a use for it in every industry. This is a perfect tool for individuals or businesses that need a cryptocurrency savings account. It can also be used to create a “will” by releasing specific funds to a friend/family member on a certain date and time. Along those lines, a trust fund can be arranged as well. In this case, when a child turns a certain age, they can have designated funds automatically released to them for use. Yet another option is for fundraising campaigns, only allowing a charity to access certain funds after a campaign has ended.
With BitBay’s Time Lock addresses, in addition to the recently added MultiSignature/Joint Account feature, the possibilities are endless. In this emerging era of programmable money, creative ideas are being developed every day. BitBay is here to lead innovation in this space, with many more features coming soon.