One of the largest asset management companies [Blackrock Inc](https://www.blackrock.com/corporate). has recently entered the crypto market. It has introduced a private trust that allows its institutional clients in the US to get exposure to spot Bitcoin. Moreover, the news about Blackrock investing in [Bitcoin](/articles/learn-moni/what-is-bitcoin) came through after [partnering up with Coinbase](/news/article/blackrock-crypto) for crypto custody and trading services. 

## Blackrock investing proves beneficial for Bitcoin

Blackrock investing in the crypto market has been quite constructive for Bitcoin. On 11 August, its price reached almost $25,000. Though its price has slid to $23,987, the move has boosted investors’ confidence. The overall market sentiment has also been bullish. 

Many known figures in the crypto space also welcome the Blackrock initiatives as a landmark for the market. William Clemente, the lead analyst for Blockware, called it the ‘[most bullish news](https://twitter.com/WClementeIII/status/1557723939366895617)’ for Bitcoin hodlers. He pointed out that it would ensure security for the investors. 

The company itself has also changed its stance on cryptocurrencies. Five years back, its CEO, Fink Larry, labelled Bitcoin as a money laundering index. However, now Blackrock is investing in a BTC product and a crypto trading services as well. As per the statement from the company, the interest from institutional clients in crypto has inspired them to enter the space. 

## Other asset managers in the crypto market

Though Blackrock investing in digital asset class services has been the most impactful, several other players are entering this volatile market. Earlier, Charles Schwab’s asset management arm also invested in the market. It introduced an exchange-traded fund (ETF) for the institutions linked with cryptocurrencies. With the STCE ticker, this ETF was introduced on the 4th of August 2022 on the New York Stock Exchange for trading.

On the other hand, the UK giant, Abrdn, is also exploring cryptocurrencies. This week, FTSE listed Abrdn bought a stake in the exchange Archax, a UK-regulated digital tokens and assets exchange. 



Blackrock investing strengthens crypto’s position

Earlier today, Binance Labs, the startup capital and accelerator arm of BNB, made public its strategic investment in Ankr, the Web3 powerhouse known for its decentralized infrastructure.

Ankr's substantial open-source contributions to Binance's BNB Chain, BNB Liquid Staking, and general ecosystem support are primary drivers that attracted the investment from Binance Labs.

## What is Ankr?

In essence, Ankr facilitates the launch of blockchains for businesses, allowing them to provide superior Web3 experiences to their customers in record time. The protocol, scheduled for release in 2021, will eventually process 200 billion Remote Procedure Call (RPC) queries each month across 50 different blockchain networks.

[Specifically, Ankr's COO Ryan Fang said](https://en.cryptonomist.ch/2022/08/11/binance-labs-makes-strategic-investment-in-ankr/): The addition of Binance Labs as a strategic investor fills us with joy. With the most daily transactions and users, BNB is clearly the leader. 

Ankr serves over 7.2 billion daily blockchain requests on over 30 different blockchains, making it the second largest node provider (after Alchemy). 

The possibility is to further serve its customers, they plan to invest the funds towards expanding its market-leading RPC service and its portfolio of Web3 development tools, which currently includes the Liquid Staking Software Development Kit (SDK), the Web3 Gaming SDK, and the App Chains As A Service.

In addition, their Protocol processes over 7 billion blockchain requests every day across the 18 blockchains on which it provides RPC hosting. The fact that all [BNB initiatives](/news/article/binance-staking) and users stand to gain greatly from Ankr's improvements to the network is another reason for Binance Labs' endorsement of the project.

As previously mentioned, Ankr is responsible for most of BNB's foundational architecture, including the Erigon update, the Archive Node upgrade, and the most recent BNB Application Sidechain (BAS) scaling solution. 

Yi He, a co-founder and manager of Binance will be leading the incubator's venture capital (VC) division.

Yi He will be responsible for Binance Labs' general direction and day-to-day operations, with some of his time spent bolstering infrastructure initiatives and enhancing the practical applications of cutting-edge crypto and blockchain endeavors.


Ankr receives significant investment from Binance

People who work for themselves, sitting in their underwear on their sofa all day generating millions, offer a false promise of "easy money" and the allure of self-sufficiency. 

## Harsh truth about crypto day trading

Based on various [studies](https://www.cnbc.com/2020/11/20/attention-robinhood-power-users-most-day-traders-lose-money.html):

•	40% of day traders trade for only are active for one month

•	In the first two years, 80% of all day traders quit

•	Only 13% continue to day trade after three years. After five years, just 7% remain

•	Individual investors underperform market indexes by 1.5% per year on average; active traders underperform by 6.5% per year

## What is random reinforcement within crypto day trading?

The term "random reinforcement" refers to the use of arbitrary events to qualify (or disqualify) a hypothesis or idea; attributing skill or lack of skill to an unsystematic outcome; and gaining support for positive or negative behaviours from products that are inconsistent, such as the financial markets. 

The market tends to reward poor habits with a limited sample size while penalising favourable behaviours. 

Some amateur traders made money by investing in random [altcoins](https://news.monitalks.io/news/article/xhd-coin-explained) and selling for large, quick returns. In the 2017 crypto market, everyone was a "genius." Then, in 2018, the bubble burst, and inexperienced traders with leverage on their margin could not deal with the drawdown resulting in their account being liquidated. They did not sell their assets and kept holding them until they lost everything.

Many retail investors involved in crypto day trading overheard "big names" on social media discussing an altcoin, leading them to examine the chart and notice that the price is rapidly increasing. They start to buy and sell for a quick profit after a few successful trades, amateur traders begin to believe that they are skilled traders.

Retail traders involved in crypto trading often begin to believe that a favourable outcome on a few random trades indicates success in the future. However, in hindsight, the market rewarded their poor behaviour. However, as they continued to trade impulsively, they eventually lost their capital, as was the case in the 2018 crypto day trading crash.

On the other hand, some retail investors involved in crypto trading spent several months developing a trading plan with risk management, proper portfolio allocations and trading rules. 

However, as they continued losing several times in a row, they began doubting their system. Amateur traders then began to places high-risk trades that breach their strategies rules and succeeded a few times, putting the retail trader back to square one, trading without a strategy because the market has rewarded their bad behaviour.

This is how stock trading can sometimes be compared to gambling.

Crypto day trading loses more money than HODLing

The crypto market has expanded exponentially in recent years with more than 9,000 digital coins. Now, investing in cryptocurrencies has become a mainstream trend. You can now generate passive income through lending and capital gain by crypto investing or trading. Another avenue you can take is investing in the many blockchains and DeFi startups.

There is also a rising trend of real-world equity investing and trading with stablecoins. Decentralised exchanges like [FTX US](https://www.ft.com/content/8379f141-8b94-438e-8347-cb5ffdf003ac) have already begun to offer services in this area. This has opened a new gateway for buying shares in a company with cryptocurrencies. 

However, the market lacks clarity on how equity trading will work with stablecoins. To make things more straightforward, we have discussed below how retail investors can benefit from fiat-based stablecoin investing. 

## The crypto world meets the stock market

The crypto market involves digital assets that emerged only in the last decade. The stock market is a much more mature and competitive market that involves real-world assets. Stocks were considered the primary investment option by the masses. But, as the crypto world continues to grow, many digital tokens have gained investors’ attention.  

However, crypto is a precarious and unpredictable market. That’s why tokens’ real-world usage is still limited. For this reason, stablecoins were introduced, pegged with fiat currencies. But the debacle of the Terra ecosystem left a dent in their reputation. 

Now, many DEXs are looking to link stocks and stablecoins. This will even help crypto investors in buying shares in a company. Moreover, it will help in diversifying your portfolio and help increase the real-world usage of crypto coins and tokens. 

## Crypto exchanges for buying shares in a company

Buying shares in a company with cryptocurrencies is an emerging trend in the industry. There are limited exchanges that offer equity trading services with stablecoins. Here are a few names that have already started or have announced to provide this service soon.

1.	FTX US
One  of the leading digital asset exchanges, FTX, has recently announced its services in the stock market. The exchange will allow buying company shares with both fiats and fiat-backed currencies. FTX US will primarily deal with US dollar-pegged stablecoins like Binance USD and USDC (USD Coin). Also, the exchange made it clear that it would not be supporting algorithmic stablecoins like [Terra](/news/article/terra-usd) USD.

2.	Voyager Digital
Another US decentralised exchange, Voyager Digital, has also signalled toward offering a similar service. It will work as a brokerage platform and allow you to buy stocks through stablecoins. Voyager Digital will likely work with USD-backed stable tokens like USDC. The platform has announced it would begin offering the service later this year, however this looks unlikely given that Voyager filed for bankruptcy protection last month.

3.	Bitstamp USA
Yet another US-based crypto exchange, Bitstamp USA, might enter the stock trading services via stablecoins. The platform has yet to announce its plan for when and how it will introduce the equity trading service. However, the platform’s CEO, Bobby Zagotta, showed keen resolve to enter the market.  

## Bottom line

Stablecoins in the stock market can revamp the existing business model of brokerage exchanges. It can create an environment where investors can trade both real-world and digital assets in one place. Buying shares in a company may also help bring crypto investors into a regularised market and increase the real-world usage of cryptocurrencies. 




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Blackrock investing strengthens crypto’s position

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Crypto day trading loses more money than HODLing

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Blackrock investing strengthens crypto’s position

Ankr receives significant investment from Binance

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