Who Can Benefit From Sentient’s Features?
Throughout our journey of developing Sentient and sharing updates, insights, and possibilities, we’ve often been faced with a recurring question relating to Sentient’s target audience. It was upon taking a step back to see the fuller picture through which we understood how such ideas could spark — could a tool as sophisticated as Sentient truly be for anyone?
Although one’s knowledge about DeFi, trading strategies, futures, and derivatives help shape their opinions on Sentient to various degrees, a minimal understanding of crypto and dApps is all that’s required to use it to its fullest capacity. In other words: yes, Sentient is a protocol open and accessible to users from all backgrounds.
But are there those who’d be more inclined to use it?
It is entirely natural that Sentient would appeal to certain users more so than others. Depending on an individual’s (or group’s) trading habits, strategies, careers, and even lifestyle choices, the way they’d view and use Sentient would differ according to their needs and objectives.
To illustrate this relationship more clearly, we can observe a few examples:
- Forex Traders: Although it is rather easy to trade foreign currencies, it could be extremely challenging for most traders trying to earn consistent profits, especially small players. Forex may be one of the biggest markets in the world, but its very maturity brings large, and, more often than not, insurmountable obstacles on the path to profits even with high commitments of time and capital.
- Crypto (including DeFi) Day Traders: The world of DeFi may present numerous opportunities for making a profitable trade, however, those in the business of day trading face overwhelmingly unfavorable odds. It is statistically likely that around 90% of day traders will end up with a net loss throughout their venture, and the chances are that they will be forced to cut their losses and quit the practice a few months down the line.
- GameFi Players: GameFi (also referred to as Play-to-Earn) is an emerging genre of gaming that promotes a reward mechanism to its player base, allowing them to earn cryptocurrencies by playing blockchain-infused games. The idea itself is inspiring; however, the execution leaves a lot to be desired in most cases. Games designed around this concept tend to be dull and repetitive, their rewards tend to be meager, and the opportunity short-lived. Therefore such earnings frequently fail to adequately compensate for the time and effort invested, often due to account of the excessive number of competing players trying to exploit the game’s limited reward system.
- Passive Income NFT Holders: While NFTs are often associated with art, some carry actual utility. Depending on the project, a NFT may generate passive income under certain conditions. That being said, it could take months — if not years — for investors to break even, assuming, of course, the project persists and endures many harsh market conditions.
- LP Providers: Liquidity pools are a reasonable means of earning passive income while simultaneously providing a valuable service to the world of DeFi. There are, however, risks associated with the process — most notably impermanent loss. While nothing disastrous, it can’t be denied that there are safer avenues of generating income with as little effort involved.
To emphasize an important point: The above list isn’t to say that Sentient is the solution for everyone, but that everyone can use Sentient as their solution to a particular need — generating substantial passive income through a DeFi protocol with digital assets. The example audiences listed above can — in part or in whole — use Sentient for their purposes while also exploring other ventures. Sentient can be used to further enable and fuel some of the previously-mentioned strategies or can act as the resting place of the revenue generated from the above avenues and in turn, create more.
Sentient is indeed an AI-powered trading algorithm that operates independently, but that doesn’t stop it from being used in different contexts. While the fundamental purpose of using Sentient boils down to generating revenue, the reasons and means of each individual or group differ. Whether you’re using the profits from Sentient to accumulate and stack your favorite coin, or you’re trying to navigate through some of the volatility in the market — Sentient’s purpose and availability remain all the same.
If you’d like to hear more about Sentient’s progress or be the first to hear about its release, you can stay up to date with the links below: