Cryptocurrencies like Bitcoin, Ethereum, and Litecoin have become the new hot topic in the investment community and have finally made their way into the public eye.
Yet a lot of people are still trying to understand how the cryptocurrency market works. That’s where a financial software development company called Heleum comes into play.
The start-up company out of Mesa, Arizona has developed a system they describe as an “automated savings accelerator for cryptocurrencies.” It allows consumers to easily start exploring crypto trading without having the financial expertise of full-time stock market professionals.
We sat down with one of Heleum’s co-founders, Pace Ellsworth, to talk about the app, its unique features, as well as the cryptocurrency opportunity in general.
How did you get started in cryptocurrency?
I first heard about cryptocurrency around 2011. In 2015, my brother and I knew we wanted to do something different and cryptocurrency was the opportunity to do that.
We tried to find something that would make it very easy for the mass-market consumer to get involved in cryptocurrency. That meant we needed a system that had a very easy API for us to build an app with, but that also had great access points for U.S. and foreign banks. Uphold was the solution, so we started working with their open API system.
How did you develop Heleum?
In April 2016, we came up with the “balloon concept”. Let’s say you bought bitcoin, its value drops, and now you can’t get out of it. However, while bitcoin may have fallen compared to dollars, it could have risen compared to something else, like Ethereum or Litecoin, for example, which in turn probably wouldn’t have risen compared to any others Fiats (government-issued money).
That made us think, “What if you basically borrowed the money from that trade and put it into some other cryptocurrency that you were up against?” That would give you a chance to realize a profitable trade.
That’s the idea behind Heleum: like a balloon, you just “float” between various cryptocurrencies. The balloon concept provides a solution that gets the maximum yield out of the crypto market in the fastest way possible.
It doesn’t mean that it’s foolproof or risk-free. If the market drops and all the cryptos drop together, there could be short-term losses; we are actually improving upon this at the moment following Decembers incredible roller coaster with stop-loss features and more.
How does the balloon system work?
This may sounds technical, but a balloon is essentially a small portion of value created from the user’s deposit with Heleum. In other words, every users total funds are divided into several balloons that then start floating through the system to catch the best “deals.” The bigger the account balance, the more balloons there are going to be.
If the account value is $30 or under, for example, balloons are going to be $5 each. A $1,000 account would have 8 balloons, and they’d be $125 a piece. A $5,000 account would have 10 balloons at $500 each — and so on.
Then the “mesh-trading” begins. That’s what we call jumping from one currency to another and involve six or seven different currencies before you close the “round-trip” trade.
What happens during “mesh-trading”?
Our algorithm works by looking at the price of all the currencies at the same time. Every two seconds, it checks 50–100 different rate pairs against the 16,000 balloons that are in our system. Heleum is not predicting any prices or trying to catch any trends. What we are really doing is just waiting for prices to drop enough so moving a balloon into another currency makes sense.
The goal is to buy low and sell high over and over again. If a cryptocurrency’s value is low enough, we buy into it; if it gets high enough in comparison to another, we sell out of it and buy into something else — so the balloons are constantly moving.
Does that mean the more balloons, the better?
Having more balloons is good for account diversification and entering different pricing opportunities. It’s also a little safer because it keeps more of the account balance in Fiats during the trading cycle. Heleum’s unique system, however, still allows smaller accounts to have as many balloons as possible to be able to take advantage of the same opportunities.
Is Heleum easy to use?
Definitely. That’s the whole goal. People need to “set it and forget it”. Our users shouldn’t feel like they need to be financial experts or need to watch the market all the time. 99.9% of people don’t have time to be a full-time trader. We have an explainer video on our website that is very easy to follow.
Does Heleum protect against the volatility of the crypto market?
The crypto market is a scary market for the average investor. The whole purpose of Heleum is to make it less scary. Using Heleum is safer than just investing directly in a cryptocurrency portfolio. It gets you into the market at intervals, so you’ll be more protected because we’ll keep more of your money in Fiats at all times.
Many users lose confidence in the market when big drops happen; but historically every couple of months, the market doubles again. So, we help users stay away from making emotional decisions, especially with a market as volatile as this. Even if the market drops 20-50%, we don’t want our users to see those kinds of losses in their account.
Despite the market’s volatility, cryptocurrencies have a $600 billion market cap. If it reaches all-time highs again, we’re going to be looking at a trillion dollar market cap. There’s a lot of optimism in this space.
What are the advantages of a partnership with Uphold?
Besides the open API that allowed us to develop Heleum, Uphold is also ideal for a mass audience. In addition, Uphold works really well in many countries — and that’s why it has been a great partnership for us.
While Uphold does not guarantee returns on Heleum and past performance does not ensure future gains, we are proud Heleum has used our open API to develop this unique service.
At Uphold, we make buying, holding, converting and sending value between the 30+ digital and traditional currencies we support easy for anyone to understand and anyone to do.
As always, your feedback is important to us. Feel free to drop us a line, [email protected]
This article should not be used as or considered investment advice. If you have questions regarding cryptocurrencies, tokens or any financial investments please consult your financial advisor.