Opinion: Brian Huang, Glider Co-Founder
Crypto markets operate 24/7. Today’s wallets expose users to constant risk, highlighting the urgent need for automated, 24-hour protection. The US stock market closes at 4pm ET on weekdays, but the crypto market never sleeps.
As more assets, including stocks, move on-chain in the coming years, it won’t be long before most assets are traded 24/7. Permissionless access to assets around the world is great, but there are currently no consumer tools built to protect users 24 hours a day, whether in TradFi or DeFi.
We are rapidly moving into a new era of continuous market exposure. As a result, DeFi has created a culture of sleepless nights disguised as self-sovereignty, where people are forced to monitor markets, manage risk, and execute trades at any time of the day. Continuous exposure inevitably leads to burnout.
Ironically, we’ve finally built truly programmable finance on-chain, so why not take advantage of it? Instead, today’s DeFi means bouncing between apps, manually manipulating funds, and being at the mercy of late-night margin calls and liquidations.
While outsiders believe that market volatility is preventing everyday investors from participating in DeFi, the real barrier is the lack of robust systems designed to protect users. The next evolution of cryptocurrencies must prioritize built-in automation. This is what ultimately makes wallets intelligent, proactive, and secure by default.
Today’s cryptocurrency wallets behave like passive vaults
Crypto wallets act like passive vaults. So, unlike smart devices that anticipate and adapt to user needs, wallets that are pervasive in cryptocurrencies operate on a click-and-endless manual approval basis. This reliance on continuous user input is at odds with the reality of 24/7 market exposure.
This issue is more easily understood by looking at Terra’s UST collapse in 2022. The stablecoin unpegged around 5% in four hours before plummeting to virtually zero in just three days. If you were in Asia and held UST in a self-custodial wallet, the stablecoin dropped 30% overnight.
Manual approval means there is no automatic protection or automatic sales functionality. Countless cryptocurrency users lost their savings in the collapse. This could have been prevented with a smarter wallet.
While markets remain volatile, DeFi tools continue to play a reactive rather than protective role. There are no built-in safety buffers or automation to prevent losses when users are offline or asleep, leaving investors in a constant state of alert.
While it may be easy to blame this on bad UX, the truth is that this is actually a fundamental flaw inherent in today’s wallets. Until wallets can execute pre-set strategies and manage even the simplest risks, they will remain tools for power users, not everyday investors.
The advantage of TradFi is the automation that protects you
On the other hand, the TradFi system has built-in protections. From stop-loss orders to scheduled portfolio rebalancing, traditional tools automatically adjust your portfolio as the market moves to maintain risk levels, eliminating the need for human intervention.
Related: Are cryptocurrency wallets becoming the control center of our digital lives?
These protections are built into the infrastructure and give investors the freedom to disengage. While DeFi purists may argue that user control needs to be prioritized, it is important to note that without automation, control becomes a burden.
Individual investors can also benefit without having to painstakingly understand all the mechanisms in detail. Whether it’s a robo-advisor or a passive indexing strategy, people trust that their money is working for them.
DeFi needs to get smarter
If DeFi is to evolve into a fundamental component of our financial system, wallets need to become true partners. This means you can automatically protect your positions, discover rebalancing opportunities and reallocate them to new revenue streams while you sleep. To invest reliably, your investments must include mechanisms to prevent liquidations and respond when the market reverses.
Ultimately, users want peace of mind that their investment goals will be executed intelligently and effectively.
Just like you can “set it and forget it” with your thermostat and pay your bills automatically, smart DeFi gives you peace of mind that your wallet is always working. The ability to step away from the screen and trust the system is key to expanding DeFi beyond its current niche market.
While critics worry that adding layers of automation, particularly smart agents and rule-based execution, can reintroduce concentration risks or add opaque layers of abstraction, it’s important to understand that automation isn’t about relinquishing control. Instead, it’s important to systematize it. Similar to setting investment goals and risk levels on traditional trading platforms, individuals can define rules and adjust them at any time, maintaining complete transparency throughout the process.
Smart automation strengthens sovereignty. Because the wallet that can protect you 24/7 is decentralized as well. It’s more user friendly.
Keep your wallet moving while you sleep
The bottom line? If Autopilot can safely steer your car without your input, your wallet should be able to steer your portfolio without demanding your constant attention.
Every other technology field is adopting intelligent automation.
It’s time for cryptocurrencies to catch up and give users what they actually need to grow. Sleepless traders will not lead the next wave of crypto adoption. It is guided by a system that allows you to invest with confidence.
Opinion: Brian Huang, Glider Co-Founder.
This article is for general informational purposes only and is not intended to be, and should not be taken as, legal or investment advice. The views, ideas, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.