Opinion by: Brian Huang, co-founder of Glider
The cryptocurrency market operates around the clock, exposing users to relentless risk and underscoring the need for automated protections. Unlike the US stock market, which closes at 4:00 p.m. ET on weekdays, crypto markets never rest.
As more assets, including stocks, transition to on-chain formats in the upcoming years, the landscape of trading will inevitably shift to 24/7 operations. Although global permissionless access to assets is advantageous, no consumer tool—be it in traditional finance (TradFi) or decentralized finance (DeFi)—is designed to safeguard users continuously.
We’re entering an era of perpetual market exposure. Consequently, DeFi has fostered a sleepless culture in the name of self-sovereignty, compelling individuals to constantly monitor markets, manage risks, and execute transactions at all hours. This constant vigilance can lead to burnout.
Ironically, we’ve achieved truly programmable finance on-chain, yet we’re not fully utilizing it. Instead, the current DeFi landscape involves moving between various applications, manually managing funds, and facing the unpredictability of overnight margin calls and liquidations.
While many outsiders claim that market volatility is what deters average investors from engaging in DeFi, the real challenge lies in the absence of robust systems to protect users. For crypto to evolve, it must prioritize built-in automation—transforming wallets into intelligent, proactive, and inherently safe tools.
Today’s crypto wallets operate like passive vaults
Crypto wallets function merely as passive vaults. Unlike smart devices that predict and adapt to user preferences, these wallets rely on endless manual approvals, which is incompatible with 24/7 market exposure.
A clearer illustration of this issue can be found in the collapse of Terra’s UST in 2022. The stablecoin lost approximately 5% in four hours before falling virtually to zero within three days. If you were in Asia and held UST in self-custodial wallets, your stablecoins could have lost 30% in a single night.
The reliance on manual approvals meant users lacked automatic protections or auto-sell capabilities. Thousands lost their life savings during the collapse—something that smarter wallets could have prevented.
While market volatility persists, DeFi tools continue to be reactive instead of protective. There are no integrated safety mechanisms or automations to avert losses when users are offline or asleep, contributing to an atmosphere of constant vigilance for investors.
Though it’s tempting to attribute this problem to poor user experience, it’s fundamentally a flaw ingrained in today’s wallets. Until wallets can implement preset strategies and manage even simple risks, they will primarily benefit power users rather than everyday investors.
TradFi’s advantage is automation that protects you
In contrast, TradFi systems come equipped with built-in protections. Instruments like stop-loss orders and scheduled portfolio rebalancing automatically adjust portfolios and manage risks during market volatility, reducing the need for human input.
Related: Are crypto wallets becoming the control centers of our digital lives?
These protections are integral to the infrastructure, allowing investors the liberty to disengage. While DeFi purists may argue for prioritizing user control, it’s crucial to recognize that without automation, that control can become burdensome.
Retail investors can also benefit without needing to scrutinize every detail of the mechanisms. Be it through robo-advisors or passive index strategies, people trust that their money is actively working for them.
DeFi needs to be smarter
If DeFi aims to become a cornerstone of our financial ecosystem, wallets must evolve to become true partners: automatically safeguarding positions, identifying rebalancing opportunities, and reallocating assets to new yield sources while you rest. Mechanisms that prevent liquidation and respond to market shifts must be incorporated to ensure secure investments.
Ultimately, users desire assurance that their investment objectives will be executed intelligently and efficiently.
Just like you can effortlessly manage your thermostat or set up autopay for bills, smart DeFi should provide peace of mind that your wallet is continuously working on your behalf. The capability to step away from your screen and trust the system is essential for scaling DeFi beyond its current limitations.
While detractors express concerns that adding automation layers—such as smart agents or rule-based execution—might reintroduce centralized risks or create opaque complexities, it’s crucial to understand that automation isn’t about ceding control. Rather, it’s about codifying that control. Just as one can establish investment goals and risk levels on conventional trading platforms, individuals can define rules, make adjustments at any time, and maintain full transparency throughout the process.
Smart automation strengthens sovereignty because a wallet that can offer protection around the clock is no less decentralized; it’s simply more user-friendly.
Let your wallet work while you sleep
The conclusion? If autopilot technology can navigate your vehicle safely without input, your wallet should be capable of managing your portfolio without demanding your constant attention.
Every facet of technology has embraced intelligent automation.
It’s time for the crypto space to advance and deliver what users truly need to flourish. A new wave of crypto adoption will not stem from sleepless traders, but from systems that empower individuals to invest with confidence.
Opinion by: Brian Huang, co-founder of Glider.
This article is for informational purposes only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily represent those of Cointelegraph.
