Opinion by: Brian Huang, co-founder of Glider
Crypto markets run 24/7. Today’s wallets leave users exposed to constant risk, highlighting the urgent need for automated protections that operate around the clock. While the US stock market closes every week at 4:00 pm ET, cryptocurrency markets never sleep.
As more assets, including stocks, move onchain over the next few years, it won’t be long before most assets are trading 24/7. While permissionless access to properties around the world is great, no consumer tool today, whether tradfi or defi, is built to protect users around the clock.
We are quickly moving into a new era of continuous market exposure. As a result, Defi has given rise to a culture of sleepless nights under the leadership of self-sovereignty, forcing people to monitor the markets, manage risk and conduct transactions at all hours of the day. Constant exposure inevitably breeds burnout.
The irony is that we finally built a truly programmable finance onchain, so why aren’t we taking advantage of it? Instead, Defi now means shuffling between apps, manually operating funds and being at the mercy of middle-of-the-night margin calls and liquidity.
While outsiders believe that market volatility is what prevents everyday investors from participating in Defi, the real obstacle is the lack of robust systems designed to protect users. The next evolution of Crypto must prioritize embedded automations: something that will ultimately make wallets smart, active and secure.
Today’s crypto wallets operate like passive vaults
Crypto wallets operate like passive vaults. This means that, unlike smart devices that anticipate and adapt to a user’s needs, wallets that dive into crypto operate on a standard of click through endless manual approval. Relying on constant user input is incompatible with the reality of 24/7 market exposure.
This problem can be better understood by looking at Terra’s ust collapse In 2022. StableCoin rallied ~5% in four hours before collapsing to almost zero in just three days. If you are in Asia and hold UST in self-customary wallets, your stablecoins will drop by 30% overnight.
Manual approval means you don’t have automatic protection or the ability to auto-sell. Countless crypto users lost their life savings in the crash. That can be prevented by smarter wallets.
As markets continue to be volatile, def tools remain more reactive rather than defensive. There is still no built-in safety buffer or automation in place to prevent losses when users are offline or asleep, forcing investors into a state of constant vigilance.
It might be easy to blame this on bad UX, but the truth is that this is actually a fundamental flaw inherent in today’s wallets. Until wallets can execute preset strategies and manage even the simplest risks, they will remain a tool for power users – not everyday investors.
The advantage of tradfi is automation that protects you
On the other hand, tradfi systems have built-in protection. From Stop loss Scheduled portfolio rebalancing orders, traditional tools automatically adjust portfolios and maintain risk levels when markets change, eliminating the need for human intervention.
Related: Are crypto wallets becoming the control centers of our digital lives?
These protections are woven into its infrastructure, giving investors freedom. While defi purists may argue that user control should come first, it is critical to remember that without automation, control becomes a burden.
Retail investors can also reap the benefits without having to understand each mechanism in painstaking detail. Whether through robo-advisors or passive index strategies, people trust that their money is working for them.
Defi needs to be smarter
If Defi is set to transform into a major component of our financial system, then wallets need to be true partners: automatically protecting positions, discovering rebalancing opportunities and realigning new resources while you sleep. Mechanisms that prevent liquidation and react when markets need to be built on investments to invest with certainty.
Ultimately, users want the peace of mind that their investment goals will be pursued intelligently and effectively.
Just like you can “set and forget” your thermostat and autopay bills, Smart Defi ensures that your wallet is always working for you. The ability to walk away from your screen and trust the system is key to scaling defi beyond the current niche.
While critics worry that adding layers of automation—especially intelligent agents or rule-based enforcement—can recreate centralized risk or add opaque layers of abstraction, it’s important to understand that automation is not about removing control. Rather, it is about codifying it. Just like setting up investment goals and risk levels on traditional trading platforms, individuals can define rules, adjust them at any time and maintain complete transparency throughout the process.
Smart Automation reinforces sovereignty because a wallet that can protect you 24/7 is less decentralized; It is easier to use.
Let your wallet work while you sleep
The bottom line? If the autopilot can safely steer your car without your input, then your wallet should steer your portfolio without demanding your constant attention.
Every other area of technology has embraced intelligent automation.
It’s time for Crypto to catch up and deliver what users really need. Sleepless traders will not lead the next wave of crypto adoption. This will lead to systems that empower you to invest with confidence.
Opinion by: Brian Huang, co-founder of Glider.
This article is for general informational purposes and is not intended to be and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
