Choosing the right institutional crypto trading platform

Institutions are ramping up participation in the digital asset market. They do it in many different ways. Banks add institutional crypto trading desks for their clients (Goldman Sachs), allow for crypto payments between clients (JPMorgan Chase), and invest in crypto (Morgan Stanley). Tech companies and world giants like MicroStrategy and Tesla buy and hold Bitcoin. Fidelity Crypto fund allows for Bitcoin and Ethereum trading; together with BlackRock, they are leaders in spot Bitcoin ETFs with more than $958 million in trading volume. In this article, we will discuss how institutional trading platforms facilitate crypto trading for companies and offer some valuable tips on choosing the right platform.

What is institutional trading platform?

Such platforms provide specialized financial infrastructure to facilitate trading activities for institutional investors. Institutional platforms offer the following services:

• advanced trading tools;
• research and risk management instruments;
• direct market access;
• robust liquidity for conducting large trades;
• market-making programs;
• listing token on exchange;
• assistance and support;
• custody solutions.

Now let’s see how to pick the best exchange for trading.

Tips on picking an institutional trading platform

When choosing a platform for investment, consider these characteristics:

1. Liquidity. An institutional exchange must have deep order books and allow trading a wide range of assets. With sufficient liquidity, large trades execution is possible.
2. Security. Check out a platform’s track record and reputation. See what safety measures it implements and evaluate how much users’ profiles are protected. Operating with large amounts and often on behalf of their clients, institutions have no margin for error.
3. Compliance. Institutions are always under increased scrutiny from regulatory authorities, so they must meet their requirements and follow the rules. An exchange you use should comply with existing regulations and provide reporting tools.
4. Commissions. Many institutional crypto exchanges offer reduced fee structures for investors, as they operate with large trading volumes. 
5. Speed. It’s crucial for institutions that their trades are completed fast efficiently and with minimal downtime because time matters a lot in trading.
6. OTC (over-the-counter) desks. These desks are important when large block trades need to be processed. Such trades must be covered by insurance and other institutional services.
7. Tools. Charts, tech analysis indicators, and different types of order books are valuable tools for institutions.

Institutional crypto trading is quite a predictable phenomenon. Since the interest in digital assets is growing, more people have started to be a part of it. It stimulates institutions to catch up and even overpass the pace of adoption. The role of institutional exchanges in crypto adoption is central, for they facilitate convenient and safe trading for companies tapping into the crypto sector.