Institutional crypto trading refers to the buying and selling of cryptocurrencies on a large scale by large investors, such as family firms, funds, technological companies, financial corporations, etc.
Unlike individual retail traders, institutional participants engage in crypto markets with substantial capital, often executing significant transactions. This form of trading is characterized by sophisticated strategies, advanced risk management, and compliance with regulatory frameworks tailored to institutional involvement in the crypto landscape.
The success of trading always depends on what platform you use, and when it comes to large amounts, the question of safety, liquidity, and commissions becomes a burning question. In this article, we will discuss how to choose the most reliable institutional crypto exchange and compare some of the best services that exist in today’s market.
Institutional Services to Consider Before Choosing an Exchange
Selecting an institutional crypto exchange requires careful consideration of various parameters to ensure that it aligns with the specific needs and standards of institutional investors. Here are key parameters to evaluate:
- Regulatory compliance. Verify that the exchange operates under relevant regulatory frameworks.
- Security measures. Assess the exchange’s security protocols, including cold storage for digital assets, two-factor authentication, and encryption standards. Check the history of security incidents and the measures taken to solve them.
- Liquidity. Evaluate the exchange’s liquidity, as higher liquidity ensures smoother and more efficient trading for institutional volumes.
- Trading pairs and tools. Confirm the availability of a diverse range of cryptocurrencies and trading pairs that meet your investment strategies and preferences.
- Fees and costs. Analyze the fee structure, including trading fees, withdrawal fees, and other costs.
- Technology and infrastructure. Assess the exchange’s technology infrastructure for speed, reliability, and scalability to accommodate large trading volumes.
- Order types and execution speed. Ensure that the exchange supports advanced order types and provides fast and reliable order execution to meet institutional trading requirements.
- Reporting and analytics. Evaluate the availability of comprehensive reporting tools and analytics that facilitate performance tracking and compliance reporting.
- Customer support. Assess the quality of customer support services, including responsiveness and availability of account managers for institutional clients.
- Insurance and custody services. Check insurance coverage for digital assets and the availability of secure custody solutions, particularly if the exchange offers custodial services.
What Institutional Crypto Platform to Pick?
Below, you will see the table with data about the best institutional platforms, so you may compare them and pick the most suitable.
|Bybit||Spot Derivatives Options OTC Loans Lending||Market-maker program Custodial trading Broker program Referral program Partnerships with renowned custodians||260 spot trading pairs 160 derivatives contracts||$281M per day on average|
|Binance||OTC services Spot Derivatives||Launchpad Token launch Loans Secure third-party crypto custody Liquidity program||1450+||$10B per day on average|
|Gemini||Spot Derivatives ||Full-fledged electronic OTC trading Staking program for institutions Custody services||660 +||$10M per day on average|
|WhiteBIT||Spot Derivatives Lending||Marker-maker program Broker program Token launch Customer support (even on weekends) Custody services Referral program||350+||$164M per day on average|
Regarding regulatory compliance, all these platforms operate within the law frameworks and implement all the KYC and AML requirements. Binance may seem somewhat difficult for beginner traders, although it’s the most popular platform worldwide. Bybit and WhiteBIT would be more suitable for novice users. As for fee structure, it varies across the platforms depending on the amount traded and the tool used, so you better check it on each specific platform more carefully to get comprehensive data on this subject.
Carefully comparing these platforms’ parameters and services will help you choose the one that not only meets your immediate trading needs but also aligns with the long-term goals and standards of your investment strategy.