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Articles 25th January 2024

Features to Consider When Choosing The Best Institutional Crypto Exchange

Cryptocurrency trading ceased to be exclusively retail trader activity with the emergence of institutions in this sector. When large companies and financial entities entered the crypto space, the need for advanced tools and enhanced protection arose, stimulating the development of crypto platform infrastructure. In this article, we will discuss what should an institutional crypto exchange be like and give you some worthy examples

Choosing a Crypto Exchange for Institutions

The crypto market offers a variety of crypto platforms for large investors and institutional traders, varying by commissions, security measures, range of assets supported, and other characteristics.

Here are the features of institutional exchanges to look for:

Security. Ensure the exchange employs robust encryption protocols to safeguard sensitive data.

Compliance. Verify that the exchange adheres to regulatory standards in relevant jurisdictions.

Liquidity. Evaluate the exchange’s liquidity across a diverse range of trading pairs.

User interface. Look for an intuitive and user-friendly interface, crucial for efficient trading.

Institutional services – accounts with higher limits, OTC trading services, and custody solutions offer a more personalized trading experience.

Asset coverage. Ensure the exchange supports a diverse range of cryptocurrencies.

Customer support. 24/7 availability is crucial for addressing time-sensitive issues.

Fees structure transparency.

Institutional Exchange Case Studies

In the table below, we compare popular institutional crypto exchanges:

ExchangeProsCons
Coinbase (ideal for beginners)User-friendly interface
Comprehensive educational resources
Wide range of cryptocurrencies (100+)
Simple interface for managing various assets
Regulatory compliance
High commissions (maker fees from 0.00% to 0.40% and taker fees from 0.05% to 0.60%)Complex fee structure
KuCoin (leader in earning opportunities)Wide range of cryptos (600+)Competitive fees – 0.1% for maker and taker
Margin and futures trading    
No license in the U.S.
Funds stored on the platform are not insured
Has been hacked in the past
Gemini   (top in security in trading)High level of security Transaction histories and account reports110+ crypto supportedHigh fees (standard trading fee is 0.50%, but larger trades get reduced fees)Various funding methods are charged additionally
Limited client support options
WhiteBIT (one of the largest crypto exchanges in Europe)350+ trading pairs, 10 fiat currencies
High liquidity
Robust security system
Spot and marginP2P
Low fees that don’t change – 0.1% of the trade amount
Crypto lending
Regulatory compliance
Simple interface
Insurance
Fund
Impossible to cash out without verification

Choosing the right institutional crypto exchange requires a thorough analysis of security, compliance, liquidity, user interface, and other factors mentioned in this article. Traders usually pick a platform that fits their needs, considering where they are located and what assets they aim to buy. Hopefully, this article helps you find a suitable platform for your needs.