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:
| Exchange | Pros | Cons |
| 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 supported | High 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.
