What is an institutional crypto exchange

Adekunle Joshua

Institutional traders engage in trading for accounts they manage for an institution, which may include a pension fund, a family office or hedge fund.

There are a number of factors that explain why retail investors have embraced crypto with such vigor. Price growth, volatility and dreams of wealth are foremost among these factors.

The main way to invest in cryptocurrencies is through direct investments via online exchanges and storage in wallets. There is a requirement for self-custody and the need to manage wallets.

"The Bitcoin Trading Ecosystem and the Emerging Institutional Infrastructure" report from LMAX Digital Digital and Arcane Research examines the Bitcoin trading ecosystem and includes findings from the latest institutional survey conducted by LMAX Digital.

LMAX Digital is a leading institutional spot cryptocurrency exchange, run by the LMAX Group, which also operates several leading FCA-regulated trading venues for FX, metals, and indices.

Coinbase is a digital asset exchange. It is available for use in over 100 countries and as of 2022 it had a reported 103 million verified users, and 9 million users transacting each month. Coinbase targets both beginner and advanced users.

Bitfinex is a large cryptocurrency exchange that is perhaps most notable for its unique product offerings and financial innovations. Alongside basic spot trading, the exchange offers margin trading, derivatives and more.

Kraken is even older than Bitfinex and was established in 2011. This San Francisco based exchange offers trading of over 200 digital assets and also includes unique fiat options like the Canadian Dollar and Japanese Yen.

Gemini is an American exchange that allows trading for 60 digital assets. It was launched in 2014 and is known for its outspoken founders, the Winklevoss twins who gained pop culture notoriety after they were portrayed in the film The Social Network.