The lack of suitable institutional-grade platforms is undoubtedly one of the greatest obstacles to institutional money flowing into the burgeoning field of cryptocurrencies.
However, the fact that this type of platform has not emerged so far is somewhat understandable. Not only are cryptocurrency markets a lot less mature than traditional finance markets, the specific characteristics of cryptocurrencies mean that simply overlaying existing solutions won’t suffice. One example of cryptocurrency uniqueness is having your digital assets stored on a blockchain and controlled through a set of public and private keys. This is a new paradigm for potential investors to get used to, as is the fact that keys rather than currency are stored in what is referred to as your wallet.
Even once a given user has acquainted themselves with the intricacies of how digital cash functions (no easy task), they need to navigate the confusing and fragmented landscape of exchanges – each of which provides different offerings when it comes to the cryptocurrencies and tokens made available.
These new rules and terms of engagement are a world away from the one that sophisticated investors are comfortable with, having become used to dealing with a single interface when trading in traditional financial markets. Not having a single solution that allows them to trade quickly, easily, and efficiently can be a major barrier for these investors to follow through on any initial interest they may have in the world of cryptocurrencies.
Which is why something needs to change if we want to see serious investments take off. As mentioned, there are various unique problems that need to be solved. However, one of the most significant is that of being able to place large orders and know that you are getting the best price available from the various exchange options.