The Future of Crypto Trading

Mid-2022 was a time when many cryptocurrency exchanges got a wake-up call. In the grip of the crypto bear market, crypto exchange Gemini told the world they were going to lay off 10% of their staff. At the same time Coinbase, which had already instituted a hiring freeze, said they planned to extend it for the foreseeable future “in response to current market conditions,” while Bitso in Latin America let go of tens of employees, and the same was true of Rain in the Middle East.

In June, Reuters reported that, between 2017 and 2021, Binance – the biggest crypto exchange in the world – “Processed transactions totalling at least $2.35 billion stemming from hacks, investment frauds and illegal drug sales”. A particularly alarming case was the theft in September 2020 of $5.4 million from a crypto exchange in Slovakia, which was done, US officials suspect, in order to fund North Korea’s nuclear weapons program.

These news items didn’t do anything to enhance the image of crypto exchanges in traders’ eyes, but the bear market this year may have drained more popularity from the craze for crypto trading. As a result, crypto trading and management might be on the way to taking more of a professional format, similar to a traditional bank, heading toward digital asset management platforms. These unique entities aim to offer traditional-style financial products based on crypto, and also to streamline traders’ ability to manage crypto assets. The idea is to use blockchain technology to give each client power over his own finances, without the need for exchanges. These digital asset management firms claim security will be better if we use blockchains, not to mention speed and efficiency. In this iFOREX financial news article, we’ll take a closer look at the future of crypto trading to see what might be in store.

Some Leaders in the Field

One example of such a digital asset management platform is Cactus Custody, which helps its users engage in crypto trading, but also manages all kinds of crypto assets, including NFTs. On the platform, you can do your crypto-to-crypto or crypto-to-fiat-currency trades with efficiency, leave your crypto assets to earn interest, and withdraw them any time you want. Cactus also works with institutions, equipping them with managers to assist in integrating blockchain technology into their existing systems. They help connect any company with digital assets or tighten the security of their digital assets, and at the same time offer to reduce costs.

Matrixport is another growing platform based in Asia, which started in 2019. They present traders with pioneering crypto products and strive to make a financial network that is transparent, accessible to all, and affordable. Founded in 2017 and based in Austin, New York and Beijing, Multicoin Capital is a global platform that manages more than $3 billion in assets for institutions or individuals, specializing in digital tokens, blockchain companies, and crypto trading.

In April 2021, Grayscale Investments managed assets amounting to a massive $45.1 billion. Among their innovative crypto products is the Grayscale Bitcoin Cash Trust and the Grayscale Ethereum Trust. Wave Financial also offers a proficiently managed Bitcoin product called Wave Bitcoin Income and Growth Fund. In addition, they run an NFT fund, through which you can access NFT tokens and platforms.

Future Direction of Cryptocurrency Trading

The thinking employed by digital asset management platforms is forward-looking because, as more people accumulate digital assets of one kind or another, they will need platforms to keep, manage and grow their capital. This is especially so on the presumption that blockchain technology is steadily making its way into the financial system, and that cryptocurrencies are becoming more accepted beyond just cryptocurrency trading. The first of these prospects is affirmed by many governments’ plans to develop CBDCs (Central Bank Digital Currencies) in the near future. As to cryptocurrency trading, it seems there still may be plenty of interest in times ahead. On the horizon, new areas of the economy have the potential to be digitized too, for instance commodities and real estate, and, in the event they were, digital asset management platforms would be able to manage them.

Summing Up

The future of top cryptos like Bitcoin and Ether and cryptocurrency trading in general seem to be heading in a different direction—one that may help ensure their relevancy. This is especially so in the climate of crypto fear sparked in the first half of 2022 by the crash of big crypto tokens like Bitcoin. Digital asset management platforms present themselves as a handy headquarters where traders can find these products as well as the tools to trade, store and manage their crypto assets in the way they want. However, we’re a long way off from any sort of regimented transition, so cryptocurrency traders who invest in CFDs on the price fluctuations of cryptos need a broker that’s both reliable and knowledgeable, like iFOREX. At iFOREX, you’ll find more than just a trading platform: you’ll also find a huge variety of educational materials designed to provide crucial insight on your crypto trading journey.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.