From early 2020 to the present moment crypto has attracted a lot of attention from investors from all walks of life and consequently, interest from non-crypto native traders. While many crypto enthusiasts find their way into trading initially via the crypto space, there are many extremely sophisticated traders from traditional finance entering the industry.
This is a wonderful indication of crypto’s development, but there’s a catch: There’s an influx of high-profile specialists and trading desks who are ready to begin practicing their trade (literally) but are coming up against extreme delays and technical challenges in securing the tools they’re accustomed to leveraging in TradFi.
That’s not to say that these mechanisms don’t exist in digital finance, quite the opposite, they do. It’s simply that for non-crypto native investors both retail and professional, the learning curve can seem rather steep and time-consuming. So much so that a trader may miss out on market opportunities and/or be discouraged from leveraging the goods of the industry due to difficulties in finding secure, professionally structured financial tools in a timely manner.
The all-in-one solution
The solution to the above conundrum isn’t as complicated as it may seem. Instead of expecting incoming specialists to invest days or weeks in researching centralized exchanges, DEXs, secure wallets and custodians, and insurance, it is part of the crypto industry’s duty to innovate and create ready-made solutions for TradFi experts and crypto-focused investors alike. Thus, making it easy for mainstream minds to spread their wings in the crypto market is ultimately what will bring global adoption to the space in a year or so rather than at the turtle pace of more established industries.
A good case study for such user-friendly solutions is Nexo Prime – a prime brokerage service that offers advanced trading capabilities along with secure custody, and tailor-made solutions. In essence, a service that provides a solid foundation for the three main pillars of what traders need to operate successfully and efficiently in blockchain finance:
- Advanced trading capabilities
- Secure Custody solutions
- Customizable services
Naturally, professional traders need professional financial tools and when one refers to advanced trading capabilities this includes spot, derivatives and margin trading options offered by the provider via many of the biggest trading platforms in the industry. This large variety of venues ensures access to deep, diversified liquidity and cost-efficient executions. The underlying infrastructure behind the quality all-in-one solution is also important. For example, with Nexo Prime clients, can trade both directly through an API connection or use Nexo’s intuitive trading interface.
Something the Prime service also pinpoints is seasoned investors are highly focused on the cost-efficiency of the provided services as even the most convenient and lucrative trading capabilities can be rendered useless by high prices and hidden fees that eat away gains. Overall, in the sphere of trading solutions, a rich digital asset investment provider will optimally supply both a variety of proprietary solutions and connections with numerous exchanges and other platforms.
Perhaps even before looking into a unified platform for trading tools, comes the search for satisfactory storage of digital asset investments. For sophisticated traders, this almost always means custodial solutions. Therefore indicating a premium all-around digital assets trading suite must engage with a diverse range of custodial partners, ensuring substantial insurance for accounts, superior compliance strategies and stringent transparency procedures.
In the case of Nexo Prime, this looks like employing the services of no less than three certified crypto custodians, providing a cumulative insurance of $375 million, using advanced KYC for all client accounts on the compliance front, and subjecting its entire company portfolio to a real-time audit from leading US accounting firm Armanino LLP, proving Nexo’s assets under management exceed liabilities at all times.
The value behind a service like Prime is that the combination of multiple security-focused partners adds to the overall credibility of the product as each institution vets its partners before agreeing to work with them. Thus, using such a service as opposed to selecting a single custodian acts as a much quicker and more trustworthy on-ramp to safeguarding assets via distributed responsibilities without the compromise of having to manage them individually.
One size does not fit all: The power of bespoke products
While advanced trading capabilities and secure custody provide a solid foundation for a well-rounded product, in the grander scheme of things, the more professional the client, the more one-size-fits-all solutions are likely to limit their potential in the market. In this respect, a function supported by the case study of Nexo Prime that is relatively underestimated is its OTC functionality – the option for bespoke services. Any company hoping to attract and maintain interest from high-profile mainstream and crypto-native traders must have versatile, flexible services and strong relationships with partnering organizations in order to create on-demand, tailor-made solutions for clients to suit any investment strategy.
Beyond its value for traders, using such an integrated all-in-one product points to the inherent flexibility and deep reach within the industry that is ultimately what allows services like Nexo Prime to scale faster. As the crypto industry grows and new tools and opportunities arise, what traders will be looking for are advanced services that are not only good now, but are poised to expand along with the latest developments in digital asset investment. This scalability along with the existing on-ramp all-in-one crypto trading suites create for traditional traders carries promising potential to accelerate crypto’s ascent into the world of mainstream investment.