Crypto-asset trading is a fast-growing part of the financial sector, and it is the next big thing. Because of the subsequent spread of trading applications, a lot of functionalities have been provided to the large number of investors who will take part in the E-Trade. The subsequent spread of trading applications brought immense functionality to a wider range of investors, i.e. the ability to take part in financial markets with greater execution speed and reduced fees. Given below are some of the key factors that led to the emergence of the Crypto Asset Management Solution-
- Investors are increasingly looking to add a bit of cryptocurrency, such as Bitcoin, to diversify their portfolios and capture some of the potential upsides of this new asset class.
- Cryptocurrencies are difficult to grasp for new adopters and many ordinary investors – including how to establish a wallet and transfer tokens securely.
“crypto-asset management solutions are helping individuals and firms alike who want to take advantage of crypto without having to worry about the ins and outs of technical procedures involved.”
What exactly is Crypto Asset Management Platform?
Crypto Asset Management platform is an ecosystem that provides a centralized location for the traders to manage their investments or portfolios. These platforms simplify the process by helping users to unite their diverse holdings and instead of managing multiple accounts and wallets, they can manage all their crypto stuff on a single platform.
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Things You Must Consider Before Choosing the Crypto Management Solution
Choosing the right crypto asset management solution is one of the difficult and important tasks. As nowadays there are several platforms available in the market and it becomes really difficult for a beginner trader to pick the correct one, as picking the wrong platform could cause hacks, distractions, and wasted efforts eventually.
Below is the list of a few points which traders should keep in mind while hunting for the crypto asset platform.
- KYC/AML- Different exchanges have different laws and regulations based on their location, practices, and offerings. Some exchanges have to Know Your Customer (KYC) and Anti-Money Laundering (AML) practices during the account creation, and some may have this feature to withdraw funds.
- Security- The next important thing over which the trader has to look is the security of the platform. A secure platform ensures a solid user base and high revenue. Each exchange has its own chosen methods of security.
The exchange offers two-factor authentication (2FA). If not, then the exchange may not be acceptable by security by today’s standards. I list below are some of the must-have security mechanisms for any crypto platform.
- SQL injection
- Data encryption
- HTTP parameter pollution protection
- HTTPS authentication
- DoS (Anti-Denial of Service)
- DDoS (Anti-Distributed Denial of Service)
- Jail login
Fiat Exchange- some traders require an exchange that is compatible with the fiat currencies, allowing them to transfer national currencies (USD, CAD, etc.) Into the crypto world for trading use, and out of the crypto world to cash out profits. While some exchanges do not have this option.
Supported Cryptocurrencies- There are many Crypto currencies available in the market for users to trade in. Once users are done with the selection of the cryptocurrency for trade, they can now and then hunt for or make sure the platform or the exchange supports them.
Data Volume- Trading platforms vary based on the number of participants using them, as well as the amount of each asset being traded. This aspect can be important as it affects how easily users can enter or exit positions.
Fees- Most exchanges charge a small fee for each trade, while some may not have this feature. Different platforms have different fees incurred on the trades happening there, along with the percentage of each trade.
Liquidity – Liquidity also plays a vital role when a user is looking for an asset platform. if a system doesn’t have sufficient liquidity, then the asset value and the execution or the transaction may get compromised. The users will have to make sure while getting the solution that the exchange offers sufficient liquidity and trading volume that helps the transactions to be fast and easy.
Before getting the platform, users must do due diligence to make sure that the platform would suffice their requirement or not. The points mentioned above are just for consideration, although the requirement will vary from person to person based on their goals, values, and activities.
And if you are a fund manager and want a crypto fund management system, then you must consider Hashstudioz expertise in delivering trading platforms that have builtin online wallet, onboarding process, crypto and fiat currency exchange, along with the support of deposits/withdrawals.
You may directly contact us and discuss your business plan with the experts.