The cryptocurrency sector is getting mature, and the demand for secure, scalable, and efficient platforms for institutional needs is growing rapidly. Institutional crypto platforms offer services that go far beyond the scope of typical retail trading platforms, making it a preferred choice for large financial entities, hedge funds, and corporations. An example is the institutional crypto platform WhiteBIT – the largest European exchange that offers advanced tools for companies tapping into the crypto market. Let’s see what services can be found on platforms like WhiteBIT.
The Essence of Institutional Cryptocurrency Trading
Institutional crypto trading differs significantly from individual or retail trading in several key aspects. While retail traders may focus on short-term gains and smaller trades, institutions often deal with substantial volumes of cryptocurrency assets, requiring more robust trading infrastructures. These entities engage in large-scale, high-frequency trading, which demands access to deep liquidity pools, advanced trading algorithms, and over-the-counter (OTC) markets that offer higher transaction limits.
Advantages of Using an Institutional Trading Platform
Institutional crypto exchanges offer various extended services and specialized tools to enhance trading efficiency, security, and compliance. Below are some of the key services available on these platforms:
Market-making. It provides liquidity to the market by ensuring that buy and sell orders are consistently filled. Institutions benefit from market-making because it minimizes the slippage and volatility that can arise from large-volume trades. Institutional traders often engage in liquidity provision themselves or partner with market makers to optimize their trading strategies.
Token listing. Institutional platforms typically provide a seamless and secure environment for token listings, which is essential for projects looking to attract institutional investors. On the other hand, institutions that plan to launch their own crypto can also use institutional cryptocurrency exchange services, including launchpads and marketing solutions.
Lending and borrowing. Lending services are particularly appealing to institutional investors who may need to leverage their positions or borrow assets for strategic purposes. A b2b crypto exchange may offer dedicated lending platforms where businesses can lend out digital assets, often under favorable terms compared to retail platforms.
Over-the-counter (OTC) trading. OTC trading desks provide institutions with the ability to execute large trades without directly impacting the market price. OTC trades are negotiated directly between two parties, allowing institutions to buy or sell large volumes of cryptocurrency without causing price fluctuations.
Advanced security and AML/KYC compliance. Institutional cryptocurrency platforms are equipped with advanced security protocols, including multi-signature wallets, cold storage, and encrypted data transfers. Additionally, these platforms must comply with rigorous AML and KYC requirements, ensuring that all transactions are transparent and meet regulatory standards.
Institutional crypto exchanges are a critical part of the digital asset landscape, offering extended services and tools that meet the specific needs of large financial institutions, fun
Bitcoin is a type of digital currency that enables instant payments to anyone. Bitcoin was introduced in 2009. Bitcoin is based on an open-source protocol and is not issued by any central authority. It is an electronic currency created back in January 2009. It is known to be decentralized electronic cash that does not rely on banks. It is possible to send from one user to another on the bitcoin blockchain network without the necessity for mediators. It is primarily used for sending or receiving cash through the internet even to strangers. Bitcoin is also known to be a new type of cash. It is predicted to grow at a rapid pace over the years, along with its value. It is typically purchased as an investment by numerous industries and people.
The central government typically handles bitcoins without specific rules, unlike dollars and euros. It is not owned by a country, individual, or group. Therefore, it reduces the chances of corruption and inflation.
History -:
The origin of Bitcoin is unclear, as is who founded it. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualized an accounting system in the aftermath of the 2008 financial crisis.
Uses -:
1. Originally, Bitcoin was intended to provide an alternative to fiat money and become a universally accepted medium of exchange directly between two involved parties.
2. Fiat money is a government-issued currency that is not backed by a commodity such as gold.
3. It gives central banks greater control over the economy because they can control how much money is printed.
4. Most modern paper currencies, such as the US dollar and Indian Rupee are fiat currencies
Acquiring Bitcoins -:
1. One can either mine a new Bitcoin if they have the computing capacity, purchase them via exchanges, or acquire them in over-the-counter, person-to-person transactions.
2. Miners are the people who validate a Bitcoin transaction and secure the network with their hardware.
3. The Bitcoin protocol is designed in such a way that new Bitcoins are created at a fixed rate.
4. No developer has the power to manipulate the system to increase its profits.
5. One unique aspect of Bitcoin is that only 21 million units will ever be created.
6. A Bitcoin exchange functions like a bank where a person buys and sells Bitcoins with traditional currency. Depending on the demand and supply, the price of a Bitcoin keeps fluctuating.
Bitcoin Regulation -:
The supply of bitcoins is regulated by software and the agreement of users of the system and cannot be manipulated by any government, bank, organization, or individual.Bitcoin was intended to come across as a global decentralised currency, any central authority regulating it would effectively defeat that purpose.It needs to be noted that multiple governments across the world are investing in developing Central Bank Digital Currencies (CBDCs), which are digital versions of national currencies. The legitimacy of Bitcoins (or cryptocurrencies)
In India -: In the 2018-19 budget speech, the Finance Minister announced that the government does not consider cryptocurrencies as legal tender and will take all measures to eliminate their use in financing illegitimate activities or as a part of the payment system. In April 2018, the Reserve Bank of India (RBI) notified that entities regulated by it should not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling virtual currencies. However, the Supreme Court struck down the ban on the trading of virtual currencies (VC) in India, which was imposed by the RBI. The Supreme Court has held that cryptocurrencies are like commodities and hence they can not be banned.
Possible Reasons for the Rise in the Value of the Bitcoin -:
1. Increased acceptance during the pandemic.
2. Global legitimacy from large players like payments firm PayPal, and Indian lenders like State Bank of India, ICICI Bank, HDFC Bank, and Yes Bank.
3. Some pension funds and insurance funds are investing in Bitcoins.
Bitcoin Transaction -:
Bitcoin address is built from the public key. It is very similar as compared to an email address, anyone can check up and provide bitcoins. The private key is known to be identical to that of an email password since it is possible to send bitcoins with the help of remote access only. That’s why it is essential to keep the private key confidential or hidden. To send bitcoins, it is required to verify to the network that you acquire the private key of that particular address without the private key being revealed. It can be done with a specific mathematics branch referred to as public-key cryptography. The identification of the user possessing bitcoins is known as a public key. The public access and the ID number are very alike. For an individual to send you bitcoins, they require your bitcoin address. It is known to be another version of the public key that can be typed and read effortlessly.
However, the security concern of bitcoin is increasing day by day across the world. Since digital wallets are used to store bitcoins, they might be targeted by hackers as their value increases.
Bitcoin is a decentralized digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms do, and unlike government-issued currencies, it is operated by a decentralized authority.
Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to (although each record is encrypted). All Bitcoin transactions are verified by a massive amount of computing power via a process known as “mining.” Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as BTC when traded.
Understanding Bitcoin The Bitcoin system is a collection of computers (also referred to as “nodes” or “miners”) that all run Bitcoin’s code and store its blockchain. Figuratively speaking, a blockchain can be thought of as a collection of blocks. In each block is a collection of transactions. Because all of the computers running the blockchain have the same list of blocks and transactions and can transparently see these new blocks as they’re filled with new Bitcoin transactions, no one can cheat the system.
Anyone whether they run a Bitcoin “node” or not can see these transactions occurring in real time. To achieve a nefarious act, a bad actor would need to operate 51% of the computing power that makes up Bitcoin. Bitcoin has around 13,768 full nodes, as of mid-November 2021, and this number is growing, making such an attack quite unlikely.
But if an attack were to happen, Bitcoin miners the people who take part in the Bitcoin network with their computers—would likely split off to a new blockchain, making the effort the bad actor put forth to achieve the attack a waste.
Balances of Bitcoin tokens are kept using public and private “keys,” which are long strings of numbers and letters linked through the mathematical encryption algorithm that creates them. The public key (comparable to a bank account number) serves as the address published to the world and to which others may send Bitcoin.
The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Bitcoin keys should not be confused with a Bitcoin wallet, which is a physical or digital device that facilitates the trading of Bitcoin and allows users to track ownership of coins. The term “wallet” is a bit misleading because Bitcoin’s decentralized nature means it is never stored “in” a wallet, but rather distributed on a blockchain.
Peer-to-Peer Technology: Bitcoin is one of the first digital currencies to use peer-to-peer (P2P) technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network Bitcoin “miners” are in charge of processing the transactions on the blockchain and are motivated by rewards (the release of new Bitcoin) and transaction fees paid in Bitcoin.
These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoins are released to miners at a fixed but periodically declining rate. There are only 21 million bitcoins that can be mined in total. As of November 2021, there are over 18.875 million Bitcoin in existence and less than 2.125 million Bitcoin left to mine.
Bitcoin Mining:
Bitcoin mining is the process by which Bitcoin is released into circulation. Generally, mining requires solving computationally difficult puzzles to discover a new block, which is added to the blockchain.
Bitcoin mining adds and verifies transaction records across the network. Miners are rewarded with some Bitcoin; the reward is halved every 210,000 blocks. The block reward was 50 new bitcoins in 2009. On May 11, 2020, the third halving occurred, bringing the reward for each block discovery down to 6.25 bitcoins Early Timeline of Bitcoin Aug. 18, 2008 The domain name Bitcoin.org is registered. Today, at least, this domain is WhoisGuard Protected, meaning the identity of the person who registered it is not public information.
Oct. 31, 2008 A person or group using the name Satoshi Nakamoto makes an announcement to the Cryptography Mailing List at metzdowd.com: “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” This now-famous white paper published on Bitcoin.org, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System,” would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009 The first Bitcoin block is mined Block 0. This is also known as the “genesis block” and contains the text: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009 The first version of the Bitcoin software is announced to the Cryptography Mailing List.
Jan. 9, 2009 Block 1 is mined, and Bitcoin mining commences in earnest.
Bitcoin employment opportunities: Those who are self-employed can get paid for a job related to Bitcoin. There are several ways to achieve this, such as creating any internet service and adding your Bitcoin wallet address to the site as a form of payment. There are also several websites and job boards that are dedicated to digital currencies:
Why Is Bitcoin Valuable? Bitcoin’s price has risen exponentially in just over a decade, from less than $1 in 2011 to more than $68,000 as of November 2021. Its value is derived from several sources, including its relative scarcity, market demand, and marginal cost of production. Thus, even though it is intangible, Bitcoin commands a high valuation, with a total market cap of $1.11 trillion as of November 2021
Is Bitcoin a Scam? Even though Bitcoin is virtual and can’t be touched, it is certainly real. Bitcoin has been around for more than a decade and the system has proved itself to be robust. The computer code that runs the system, moreover, is open source and can be downloaded and analyzed by anybody for bugs or evidence of nefarious intent. Of course, fraudsters may attempt to swindle people out of their Bitcoin or hack sites such as crypto exchanges, but these are flaws in human behavior or third-party applications and not in Bitcoin itself.
How Many Bitcoins Are There? The maximum number of bitcoins that will ever be produced is 21 million, and the last bitcoin will be mined at some point around the year 2140. As of November 2021, more than 18.85 million (almost 90%) of those bitcoins have been mined.18 Moreover, researchers estimate that up to 20% of those bitcoins have been “lost” due to people forgetting their private key, dying without leaving any access instructions, or sending bitcoins to unusable addresses.
Where Can I Buy Bitcoin? There are several online exchanges that allow you to purchase Bitcoin. In addition, Bitcoin ATMs internet-connected kiosks that can be used to buy bitcoins with credit cards or cash have been popping up around the world. Or, if you know a friend who owns some bitcoins, they may be willing to sell them to you directly without any exchange at all.
Bitcoin is basically a computer file which is stored in a digital wallet app on a smartphone or computer. People can send Bitcoins or part of one to your digital wallet, and you can send Bitcoins to other people.You can buy Bitcoins using real money. You can sell things and let people pay you with Bitcoins.The money you put into Bitcoin is not safe from value fluctuations. Bitcoin is a volatile investment. If you’re looking for a “safe” investment with guaranteed returns, then don’t invest in Bitcoin
Bitcoin is the oldest cryptocurrency in the world. It is a digital currency that is often used to exchange value for goods and services. Bitcoins work on the principle of blockchain technology. Bitcoins can also be mined or produced using a massive computing system, complex technical process, and an active internet connection.People have traded in Bitcoin for over a decade now. Many companies have even started accepting Bitcoins as a payment method. The price of the coins has gone up substantially over the years.
In April 2018, the RBI had effectively banned cryptocurrency transactions via banks and e-wallets in the country. It was initially supported by the Supreme Court, though the top court later quashed the ban in March last year.Earlier this week, the government listed a bill titled The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 that is aimed to provide a framework for creation of an official digital currency to be issued by the RBI and prohibit all existing private cryptocurrencies. Experts, however, believe that it would take some time for the country to bring any changes.
Bitcoin held at exchanges are vulnerable to theft through phishing, scamming, and hacking. As of December 2017, around 980,000 bitcoins have been stolen from cryptocurrency exchanges.The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and the media.Bitcoin gained early notoriety for its use on the Silk Road.
Programmers behind one of the greatest ever advanced coin heists have presently returned about all of the $610 million (generally Rs. 4,530 crores)-plus they stole, Poly Organize, the cryptocurrency stage focused on prior this week by the assault, said on Thursday. The stage, which was small known some time recently Tuesday’s heist, pronounced the programmer on Twitter as a “white cap,” alluding to moral programmers who by and large point to uncover cyber vulnerabilities, upon the return of the reserves.
Poly Arrange, which encourages peer-to-peer token exchanges, included that the tokens were exchanged to a multi-signature wallet controlled by both the stage and the hacker. The as it were remaining tokens however to be returned are the $33 million(roughly Rs. 245 crores) in tie stablecoins solidified prior within the week by cryptocurrency firm Tie, Poly Organize said.
The reimbursement prepare has not however been completed. To guarantee the secure recuperation of client resource, we trust to preserve communication with Mr. White Cap and pass on precise data to the open,” said Poly Arrange on Twitter. A individual claiming to have executed the hack said Poly Organize advertised him a $500,000 (generally Rs. 3.7 crores) bounty to return the stolen resources and guaranteed that he would not be responsible for the occurrence, agreeing to computerized messages shared on Twitter by Tom Robinson, chief researcher and co-founder of Elliptic, a crypto following firm. Poly Arrange, which permits clients to exchange or swap tokens over distinctive blockchains, said on Tuesday it had been hit by the cyberheist, encouraging the guilty parties to return the stolen stores
The still as however unidentified programmer or programmers show up to have misused a powerlessness within the computerized contracts Poly Arrange employments to move resources between distinctive blockchains, agreeing to blockchain forensics company Chainalysis. On Wednesday, the programmers begun returning the stolen coins, driving a few Blockchain examiners to guess that they might have found it as well troublesome to wash stolen cryptocurrency on such a scale. Later on Wednesday, the programmers said in computerized messages moreover shared by Elliptic that they had executed the assault “for fun” and needed to “uncover the defenselessness” some time recently others could abuse it which it was “continuously” the arrange to return the tokens.
At $600 million (generally Rs. 4.460 crores), in any case, the Poly Organize burglary distant surpassed the record $474 million (generally Rs. 3,520 crores) in criminal misfortunes that were enrolled by the whole decentralized fund (DeFi) division from January to July, concurring to crypto insights company CipherTrace. The burglary outlines the dangers of the for the most part unregulated DeFi segment, said crypto specialists. DeFi stages permit clients to conduct exchanges, more often than not in cryptocurrency, without conventional watchmen such as banks or trades.
Cryptocurrency is the most trending topic nowadays and the industry is also booming very much in this digital era. You must have listened about this everyone has different opinion and conception about it, now the questions arise what is crypto and why it’s so trending cryptocurrency is a digital currency or virtual currency which doesn’t exist in physical form or hard cash and is typically not issued by a government or any central authority. It is based on a blockchain system that works as a public financial transaction database.
The first decentralised cryptocurrency was bitcoin and it came into existence in 2009, when the bitcoin became popular than many other cryptocurrencies like ethereum, litecoin, stellar and the most heated dogecoin. since cryptocurrency came into existence it’s been facing legality issues and every country has its way of dealing with cryptocurrency. Many countries have allowed their use and trade without any legal issues and while other countries have banned or restricted this kind of activity. Cryptocurrencies face criticism for many reasons which include the usage of crypto in illegal activities like its the main source of money transfer in the dark web and other illegal hacking activities. They are also praised by many for their inflation resistance, transparency and it’s becoming a great mode of investment nowadays. People have not started using it as a currency but buying it for investment which has resulted in the inflation of bitcoin and other cryptocurrencies. The most popular cryptocurrency is bitcoin which was created in January 2009 it was the first cryptocurrency or the first decentralized currency.
Recently, El Salvador became the first country to accept bitcoin as everyday currency in June 2021. In El Salvador, you can buy anything with bitcoins just like normal hard cash. Many countries have banned this mode of transaction and many have restricted its use. Countries like Algeria, Bolivia, Egypt, Iraq, Morocco, Nepal, Pakistan, and the United Arab Emirates have already banned this mode of transaction completely and countries like Bahrain, Bangladesh, China, Colombia, the Dominican Republic, Indonesia, Iran, Kuwait, Lesotho, Lithuania, Macau, Oman, Qatar, Saudi Arabia and Taiwan have allowed this kind of activity with some restrictions on it.
India has not officially announced anything about its legality but till now it’s legal to trade in cryptocurrency, now and then rumours have been spread that India is going to ban it or not but any official authorisation has not given any statement about it. If you are an Indian citizen or living in India so it is completely legal to trade in it but there’s no regulation on crypto till now, which means you are free to invest or trade in cryptocurrency but it is not regulated by any government authority to protect your money.
Currently every country has its own currency regulated by its topmost federal bank. They are bought and sold and exchanged in the international currency markets like stocks. Owing to the popularity of the US in the last century and the stability and predictability of its economy, the dollar has become the most popular and trusted currency all over. Almost all countries keep large reserves of dollars and most international trade are carried out with it. It’s the literal meaning of a ‘global currency’. But any true global currency must be regulated by some institute that represents the world just like UNO. But, on the contrary, the ‘global currency’ dollar $ is regulated by US top banks and that can definitely lead to certain manipulative advantages for the US. To offset this some countries have started to keep a basket of currency reserves including the likes of Euro. If the popularity of the dollar falls in future for whatever reason, other currencies may try to fill up the vacuum created by it.
Now the emergence of the internet has generated a new breed of global currencies, cryptocurrencies, which are regulated not by any country but by some companies.
Say someone starts a company called ABC Pvt Ltd which develops a digital platform and floats a new digital cryptocurrency called abxCoin (C). He simply links the value of C1 to $1 and makes them equal and connects it (C1) to many other currencies via the international currency market. Now one can see that this digital platform is accessible across all countries on the internet. Suppose any company in the US can buy C10000 by depositing $10000 in the bank account linked to his company ABC Ltd. Also another company in India can buy C10000 by depositing ₹70,0000 (1$ = ₹70). If these Indian and US companies want to transact some random business like import or export, they can easily do it with abxCoins as a mutually agreed upon common currency. But here their trust in between those companies is essential. Because ripping off anyone in this is very easy if someone is fly by night. But serious entrepreneurs can grow their business well.
Thus we have Bitcoins, dogecoin, Ethereum, etc. with some variations. Of course cryptocurrencies need not be pegged to 1 dollar as it was done above for simplicity.
Blockchain
One more important feature of cryptocurrencies is the security that they provide from hacking. A technology called Blockchain technology is used in it where a new transaction is linked to the series of old transactions and hacking is not easy like some hacker can hack an isolated transaction. In fact federal banks all over the world are now looking at ways they can also adopt this Blockchain technology for extra safety for their own currencies.
Is crypto currency legal?
In India, RBI issued a circular in 2018 directing the banks, NBFCs, and other payment service providers to not provide any services to the Crypto Exchange and to not have any commercial relations with them.
However, in 2020 the Supreme court declared the circular issued by RBI before as unconstitutional and lifted the ban.
In January of 2021, Govt issued a statement that it will introduce a bill and a sovereign digital currency will be created and all the private currencies will be banned.
However, currently there is no law in India that puts a ban on these cryptocurrency or declares them illegal.
Track2Training 
You must be logged in to post a comment.