How Exchanges are Powering the Next Generation of Pro Traders

The initial and primary purpose of crypto exchanges is to provide a platform for trading crypto assets. Exchanges and traders have matured into smart factions. Crypto traders have grown from regular enthusiasts involved in P2P swapping of crypto assets.

The contemporary trader population is made up of smart investors. ‘Smart investors’ in the sense that they trade advanced metrics instead of emotions. Crypto trading is shifting from regular guesswork and the belief in 50/50 chances.  Now, crypto traders are maximizing their chances of scoring a winning trade by leveraging best-in-class analytics infrastructures.

Why are crypto traders growing smarter?

The advancement in crypto trading strategies and investors’ behavior is due to the following

Advancements in trading technology.

Crypto research tools have improved efficiency and accuracy with optimized technologies and new datasets. Crypto exchanges offer first-class insights and verified liquidity scenarios through analytics, while automated trading software, Bots, and AI-driven tools are expected to become more potent in the future.

Educational Content and Transparency

Crypto exchanges, independent platforms, and interest groups provide hands-on educational resources for investors. These contents explain core aspects of crypto technology and trading in a way that makes it easier for investors to learn. Thanks to the growing number of crypto tutorial platforms and better educational facilities, crypto literacy has become cheaper.

Market volatility and bear markets

The several market crash events have made investors more aware. Investors have first-hand experience with terrible market crashes. For instance, the Terra Luna crash incident and the FTX exchange collapse episodes, which shook the entire crypto market. With the knowledge of how impactful these crashes could be, investors are now applying risk management precautions more than ever.

Social media and trading communities

Crypto communities and social media platforms disseminate information very quickly. Communities and social media provide a platform for sharing ideas. Crypto investors and firms are increasingly present on such platforms. Thus, inexperienced traders can upskill by following experienced traders or joining trading communities. Exchanges contribute significantly in this regard. Put simply, advanced trading platforms are now full-suite analytics and research resources as well.

Key Features That Define a Pro-Trader Platform

Pro-trader platforms, or advanced exchanges, are crucial for smart traders due to their focus on market transparency. These platforms provide traders with operational, trading, and external data, including regular and advanced information, ensuring transparency and enabling users to understand their operations.

Risk Isolation

Pro-traders platform helps traders manage their risks better. In addition to safety features like Stop Losses and demo accounts, pro-traders offer Risk Isolation features like Sub accounts and Margin segmentation. Sub Accounts are secondary accounts where traders can portion their trading capital. 

With Sub Accounts, traders can segregate their trading practices according to the risk levels.

Capital Efficiency

Pro-trader platforms present traders with resources to maximize their profits. Through leverage trading, traders can use more capital for each trade by borrowing from the trading platform. Pro-trader platform optimizes this process for users. This is done through an effective collateralization process and flexible leveraging. Trading platforms offer up to 100X leverage. Traders can customize their leverage multiplier according to their trading strategy.

Examples of Pro-Traders platforms

Considering the parameters above, a handful of crypto trading platforms fall into the Pro-trader platform category. These platforms strive to create viable platforms for crypto trading. Here are some examples of Pro-trader platforms and why they are classified as top-tier

Binance

Binance is the world’s leading cryptocurrency exchange, where you can trade Bitcoin, Ethereum, and many other digital assets on a secure, user-friendly platform. With low fees, with advanced trading tools, and enhanced security, Binance is an excellent option for beginners and pros alike.

Binance’s Pro Toolkit

• Mock Trading: Binance’s Mock Trading enables users to experiment with their trading strategy. It provides a realistic view of the impact of each trade move. With this clarity, users can now implement their strategy on their main trading account
• Risk Ratio Analysis: Binance’s analysis evaluates potential losses versus gains in a trade, often using metrics like the risk-reward ratio. This helps traders assess trade viability, optimize strategies, and manage capital effectively.

Bybit

Bybit is a cryptocurrency exchange platform with international recognition, offering smooth digital asset trading, including spot and futures markets. Bybit is a user-friendly platform suitable for both novice and professional traders, offering lower fees, tighter spreads, and a Pro Toolkit. It also provides subaccount features for risk management and offers up to 150X leverage for listed assets.

WhiteBIT

WhiteBIT is a top-tier crypto exchange providing a unified trading experience, allowing users to trade assets on spot and derivatives platforms. It is secure, CCSS Level 3 certified, and offers an intuitive interface, 24/7 customer support, and competitive fees for futures and spot trading.

WhiteBIT’s Pro Toolkit

• Sub Accounts: WhiteBIT’s Subaccounts are ideal for traders with multiple trading strategies. It also serves traders who wish to separate their base capital from their investment capital. On WhiteBIT, creating and using subaccounts is easy. Notably, WhiteBIT offers a different number of sub-accounts under the VIP program, which grows with the level — up to 150.
• BBO and queue visibility: The BBO (Best Bid Offer) is the highest bid and lowest asking price in an order book. On WhiteBIT, traders can obtain data on the BBO and use it while setting up their traders. BBO visibility enables traders to understand the level of demand and liquidity conditions. With this information, they can set limit orders and stop losses with more accuracy.
• Collateral weights: Each tradable asset on leverage trading platforms has unique collateral weights as specified by the trading platform. Differences in how platforms calculate this weight may lead to confusion. On WhiteBIT, traders can easily calculate Collateral Weights using data presented on the platform. This enables them to easily estimate the risk while trading any asset with leverage.

OKX

OKX is a major central cryptocurrency exchange and Web3 platform offering seamless trading, high liquidity for any DeFi product, NFTs, or other categories of decentralized apps. With advanced tools, low fees, and a very secure environment, OKX facilitates anyone starting their career along with the expert trader.

OKX’s Pro Toolkit

• Self-Trade Prevention (STP): OKX’s STP prevents a user’s orders from matching with their own in the order book, avoiding unintended self-trading, ensuring fair trading, and maintaining market integrity.
• Volatility Ratio Indicator: The Volatility Ratio Indicator compares current true range to the 14-day average true range, signaling breakouts with high ratios (>0.5) and stable markets with low ratios for trading decisions.

Conclusion

Trading on the right exchange is crucial for investor success, as the best traders are found on top-tier platforms like Binance, WhiteBIT, and Bybit. Pro-Traders platforms cater to various traders and offer various advantages. Before choosing an exchange, evaluate features to fit your trading strategies.