The whole crypto world has been deprived of the market cap that it once had, during the bull run of 2017. As the amount of money in the crypto space declines rapidly, entrepreneurs are coming up with new ways in order to bring in more money to the market.
However, none of these attempts have proven to have worked so far. A common investor who invested during the 2017 bull run would be hesitant about entering a market when it is declining at such a rapid rate.
The only ones who truly view this as an opportunity are the experienced institutional investors. Getting these institutional investors to invest in the crypto market would give the market cap a much-needed boost. However, there are not many ways for these institutional investors to enter the market. To solve this issue, Seed CX, a Chicago based exchange startup has launched Spot Trading for the institutional investors.
What is Spot Trading?
A spot trade is a type of trade where two entities agree to exchange two different assets based on the value of the assets being exchanged. The main aspect that draws the institutional investors towards spot trading is that all trades are settled on the spot or physically.
Once the trade is finalized, the assets being exchanged, such as currency or any other financial instrument is delivered instantly.
How will the move by Seed CX help the Crypto Industry?
According to the reports that were announced, Seed CX has launched spot trading for Bitcoin and USD pairs. This will enable institutional investors to easily invest in cryptocurrency as opposed to the traditional method of transferring money from bank to the exchange and waiting for that transaction to get confirmed.
With Spot trading, investors will be able to invest in cryptocurrency on the spot without having to wait for any time. Users will also be able to sell their cryptocurrency on the spot in exchange for USD.
All the deposited USD will be stored in a regulated U.S. bank and is protected by the Federal Deposit Insurance Corporation. Thus, users need not have to worry about any theft or loss of their fiat deposits. Seed CX aims at establishing zero fee transactions for both deposits as well as the withdrawal of cryptocurrency.
Unlike a traditional exchange that stores all the cryptocurrency in a single wallet, Seed CX will make use of segregated wallets for each of its investors.
WIth top-notch security integrated, Seed CX will be able to attract institutional investors onto the platform and in turn, bring in such institutional funds to the crypto market and help increase the overall market cap of the market.
Seed CX has just launched spot trading with Bitcoin and USD pairs. The exchange aims to add more cryptocurrencies to the mix very soon. Additionally, in order to attract the institutional investors in other parts of the world, Seed CX is also planning to release exchange pairs with EUR as well as the Japanese Yen. Thus, making an attempt to help the crypto market regain its past glory.