The Ultimate Irony of Crypto Trading

We have all witnessed armies of "Introducers" trolling around LinkedIn and Telegram advertising their access to buyers or sellers of bitcoin, coupled with hundreds of wannabe over-the-counter trading desks whose only method of trading is to call wholesale market makers.

Today bitcoin trading is done by more middlemen than in traditional finance, with the result that frictional trading costs are far higher than for non-digital assets.

Before delving into the silliness of the current market structure for trading crypto, it is important to note that I am a fervent believer in the potential for crypto to revolutionize the capital markets, eventually.

I have, on the record, stated that the ability of crypto market structure to support global capital formation and trading will eventually mean that all financial assets will trade digitally.

The most sophisticated large wholesale market makers have built excellent systems for trading across exchanges and other market makers.

If the answer is "Yes" that is neither bad nor good, but it does have important implications - it means that you are likely trading without having to pay an extra intermediary unless the desk contacted you first, you should only trade with them if you need immediacy.

Algorithmic platforms built for the crypto markets are typically the most cost-efficient trading alternative.

What electronic trading tools does the firm utilize and how do they interact with "Public" markets?

The answer you should be looking for is that the desk has an algorithmic trading system with maximum connectivity and access to data.

Now that such tools for trading crypto exist, it is time for crypto investors to take notice and demand their agents use them.