Recently, the world’s largest cryptocurrency by trading volume Binance went for a survey over 100 institutional and VIP clients. And, meanwhile, the Binance team also mentioned that there is no point of generalizing results because of the small sample size. Talking of the survey’s report, around 50% of VIP clients held positions for a week and third of Binance’s institutional traders participated in high-frequency trading and also, in other market-enhancing techniques. The key point of the survey came out to be the usage of several exchanges for trading by high portfolio clients and use of a single exchange by clients with less capital. For any information related to Binance exchange, contact Binance support number.
Speaking of high-frequency traders, trading happens to them on numerous exchanges to engage in cross-platform arbitrage strategies. This vision helps traders to get price benefits across numerous platforms. Also, 90% of Binance clients use USD as their benchmark currency. And, it got the confirmation of dominance on USD-backed stablecoins and USD- denominated trading platforms.
The second revelation made by the Binance team that every trader use stablecoins for trading activities or as a store-of-value (SoV). Though USDT holds its command as a stablecoin, PAX and USDC are also being frequently used for trading or to hold value. And, nearly 20% of institutional clients agreed that they use the crypto-backed Dai stablecoin. Switching to the usage of OTC desks, 87% of participants responded that they use OTC trading desks such as Huobi OTC, Galaxy Digital and Binance Trading Desk. Majority of its clients agreed that they have experience in working in the Finance sector and nearly 7% said they have no acquaintance to it before starting trading crypto assets.
And, the majority of the clients agreed that it been over a year to do trading and merely 7% are new or their experience is less than a year. Also, 50% of institutional clients of exchange had traded in the past in traditional equity markets and almost 25% mentioned they are engaged in foreign currency trading.
Bringing cold wallets in talks, high portfolios clients use cold wallet storage wallets to keep at least $25 million funds or use third-party custodial solutions.
the fact which gets in noticed that traders don’t do frequent trading on decentralized exchanges because of monitoring ambiguity. The clients also agree that there is a lack of liquidity on DEX and have a non-intuitive user experience.
One-third of clients of Binance who participated in the survey mentioned the use of custodial lending and borrowing services such as BlockFi or Nexo as it leads to long-term investment strategy. And, taking risk factors into considerations, many VIP clients showed concern about technology failures and security breaches. Other risk factors include Tether’s legal issues, privacy issues associated with crypto transactions. The results came out of this survey were interesting and the exchange mentioned that large several client didn’t participate in it. If you want to know more about Binance technical issues, contact the customer support team over Binance customer care number and get prompt and productive results.