Are Brokerages Needed in Crypto?

Current decentralized/centralized exchanges are great for the average crypto trader.

Fragmented exchanges with low trading volumes compared to traditional markets cause liquidity and slippage issues.

A trader wants to buy a set amount of tokens, but price differs when they place an order on the exchange.

With thousands of cryptocurrencies available on exchanges, attracting investors and traders can be difficult.

Adding additional trading pairs and exchange listings can improve liquidity.

Crypto-to-crypto exchanges have better liquidity compared to fiat accepting exchange which goes through a tighter verification process.

Unique from traditional stock exchanges, crypto exchanges remove such barriers by allowing investors to directly purchase their desired token on the exchanges.

Investors can go through a brokerage which offers both exchanges and OTC platforms as trading options.

Due to the strong relationships between brokerages and exchanges, brokerage clients can benefit from the attractive trading/withdrawal rates offered by exchanges.

Exchanges may set the price of crypto assets but large trades usually do not occur from one account.