The 2024 Market Guide for Financial Advisors

all. Many people looking to invest in digital assets come from a traditional financial markets background and are often surprised by the complexity and fundamental differences between the two. Cryptocurrency is a nuanced and highly fragmented market with hundreds of centralized exchanges worldwide. However, only about 20 account for significant trading volume, and only about 5 do most of the trading. The largest and most liquid exchanges are located outside the United States. At the same time, there are only three relevant exchanges based in the United States. There are also decentralized exchanges (DEXs), which are peer-to-peer markets where transactions take place. It is a direct chain between cryptocurrency traders. Centralized exchanges operate internal ledgers that balance positions across customers. There is an over-the-counter (OTC) desk that provides more white-glove services to institutional investors.