The Future of Crypto Exchanges: Unlocking Opportunities for Traders and Institutions in India

Mridul Gupta, Founding Partner of CoinDCX, emphasizes the need for platforms to offer advanced market structures, deep liquidity, and institutional-grade products to support high-frequency trading and large-scale institutional participation in the next phase of crypto trading

As India’s crypto market matures, exchanges must evolve to meet the sophisticated demands of both retail and institutional traders. Mridul Gupta, Founding Partner of CoinDCX, emphasizes the need for platforms to offer advanced market structures, deep liquidity, and institutional-grade products to support high-frequency trading and large-scale institutional participation in the next phase of crypto trading.

India, with its vibrant and dynamic crypto market, presents a unique opportunity for the crypto space. As more investors and traders turn to digital assets, the market is evolving, not just in terms of retail participation but also in terms of institutional involvement. The growing interest from institutional investors is a pivotal moment for the market’s maturity.

Mridul Gupta sees this transition as an exciting opportunity for the  industry. "The Indian market is at an inflection point. Retail investors are increasingly looking for advanced trading tools, and institutions are beginning to take crypto more seriously as an asset class. Exchanges must evolve to address the diverse needs of these market segments, moving beyond the basics of trading to offer more complex, sophisticated products and services," says Mridul.

While exchanges in the past have been primarily focused on serving passive retail traders, the next phase of crypto trading will require platforms to cater to more active traders and institutional clients. Active retail traders demand more advanced tools, including leverage, margin trading, and low-latency execution, while institutions seek institutional-grade infrastructure, deep liquidity, and high-frequency trading capabilities.

Catering to the Advanced Needs of Retail Traders 

The needs of active retail traders are far more complex than those of passive investors. "As the market matures, retail traders are moving beyond simple buy-and-hold strategies. They want tools that allow them to execute more sophisticated strategies, including margin trading, short selling, and the ability to engage in high-frequency trading," explains Gupta.

At CoinDCX, the platform has been designed with these evolving needs in mind. With features like crypto futures trading, which allows users to trade with up to 100x leverage on assets like BTC and ETH, CoinDCX ensures that traders have the ability to take advantage of both bull and bear market conditions. The platform also offers over 300 trading pairs, giving traders access to a broad range of assets, from blue-chip tokens to emerging, high-volatility tier 2 and tier 3 tokens.

"We understand that retail traders want more than just low fees. They are looking for a comprehensive ecosystem that provides seamless access to diverse assets, advanced trading options, and the ability to trade directly in INR without the hassle of currency conversions," adds Gupta. CoinDCX has reduced its maker fees to 0.021% on limit orders and taker fees to 0.05% on market orders, making it one of the most cost-effective platforms for Indian traders.
Moreover, Gupta emphasizes the importance of simplifying the tax reporting process, especially as regulatory frameworks around crypto in India continue to evolve. "At CoinDCX, we’ve created tools that allow traders to generate their crypto tax reports in just a few minutes, ensuring they can stay compliant without the added complexity."

Preparing for the Institutional and Algorithmic Trading Era

As institutional interest in crypto assets rises, the demand for platforms with institutional-grade infrastructure and high-frequency trading (HFT) capabilities is increasing. "For institutional players, it’s not just about access to markets; it’s about robust infrastructure that supports high-volume, low-latency trades," explains Mridul Gupta, Founding Partner of CoinDCX.
CoinDCX is evolving to meet this demand by offering seamless API trading across both spot and futures markets. With over 1,000 active INR/crypto markets and more than 2,000 API users, the platform ensures that institutional traders can execute large trades with precision and minimal slippage. "Our platform delivers the reliability and liquidity institutional players require, with 99% uptime and low-latency execution," Gupta adds.

For algorithmic traders, CoinDCX provides a powerful API infrastructure tailored for low latency trading, allowing complex strategies to be implemented quickly and efficiently. "Institutional-grade infrastructure is essential for the future of crypto exchanges. Our APIs are designed to support both retail and institutional traders, enabling them to leverage liquidity and execution speed critical to success," concludes Mridul.

The Road Ahead: Embracing the Future of Crypto Trading

Looking ahead, Mridul sees limitless potential for the evolution of crypto exchanges in India. "The future of crypto trading lies in catering to a diverse range of traders, from retail enthusiasts to large institutional investors. Much like the equity markets, crypto exchanges must bridge the gap between how retail and institutional traders perceive crypto trading versus traditional equity trading. By offering innovative products, deep liquidity, and an intuitive, secure user experience, exchanges can meet the growing demands of both novice and sophisticated traders. This shift will not only cater to existing participants but also drive new acquisitions as more traders move from equities to crypto,” he concludes.

Disclaimer:  Moneycontrol journalists were not involved in creating this article