Cross-Border Trading in Crypto
Cross-Border Trading is the ability to trade globally using local currency in financial markets and trade finance.
What is Cross-Border Trading?
Cross-border trading offers the opportunity to trade on international markets with local counterparties and currencies, creating unique trading opportunities. Investors involved in cross-border trading can take advantage of access to global liquidity, reduce slippage and take advantage of price spreads between local and international markets to profit.
In the early days of cryptocurrency trading, traders in different countries did not have the ability to participate in markets available in other countries. For example, if you had an account on a cryptocurrency exchange based in the US, you could only trade BTC/USD. However, with the advent of cross-border trading platforms, you can easily participate in markets in other countries, gaining access to the liquidity of local currencies such as BTC/JPY, BTC/EUR, etc.
Cross-border trading gives traders access to major spot trading pairs available in licensed countries. Let’s say your exchange follows international regulatory standards and complies with each country’s local KYC and anti-money laundering laws. In this case, you can trade international markets using local currency against foreign counterparties with just one local trading account. You won’t have to go through several different registration processes or register with dozens of other exchanges, saving you unnecessary hassles and delays, and most importantly, the risk of being refused registration if you don’t live in the local jurisdiction.
Cross-border trading allows for a truly global cryptocurrency trading platform, allowing registered users from different countries to benefit from the scalability, depth and liquidity of a single market. Traders can register on the exchange and gain access to liquidity pools and spot trading pairs from all licensed countries.
With cross-border trading, you get the opportunity to place your fiat currencies on global trading platforms and benefit from a minimal gap between the buying and selling prices of cryptocurrencies, without violating your country’s privacy policies and financial regulations. In addition to being able to access global markets, cross-border trading also offers a number of other unique benefits.