'What's Good for Crypto Exchanges is Good for the Industry', Blockchain Professional Explains

  • Adam Cole Jacobs, the CEO of newly launched Hong Kong-based crypto exchange, Bitsdaq recently shared his views and insights with CryptoGlobe.
  • Jacobs explained the different challenges involved with starting a business in the crypto industry.

Adam Cole Jacobs, the co-founder and CSO of Spend.com and Bitsdaq, a newly launched digital asset exchange supported by leading crypto exchange company, Bittrex, has said that one of the main “challenges facing the cryptocurrency industry is security threats from untrustworthy exchanges.”

In his interview with CryptoGlobe, Jacobs explained that cryptocurrencies were still in their early stages of development and adoption. Because the technology is so new, Jacobs revealed:

Many new [crypto] exchanges are coming to market with security flaws. As the industry matures it will consolidate so only the most reliable exchanges will be left standing. However, in the meantime we’re still seeing too many instances of exchanges compromising their users’ trust.

When asked about what kinds of products and services can we create to help make cryptocurrencies more spendable, Jacobs said: “Creating secure wallets that can hold multiple digital and fiat currencies will be crucial in increasing user adoption and making cryptocurrency more spendable. Users need something that allows them to buy, sell, store, manage, and exchange different kinds of currencies in one place.”

"Surrounding Yourself With Great People Who Share Your Vision"

In response to a question about the different challenges associated with starting a crypto and blockchain-related business, Jacobs noted:

It’s hard to give general advice on starting a crypto business from scratch since each one is so different and comes with a unique set of goals and challenges. In my experience, it’s incredibly important to surround yourself with great people who share your vision. This can be difficult in crypto, where there are so many new companies [which makes] finding great talent hard [at times]. It can be tough to convince someone to leave a traditional company to work on a new project in an emerging space since there are so many unknowns.

Responding to a question about how the businesses he is involved in will grow and deliver the results that he expects, Jacobs explained:

One of the Bitsdaq Exchange’s main goals is to bring innovative new projects to Asian users on a secure platform. Because of our team’s expertise and our partnership with Bittrex, we are already achieving this goal.

Commenting on his long-term goals for the initiatives in which he is involved in and why he believes they are important to the crypto industry, Jacobs said: 

In the future, [we] will continue to list a greater variety of projects while growing our user base. This is important for the crypto industry because exchanges like ours are often the first touchpoint for new crypto users. What’s good for exchanges is good for the industry as a whole.

We Must "Encourage Merchants To Accept Cryptocurrencies"

Making cryptocurrencies more spendable by developing a supportive ecosystem around them - which includes reliable wallets and robust digital asset exchanges - could help promote the adoption of digital assets worldwide.

Last month, Elizabeth White, the CEO of the White Company, a digital asset concierge service that facilitated over $250 million in cryptocurrency purchases for its clients during 2018, told CryptoGlobe that we need to “encourage merchants to accept cryptocurrency” through “payment systems where they don’t have to worry about the volatility as they have the option to convert immediately to fiat.”

She added that “we need to make it easier for people to use cryptocurrency in everyday life” by providing payment processing services that “can be used anywhere MasterCard/Visa are accepted.”

Sub-accounts in Crypto: What They Are and How They Work

 

Julia Gerstein, a crypto trading bots enthusiast and a content writer at TradeSanta. My final goal is to help readers find what they need, understand what they find, and use what they understand appropriately.


Speaking generally, a sub-account is a segregated smaller account that is tied to a larger primary account. Sub-accounts may serve different functions depending on the objectives of their owners. The term can refer to multiple email addresses linked to one user or secondary accounts tied to a primary account with a financial institution or a bank.

For this article, we will be looking at sub-accounts as they exist in the crypto industry, and specifically on trading platforms.

Built-in Sub-Accounts

On trading platforms, the sub-accounts feature allows users to create a set of subsidiary accounts with different trading strategies, funds and end customers. On some platforms, general accounts already come with built-in sub-accounts.

For example, exchange platform Crypto Facilities provides each user with cash and margin accounts when they sign up. While deposits and withdrawals are completed with the cash account, trading an instrument requires users to make an internal transfer from a cash account to their margin account that corresponds to the instrument in question.

Each instrument has its own margin account. This grants users more control over their funds and allows them to manage risks for each instrument separately from their main balance.

Optional Sub-Accounts

Other cryptocurrency exchanges, such as Gemini and Binance, have launched sub-accounts as an optional feature for institutional investors.

As an optional feature, sub-accounts can serve to introduce additional security measures and different access levels between the main account and its subsidiaries. Binance has underlined the differences between a master account and its subsidiaries, providing the former with the exclusive ability to view all data and balances, transfer funds between accounts, and have full managerial control and access to a range of asset audit tools.

Here master accounts have sole control over the movement of assets between sub-accounts, and can grant each of them different access levels and permissions. This ensures that the main account has the power to direct and monitor the actions of all its associated accounts, while each sub-account can perform its function independently from other sub-accounts.

Not Only for Institutional Investors

While institutional investors have been able to create sub-accounts for a while, this feature is still being introduced by more and more major exchanges.

Now even individual investors can create subsidiary accounts to try and assess the performance of distinct trading strategies. For example, HitBTC recently introduced its own sub-accounts feature that is now available per user’s request.

At HitBTC, sub-accounts enable users to create separate subsidiary accounts with which they can utilize various trading styles and strategies with operational autonomy. While each sub-account is separate, all of them are still tied to a master account and contribute to the cumulative volume of all accounts connected to the master.

Because trading volume is measured cumulatively, the use of the subaccounts feature can open up additional benefits for traders such as lower commissions due to progressive fee tiers that reward users for contributing to the liquidity on the trading platform.

Therefore, users can perform a variety of different trading activities unconnected to each other, and all the activities will still weigh in the financial favor of the parties involved. Master accounts also have access to important data such as the performance of each sub-account and total trading fees of all linked accounts combined. While the feature is designed with institutional and corporate clients in mind, on HitBTC any user can create sub-accounts upon request.

The adoption of this feature by more and more trading platforms will be beneficial for both institutional and individual traders. Some users can utilize it to execute different trading strategies or try various algorithms with a clear picture of their effectiveness, others to manage their team and analyze the performance of each account securely and conveniently.

Featured image by Tyler Franta on Unsplash