What Are the Must-Have Features for Modern Digital Asset Platforms?

We’ve seen an explosion in the digital assets scene over the past few years, with a whopping $36.5 trillion in cryptocurrencies being traded over the course of 2023, and double digit growth anticipated going forward.

This is where adopting a digital asset platform becomes an appealing prospect for businesses, whether as a means of managing investments or in order to set up your own tokenized trading ecosystem. 

There are a number of factors that stand out in this scenario, so here’s an overview of features that digital asset platforms must offer in order to be given the green light at the point of procurement.

Compliance

Last year the SEC slapped $5 billion in fines on a range of organizations for non-compliance, with almost 800 distinct actions taken in the wake of major missteps. This is an especially sticky subject where digital assets are concerned, since legislation is being updated and rolled out regularly – and each state has its own set of rules to abide by. Then there are global regulations that demand just as much meticulous attention.

With that in mind, here’s why staying compliant should be at the top of your list when choosing a digital asset platform:

• Adaptability to Global Standards: Look for platforms that are proactive in adapting to international regulatory changes such as the Digital Assets Regulatory (DAR) initiative. This adaptability ensures that your operations remain uninterrupted and legally sound across borders.
• License Acquisition Support: Some platforms help businesses in obtaining necessary licenses for trading or managing crypto assets, which can significantly ease the legal burden on your company.
• Regular Audits and Reporting Features: A reputable crypto asset management platform will incorporate tools that facilitate regular audits and simplify the reporting process to comply with ongoing regulatory demands. This transparency is crucial for maintaining trust with stakeholders and regulators alike.

Security

Average transaction speeds for digital assets vary, with the most efficient examples taking milliseconds while top cryptocurrencies like Bitcoin and Ethereum take 40 minutes and 14 minutes respectively. 

This means that security must be the backbone of any blockchain-based, tokenized platform. This is doubly important given that a recent report suggests crypto-focused crime cost $1.7 billion in 2023.

Here’s what effective security looks like on modern digital asset platforms:

• Multi-Factor Authentication (MFA): This adds an essential layer of security by requiring multiple forms of verification from users. It’s a must-have to protect against unauthorized access.
• End-to-End Encryption: Ensuring that data is encrypted from the moment it leaves one device until it reaches another prevents intermediaries from accessing sensitive information.
• Regular Security Audits: Choose platforms that commit to frequent and comprehensive audits by reputable third-party security firms. These audits help identify and rectify vulnerabilities before they can be exploited.
• Cold Storage Options: For additional safety, some platforms offer cold storage capabilities, allowing you to keep large amounts of cryptocurrencies offline where they are immune to online threats.

Intuitive Interfaces

A platform that simplifies the complexity of blockchain technology can significantly enhance user satisfaction and engagement – and that starts with the interface. Usability goes hand in hand with company credibility, with 75% of people judging the reputation of a business according to how customer-facing components of its operations like websites look and feel.

Here’s how a well-designed UI makes a difference:

• Simplified Navigation: Users should find it easy to locate and use features such as trading, investing, and monitoring digital wallets. Clear menus and logical pathways reduce learning curves and improve overall user experience.
• Responsive Design: Platforms must perform seamlessly across various devices – smartphones, tablets, and desktops. A consistent and adaptable interface ensures users can manage their assets effectively, regardless of the device.
• Real-Time Updates: Immediate access to transaction updates, asset fluctuations, and other critical information keeps users informed and engaged. An interface that delivers real-time data helps in making quick, informed decisions.
• Customization Features: Allowing users to customize dashboards or settings according to their preferences can make the platform more personal and useful for their specific needs.

Support

After the initial setup of a digital asset platform, continuous support is needed to address any emergent issues and optimize user experience over time. Effective post-implementation support ensures operational continuity and also demonstrates a commitment to customer satisfaction and retention. 

Here’s why comprehensive support is a must-have feature:

• 24/7 Customer Service: Access to round-the-clock support can be a game-changer, especially in the global and always-active market of digital assets. Whether it’s resolving login issues or transactional discrepancies, timely help is critical.
• Educational Resources: Platforms that provide extensive learning materials, tutorials, and FAQs empower users to understand and leverage all functionalities fully. This self-help approach enhances user independence and confidence.
• Regular Updates and Maintenance: Frequent software updates that introduce new features, improve existing functionalities, and patch security vulnerabilities are essential for keeping the platform competitive and secure.
• Community Engagement: A responsive community forum or regular webinars can facilitate user feedback, share best practices, and keep the dialogue open between service providers and users.

Final Thoughts

Armed with this info on what to look for in a digital asset platform, from compliant underpinnings to a user-friendly interface, you’re in a good position to pick between the various options you encounter. 

Also seek out independent reviews and feedback on any potential platforms before you adopt to get complete peace of mind.