Unlike institutional investors who manage large sums of money for clients or organisations, retail investors are individual, non-professional investors who buy and sell digital assets, such as Bitcoin, Ethereum, and other cryptocurrencies, typically using their own personal funds.
Retail investors do not represent large financial institutions or funds, and the amounts they invest can vary widely but are generally much smaller than the capital deployed by institutional investors. They often use online cryptocurrency exchanges, which provide user-friendly interfaces and tools tailored for non-professional users to buy, sell, and trade digital assets.
Retail investors play a crucial role in price discovery for cryptocurrencies, as their trading activities help determine the market value of various digital assets. Normally, the participation of a large number of retail investors contributes to the liquidity of the cryptocurrency market, making it easier for assets to be bought and sold without causing drastic price changes.
