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Make the most out of crypto OTC trading

Many OTC trading desks are functional all over the world busy trading billions of dollars every year.

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For most respondents in the cryptocurrency market, in specific, retail outlets, the over-the-counter (OTC) market is usually an ambiguous and even spooky concept. In both conventional financial and crypto-markets, OTC trading supports high trading, effectively, without transaction, between two parties involved.

If the concept of cryptocurrency is new to you, there might be a lot of questions in your mind on how does crypto OTC trade works, why is it safe to invest in, and much more. Well, don’t worry we have got you all covered. Read below to learn more about Crypto OTC trading. 

What Is Crypto OTC trading?

OTC – Over-the-counter trading is a trade made directly between two parties without a trade mediation, with one party, generally known as an OTC desk. It is technically just yet another way to trade assets, like stocks, derivatives, bonds, and currencies. The currencies are traded through a network of banks rather than exchanges. 

How can you join Crypto OTC trading?

Want to enter a financial market and don’t know exactly what it takes to join the crypto market? Well, it doesn’t take much. All you need to be is either a seller or a buyer to trade with Crypto OTC trading. That’s it. 

How does Crypto OTC trade or exchange differ?

Well, both Crypto OTC trade and exchange come with their benefits and disadvantages. But the advantages of Crypto OTC are huge and we suggest that you give it a chance. Crypto OTC is better for high net value traders and is secure about your privacy, and no exchange risk. On the other hand, in exchange, you will always be at risk of hacking.

How is crypto OTC trading done? 

Crypto OTC trading can be done in three ways: 

  • P2P 

In P2P, usually, the two trading parties know and trust each other. They would eventually agree on a transaction price and then send the assets to each other.

  • OTC trading desk

The process of the OTC trading desk is quite similar to that of P2P OTC trade, but the difference is that the two trading parties are generally unknown and do not have trust built. The OTC trade desk acts as a mediator between the two parties and the percentage of the trade commission is compensated for the OTC trade desk.

  • Decentralized dark pool 

A more efficient way of crypto OTC trading is via a decentralized dark pool. Buyers and sellers don’t have to trust each other or the trading desk in a decentralized dark pool because smart businesses are carried out automatically and anonymously.

This not only has the advantage of reducing the risk of counterparties, but it also can improve liquidity and efficiency by establishing a common liquidity pool to be accessed by anyone without paying substantial charges to OTC’s desk suppliers.

What are the largest OTC trading desks for cryptocurrency?

Each OTC trading desk gives definite features and services which make it slightly different from its competitors. Some can accept cheaper fees, 24/7 customer support, foreign trade, and even customer algorithms on regular cryptocurrency exchanges to sell large amounts. 

What cryptocurrencies are traded via OTC?

B2C2, a crypto liquidity provider, offers the following trading pairs of cryptocurrencies for over-the-counter (OTC) trading:

  • Bitcoin Cash
  • Litecoin 
  • Tether 
  • Stellar 
  • EOS 
  • Ether 
  • XRP

What’s the best crypto for OTC trading?  

In late 2019, Bitcoin was coined for the investment of the decade. Its return to $100 was 9.150.088% over Amazon at 3,156% and Apple at 2.345%.  So, bitcoin is the most sustainable and profitable cryptocurrency you would love to invest in for OTC trading. 

Is OTC trade controversial?

Even though the potential benefits of cryptocurrency OTC trading in the area of digital assets are numerous, but still this business is not without controversy. Cryptocurrency OTC trading is very profitable but it implies some risk. 

What is the future of crypto OTC trading?

A few years back, the scope of crypto OTC trading didn’t exist as it is today. Many OTC trading desks are functional all over the world busy trading billions of dollars every year. This is the reflection of how far the crypto industry has grown over the years. Over-the-counter trade is a must for high net value investors as OTC allows them to buy and sell their products in a smart way.

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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Chris has been blogging since the early days of the internet. He primarily focuses on topics related to tech, business, marketing, and pretty much anything else that revolves around tech. When he's not writing, you can find him noodling around on a guitar or cooking up a mean storm for friends and family.

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