The Basics of OTC Trading
Do you know about Crypto OTC trading?
You might have heard the term around the crypto space, but do you know the ins-and-outs of it?
If not, fear not! We’ve got you covered. Getting into Crypto OTC trading is no walk in the park, so we’ve put together a quick guide to help you get started.
What is Crypto OTC trading?
Over-the-counter (OTC) trading is a private trading market for buying and selling assets. Unlike an exchange, where several prices are shown, an OTC trade only has the private price between both parties. It also isn’t conducted on a regular exchange, so there is no public order book.
This same principle applies in the crypto space, in which two parties trade crypto assets in a closed trading market and negotiate deals based on the amount each party is having or interested in buying. A Crypto OTC trade can either be crypto-to-crypto (e.g. trading Bitcoin for Ethereum) or fiat-to-crypto (e.g. trading USD Dollars to Bitcoin).
People use OTC as it is easy to buy or sell large amounts straight to, or from, your own bank account with a guaranteed, fixed price and instant payout.
Why are Crypto OTCs beneficial?
The top three reasons why Crypto OTCs are beneficial is liquidity, confidentiality and direct transactions.
While typical exchanges often struggle with executing large orders, most OTC trades are designed for buying and selling large amounts of crypto. Also, being a one-to-one affair, there’s a slim chance of third parties interfering with the transaction, as well as fraudulent schemes that often act under third parties.
Sign up to our Premium OTC Services
Interested in Crypto OTC trading? Get started with CL OTC!
Easily trade large blocks of top cryptocurrencies at competitive rates. Get low cost fiat-to-crypto and crypto-to-fiat, same-day settlement up to $15m, personalised customer support and much more!
