7 Best OTC Crypto Exchange Platforms startups need to Know in 2024
The popularity of developing over-the-counter (OTC) crypto trading platforms is increasing rapidly since its introduction. Many high-net-worth individuals and institutional investors are attracted to its potential. The main advantage of an OTC desk is its ability to overcome significant obstacles faced by crypto traders when using traditional crypto exchanges.
Recently, many traders have shifted their focus from traditional exchange-traded products to more specialized digital assets through OTC trading. Your choice of platform as an OTC trader can greatly impact your trading success, just like with other trading strategies.
Many entrepreneurs prefer the OTC cryptocurrency exchange over other methods of exchange development due to its numerous benefits. Creating an OTC crypto trading platform needs some knowledge. This article explains the characteristics that the best OTC crypto exchange has and the 7 popular OTC platforms that rule the current crypto market. With this information, a startup can get an overview to start their own OTC trading platform effectively.
What is OTC Crypto Exchange and how it works?
For beginners, it is tedious to figure out the exact meaning and the working process of the Crypto OTC trading platform. OTC crypto trading is a direct method of trading cryptocurrencies between two parties, which can involve either crypto-to-crypto or crypto-to-fiat transactions. Typically, an OTC desk serves as a mediator to connect buyers and sellers of cryptocurrencies. Unlike traditional exchanges, the price of an OTC trade is solely determined by the two parties involved and is not influenced by the broader market.
OTC crypto trading has the major benefit of allowing for large trades to be made without intermediaries. When traditional exchanges receive large orders, prices can be altered considerably and have a significant effect on the market. However, OTC trades are executed between two parties directly, without causing any disturbance to the market.
OTC crypto trading provides an extra layer of confidentiality since trades are not made public, ensuring the privacy of both parties involved. This feature is particularly beneficial for those who want to trade significant amounts of cryptocurrency as it reduces the likelihood of the trade being publicly reported and influencing the market.
Now, we shall have the cut-through working process of the OTC cryptocurrency exchange with Infographics.
So from the above info, you can get a brief outline of the working process. As we discussed earlier, many entrepreneurs are eager to launch their OTC crypto exchange. If you are one among them and a newbie, you need to know….
The characteristic feature of the OTC crypto exchange platform
Each type of crypto exchange has its own nature in the working process, trading options, and many others. Likewise, OTC trading software has a unique characteristic feature that attracts users. So a startup can consider these fundamentals and Create the best OTC Crypto Exchange as per the user’s choice.
Wallet Management
For OTC crypto traders, managing multiple crypto wallets at the same time is possible with the use of OTC desks. To access the portfolio or accounting details of the wallets, customers will need to provide their public keys.
Multiple Currencies
OTC platform allows trading various currencies such as Bitcoin, Ripple, Ether, and more to cater to a diverse range of customers. Users should not feel like they are unable to trade the currency they are interested in on our platform.
Customer Support
For an OTC crypto exchange to be successful, it is crucial to have strong customer support. Users should be able to receive prompt assistance for any questions or concerns they may have, without any delays. There must be accessible and convenient ways to contact the OTC trading admin at any time.
Automation of KYC
The OTC Crypto Exchange Script automates the process of KYC documentation and verification, which is typically time-consuming. This step is crucial for effective entity management and to prevent delays in the verification process. With the automation, the script allows for automated identity checks, risk verification, and AML processes.
Facilitate backfilling
Managing your wallet is essential, and OTC exchange development provides the convenience of accessing multiple wallets in one place. To use the accounting and portfolio features, users are required to provide their public keys for each wallet.
Support instantaneous settlement
OTC desks facilitate manual money transfers with immediate clearance. Traders using non-custodial wallets have complete autonomy over their private and public keys. The platform guarantees swift settlement of large transactions, thanks to its high value and robust security measures.
Ensure a high level of security
To ensure fast and efficient service, it is important to implement advanced security measures when building a Crypto Exchange with an OTC Desk. This will allow orders to be automatically completed even with high latency.
So these are the unique characteristic feature possessed by OTC crypto trading platforms. To maximize the benefits of OTC crypto trading development, it is recommended to prioritize deep liquidity, complete transparency, automated features, automatic KYC verification, customizable options, and responsive 24/7 customer support.
The key to the success was Developing a Crypto OTC Trading Platform that offers users exclusive features and functionalities at an affordable price, within a highly-secure ecosystem. Numerous OTC cryptocurrency exchange platforms have been established by businesses and organizations. However, only a few have been able to capture the attention of the global cryptocurrency market.
7 Best Crypto OTC Trading Platforms
Here are some of the best OTC crypto exchanges that are expected to continue ruling the market in 2024.
Coinbase
Coinbase, the exchange founded in 2012, offers users access to real-time market data and order placement through FIX/REST APIs and WebSocket feeds. Their mission is to make cryptocurrency accessible to everyone and they provide a reliable and user-friendly platform for accessing the larger crypto-economy. Customers from all over the world can learn about and easily get started with cryptocurrency with the help of Coinbase.
- Simple to use and very secure
- Provides institutional-grade storage for NFT assets
Kraken
Since 2011, Kraken has been at the forefront of the blockchain revolution. Their goal is to promote the acceptance of cryptocurrencies, enabling individuals and the world as a whole to achieve financial independence and inclusion. With Kraken’s top-notch security and wide range of cryptocurrencies available, it’s a great choice for both novice and experienced investors in the crypto market. Kraken is the preferred cryptocurrency trading platform for institutions of all sizes, providing a range of services from over-the-counter trading to personalized white-glove account management.
- Provides secure and reliable trading at low fees
- Wide range of supported assets
Binance
Binance was the biggest cryptocurrency exchange in January 2018, valued at $1.3 billion, and it maintained that status until April 2021, despite competing with Coinbase and other platforms. Binance offers users the option to pay fees using BNB, and they also have a stablecoin called BinanceUSD (BUSD) that is tied to the US dollar. Binance offers several trading options such as P2P, spot, and margin trading.
- More than 500 different cryptos are available
- Emphasis on security & KYC
Kucoin
KuCoin is a popular cryptocurrency exchange that rivals Binance, Coinbase, and other major players in the industry. With more than 600 digital currencies available on their platform, both beginners and experienced investors can easily find and purchase any cryptocurrency they desire. KuCoin stands out for its wide range of features and low fees, making it a great choice for anyone interested in crypto investing. Additionally, KuCoin offers various trading and financial solutions to help users improve their overall crypto-investing experience.
- Secure and Anonymous trading
- Supports a variety of cryptocurrencies
Bitfinex
Bitfinex has been providing outstanding services to its users since 2012, making it one of the oldest and top cryptocurrency exchanges for OTC trading. It provides users with the option to access instant liquidity pools through the OTC Desk or trade directly with a counterparty, thus avoiding the need to go through public order books. What sets Bitfinex apart from other platforms reviewed for crypto OTC trading is that users can trade directly with other Bitfinex users without intermediaries.
- More than 170 crypto assets to trade with
- Allows trading at low fees
Huobi
Huobi, a crypto exchange that has been operating for nine years, has not had any security issues reported. The exchange has its own native token called Huobi Token (HT), which is similar to Binance’s BNB token. Huobi Token has a market valuation of around $1 billion and is ranked among the top 60 cryptocurrencies in the world. In the last 24 hours, Huobi has had a trading volume of $4.39 billion.
- User-friendly interface
- Most crypto assets are stored offline
Crypto.com
The platform Crypto.com has been recognized with the 2024 Finder Award for Best Exchange for Altcoin Trading. This is due to the fact that they offer over 250 cryptocurrencies for buying and selling with high liquidity. Their system uses a request-for-quote (RFQ) approach to automatically match buyers and sellers, allowing for instant processing of transactions. Unlike other OTC desks that rely on manual liquidity matching, this feature sets Crypto.com apart.
- Comprehensive ecosystem beyond OTC
- Relatively low minimum trade size
Overall, the above-mentioned are the best OTC crypto exchanges in the current crypto market. These exchanges are the inspiration for all startups and entrepreneurs who want to start their OTC crypto trading business. Moreover, this is not enough to launch their own OTC crypto trading platform. Startups need to know…
How to create OTC Crypto Exchange effectively?
To create an OTC crypto exchange, proper procedures must be followed, just like with any other development method. Given that OTC involves large transfers, it’s crucial to approach the development process with great care.
Before starting an OTC Trading business, it’s important to gather all necessary requirements and analyze them in comparison with the current cryptocurrency market. Proper extensive research is necessary during this initial stage. Once this is done, planning is key to bringing out the desired features in the exact manner intended. After development is complete, testing is crucial to ensuring the reliability of the OTC cryptocurrency exchange. Numerous tests should be conducted and any malfunctions rectified immediately. The final phase of the development process is Deployment.
If you want to create an Over-the-counter trading platform, it’s important to consider the above-mentioned factors. However, you don’t necessarily have to spend all your time learning the technical aspects of development. You can hire professionals to handle the process and achieve the desired outcome.
Final thoughts
Trading cryptocurrencies on platforms like Binance and Coinbase has become very popular. However, traditional exchange trading has limitations for those wanting to trade large amounts. That’s why many traders are turning to OTC trading as a viable alternative.
It’s not necessary to create your own cryptocurrency exchange. It’s best to leave it to professionals. Be cautious when choosing a developer in a market filled with amateurs. Choose an elite OTC Crypto Exchange Development Company for the best results. OTC trading has three times more cryptocurrency volume than regular exchanges. Therefore, having support from professionals is vital for long-term success.
