Guide to OTC: The Cheapest Way To Buy/Sell A High Volume Of Stablecoins
These days, there are countless platforms out there for crypto users to choose where to trade on. The issue arises when you want to on-ramp/off-ramp a high volume of stablecoins. It can get annoying if you have to break that up into multiple transactions.
Over-The-Counter trading comes in very handy in situations like this. In this article, we’ll walk through what is OTC, and how this process can simplify your trading.
What is OTC?
In a nutshell, you reach out to an OTC desk, they quote you a price and if you agree, you send them money, and they send you crypto.
Everyone likes to pay the lowest fee possible for each transaction, but this doesn’t mean someone would want to pay a fee (e.g. gas fees, wire transfer fees, etc) many times to get thousands of dollars’ worth of crypto. This is why Over-The-Counter transactions are so convenient. It allows an individual to do just one transaction and pay one transaction fee, saving them a headache and a lot of time.
Although OTC trades are reserved for large transactions, it is not limited to only big corporations or high net-worth individuals who can use them. You can be an individual or an owner of a small business that needs to trade fiat to crypto (or vice versa) for work expenses and other purposes.
Just as crypto is open to everyone, OTC transactions are also accessible to all. Maybe you’ve made some money trading crypto and are now ready to sell it for local currency to purchase property. Or you run a business and clients pay you through crypto, which you’ll have to convert to fiat and transfer to your bank account. OTC trades are open to anyone that needs it.
OTC at PayTrie
At PayTrie, the OTC desk helps users with large-scale transactions through a simple and straightforward process. The fees for OTC orders have only PayTrie’s 0.6% fee and a gas fee for ERC-20 orders (this is not a fee that we keep). We use the mid-market foreign exchange rate at the time of your order, so you are getting the best rate possible (feel free to compare our FX rate to sites like XE.com and Trading View’s USD/CAD pairing)
To start an OTC order, you’ll need to have an existing account, or register for an account at https://app.paytrie.com/Instruction?
Once your account has been verified, email otc@paytrie.com on whether you’ll be starting a buying or selling order, and you’ll receive instructions on the next steps.
Buying via OTC
If you’re looking to buy stablecoins, you’ll have to initiate a wire transfer from your bank first. Let’s say you’ll be sending $50,000 CAD to PayTrie to purchase USDC. Once the wire has been received, it will be converted to USDC using the market rate at the time (using the example below, the rate would be 1.33124). This rate may fluctuate depending on the exchange rate of CAD to USD, and gas prices may affect the amount of USDC you’ll be getting as well. After PayTrie receives your wire and does the conversion, USDC will be sent to your wallet address.
Selling via OTC
The reverse process to sell large amounts of stablecoins on PayTrie is just as simple. For example, if you want to convert 25,000 USDC to CAD, PayTrie will submit the order (if we use the rate highlighted below, 25,000 USDC = $33024.90 CAD). You’ll also be asked to provide banking information, as the CAD will be sent to you as an EFT. Once the order is submitted, you’ll be asked to send the stablecoins to our wallet address. After sending your stablecoins to PayTrie, it will take 1–2 days for the EFT to arrive in your bank account.
Overall, the process for OTC transactions is very straightforward. There are only a few steps involved, saving on time and transaction fees compared to transactions being broken up into multiple smaller transactions. It’s a good idea to do some research to make sure you find a trustworthy platform that fits your needs since there is a lot of money involved. But once you do, they can make your high-volume trading go smoothly.
Feel free to join us on Discord and scroll through the posts to see the feedback from happy OTC users!
