Whether you are trading blocks of $,, €10,, or 2, Bitcoin, the OTC desk will provide you with execution and settlement services that are discreet, secure and ultra-competitive. Features . Nov 06, · 1. Bitcoin OTC Brokers vs. Trading Platforms. The two main options you have for buying large amounts of Bitcoin are OTC brokers (OTC = over the counter) or traditional Bitcoin trading 24crypto.de brokers refer to companies or individuals willing to sell you Bitcoins directly as opposed to an automated trading platform. In order to trade on this OTC brokerage service, the company requires any investors to make a minimum deposit of $6,, which is roughly £5, and offers both its OTC services, along with an advisory service for those seeking it.
Btc otc tradingHow Does Bitcoin OTC Trading Work? - Bitcoin Market Journal
When it comes to the major investors in the world of Bitcoin, I. One of the reasons for this is that despite its high desirability from its community, Bitcoin has a serious problem with liquidity, in that it lacks a fundamental level of it.
This is in contrast to the kind of residual liquidity of blue chips including government bonds. With OTC brokers, their values tend to be more stable, in that they are always better than the average price you would likely obtain through buying and selling BTC on exchanges independently. As a result, if you're looking to make a significant investment in the world of BTC, or want to work on a continued frame of buying in and out of the digital currency in higher volumes than usual and capitalize on short term price fluctuations, it's far better to do this through the use of a Bitcoin Broker via an Over The Counter Service.
Over the last few years, the financial scope of Bitcoin OTC trade has exploded. And this is just one of the many exchanges out there involved in such a high monthly volume of digital asset transactions.
As an increasing number of institutional investors gain interest and begin to step into the world of digital asset trading, this initial number of Over The Counter trading companies will increase exponentially. In addition, to this, as the more centralized exchanges find themselves continually susceptible to hacks of various severities, professional investors will turn more and more away from them wholesale, and make use of OTC systems and Bitcoin brokers in order to make sure that their digital assets are safely secured so as to make them impossible to lose against cybercrime.
This presents the suggestion that Bitcoin Trading volumes are, in some sort of way, being underrepresented by analytics platforms. Meaning that they may be worth double that what can be witnessed by the likes of CoinMarketCap. It is really impossible to know this with absolute certainty. There are a couple of elements that you need to pay attention to and seriously consider when looking for your ideal Bitcoin Broker.
These are:. This is one of the single most important elements that you should consider. If you are going to go ahead with using one brokerage, and entrust them with however much of your money in order to invest in digital assets, then you need to have a level of confidence and trust in that relationship that merits that level of investment.
One of the best first steps to take is to check whether or not this Crypto broker is regulated within the region that they operate, this can be the difference between a green and a red flag right there. The second step is to assess the reputation of that same broker through crypto investors and companies that do business with it on a regular basis.
This can tell you a lot about a company, from who owns them, where they operate, as well as checking out some of the more unbiased reviews about them online. It's important to point out that not all OTC bitcoin brokerage services out there. With that in mind, making sure that this very same broker still has a good public reputation with its customers and institutional investors.
This element matters as much as the kind of reputation that a broker carries. Whenever you see a broker, they will carry and subsequently a charge, the objective here is finding one whose merit matches up to the commission fees that they charge.
This is especially true if you're looking to be an active trader because if you're dealing with the wrong kind of broker, any profits you'd hope for will be gone before you know it. Another attribute that you need to consider is the kind of time zone that there are between you and your potential bitcoin broker, and this can be the difference between trading during their normal business hours, of having to navigate a perilous path of trading between time zones.
With that said, however, if you plan to trade a lot, then you may want to consider setting up with more than one, so you can obtain access to multiple markets, and operate at the level that you want to. These require Bitcoin OTC services in order to execute trades without impacting the market or exposing their strategy to the public.
Whilst the current players are indeed significant in size, it is only a matter of time until the REAL whales start showing interest in the field.
Institutional investors such as banks, insurance companies, pensions and hedge funds are the real whales due to the vast amount of money they hold. This is where our bitcoin OTC trading comes into the picture. An alternative strategy would be to contact our OTC bitcoin desk, who would match the trade with one or more sellers.
All parties would agree on a price and execute the trade in private without impacting the market in any way at all. While the main advantage of Bitcoin OTC trading is quite clear, the confidentiality of the activity might be an additional benefit to those who wish to retain their privacy. Using an OTC service ensures that all transactions are private, so trading strategies remain opaque.
To deal with large orders, Bitcoin OTC brokers break deals into tranches to provide both comfort and the ability to source the required volume of Bitcoin. In the realm of cryptocurrencies too, Bitcoin and other popular cryptocurrencies are traded over the counter where only two parties are involved. But it has the liquidity of only BTC. What happens then? Any guesses? Assumption: there are BTC available in your buy price range. Well, your order will be filled partially, plus your order will decrease the supply of BTC on the Binance market and therefore the price will naturally move high.
Also, your order is not filled in your price range and the price has increased which is counter-intuitive to you. The same scenario can happen when you try to sell BTC incurring significant losses if the market price goes way beyond what you quoted for.
In that case, you would need to HODL or just sell it for a lower price range because your huge order has moved the market. To put into perspective look at this chart to understand where the crypto market stands:. Not only you need to be HNI or Institution which is willing to deal in OTC but one needs to be highly experienced to execute such a trade.
If you are not, the brokers or OTC platform that you use will outplay you to make higher profits. You need a verified account on Kraken to use the OTC feature. Since , more players have emerged in this space as cryptocurrencies have really taken off in the last year and a half.
Some more important points to remember if you trade Bitcoin on OTC…. This is a legit risk, and the only way to counter this issue is by working with only those crypto OTC brokers who do proper KYC, and due diligence from both buyer and seller.
In many jurisdictions, OTC broker does accept cash. However, you may be asked to produce proof of funds.