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A Simplified Guide to OTC Crypto Trading

This presentation is about the brief of OTC crypto trading including factors like it's pros & cons.

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A Simplified Guide to OTC Crypto Trading

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  1. A Simplified Guide to OTC Crypto Trading

  2. Introduction Being a trader, purchasing cryptocurrency via a traditional exchange exposes you to several problems. While doing such trading, the major issues which arises are the increased cost because of high trade volume along with the risk of theft or being hacked. This is where over-the-counter (OTC) trading comes in. OTC trading is the service available to high-volume traders, i.e. it is only available to certain individuals or groups for trading without the use of traditional trade exchanges.

  3. OTC Definition OTC trading is a non-regulated manner of trading, where trading is executed directly between two parties without the supervision of any exchange regulator. Generally, it is available to certain individuals or groups who have a high trading volume.

  4. OTC trades can be done in 3 ways • Via Brokers:  Here trading is conducted by brokers who specialize in big transactions. Such platforms provide personalized services to help high-volume traders to execute large blocks of trades. • Through chat rooms:  Here trading network is hosted on several IRC channels allowing the Peer-to-Peer transactions between traders. • Using ATMs: Bticoin ATMs allows customers to convert their fiat currency into digital currencies without any requirement to go through any online exchange.

  5. Advantages Of Using OTC • OTC provides Higher Liquidity of assets than regular exchange trades • It is specifically designed for high-net or high-volume traders. • OTC has a level of privacy or anonymity that is not offered by regular exchanges. • It also restrains an increase in a cryptocurrency price. • OTC deals straight with a buyer or through dealer for a large sum of cryptos.

  6. Disadvantages of Using OTC • OTC offers higher cut than regular exchanges. • Small traders are left out from this service. • OTC poses a risk of phishing attacks from the scammers. • It has a high level of settlement risk. • OTC lacks of proper custodial storage solutions.

  7. Conclusion To sum up, we can say that with OTC catching the eye of some prominent players like hedge funds and institutional investors, it will remain on a steady rise in the coming years. A more secure way to transact while eliminating the risks will ensure further growth of OTC trading.

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