OVER THE COUNTER TRADING: A brief

Being a trader, purchasing cryptocurrency via a traditional exchange exposes you to several problems. Not only can slippage greatly amplifies the cost of a trade, but also to deal with the risks of hacking that come with trading on an ordinary exchange is something you can’t avoid easily.

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.

So what is OTC?

OTC trading is a non-regulated manner of trading, where trading is executed directly between two parties without the supervision of any exchange regulator.

OTC trades can be done in 3 ways:

• Via brokers: Here trading is handled by brokers who specialize in large transactions. Such platforms provide personalized services to help high-volume traders to execute large blocks of trades.
• Through chat rooms: This trading network is hosted on several IRC channels allowing Peer-to-Peer transactions between traders.
• Using ATMs: Such ATMs lets customers convert their fiat currency into digital one without needing to go through any online exchange.

How popular is OTC trading?

Because of the fact that these trades aren’t publicly reported, hence a level of anonymity is maintained. This has lead to a certain level of popularity among traders.

To know more about OTC click here.