Over the counter (OTC) is an expression for trading of securities between two parties directly from the dealer and outside the registered exchanges. It takes place on over-the-counter markets through dealer networks (decentralized locations without a physical location). Give this post a glance to learn more about what OTC crypto exchange has to offer.
Why is OTC crypto important?
Over the counter does not require any quality standards and the prices are not bound to be made public. OTC agreements are bilateral, and each party faces credit risk issues on their own. NextHash provides brokerage services that facilitate the buying and selling of specific crypto assets. By providing a secure OTC crypto exchange environment, NextHash aims to provide individuals, VCs, hedge funds, and other institutions with a seamless trading platform with optimum security.
Who is it made for?
Crypto OTC exchange is mostly used by the following organizations and platforms:
- Commercial Organizations: In case you need a custom service, you can contact vendor traders who deal with large volume vendor buying and selling of crypto. They prevent slippage by tapping into the major sources of crypto liquidity.
- Chatroom: Bitcoin's first major OTC crypto exchange took place in the #Bitcoin-OTC Chatroom. This has now become obsolete, as more chat rooms have shifted to a peer-peer transaction model.
- Dark Pools: Dark pools are the non-public exchanges that the common public cannot access. They use free trade models and allow investors to make large investments. That's why this is known to be, one of the most transparent market for buying and selling large volumes of crypto.
- Venture Capitalists and Investors: Making investments seamlessly and securely is the biggest incentive for venture capitalists. However, since these investments are mostly speculation investments, NextHash strongly urges investors to carefully evaluate all risks associated with crypto investments.
Why are OTC desks important?
Any crypto assets in large volumes, can be hard to buy or sell. For instance, if you want to transaction with 500 BTC, that might cause you a lot of headaches on a normal crypto exchange.
If you try to buy all your 500 BTC on one exchange, no one is likely to sell a volume of that magnitude at once - you will have to buy it from multiple sellers on multiple exchanges. You can probably buy the first part at the reasonable market price, but the rest of the order volume will most likely be at a significantly higher price - this is called slippage. A slip occurs when there are no more people who want to sell you crypto at the desired market price. It forces you to slip over the price of the actual market. To prevent slippage when not using an OTC exchange, experts recommend spreading your purchases. You’ll have buy cryptocurrencies in small portions, which is difficult to do, when the markets are moving.
To do this, you’ll have to onboard with multiple exchanges, and even then, when you are charge a transaction fee for each trade, you spend a lot of time and money executing every single trade.
But if you decide to use crypto OTC desk, you will get one single price quote for the whole amount of 500 BTC. One quote, one price, one trade.
Advantages of Nexthash OTC crypto exchange?
As stated previously, investors should always be very careful when investing in crypto assets, as they are mostly speculative investments. For this reason, investors should consider their investment risk when deciding to invest money in crypto markets. However, with the added risk of crypto markets in mind, there is also a lot more potential for higher returns than we normally see in traditional markets.
Our OTC crypto platform is perfect for companies or individuals that do not like paying high trading fees to brokers. Enlisting transactions with standard brokers can be time-consuming and expensive, thus usually not feasible for most large volume investors.
Whether you’re a buyer or seller or you want to trade securities or regardless of the volume, NextHash OTC is definitely a place for you. Register today with NextHash and enjoy secure and problem-free OTC crypto trading.
Why choosing Nexthash is the best decision you'll ever make
NextHash is the leading one-stop shop for all OTC crypto exchange solutions as it provides 24/7 liquidity and market manufacturing services to companies and exchanges within the cryptocurrency ecosystem. We offer in-depth liquidity, accessibility, and technologically advanced solutions that allow any institution or large volume investor to maximize their business and effectively reduce risk. We offer customized and specifically suited services to each of our customers.
Our trading desk focuses more than just the OTC crypto exchange service, which can accommodate buying and selling of most crypto assets listed on our sire, anything from BTC, altcoins and stable coins. You also don’t need to worry about creating specific wallets, nor wait for the blockchain transactions to get validated. Our team ensures safe and smooth transactions of your assets whether you’re buying or selling.
We strictly follow all the security protocols when dealing with our client’s asset, while we guarantee full privacy to our clients. No information is shared without the client's consent and all the personal data of our clients are stored securely in our vaults. As an OTC desk we are able to execute transactions in a quiet manner and therefor avoid significantly affecting the markets. Join many individual investors and institutions that are already enjoying benefits of working with NextHash. Join us today!
Additional OTC crypto exchange info’s
- Advanced Monitoring
NextHash Otc desk is a secure and price efficient trading platform overseen by the New York Department of Financial Services ("DFS"), one of the institutions with highest standard in the world, when it comes to the blockchain software and market manipulation regulations.
- Assets Security
Ensuring secure transactions of our client’s assets is our number one priority. We have multiple layers of platform security, that allows us to store your assets securely while transacting.
- Manufacturer Discount And Reduced Fees
Maker discounts are available for some liquidity providers, with flat rate fees for each transaction also included. But that’s not all. We also offer our clients free crypto withdrawals with no hidden fees!
Hopefully, this post has helped you understand a little more about how OTC crypto exchange functions, getting you ready to invest smart, when the time comes. NextHash guarantees, that you will find our services exceeding your expectations. We have one of the best teams on the markets, that you will entrust and that will handle your assets. With NextHash you can make seamless transactions and be rest assured that your assets are always in safe hands. Contact us today and let us know, what can we do for your business today!