The first half of 2022 has not been kind to cryptocurrencies and crypto investors. Following the meteoric increase in the prices of certain cryptocurrencies, this year saw the market capitalization of crypto get decimated. Bitcoin, for example, shed 70% of its value, dropping from almost $60,000 to just over $18,000.
Even more spectacular was the original Terra Luna. This coin plummeted from $116 on April 5th to less than 1/100 of one cent on June 3rd. It was effectively wiped out in the space of less than two months. Investors lost about $40 billion in the blink of an eye. Some lost their life savings.
This precipitous drop in crypto value also saw the demise, or close to, of some exchanges and trading platforms. Some of them are custodial, meaning that they hold investors' assets. In a liquidation scenario those investors stand to lose everything.
Little wonder then that many people are skeptical about the entire concept of cryptocurrencies. When you add the different types of trades, notably Over the Counter (OTC) into the mix, people are positively terrified. Is crypto OTC trading platform legit? That's suddenly a very common question.
What is OTC trading in crypto?
OTC is a form of trading where two people transact directly with each other. This typically relates to assets or consumables that are not regulated and can be freely traded between a willing buyer and a willing seller.
Think of OTC pharmaceuticals. When you need an antacid or a headache tablet, you visit a pharmacy and ask for it. As long as the pharmacy has the product and correct packaging or quantity in stock, they will hand it over in exchange for the requisite monetary value. Deal done.
In crypto, it works much the same way. An offer or order is usually bespoke, meeting the seller or buyer's specific needs. A counterparty that can match that exact need – product, quantity and price – will accept the trade and close it out.
How are OTC crypto markets different?
The most common way that cryptocurrencies are traded is on a traditional exchange. This is an automated platform where thousands of people can simultaneously list their assets for sale or place orders to buy. Whenever there is a match between a potential buyer and seller, the platform automatically executes the transaction.
Another way is OTC. This is peer to peer trading where the buyer and seller usually deal directly with each other. OTC trading can, however, be initiated through or facilitated by a broker. In fact, in the crypto world this is probably how most OTC deals are done. The broker's role is to find and bring together a buyer and seller with matching requirements.
For the average person, OTC may not be well understood. The question will often arise – is crypto OTC trading platform legit? Most people are familiar with shopping platforms like Amazon and eBay, so they may be somewhat comfortable with a crypto trading platform that enables instant execution of a deal in a structured and predictable manner. Perhaps not so much with crypto.
The only significant difference, however, is that OTC is usually the realm of the bigger players. Investors that have more specific parameters regarding quantity and price. Or investors that want privacy in their crypto investment activities. In all other respects it's still just a purchase and sale transaction.
Is the crypto OTC trading platform legit?
We'd have to respond with a resounding yes. As long as you're dealing with a reputable person or organization, of course. Every market has cowboys that will tarnish its reputation. A little research and reference checking are all that's needed to sidestep these unscrupulous or incompetent players.
Since the birth of crypto a little over a decade ago, numerous exchanges and trading platforms have been launched. Whilst initially, it was a free-for-all in this unregulated market, more and more countries are starting to impose some controls.
This is good news for consumers as it will eventually thin out all the non-viable or unethical exchanges, leaving behind only those that you can engage with confidence and peace of mind. So, is the crypto OTC trading platform legit? For sure. Just do your research.
When should you invest and on which platform?
Cryptocurrencies are extremely volatile, so the timing of trades is very difficult to call. In the current severely depressed market, we may be tempted to “buy the dip”. There’s no guarantee that we are in the dip, but many speculators and analysts believe that we are near the bottom.
Whenever you decide to get into the market, be sure to team up with a reliable platform that offers you a wide choice of cryptocurrencies, flexible payment options and quick, easy and secure transaction processing. Platforms to consider are:
• Binance is one of the world’s largest crypto exchanges overall. The OTC desk at Binance offers person-to-person trading in a wide range of crypto pairs. Their minimum deal size is $10,000 which opens it out to a wider audience of average investors too.
• Kraken has been in OTC crypto trading since 2018. They support around 45 cryptocurrencies and a basket of fiat currencies. They are continually looking to expand on this portfolio. OTC trades are free of charge, but the minimum trade value is $100,000.
• Coinbase is the second-biggest exchange and offers a large portfolio of cryptocurrencies. The exchange operates in more than 100 countries.
• Nexinter, the exchange operation of NextHash, offers OTC trading with crypto to crypto as well as fiat to crypto and vice versa. With some of the lowest fees in the industry and blockchain-based data security, NexInter is set to become a platform of choice.
Use Nexinter crypto OTC trading platform in your favor
Whilst the Nexinter OTC trading platform operates very much like a traditional stockbroker or financial intermediary, the technology is in a class of its own. Leveraging the power of the blockchain, security is unparalleled, and processing is near instant.
Is the crypto OTC trading platform legit? Why don’t you see for yourself? NextHash is fully regulated under European Union law and holds financial licenses in various other jurisdictions around the world. Trade with full peace of mind; trade with Nexthash.