19 April 2022
If you are looking to invest and perhaps dabble in the stock market in an attempt to grow the balance on that bank statement of yours, then the first step you would have to take is to understand just what exactly an OTC market is. And of course, to understand just what an OTC broker is and how they can help you in not only saving money but making money.
So, what is an OTC market? The OTC market refers to those stocks that are traded Over-The-Counter and not inside of an official stock exchange. Some of the most well-known stock exchanges are The New York Stock Exchange, the London Stock Exchange, and the Nasdaq. But these form only a small part of all the official stock exchanges in the world.
Now, the OTC market falls outside of this official stock exchange world. And there are more than 12,000 stocks that are traded in this way.
There are a variety of reasons why a company would be trading their stock OTC (Over the Counter) rather than listing the stock on one of the official stock exchanges. The most common reason for a company to sell their unlisted stock on an OTC market is that they are probably a smaller company and that they do not meet the listing requirements that they would need to in order to be able to officially list their stock.
It is important to note that even though these OTC stocks are unlisted and not tradable on an official stock exchange, there is a marketplace for these stocks. And they do have eligibility criteria that the OTC stock will have to meet in order to be traded on this market.
Sone of the best-known OTC markets in the OTC Market Group is the Best Market (OTCQX), the Venture Market (OTCQB), and the Pink Open Market. The OTCQX – The Best Market – has the highest reporting standard and the strictest oversight, whereas the OTCQB – the Venture Market – includes mostly companies that are in the developing phase or new ventures. The Pink Open Market has no reporting standards and can include companies of a less legitimate nature.
As mentioned, these marketplaces do have eligibility criteria that do assist in regulating who can and cannot trade stocks in whichever marketplace. The Best Market (OTCQX) for example does now allow for the listing of penny stocks. A penny stock is a stock option that is worth less than $5. They also do not allow shell companies to list on their marketplace or companies that are going through bankruptcy. These are all measures to protect the traders that choose these marketplaces.
Since these stocks are traded basically the same as all other stocks on official stock exchanges the process of trading is relatively similar. And you will be able to trade these stocks through most online brokers.
As with other stocks large quantities of Bitcoin and other cryptocurrencies are also traded on OTC markets. There is therefore a buyer and a seller in every transaction. A Bitcoin OTC Broker will be the middleman that puts these two parties together, facilitating the transaction, and also keeping the anonymity of both parties.
There are some big advantages to using a Bitcoin OTC Broker of which arguably the biggest one is the fact that using a Bitcoin OTC Broker will avoid any slippage. Slippage occurs due to the fact that the market price of a stock can change between the time when the order is placed and the time that that order of fulfilled. By trading through an OTC market and by using a Bitcoin OTC Broker this can be avoided.
This is not the only advantage of using a Bitcoin OTC broker. Due to the fact that dedicated Bitcoin OTC brokers manage large order blocks, they assist in increasing the market liquidity. Another added benefit of trading on an OTC market is that there are typically daily limits set on trading on a more traditional or official stock exchange yet on an OTC market there are no limits and trades can reach up to millions of dollars.
In addition to these benefits a Bitcoin OTC broker that trades on an OTC market also allows for transfers from most bank accounts and even cash at times. This makes trades on the OTC market so much easier for anyone interested.
Because the OTC market allows for the trading of cryptocurrencies off-exchange it allows for the trading of these currencies with maximum security and privacy. But the biggest advantage of trading OTC is that the last price of the stock that you are purchasing is known upfront and is fixed. As opposed to using other crypto exchanges this allows the buyer to get a better average price when trading.
Another advantage is that a Bitcoin OTC broker generally specializes in these trades and that they facilitate high-volume trades for large-scale buyers. This allows for higher market liquidity which in turn means that your orders will most likely be fulfilled completely and that the trades will happen on a faster timeline.
Once you have made the decision to invest in OTC stocks and more specifically cryptocurrencies, the next step will be to find a Bitcoin OTC Broker. This is where Nexthash comes in. Nexthash will be able to assist you in trading large amounts of cryptocurrency not only quickly and conveniently, but also with the utmost privacy and security.
With Nexthash you will be able to trade cryptocurrencies using the Nexinter trading platform. This platform allows for the trade of the most popular cryptocurrencies, and you are able to do so at real-time market values.
Using the Nexinter platform will save you money because not only are the fees relatively low as compared to other platforms such as these but due to the fact that these Bitcoin OTC brokers are high-volume traders, there are able to get significant discounts and special deals. The Nexinter OTC trading platform from Nexthash is one of the best options when looking for assistance with your OTC stock trades.