8 August 2022
The modern era has opened room for various assets besides money. Trading opportunities swelled due to globalization and fast access to information. Seasoned investors quickly realised that diversifying assets is an intelligent solution to keep their property in check.
Among others, cryptocurrency is one of the most promising ways to make a long-term investment. The crypto realm has achieved unparalleled success nobody believed it was possible for a virtual currency. But here we are, with Bitcoin worth nearly $23,000 in mid-2022.
Moreover, its ever-high price reached $ 67,567 in November last year. Compare this figure to just three years ago when Bitcoin’s value revolved around $6,000.
The point behind the crypto market is to be aware of its fluctuations and jump in when the clock strikes. A sound strategy involves investing in digital assets when the value decreases and then selling once the cryptocurrency’s value goes up. But how do you start, and what is the best crypto OTC market?
This article explains the crypto position in 2022 and why you should invest in cryptocurrencies. It also lists the most reliable OTC markets to help you make an informed investment decision.
Over the past year, cryptocurrencies have seen tremendous growth and devastating dips. And Bitcoin was particularly prone to this wild ride of value. In less than a year, the record high of almost $70,000 per token dropped threefold.
This downhill slide can only mean one thing, both for rookies and experienced investors. It is the perfect opportunity to invest in a crypto OTC market. So, if you’ve been waiting for a more convenient time, now may be the right moment.
And if you’re still reluctant about investing in crypto, 2022 provides favourable conditions for buying digital assets. Leading cryptocurrencies like Bitcoin, Ethereum, Ripple, Cardano, and Solana have unique properties that make them powerful enough to withstand inherent risks.
Bitcoin, for instance, has grown into a real-world utility. An ever-growing number of companies accept it as a form of payment. Similarly, Ethereum has beaten its competition in the DeFi (decentralised finance) and NFTs (non-fungible tokens) fields.
Finally, as new cryptocurrencies emerge, the dominant industry players introduce more robust features. Their creators and developers solve issues that make them faster, more affordable, and less energy-wasting.
Over the counter is a term for trading on decentralised dealer networks. Unlike traditional and formal exchanges, the crypto OTC market consists of widely dispersed technological devices. Due to the advanced network, the marketplace runs perfectly without a centralised location.
Another difference from on-exchange trading is the lack of parties offering various ask and bid prices. Crypto over-the-counter markets display only two values: a single buy and a single sell rate. The process is more like a private deal between two parties that execute an anonymous deal. Since regulations are more lenient than those on formal exchanges, investors can trade larger volumes.
Moreover, only the involved entities are familiar with the assets’ price and size. There’s no need for an external mediator to facilitate the exchange. Thanks to direct contracts, investors can avoid price slippages and exorbitant fees.
Finally, over-the-counter trading occurs between counterparts that can be individual dealers or platforms. OTC desks specialise in buying and selling crypto assets, so this is probably your best shot. You only need to set a price and transfer the funds as agreed.
Let’s consider the pros of trading cryptocurrencies through OTC markets and what you get from the process. The appearance of digital assets has stirred conventional exchanges and given people more investment options. Due to the lack of centralised monitoring and oversight, investors have the freedom to play by their rules.
Besides the absence of costly fees, buying through OTC markets protects you from bank failures, depreciation, and inflation. And since there is no central intermediary, you store the cryptographic keys and control your blockchain address. Distributed ledgers and the immutability feature of crypto ensure your assets remain highly protected.
Another upside of investing through a crypto OTC market is the growing demand, which makes it a desirable liability. It is also a reliable asset that offers high returns and a long-term store of value. In addition, investors can use the built-in scarcity feature of cryptocurrencies as an inflation hedge.
Anyone looking for a significant crypto investment should head for a trustworthy crypto OTC market. While other options are also available, over-the-counter desks offer more efficient trading with higher ROIs. Unlike fully regulated crypto exchanges, traders can enjoy a few critical benefits.
OTC exchanges such as Nexinter offer lower costs for trading cryptocurrency. The narrow-spread mark-ups make it an exceptional choice for crypto whales and small-scale buyers. On top of that, trading is faster, limits run high, and you get the maximum value for your money. Unlike commercial platforms, such as Kraken, Binance, and Coinbase, Nexinter is the best combo of price, variety, and service.
Over-the-counter desks act as dealers that facilitate asset trading for interested buyers. In short, everything starts when the person intending to sell or buy cryptocurrencies quotes the price. This party is the market-maker.
The trading platform or agent will then reveal the current market rates. Depending on the circumstances, you can take or reject the offer. If you meet halfway, the desk will deliver the ordered assets for the price set. It’s up to the crypto OTC market to source the cryptocurrencies for a slightly lower price to make a profit. You and your assets stay anonymous throughout the whole process.
If you are looking for a one-stop-shop place to trade cryptocurrencies in 2022, you’re at the right spot. NextHash Exchange is a large-volume provider that streamlines selling and buying crypto. No matter the order size, trading at the NextHash crypto OTC market is fast and 100% safe. Connect with us and grow your network and investment portfolio thanks to our thorough financial knowledge and business analyses.