14 October 2021
Over the counter or OTC trading platforms play a vital role in the modern era. The global crypto industry is constantly on the rise, yet not everyone can grasp its importance and how virtual currencies work. Hence, it’s essential to be aware of the relevance of crypto markets and platforms before you start trading.
Similarly, to traditional exchanges, crypto OTC platforms deal with immense volumes of assets. Below, we’ll bring OTC tools closer to your institution so you can make informed investment decisions.
OTC takes place between two interested parties, of which one or both can be platforms. Such businesses specialize in buying and selling various asset categories. The process involves setting a price and proceeding to transfer the assets as agreed.
As a result of the direct exchange, OTC markets are prone to opacity. Meaning, only the two counterparts involved in the process are familiar with the price and volume of assets sold and bought. Hence the name ‘over the counter’ trading platforms.
Crypto OTC refers to the trade of cryptocurrencies between two entities (physical or legal). Most trading patterns involve fiat-to-crypto or crypto-to-crypto swaps.
The first method we’ll elaborate on entails trading through a principal platform. These desks use their funds to procure assets on your behalf, assuming the risk in the procedure.
Suppose you’re buying 300 BTC. In this scenario, you will need to request a quote from one of the platform’s traders. Eventually, you’ll get a price that depends on the current market conditions. Let’s imagine you received an offer of $2,000 per BTC. If you accept the rates, the platform will deliver your 300 BTC at the agreed price, or $600,000.
Next, the platform looks for an optimal way to source your 300 BTC. In a word, we explore our reliable network of exchanges and affiliate OTC desks. The crucial aspect is that we undertake the risk that the BTC value might increase in the meantime.
Still, the crypto OTC trading platform uses its funds to source the 300 BTC. The rationale behind this lies in the attempt to make a spread for a price under $2,000 per BTC. In short, what we consider is the margin between the price we obtain for the BTC and the amount at which we sell it to you.
After the desk sources these 300 BTC, we’ll instruct you on how and where to transfer the funds. Trading platforms won’t send BTCs unless they get funded first. The trade will be complete once we receive the wire and send you the ordered 300 BTC.
The other type of crypto OTC trading platform goes under the name of agency. Unlike above, agencies skip the risk element by not trading their funds. Instead, agency desks act as intermediaries and charge you a fee for their services.
So, if you want to buy 300 BTC this way, you must first transfer your funds and select a price range. The agency platform will act on your behalf and purchase the 300 BTC at the predetermined price. The only risk you’re taking here is price spikes before the purchase gets completed.
Some trading platforms also offer storage services for your cryptocurrencies when they can’t fill your order. Your funds are already safe, and you get the added benefit of several buying and selling attempts at the set price.
Anyone planning to buy or sell significant amounts of cryptocurrencies can register for an OTC platform. Clients can range from individuals and institutions to hedge funds and VC that wish to invest in crypto markets. Moreover, these platforms regularly trade among themselves. Often, one desk wants to buy an asset that another desk wishes to sell.
As a crypto broker, NextHash collaborates with high-net-worth traders. We provide them with fast and straightforward buying and selling options for crypto assets. Besides, many miners are also making use of our crypto OTC trading platform. These customers use OTC tools to convert the earned crypto into local fiat currencies.
Finally, smaller companies with fewer assets can also join the NextHash OTC crypto platform. By doing so, small-sized institutions avoid listing cryptocurrencies via traditional exchange methods. Plus, listings with well-established brokers are costly and take much longer to process. Thanks to NextHash, smaller organizations with modest financial capabilities can create and trade crypto assets, too.
Can Institutions Make Use of OTC Platforms?
Smaller and larger institutions can both use our crypto OTC trading platform. When it comes to large volume buyers, we offer single-quote price orders. Once the institution accepts the terms, we ensure the ordered crypto assets get executed within minutes.
NextHash has extensive experience in sourcing large cryptocurrency amounts. Organizations of any type and size are welcome to join us. Our team is always willing to assist you in buying as many assets as you wish. Our mission is to provide whatever you order. Contact our customer care service for more detailed information or email us at [email protected].
When trading cryptocurrencies, clients are looking for a one-stop-shop system to grow their wealth. If this looks like you, then you’re at the right spot. NextHash is a large-scale provider that makes both selling and buying large amounts accessible.
Also, your orders get processed fast, and we guarantee 100% safety for sizeable cryptocurrency amounts. We provide financial knowledge, business analyses, and network connections all in one as a single investment instrument.
Last, we have streamlined our procedures even when it comes to buying in bulk. Hence, no matter your background or trading intentions, the NextHash crypto OTC trading platform is ready to help. We work with buyers and sellers eager to trade both securities and cryptocurrencies of various sizes.