Feb 13, · Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with crypto exchange trading, which occurs via exchanges. A crypto exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. Whether you are trading blocks of $,, €10,, or 2, Bitcoin, the OTC desk will provide you with execution and settlement services that are discreet, secure and ultra-competitive. Features offering more than secure and discreet transactions and settlement. Nov 06, · The two main options you have for buying large amounts of Bitcoin are OTC brokers (OTC = over the counter) or traditional Bitcoin trading platforms. OTC brokers refer to companies or individuals willing to sell you Bitcoins directly as opposed to an automated trading platform. Bitcoin OTC broker .
Over the counter bitcoin tradingOver the Counter Trading – How the Whales Trade
The OTC provider learns exactly how much currency is at stake and identifies a counterparty for the trade. On an exchange, this process is mediated by the exchange itself. Offers are exchanged and, once agreed upon, the OTC provider goes to work. The accompanying due diligence matters are resolved per U. If you are or aspire to be a whale, you probably already know it.
You are also probably already aware of your options. If you are a whale, then you have the power to make or break markets.
This can lead to unforeseen and otherwise consequences, like a pump-and-dump. For the 99 percent of crypto buyers who know they are not whales, whale-watching is probably at least as useful as refreshing Coinmarketcap. Probably even more so. If the whole point of using an OTC market is to keep big buys from immediately shaking up the market, what does whale-watching entail? Keeping an eye on the total market cap is a useful indicator that whales are on the move.
Increases in market cap tend to be tied to specific events — a new exchange listing, a roadmap release, something concrete. OTC transactions take time, unlike the click-and-buy nature of exchanges. This is something that is unique to the Blockchain, in what other asset class could you see exactly how much individuals are holding?
The regular economy is shadowed by an equally large and complex paper market, comprising a shadowy maze of futures, derivatives, and other financial tools.
At some level, every consumer knows that the price Wal-Mart gets for apples beats any price he or she could negotiate alone. This is partly to enjoy economies of scale and partly to keep a modicum of control over the market. After all, if you were to learn that Wal-Mart had purchased every available apple in the U.
Large cryptocurrency transactions are frequently conducted via OTC providers that keep their whale clients from disturbing and being disturbed by the market while they go about their business. The effects of whale movement, however, are important to the market as a whole and a useful barometer for the minnow-sized investor. Recognizing whale movement in key currencies and the market as a whole can provide a weather map for changes ahead or direction in general.
Contact Oliver blockonomi. Lots of crazy statements here without any sources or evidence to back them up. Save my name, email, and website in this browser for the next time I comment.
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The OTC over-the-counter market is where the credit default swaps are traded, which is assumed to have been the catalysts for the stock market crash. This is a huge market, which is the reason why smart money and big players choose OTC over-the-counter instruments.
Over-the-counter trading allows hedge fund managers to carry out direct trades with each other without leaving footprints in the market. This comes with a lot of advantages.
The OTC over-the-counter, or off-exchange, is a market where financial instruments stocks, commodities, currencies, or cryptocurrencies are traded directly between two counter-parties. Unlike stock exchange trading where securities are traded on physical public exchanges, OTC trading has no physical location. The over-the-counter market is a decentralized market and in contrast to trading on NYSE or CME, over-the-counter trading is structured in groups of dealers that act as market makers for their own customers.
Over-the-counter stocks are not listed. Usually, companies that are too new or too small to be listed on a major stock exchange are listed in the over-the-counter market.
The OTC stocks are also known as pink sheets because back in the day these stock quotes used to be published on pink paper. The biggest OTC market in the world is the Forex market. For example, if you want to buy apples, you have two options. You can either opt to go directly through the Apple exchange or you can go to the over-the-counter market to buy apples.
In the apple exchange, you have a bunch of apple traders that will sell you certain types of apples depending on what the exchange allows them to sell. On this particular exchange, the market makers sell three types of apples: Gala apples, Granny Smith apples, and Fuji apples. When you go to the exchange you have the option to buy three types of apples. The good thing about going to the exchange is that first, you know the provenance of the apples and the people who sell them.
This gives you some kind of security. On an exchange, all of the apple sellers will publish their prices. So, when you go to any of these apple traders you can see how much the apples are going to cost. Depending on the supply and the demand those prices will fall or rise. The alternative is to go to the over-the-counter market where apples are sold off-exchange.
In the OTC market, you can have various apple sellers, but the difference is that these sellers are not all located in the same place. They can be located all over the city or across the country. They can sell pears, strawberry, cherry and a bunch of other fruits. The dealer may collapse the same way as Lehman Brothers did.
The uncertainty with the over-the-counter market leaves you exposed to a certain amount of risks that are eliminated if you go through an exchange. Due to the high volume purchases, the whales need an alternative way to buy Bitcoin, different than the standard method that requires a crypto exchange. Buying large amounts of bitcoins can disrupt the market price if the order is placed through an exchange. The benefit of bitcoin over-the-counter trading is not just that it gets rid of this issue, but the whales can also hide their steps from the general public when going through the over-the-counter market.
The first step is to find a reliable OTC desk that can satisfy all your needs. Usually, the onboarding documentation requires providing various types of legal papers to prove your identity and the source of income. Once you successfully manage to go through the KYC process and your identity is verified you can directly communicate with the over-the-counter dealer.
Usually, you have the option to send your order either electronically via text message or through an electronic platform or via voice call. No matter what your preferred method of communication may be, there will always be a dealer at the other end ready to help you.