How to Buy Bitcoin on OTC Market?

How to Buy Bitcoin on OTC Market

Only a decade ago, hardly anyone believed in the success of cryptocurrency. Now the times have changed, and millions of people from all around the world become interested in investing in digital currency. Quick and safe, cryptocurrencies are growing rapidly on the market just as well as their popularity. It is challenging to find somebody who has not heard about Bitcoin, Ethereum, and blockchain yet.

As being an investor has proven to be extremely profitable, many people are eager to try themselves in this business. Today we will discuss one of the simplest ways to sell bitcoin over the counter or become a proud owner of the most famous crypto. Stay tuned: we will teach you how to trade bitcoin over the counter.

What is OTC Market?

OTC is the abbreviation for Over-the-Counter. Over-the-Counter Market provides the investors with an ability to sell and buy cryptocurrency anonymously and without any commissions. Talking about other financial markets, OTC trading is trading that exchanges the securities which are not possible on the formal centralized exchanges, such as, for example, London Stock Exchange Group, and New York Stock Exchange. Thus, the system of OTC trading is based on the work of OTC brokers who cooperate with both sellers and buyers directly.

Over-the-counter (otc) crypto trading service is based on a similar system: the brokers facilitate with sellers and buyers, providing them with an opportunity to buy or sell crypto saving their anonymity. Thus, the ones who are eager to trade do not have to share their private information. Plus, this option will not provide free access to the details of the trade, so that this helps to move big sums of money without any changes on the market.

Who is a Dealer?

The first aspect of a successful OTC crypto trade is knowledge of the parties of the process. There are three of them: dealers, brokers, sellers, and buyers. While the last two are clear – persons who are willing to buy or sell some crypto, the other two need to be better explained. Let’s start with learning who the dealer is.

In otc exchange crypto, a dealer is a person who trades their own bitcoins or other cryptocurrencies to gain profit. Thus, it is a person who is eager to sell the crypto. If you want to buy some BTC otc, the dealer will be your counterpart within the transaction. The dealers make money with such transactions: they have to sell crypto at a higher price than they paid themselves so that they make a profit. The difference between an average seller and a dealer is that a dealer sells crypto regularly and makes a profit from it. Dealers have to be well aware of the BTC trade aspects and price to get the best offers and sell their digital money with the highest price possible.

Who is a Broker?

The broker is another party crucial for otc crypto trading. A bitcoin otc broker is a person who acts as a mediator between the sellers and buyers. Thus, it is a person who makes the transaction possible – an intermediate market participant. A broker finds the people who want to sell or buy btc, and connects them. To cooperate with a broker, you need to pay them a fee. Alternatively, they will add a spread to the quoted price to pay for their service.

Recently btc otc broker has become a profitable occupation, so numerous financial companies and exchanges have already launched their own otc desks. Plus, there also occur top bitcoin brokers, such as Genesis Trading, Circle Trade, Cumberland, and Enigma Securities. As the competition is rising each day, the price for broker’s service is quite reasonable and affordable. Unfortunately, there is also a disadvantage of working with a broker: a transaction might take longer than by completing it with a dealer. However, this minus is compensated with the quality of the provided service, as working with a broker, you’ll get the best offers possible.

What is Exchange OTC Desk?

Another term, widely used in OTC trading, is exchange otc desk. If you came across this term in the previous passage, but still don’t know how to make sense out of it, we are here to help. Let’s make it clear together: otc desk is a business dedicated to the buying and selling of a particular asset class. OTC desks are usually started by big exchanges to broaden their services and help the clients to execute big transactions anonymously. Therefore, otc desks are specific business platforms where one can buy or sell crypto.

As the desk is associated with the big corporations which are public, they provide a higher level of trust. Plus, they also offer a reasonable price for the transactions due to the broad network of market participants. Thus, the exchanges become a main counterparty to the transaction.

How Do Buyers and Traders find Each Other?

This is probably the question you asked yourself when thought about the opportunity of buying crypto. Buyers and traders cooperate through the assistance of otc desks, which act as a middleman in the trades.

It means that whether you want to buy bitcoins online, you should contact the otc crypto desk. After that, you need to offer a range of prices you are ready to buy digital money with. After that, your agent will find an appropriate trader. Finding the one, they will contact you, and you will work out the transfer of assets directly with the other side. Thus, buyers and traders have no need to find each other by themselves as there is a desk that cooperates with both parties of a deal.

OTC Broker VS Crypto Exchange: What is the Difference?

OTC Marketplace and Crypto Exchange are the two major options where you can trade for bitcoins. These two options have one thing in common – both of them provide you with an opportunity to become a proud BTC owner. However, their methods of trade are completely different.

While working with an exchange, sellers and buyers use the current market price of the cryptocurrency, and the exchange acts as the middleman and takes the fees. The exchanges provide all the users with an ability to learn the information about each transaction. Moreover, each of them affects the overall crypto market.

In OTC trading, the parties of a transaction agree on the price of the product directly between themselves, without the supervision of an exchange. This offers a variety of advantages, such as anonymity and personalized service. It is also more convenient for those buyers who want to acquire a large number of cryptocurrencies.

Advantages of OTC Market

OTC cryptocurrency trading market offers a vivid advantage to its customers:

  • Firstly, it does not affect the market when transacting big sums of money. Bitcoin keeps growing as its resource is limited, so any big transactions would cause an immediate reaction on the whole cryptocurrency market. Within OTC option, the information about the deal will remain private.
  • Secondly, it allows remaining anonymous. All the people who have access to the exchange will be able to see the information on your transaction. If you want to avoid this aspect, otc market is a perfect choice for you.
  • Thirdly, OTC crypto market is more flexible for your individual needs. For example, if you want to buy a large amount on btc, you probably won’t be able to do that within one transaction on an exchange. As a result, you’ll have to buy it in parts, paying more due to the slippage and even using different exchanges. Using OTC makes it easier as the seller will be found directly for you.
  • Next, you don’t have to find out where to get the sellers of crypto you need. Just contact the desk, and they will offer the price. Everything beyond this is their problem, so otc bitcoin trading is convenient.

These are the most significant benefits of the otc market, but actually, there are even more of them, which makes this method an effective and useful tool for investing in crypto.

Which Bitcoin Trading Option is the Best?

Like in all the other financial markets, there are two btc trading options – OTC trading and crypto exchange. Each of them has its own pros and cons discussed above. Choosing between two of them, you should consider several individual aspects, such as, for example, the extent of a needed transaction and whether anonymity is important for you. Buying not very big amounts of bitcoin, exchanges are effective and easy to use. If you are willing to trade large amounts of btc and do not worry about the privacy of the information on the deal, then otc trading suits better for you. Moreover, trading on usual exchanges is a time consuming and pricey process, so that we highly recommend trying btc otc trading.


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