OTC Bitcoin Trading Exchange in 2020
In the recent decade, bitcoin has evolved from a geeky novelty into a valuable asset recognized by many financial authorities. In response to the growing demand, many services offered a way of buying it. One of the more interesting examples is over-the-counter, or OTC bitcoin trading. While the market-savvy people will recognize this at once, others may be left wondering, “What is bitcoin OTC?”
Such curiosity is justified, among other things, by OTC bitcoin volume. It is difficult to tell exactly how much bitcoin on OTC, but analysts agree that it probably exceeds the volume circulating on exchanges. This fact becomes even more impressive once you understand that OTC platforms specialize in large-volume trades – think hundreds of thousands USD at the very least.
Because of this, many people who want to trade bitcoin OTC find it overwhelming and move elsewhere – with varying success. Some go to exchanges only to discover that those have issues of their own, like price spikes and prohibitive trading limits. If you were fortunate enough to avoid that fate and are still figuring out how can you trade bitcoin OTC – this article is for you.
What Is Bitcoin OTC Trading
Over-the-counter (OTC) trading is a segment of the exchange market in which deals do not go public. In simpler terms, this is a process where buyer and seller settle the transaction between themselves with the assistance of an OTC broker – an expert who finds a counterparty for the trade.
One reason this may sound confusing is that the word “broker” is also used to describe the entire OTC bitcoin company. Similarly, you may hear the term “OTC bitcoin market makers” applied to someone you think are brokers. Without getting into too much detail, this has to do with the fact that off-exchange trading goes beyond bitcoin OTC stock and covers a wide variety of financial activities. Here is a concise rundown of how it looks:
- A potential buyer comes to a bitcoin OTC platform of choice and fills in, say, a buy order of 1,500 BTC. Important details like the client’s identity are also provided at this stage to comply with KYC requirements for OTC bitcoin and ensure the legality of the transaction.
- The order is picked up by an OTC bitcoin broker who goes through their order books to find a suitable counter-offer (that is, the right amount of cryptocurrency) and presents them to the client.
- If the expectations of both parties are met, the deal will be closed, and the seller will send bitcoins to the buyer. Other times, no suitable match will be available in the book, in which case the broker will offer the closest alternatives, and the negotiations will begin. Once a compromise agreement is reached, and each side will receive their funds.
OTC Bitcoin Desk – TheJingStock.com
An excellent example of the bitcoin OTC desk is TheJingStock. As other major platforms in the market, it allows its customers to exchange large amounts of cryptocurrency anonymously. On top of that, we provide a host of other benefits to differentiate our OTC bitcoin service from competitors:
- Low fees: Professional brokers, dealers, and traders agree that OTC desks work best to exchange large amounts of cryptocurrency, in part due to low trading commissions. We take this one step further by monitoring the average OTC bitcoin deal fee and making sure ours stays competitive.
- Variety of Withdrawal Options: We understand that the OTC bitcoin market is a global phenomenon and try to expand our reach as far and wide as possible. One way to do this is to make sure every client can receive their money after the deal is closed. Our OTC bitcoin platform offers a selection of payment options from all major financial jurisdictions, not to mention the compatibility with the majority of bitcoin payment processors, wallet companies, and software solutions.
- Complete Legality: Because of their unregulated and decentralized nature, cryptocurrency markets have garnered a reputation of “money for illicit purposes.” What many people are missing is the fact that over-the-counter trading is long recognized by regulatory authorities. Cryptocurrency is not an exception, so most of the OTC bitcoin options are now compatible with KYC (“Know Your Customer”) guidelines. In other words, you can be certain that all OTC bitcoin transactions on our platform comply with regulations of major financial jurisdictions.
- Service Quality: Our experts go the extra mile to allow you to buy or sell cryptocurrency in the fastest and most convenient way possible. Our OTC bitcoin brokers are always ready to provide you with reliable market insights and advice on the best strategies, whether you are selling 10,000 BTC or are just figuring strategies and methods of OTC trading. It is your trust, not trade sizes, that matters to us.
OTC Bitcoin Exchange – OTC Bitcoin Price
The issue of OTC BTC price is something that comes up frequently in our clients’ questions, so here is a detailed look into the matter. Because trading OTC happens off-exchange, there is no way to see the current price of Bitcoin in real time. Instead, you can ask your broker about it. This may feel like an unnecessary barrier but is actually a part of how an OTC bitcoin desk operates.
Like every other asset, the price of bitcoin is formed by a complex interaction of factors. The definitive ones are supply and demand: the more people try to buy Bitcoin, the higher the price, and vice versa. Importantly, the public order books make every change in the demand visible to anybody before the deal occurs. This means that if somebody tried to sell 100 BTC, its price would go down well before the deal is executed, and the seller will face considerable losses.
For the OTC bitcoin price, the process is largely the same, with one important detail. The order book is private, so nobody can see that 100 BTC offer but the broker and, occasionally, the OTC counterparty. This is not to say that OTC bitcoin deals have no effect on the market whatsoever – a large OTC bitcoin sell will lower the market price – but that will happen after you get coins after you close your deal. In other words, the lack of transparency on an OTC bitcoin exchange may look like a nuisance but actually works to your advantage.
Why Is The OTC Price For Bitcoin Higher Than On Exchange?
Now that you are familiar with the advantages of the OTC broker bitcoin trading, you may wonder why is the OTC price for bitcoin higher than on exchange? To understand that, we need to look closer into the issue of liquidity. In the simplest terms, it reflects how easy you can buy or sell your asset. As was explained above, on traditional exchanges, the price before a BTC trade changes as you trade.
If you are selling 10 BTC, you may not even notice the difference, but it will go up with trade sizes. Liquidity on cryptocurrency exchanges varies widely, with smaller ones emptying out after a single large purchase. This effect is still there when you are buying bitcoin OTC – it is just the broker who will pay the difference. To avoid this, they need to estimate the effect of each deal on OTC bitcoin markets.
If that sounds sketchy to you – know that a lot of work goes into these estimates, from analyzing liquidity to cryptocurrency markets media highlights. At the same time, the price has to stay competitive to attract new clients. You can think about it this way: you can buy or sell 1,000 BTC OTC for a price that is slightly worse than on the exchange – or for a much worse price if you try to do the same on that same exchange.
Average OTC Bitcoin Deal Fee
Now that you know how to start bitcoin trading OTC desk, you may want to cut the expenses by finding a platform with low OTC bitcoin fees. This is easier said than done because there is no single approach to setting fees in the bitcoin OTC marketplace. Some platforms make all commissions explicit and set a price tag for each additional service. Others set a fee for the entire package so that buyers of bitcoin can trade OTC seamlessly from the outset.
One thing is for certain, though: OTC broker bitcoin fees are always lower for large transactions than those on exchanges. Many websites sport a 1% or even a 0.5% fee. Some charge different fees based on the details of your deal so, if you are lucky, you can buy OTC bitcoin in bulk with a 0.05% fee or even no fee at all.
That being said, remember that the OTC market is still in its early development, so you should be diligent when choosing where to buy bitcoin OTC. Pay attention to hidden commissions, ask around what are the best bitcoin OTC brokers, share information cautiously, and enjoy the lowest fees on the market.
OTC Transactions: Methods and Wallets
Newcomers to the cryptocurrency scene often focus on questions like what is the best bitcoin OTC broker without realizing this is only half of the problem. Once you buy 100 BTC there is little use to them unless you know where to keep them securely or how to use them. This is when you will need a wallet.
In broad strokes, a wallet is any equipment (or software) that allows you to control your funds. In this sense, OTC bitcoin USA is not different from the crypto mined from any other country, so you can use your trusted wallet for it.
Minimum For OTC Bitcoin Exchange
By now, you have probably already figured out that the strength of the OTC market for bitcoin is in numbers. The high liquidity, low fees, and unprecedented privacy of deals are all possible thanks to the volume on OTC bitcoin platforms. Brokers try to capitalize on this by setting a minimum for OTC bitcoin trades high to make sure their books don’t consist of thousands of small offers.
The largest OTC bitcoin websites, such as Kraken and Genesis set their minimum limits somewhere within the $100,000 range, which is fine for institutional investors but challenging for individual miners and traders. The idea seems to be that the latter will instead turn to exchange services.
Other OTC providers bitcoin go the other way by lowering the limit as much as possible. This opens the door for a broader range of customers and allows expanding the bitcoin OTC market size. The limits are still nowhere near those from traditional exchanges – $15,000 would still be high for a daily purchase.
However, it creates a reasonable entry barrier for individual traders without ruining the work of an OTC bitcoin manager. To sum up, you will be hard-pressed to find a broker with a limit below the $10,000 mark, but once you have that amount on your hands – there are plenty of options out there to help you with crypto OTC trading.
TheJingStock.com The Best OTC Bitcoin Broker
Now that you know what is bitcoin OTC trading, you are all set to find the broker that suits your needs. Our team works hard to make TheJingStock.com the best candidate for this and have already made considerable progress in that regard. Here is what you get from choosing us as your partner:
- Our brokers have a broad selection of offers to choose from for you to buy and sell crypto OTC;
- Fair fees for exchanging OTC bitcoin to USD, no hidden costs, and a flexible system that ensures you always end up with the best deal;
- Qualified experts to supply you with relevant OTC bitcoin trading insights and latest information from the market to help you make an informed decision and avoid costly mistakes;
- Full compliance with KYC requirements, so every single OTC bitcoin purchase you make is a hundred percent legal, financial activity;
- Quick response times and search for counter-offers. We value your trust and know how valuable your time is, so we make sure you spend it on trading OTC and not on waiting.
However, this list is far from complete. OTC bitcoin exchanges are gaining traction, and we intend to stay ahead of the competition – as well as at the top of your “Where to buy OTC bitcoin” list.