OTC Crypto Trading Service: Crypto OTC Broker
If you have ever searched the web for a place to buy or sell large amounts of cryptocurrency, you probably stumbled upon terms “broker” and “OTC” quite a lot. Now, even if you already know what is crypto OTC broker, you probably still have many questions left, like what cryptocurrency can you buy on the OTC, how much of cryptomarket is OTC, and just how trustworthy the whole thing is.
Definitions aside, some answers are actually hard to come by. However, this has nothing to do with the legitimacy of OTC crypto platforms. In fact, quite the opposite is true: over-the-counter (OTC) crypto trading service is a variation of a well-established practice of trading assets off-exchange. Simply put, nobody but the buyer and the seller know the details of the deal.
This is why crypto OTC market size is difficult to determine, although some experts estimate it to be several times larger than the exchange market. OTC desks also provide the same level of security and legality as other online vendors. The most important, however, is the opportunity to trade OTC crypto stock or coins quickly and without hidden costs. If that does not convince you, our team has prepared a detailed breakdown of the defining features – and pitfalls – you can expect from a crypto company OTC.
About OTC Cryptocurrency Trading
Over-the-counter (OTC) trading is a type of financial transaction that allows exchanging large amounts of crypto. Technically, it allows exchanging between different types of coins but is mostly used to buy or sell large amounts of coins for fiat. This is made possible due to several differences between crypto OTC desks and traditional cryptocurrency exchange. Here are the most notable ones:
- Lack of Restrictions: OTC bitcoin trading is particularly attractive for traders operating large volumes of funds, both crypto, and fiat. Online exchanges, a go-to place for small-scale clients, typically have limits that are of no concern for an average buyer but make investing in a lot of bitcoin or any other crypto asset next to impossible. In contrast, most crypto OTC desks will have no upper limit at all, enabling crypto investors to close massive deals within days.
- Low Fees: Services that lower the entry barrier usually break even by charging their clients for every deal. This will not be an issue for an occasional purchase but will deplete your funds fast when you buy lots of cryptocurrency at once. Crypto OTC platforms go the other way by keeping their commissions as low as possible. Crypto OTC fees are often as low as 0.5%. The trade-off here is the volume – buying crypto coin OTC will often be restricted to trades starting over $10,000 USD.
- Discretion: The private nature of trades is probably the most important OTC trading feature. Unlike traditional exchanges, which have to make the contents of their books public, crypto OTC desks keep them to themselves. This means nobody will know the details of OTC deals except for the buyer, the seller, and the broker. Aside from privacy advantages, this mode of trading helps to prevent price swings, which may well crash the still volatile cryptocurrency market.
- Legality of Deals: The private nature of deals may create an impression that there may be foul play involved. The fact that many other off-exchange transactions on the internet have questionable legality does not help the reputation of OTC crypto exchanges either. In reality, crypto OTC desks operate based on a well-established legal foundation (also used in OTC crypto stocks trading) and have all necessary Know Your Customer (KYC) procedures in place. This is especially important for institutional investors and large-scale clients who can participate in OTC market crypto transactions without the risk of violating financial regulations.
OTC Crypto Exchange Example
To a newcomer, the process of OTC trading may sound unfamiliar and intimidating. However, it is actually quite straightforward and can be broken down into three simple steps.
- After selecting a crypto OTC brokerage firm that meets your needs, you specify the details of the deal, like how much you would like to buy or sell, and how would you like to receive your currency? You will also need to provide some documents that confirm your identity that the transaction will comply with KYC requirements.
- A crypto OTC broker will add your deal to their order book and start searching for a match. There is no way to tell how long it will take, but a large crypto OTC exchange with deep order books may come up with a suitable counteroffer within hours. Fortunately, it happens entirely without your involvement, so you will be notified only when it’s done.
- The OTC service will present you with the available trade options via your preferred channels. From here on, two outcomes are possible. First, you may receive exactly the deal you were hoping for. Occasionally, there will be no suitable counter-offer, so you will instead be presented OTC crypto orders that are as close to your deal as possible. The parties then try to negotiate a better deal with the help of the crypto OTC desk. Once you and the other party are okay with it, you just agree to the offer, and the deal is closed.
And this is essentially it – you just wait until the money arrives to the account you specified earlier. This last stage may well be the biggest drag of OTC broker crypto trade – mostly due to the way financial institutions work.
What amount of crypto do I need to start OTC trading?
The size of the transaction is the most contentious point of OTC services in crypto and fiat alike. Over-the-counter crypto trading firms are often trumpeted in the media as the places where you can buy or sell thousands of bitcoins. While deals of such volume are certainly not impossible, you would be mistaken to think they are the sole purpose of crypto OTC desks.
To be clear, most advantages of OTC cryptocurrency trading are tied to large order size. While small purchases can be routinely made on exchanges with public order books, finding a counter-offer to a $1,000,000 worth of bitcoin is only possible with a decent OTC cryptocurrency stock. Fortunately, you should not think of it as “You are out of the club unless you have this amount of currency.”
The majority of services will try to maintain a low entry barrier to stay competitive and attract crypto OTC traders of all calibers. Big players, such as Kraken, can afford to keep their limits high, relying instead on reputation and non-OTC solutions. On the other hand, crypto trading desks that specialize in over-the-counter trade may go as low as $50,000 or even $10,000 to maintain accessibility for individual traders and miners.
TheJingStock Crypto OTC Desk
Our team at TheJingStock is hard at work to become the best OTC crypto exchange on the market and constantly add new features to make it happen sooner. Here is what we can offer right now:
- Security and Confidentiality: We value the privacy of our clients and protect your personal information in accordance with the standards of over-the-counter crypto trading firms. Your identity and the details of all the OTC trades never leave the platform.
- Low Fees: Because of the way crypto OTC desks work, the price of bitcoin on our website is somewhat higher than on online exchanges. We recognize this and have several mechanisms in place to keep the cost of crypto OTC deals as low as possible.
- Legality: We understand the need of our clients for trusted volumes of OTC crypto trading consistent with major regulatory frameworks. To ensure this, we follow the guidelines of reputable legal institutions and have all Know Your Customer (KYC) procedures in place.
- Service Excellence: Our experts go the extra mile to present you with the right offer in the shortest time and offer useful OTC crypto market insights. We also help you negotiate the desired deal conditions and make numerous adjustments to crypto OTC trading experience as smooth as possible.
What is TheJingStock Over-The-Counter Crypto Trading Platform?
We are a team of passionate crypto OTC brokers, analysts, and developers united by an ambitious goal – rise to the top of the biggest OTC desks crypto world has ever seen. This is certainly a challenging task, but we have already made several steps towards it.
- First, we monitor the state of the OTC crypto trading market and adjust our prices to the competitive level so that you could always have the most attractive offers.
- Second, we provide a wide variety of options for receiving your funds. Once you close the deal on our OTC trading platform crypto goes straight to your wallet in a matter of minutes.
- Third, we commit to the highest standards of service by equipping our staff with relevant OTC crypto exchange knowledge and skills.
Trades starting over $10,000 USD
This one deserves a separate mention. Crypto OTC desks are notorious for their high minimum trading limits. For this reason, some people think that OTC markets crypto exchange is a private club accessible only to whales. It is not uncommon to see OTC exchanges for crypto starting from $100,000, which may be intimidating for non-institutional clients. What’s more, first-time clients will find it hard to entrust their money to complete strangers, no matter the number of positive reviews.
To gain your trust, we have lowered the limit tenfold. We feel that $10,000 strikes a perfect balance between a reasonable entry barrier for a crypto exchange OTC newcomer and a volume our brokers could work with and come up with attractive counter-offers.
Start buy or sell a large amount of cryptocurrency with TheJingStock today
As you can see, we have chosen our platform as an OTC crypto exchange example for a reason. We work relentlessly to offer you the most favorable conditions to buy OTC crypto, be it cost, speed, security, or market insight quality. More importantly, we commit to constant improvement and achieve this by training our staff while at the same time monitoring the state of the market to keep our bitcoin prices and transaction limits as low as possible.
Finally, we try to be open to everyone by offering a broad range of options for receiving your money once the deal is closed.
The potential of cryptocurrency is staggering, but so is the entry barrier for newcomers. Until recently, an OTC crypto trading desk may not have been the best place to start. Now TheJingStock is here to change this for good by building the most reliable and user-friendly OTC trading platform crypto world has ever seen.