Cryptocurrency OTC Trading Desk Software Development Company
What is OTC Trading Desk?
OTC trading is abbreviated as “Over The Counter”. In this OTC trading platform, the security of the platform is enhanced without the supervision of external exchange invigilators. Here, trading is done with the help of the OTC desks who is nothing but the middleman who processes the trade. OTC desks play a vital role in the OTC market by playing a role similar to the formal exchange. However, the pitfalls in the requirements of the normal exchanges like demanding for a huge sum of money are solved by OTC desks.
Difference Between OTC & other Exchanges
Let’s take a look at some of the major differences between OTC & exchange platforms.
- Unlike the crypto exchange platform which involves stock exchange done directly between the buyers & sellers, here at OTC dealers performs transact exchange done directly with their electronic gadgets.
- Dealer performs an exchange whereas in crypto exchange platform exchange is done directly.
- Physical location is not mentioned in OTC.
- Transparency in OTC is low compared to exchanges.
- Contracts are customized as per the dealers whereas an exchange follows standardized customization.
- Stocks are unlisted in the OTC platform but in exchange, stocks are properly listed.
How does an OTC trader make money?
OTC trader makes money just by buying a bitcoins at the lowest price. Once after that, the same bitcoin exchanges at the highest price. The network is created with the help of financial investors so it makes OTC trading very easy. If a large volume of cryptocurrency exchange is performed in big volumes by the institutional investors. OTC traders rotate their wings by targeting OTC trading for investors who use it on large scale.
Is OTC markets are really safe?
You may be fooled if you go blindly so you may end in a loss, but at the same time, you should know how the OTC mechanism works. Okay, the best advice is that you should approach an OTC broker to help you. They will guide you whether to buy/sell crypto assets, It makes you to be in a safer zone. As per stats, 2-4% of service is charged based on the location of OTC platform usage.
How does OTC Exchange work?
- Initially signup takes place where the participants of the OTC platform exchange should first pay a fiat currency to the administrator's wallet.
- Account verification is done to ensure they are a verified user or not.
- Next, cash can be deposited into the bank account as mentioned on the deposit page.
- For further verification user must have to submit some proof along with the transaction id.
- Tracking & validation is done by the administrator by ensuring the submitted proof of document is original or fake.
- After the above process is completed then the participants are allowed to trade.
- Here the administrator decides the price value for both buying & selling options.
- User acts accordingly to the price set by the administrator.
- Here the administrator dominates the entire transaction process as the price value is set by the administrator in the admin panel.
How to choose an OTC desk?
- Choosing OTC desk is really crucial, the following steps will guide you on how to choose the best OTC desks.
- Be sure whether you are completely ready to comply with KYC procedures.
- Your sensitive proof of documents should be submitted before the exchange takes place.
- Bigger exchanges like Coinbase, Binance operates OTC desks where your obligation can take place.
- On a smaller scale if you wish to become an OTC deal participant then that's too easy.
- Customer has to submit the following details such as their professional email id & other basic information for the further communication process.
- Be careful if you are working with broker assistants by examining each and every fee charged for the transaction.
- Based on the volume of the trade the prices will differ accordingly.
- Hire for personal assistance in your time zone that will solve the problems faced at the time of finding for a service who provides insurance to traders or not.
- One of the essential steps that you shouldn't miss is nothing but constantly checking reviews.
- Google will help you whether he/she has prior knowledge in OTC trading and you spot out their areas of experience as well.
OTC Trading Impacts Made On Current Market Place
Currently, the role of OTC trading affects the spot price value of bitcoin. To be more specific OTC trades are one-sided which impacts the cryptocurrency market in short term but as a whole, there is a visible growth recorded in daily volumes on derivative exchanges.
Image Source: Skew
Top Ranked OTC Desk In Crypto Marketplace
List of best real-time cryptocurrency OTC desks are given below.
- Genesis Trading
- Coinbase Prime
- Kraken's over-the-counter
- DV Chain
- Bitpanda Plus
Benefits of OTC Pro Trading Platform Development
- Customizable and project delivered as per Client’s needs.
- KYC Verification for Users.
- Safeguards transactions with escrow services.
- Eye-catchy Custom UX/UI Themes.
- High Configurability Perk.
Why is OTC exchange necessary?
Buying & selling of large valued cryptocurrency will end up in loss if the exchange is placed in normal exchange but when OTC trading is done directly between two users it is completely secure. If you are ready to trade you can get help from the OTC broker where OTC broker provides liquidity to the platform.
Even you can become an owner of OTC platform by starting a profitable business like Huobi OTC. Ownership of the exchange can be controlled on your own if you have aspiration in starting OTC exchange platform. Just you need the help of Cryptocurrency OTC Trading Desk Software Development Company so that you will be able to get exclusive OTC trading desk software for your platform. We Sellbitbuy is one of the leading OTC trading desk development companies in the world. Our well-knowledged & experienced professionals will support you by 24/7 by offering a high-performance OTC trading desk software platform to you in a short span of time.
I hope this blog is beneficial to you, hope you like it!
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