Bitcoin Over The Counter (OTC): Pros, Cons & Top OTC Brokers List
Basically, a crypto broker is an agent that handles the trading and management of a client’s crypto assets. One of the major advantages of using brokerage services in crypto is that it is able to provide better maintenance tools.
Trading with an over the counter(OTC) broker helps you to directly find a counterparty of your desired trade. Many of you are not aware of over the counter(OTC) brokers. This article helps you to know about them. Read on till the end.
Bitcoin Over The Counter(OTC)
Over the counter, trading is also known as off-exchange trading. It is done directly between two parties and allows the buy and sell off large quantities of bitcoin and other cryptocurrencies. The main advantage of the OTC is that they handle large volumes of coins. The main difference between the normal or traditional crypto brokers and OTC brokers is the sum of transactions.
Advantages of OTC
Let’s look at the advantages of over the counter trading marketplace.
- There are no restrictions on the maximum limit of transactions
- As large volumes are involved in the transactions, they provide appropriate high-level safety measures.
- OTC marketplace is a highly transparent trading space
- They provide an opportunity to conduct trade in one order and at one price
- Offers an unlimited selection of currencies
- Cryptocurrencies are directly sent to wallets, immediately after the trade.
Disadvantages of OTC
Now see the disadvantages of the over the counter marketplace.
- Processing large amounts might take a lot of time
- A limited selection of cryptocurrencies for large amounts
- For some cryptocurrencies, brokers are not able to provide the required number of coins.
- Mostly involve the transactions of Bitcoin, Ethereum, Ripple, or Litecoin.
- OTC trading space commands increased commissions than other traditional exchanges.
- Only suitable for long term investments
- Not able to process the tradings automatically
Top Bitcoin OTC Brokers
It’s time to check the best and top-rated OTC brokers. Look at them.
Kraken OTC exchange
Kraken OTC exchange is the highly reputed and most popular exchange that facilitates OTC tradings. To conduct trades in Kraken, you need an account in the Kraken exchange. They provide you with live chats and support.
Binance OTC is an OTC trading exchange based in Malta. The minimum trading fund accepted in this trading exchange is $100,000. Like any other exchanges, they also require a verified Binance OTC account before tradings start.
The circle is one of the oldest and most popular OTC trading exchanges. They accept buy and sell orders starting from $100,000. In earlier days, they directly sell bitcoins to individuals. But now they rebranded and offer a range of products.
Genesis trading is an OTC exchange based in New York, USA. the key feature of this trading exchange is the same-day settlement through an intuitive interference. They offer OTC trading for seven cryptocurrencies including Bitcoin, Ethereum, BCH, XRP, Litecoin, ETC, and ZEC.
Jump trading was founded in 1999 and was the first one to implement a dashboard that facilitates an efficient way of interaction for the customers. It is done through a safe and secure channel. The jump trading OTC exchange also acts as an advisory body for other companies and investors.
While traditional exchanges and brokers lack accreditation to conduct large-scale crypto trading, over the counter(OTC) brokers help you to perform safe and high-level secure trading.
We hope that this article helps you to know about the OTC brokers and we had delivered the right pieces of information for you.