Crypto OTC Crypto Desk
The regulatory landscape in Asia has many countries, with few supranational decision-making bodies. Mainland China, for example, has strict capital controls and a goal to ban mining and trading. Most countries are gradually tightening regulations, with North America and Asia being the most progressive. However, the EU is planning stricter regulation, and it is reportedly considering flagging transactions of over 1,000 euros from unhosted wallets, meaning non-centralized companies.
Decentralized OTC crypto exchange
OTC crypto desks are used by whales who deal in massive amounts of cryptocurrency. These large-scale traders use an OTC desk to trade without moving the market. Large trading volumes on traditional exchanges can lead to slippage, causing a token price to decrease or increase. By contrast, a trader on an OTC desk can quote the exact strike price of their entire order block.
OTC cryptocurrency brokers act as intermediaries between buyers and sellers, bringing together the two parties through a trusted platform. These brokers can be found in public chat rooms, on cryptocurrency exchanges, and on ATMs. They also facilitate one-to-one transactions. Many crypto exchanges have their own separate OTC desks in order to make bulk transactions as seamless as possible. Aside from convenience, OTC desks also offer tax benefits. Traders can avoid paying VAT on gains made in cryptocurrency trading.
What Really Goes On at a Crypto OTC Crypto Desk?
The OTC market is similar to forex, but its advantages are much more streamlined. It allows traders to trade more crypto assets and avoid excessive exchange limits. In addition, liquidity is readily available, and OTC desks do not restrict investors to one currency or another. A crypto OTC desk can also facilitate transfers from one crypto asset to another. In addition, there is less risk of slippage, and trades are settled much faster than exchange-based deals.
While retail investors are not particularly sensitive to execution quality, funds and whales are. These investors care about price transparency and execution quality. The quality of an OTC transaction can influence the success of a transaction. A good crypto exchange will offer fast execution of orders, which will ultimately benefit the buyer. A well-executed transaction is the ultimate goal of the investor, so making the process simple can reduce risk and maximize profits.
The OTC desk is a great way to get a slice of the crypto market. Unlike stock exchanges, OTC desks allow you to buy and sell large amounts of cryptocurrency without trading them on a public market. And the best part is that OTC desks are highly customizable. You can choose the mode that suits your needs, from low-risk to high-value. They are available for both individual investors and enterprise-scale businesses.
The biggest cryptocurrency exchange is Coinbase. Founded in 2011, the company has a dedicated subsidiary aimed at managing crypto assets for corporate institutions. The Coinbase Prime service offers institutional clients access to advanced institutional trading capabilities, margin finance, and execution algorithms. The firm has helped companies such as Tesla buy up to $1.5 billion worth of Bitcoin. The company also has a minimum trade order value of $100,000, so institutional investors can use this service to secure their investment.