Much of Bitcoin (BTC) trading is done through brokers on exchanges. However, there is a way for parties to trade BTC directly. It’s called OTC (Over the Counter) Bitcoin trading, and it offers some advantages that are not found in standard BTC trading.
How OTC Bitcoin Trading Works
When trading happens on a standard exchange, the transactions and details are open to the public. It’s similar to stock market exchanges that allow you to see the transactions occurring in real time on “tickers”. However, with OTC, these transactions occur outside of the public eye and between private parties. But privacy is not the main reason OTC Bitcoin trading exists. It exists primarily to facilitate large-scale trades of Bitcoin, which are difficult to manage on crypto exchanges. Many people own fractions of Bitcoin because one is quite expensive ($46,000, 1/22). Therefore, in order to buy or sell a significant amount, you’d have to engage many different buyers or sellers, making using standard markets cumbersome and time consuming.
How You Can Trade Bitcoin OTC
Trading BTC OTC is similar to using standard trading platforms. Interested investors simply find a reputable OTC desk (principal desk) and set up an account. Then, it’s a simple transaction of sending or receiving quotes for blocks of BTC through this principal desk. As stated earlier, all transactions are done privately and discreetly. Additionally, investors enjoy a more personalized experience that is tailored directly to the needs of each individual investor or institution.
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