What You Should Know about Bitcoin OTC Brokers

09 Jan

Today, cryptocurrency has become a popular option for many investors. Usually, crypto trading is characterized by high prices as well as high volatility. The reason for this volatility is because the crypto market is open throughout and does not close. However, human traders would always need some rest. During such rest time, prices can change significantly. However, many people have been able to make huge profits within a short time. It is due to such high profits that more people are investing in cryptocurrencies.

There are different types of crypto coins. However, bitcoin remains a popular crypto coin. In most cases, traders trade the crypto coins over the cryptocurrency exchanges. However, trading large amounts of bitcoin may result in some issues. To eliminate problems for high volume traders, OTC bitcoin trading becomes the better alternative.

Basically, bitcoin otc broker is a trading service for high-volume traders. This service is usually available to certain groups and individuals. At the same time, trading takes place away from the regular exchanges. This because placing such high-volume trades on the regular exchanges may result in slippage. Slippage is a situation when prices go towards an unfavorable direction. When using a bitcoin OTC broker, however, the trader would be guaranteed better prices.

On the other hand, there is the risk of placing high-volume trades on the regular crypto exchanges. There is actually the risk of theft or hacking. There is actually evidence that some traders have lost their investments to hackers while some exchange platforms have become victims of hackings. However, bitcoin over the counter trading helps to eliminate such risks when your work with a trusted bitcoin otc broker.

Usually, OTC trading is available to high-volume traders. Therefore, it is a service for certain groups and individuals like hedge funds and high-net-worth individuals. The good thing about OTC trading is that you will not be limited to the amount of trade you can make each day. This is unlike most crypto exchange platforms who set a limit on the maximum amount a person can trader per day. You could also be limited to the maximum amount you can withdraw. However, such limits are not there when using a bitcoin OTC broker.

At the same time, you might not get sufficient liquidity for a high-volume trade on the regular crypto exchange. As a result, your transaction might take several days before being completed. However, using a bitcoin OTC broker ensure that the transactions are completed faster.

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