Cryptocurrencies are rapidly gaining momentum in America and the entire world by extension. While there are many ways of trading with crypto, one method that is becoming more popular is the over counter trading (OTC). But one may ask, what is crypto OTC Trading. Well, this is a form of trade that involves the selling and buying of crypto assets. Usually, it involves two parties, i.e., the buyer and the seller.
OTC trading is often recommended for those willing to purchase a large amount of crypto with limited risks or slippage.
While some people relate OTC trading to that of stock trading, OTC is more private and offers customized services. In order to understand this better, let’s take a look at how the trading works.
How Does OTC Trading Work?
The manner in which OTC trading is conducted is always simple and easy to understand. First, it starts by identifying a counterparty for the trade on a brokerage platform. After you’ve found a preferred counterparty, you need to engage in negotiations and reach a mutual agreement. In your negotiations, you should be clear with your specifications, such as the amount, type, and price of crypto you want to trade.
Upon reaching an agreement, the buyer can release the funds, and the seller can as well release the crypto coins or tokens. Remember to keep due diligence to avoid any inconveniences.
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