Today, the popularity of cryptocurrencies has risen. This form of investment is, however, characterized by high prices and volatility. The volatility of the crypto market happens because the human traders need to rest yet the market is open throughout. During such rest times prices can change tremendously. Actually, crypto traders are often greeted by surprises. It could be a huge price increase or dropping. However, employing the right techniques in crypto trading, it can be a worthy investment. Explore more information about bitcoin otc.
On the other hand, placing large orders on the crypto exchanges would cause the prices to drop what is known as slippage. This happens because the exchange is filled yet the takers are few. However, such a scenario can be prevented through bitcoin over the counter trading. OTC trading is when the crypto trading happens away from the exchanges. This form of trading is for large-scale traders like the hedge funds, as well as high-net-worth individuals.
When buying or selling bitcoin in large-scale, it is usually better to use bitcoin OTC broker. Actually, there various reasons that make OTC trades better than trading over the conventional exchanges. One of the reasons why OTC trade is better is because of high liquidity available. This is because OTC desks, brokers, and traders specialize in supplying large bitcoin amounts to high-value buyers like institutional investors. Because of the high liquidity, transactions are faster. Best information about bitcoin otc broker is available in the link.
Another reason why OTC trades are good for large-scale traders is the availability of a fixed price. When buying bitcoin in large-scale at the automated exchange, the order price will continue to rise as the order is executed. First, the order is fulfilled by the cheaper sellers. The more expensive sellers will then follow. This would then cause the net price to jump. With OTC bitcoin trading, trades would be done at a fixed price.
There are, however, various ways to trade bitcoin OTC for the high-value traders. One of the participants in the OTC trades is the bitcoin broker. Usually, the broker is a third-party participant in OTC trades. The purpose of the broker is to connect the client with quality buyers or sellers. Normally, brokers supply multiple quotes for a trade. As a result, competition between counterparties sets in resulting in the best possible rate.
When using an OTC broker to make a large-scale trade you need to avoid being predictable. Being predictable can cause brokers to use it to their advantage. Therefore, if a broker gives a rate that you feel is good, it is wise to have the rate locked for you.