OTC Crypto Desks

With the varying levels of volatility in most cryptocurrencies, an OTC desk is a necessity for investors. Using an OTC desk enables investors to enter the market without risking money. OTC desks vary in their size and rates, but all require some kind of verification before investors can start trading. Some will accept ID and proof of address, while others will have extensive KYC requirements.

OTC desks help large investors buy and sell cryptocurrencies without moving the price of the cryptocurrency. Because of this, they are valuable for whales, who deal in large volumes of cryptocurrency. OTC desks let these large transactions occur without moving the price of the cryptocurrency. This is essential to keep the price from sliding too far and causing a significant slippage in the market. Several exchanges accept these cryptocurrencies, including Genesis, Bitstamp, Coinbase, Binance, and Crypto.

Abra is a global exchange serving individual traders in 150 countries. It is regulated in several countries and has more than 100 cryptocurrencies. Traders can also opt for interest accounts or crypto-backed loans. Abra also offers multiple educational guides for beginners and institutional clients. These desks are regulated in many countries and charge a fee of just five basis points per trade. The average spread for these desks is approximately 75 basis points.

Decentralized OTC crypto exchange

Aside from security, OTC crypto desks offer a more reliable, safer option than an exchange. The only risks in trading cryptocurrencies on these desks are fiat currency value fluctuations and banks. Moreover, investors can benefit from the tax benefits of using OTC desks, as gains from cryptocurrency trading are not subject to VAT. This can help people who are new to the market or are looking for an alternative to the traditional exchange.

Top 5 OTC Crypto Desks

OTCs have many advantages over exchanges, but their risk factor is a major drawback. Although the prices and order books of OTC desks are not public, they can still be tainted and fraudulent. A report released in 2020 by a nonprofit group named Chainalysis accused some OTC desks of illegally laundering funds for private clients. Hence, it is important to choose a reliable broker for trading cryptocurrencies. Buying discounted Bitcoins via social media platforms is also not a good idea.

Coinbase is an OTC desk run by Paul Gurinas and Bill Disomma, former floor traders of the CME. Its London, Chicago, and Singapore offices provide liquidity for clients. In addition to these, it is regulated by the FINRA and has 24/7 support. The company’s team of traders is comprised of seasoned professionals with a wealth of experience in the field.

Huobi is another OTC desk, with no additional fees on quotations. Huobi offers 1-on-1 trade support and is available in most countries. However, Huobi OTC is not available in Mainland China, Germany, or Bangladesh. Besides Huobi, itBit is another reliable cryptocurrency exchange that specializes in high volume trading. It has a number of services to suit the needs of all investors.