The OTC Crypto Market
Bitcoin’s over-the-counter market is now three times larger than the exchange market. Institutional investors are now entering the market as well. However, the cryptocurrency industry still needs more regulators and a custodial solution to ensure that all assets are safe. In this article, we’ll go over some of the key issues related to the OTC market and how they can improve your experience.
The traditional OTC market currently controls more than 52% of the daily volume of centralised exchanges. As digital assets are growing in popularity, the role of the OTC market is also increasing. It takes over most of the trade volume from exchanges with limited liquidity. Bloomberg reported in April that the daily OTC market for crypto was around US$15 billion, depending on the source. The volume in the OTC market has increased substantially over the past two years.
Aside from its increasing influence on the digital asset market, OTC trading has a number of other benefits for the crypto ecosystem. The biggest advantage is that it provides a more secure environment for traders. This is because it’s possible to make more money by trading cryptocurrencies in OTC markets than on exchanges. Furthermore, it’s also possible to find a reputable and highly experienced OTC desk that has a strong reputation in the crypto community.
The OTC Crypto Market is Three Times Larger Than the Exchange Market
The OTC is the perfect place to trade digital assets. It allows institutional traders to buy and sell crypto in a safe and efficient manner. The OTC market provides a reliable off-ramp for trading between fiat currencies and crypto. While most major exchanges do not deal in fiat currency, the OTC market provides an off-ramp for this activity. With a fiat off-ramp, OTC traders can make more profit.
The over-the-counter crypto market is dominated by institutional investors. The volume of transactions conducted in OTC is much higher than on the exchanges, and it is also much more private. This is especially advantageous for institutional investors who want to do transactions privately with little or no price slippage. The OTC crypto exchanges process only a limited number of trades per day, which makes it impossible for the exchanges to process multi-billion dollar orders.
TABB Group estimates that the OTC bitcoin market is two to three times larger than the exchange market. The exchange market processes about $4 billion of transactions a day while the OTC market processes over $12 billion per day. In addition to the exchanges, the OTC market is also the preferred method for transferring crypto assets between countries. The OTC crypto exchanges are a valuable service for both investors.