The world’s leading cryptocurrency exchange Binance have recently launched over-the-counter (OTC) trading for large deals, according to the blog post from January 23. The new trading desk will be useful for those who want to hide their orders and transactions from others. Currently, Binance is the latest top marketplace which allowed its users to perform hidden orders.
The exchange’s OTC provides access to all listed cryptocurrencies and features quick pricing. As well, it should be easier to make deals because of the wide number of traders on Binance. And there are only two requirements to start using the OTC desk: your account must be at level 2 or higher and your order must worth at least 20 BTC (a bit more than $71,000). In comparison, Bittrex and Poloniex allow OTC trading from $250,000.
What OTC stands for?
Basically, OTC covers all deals performed without exchanges. It means that purchasing Bitcoins in ATMs or getting them via Telegram bots are both examples of OTC trading. In the crypto world, however, OTC transactions relate to brokers and specific exchange-based solutions. For instance, you can contact a broker to buy or sell a huge amount of Bitcoins without the risk of slippage.
When it comes to exchanges, over-the-counter orders are quietly similar to traditional ones with the single exception: they are hidden from the order book. Quite a bit platforms support this feature and they always provide OTC opportunity for whales only.
Why is it important?
The main reason why the crypto community deserves OTC tools is its convenience for institutional investors. Large financial foundations are still a bit afraid of cryptocurrencies but they are more likely to get such assets in a private way. Coinbase was among the first who understood the importance of OTC as the platform introduced the feature for institutions in November, 2018.
At all, we have a snowball effect now. Major investors appreciate over-the-counter transactions and choose them to buy crypto. Respectively, exchanges try to attract whales and launch their own OTC desks. Win-win.
Note that the upcoming launch of Superorder will bring hidden orders to all supported exchanges! Using the updated terminal, you will be able to place OTC deals from a single place, so wait no more, pre-register now, and claim 2 trial months for free.