Binance always strives to provide liquid markets on the entire crypto space, including the altcoin markets which are an important part of the blockchain ecosystem.
Most of the people think OTC trading is just a fiat gateway into crypto. Actually, there’s a lot more value to be gained from it than just using it to trade fiat into BTC and vice versa.
In this article, we will clarify why OTC trading is useful to the market and how Binance Trading will help you to trade crypto easily, especially alt-coins.
OTC trades are executed directly between two counterparties. Also, It is one of the easiest ways to trade a large block of coins. Each trade is a bilateral agreement between a buyer and a seller and no other person can see the discussion. This allows to discuss trading large sizes without fear of affecting the markets. The trade is very simple and can be customized as you like.
OTC trading allows you to trade in large block sizes like 20 BTC and above at a reasonable price without making the markets move against you.
An OTC desk offers you a single fixed price where you can buy/sell your coins. The price at OTC desk is always worse than the current price in the market since it factors in two costs:
- Market impact cost of trading your coins and also other traders reacting to your trades.
- The time cost of trading – the market can move against you when you are taking time trading very clearly without affecting the market too much.
Let us see the best of what Binance has to offer and general OTC trading. Binance exchange offers access to one of the widest liquidity pools in the market. As part of ecosystem, they are in touch with traders who can offer extremely competitive pricing and liquidity in not only BTC but also in other coins and not just the higher liquid likes of XRP, BNB, or ADA, but also less liquid coins like MANA, AION, and ENJ.
Advantages of trading in Binance:
Simple Process – The trading discussion happens on chat, and trade is confirmed in as fast as 1-2 minutes from the time you reach out for a price.
Quick Settlement – OTC desks will take around 24-48 hours to settle trades, which means you will not have access to your purchased coins till a long time. But, with Binance Trading, the settlement occurs in your Binance account and is done within minutes.
Reduces Risk : With Binance Trading, your coins will stay in your account until they are ready to settle, and can be exchanged at the same time.
Reduces Market Impact and Increased Anonymity: In Binance OTC, the coins are already in your Binance wallet and settlement occurs inside the Binance ecosystem where it will not go through blockchains or block explorers.
What do you think of Binance OTC? Share your views on our Twitter and facebook page?