Is OTC Crypto Trading in Your Future? 

Before the rise of centralized exchanges (CEXs), over-the-counter (OTC) trading was the go-to method to buy or sell cryptocurrency for many crypto investors. The FTX collapse could trigger a bigger demand for OTC crypto services as investors are looking for alternative methods to convert from and to fiat due to the collapse in trust in CEXs.

OTC (over-the-counter) crypto trading refers to the buying and selling of cryptocurrency through a dealer or broker rather than through a centralized exchange. OTC trading is usually conducted by professional traders or large institutions and is typically used for large trades that would be difficult to execute on a traditional exchange due to the size of the order.

In OTC trading, buyers and sellers are connected directly through a broker or dealer, who facilitates the trade and acts as a middleman. The broker or dealer may have a pre-existing relationship with both parties and may be able to offer a wider range of trading options and more flexible terms than a traditional exchange.

OTC trading is often preferred by professional traders because it allows them to make large trades without affecting the market price of the cryptocurrency. It is also useful for traders who want to maintain a high level of privacy, as OTC trades are typically not reported on public exchanges.

However, OTC trading is not without its risks. Because OTC trades are not subject to the same regulatory oversight as exchanges, there is a greater risk of fraud or other types of misconduct. It is important for traders to thoroughly research and vet any broker or dealer they are considering using for OTC trading.

Who are the OTC Players?

There are several OTC crypto trading platforms and brokers that you can use to buy and sell cryptocurrency. Some of these platforms specialize in a particular type of cryptocurrency, while others offer a wider range of options. Some popular OTC crypto trading platforms include:

Circle Trade: This platform is operated by Circle, a financial services company that offers a range of products and services for individuals and businesses, including OTC crypto trading.

Itbit: This platform is operated by itBit, a cryptocurrency exchange that offers OTC trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

Genesis Trading: This is a digital currency OTC desk that offers trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

Kraken: This is a popular cryptocurrency exchange that also offers OTC trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

It is important to carefully research and compare the fees, security measures, and reputation of any OTC crypto trading platform or broker before using their services. You should also be aware that OTC trades are typically not regulated and may carry additional risks compared to trading on a traditional exchange.