Why Develop an Over-The-Counter (OTC) Crypto Trading Desk

Published : Jan 04, 2023

Over-The-Counter (OTC) Trading

  • Crypto exchange is among one of the most popular and lucrative businesses in the cryptocurrency world. People can buy, sell, and trade digital assets and cryptocurrencies on a crypto exchange. Now, crypto exchange development services support the growing market of crypto exchanges. As a result, you can see different types of crypto exchange platforms emerging in the market. Over-the-counter (OTC) is a crypto exchange platform that is gaining popularity among many startups due to its bulk trading capabilities. An OTC exchange platform enables peer-to-peer trading of digital assets without a third-party platform. Compared to other well-known venues, it has excellent liquidity and allows for bulk trading. Let us dive deeper into this emerging crypto exchange trading and understand its benefits in this article.

    Over-the-Counter (OTC) Crypto Trading

    Over-the-counter crypto trading provides a trading market independent of a regular exchange. It lets users sell and purchase cryptocurrencies between fiat currencies and digital assets among themselves. In simple terms, OTC exchange allows counterparties to trade outside traditional exchanges. 

    In an OTC market, traders have to quote buying and selling prices of cryptocurrencies or other economic products. Additionally, people can trade bonds, stocks, and non-standard derivatives in this market.

    Why Develop an OTC Trading Desk

    An OTC crypto exchange overcomes issues of traditional crypto exchanges, including low liquidity, third-party involvement, centralization, and more. It makes OTC crypto exchange a suitable choice for digital currency trade. You may develop a crypto exchange with an OTC crypto exchange desk due to the following benefits:

    Also, Read | Analyzing the Essentials of Decentralized Crypto Exchange Platform Development


    An OTC crypto exchange gives traders complete control during transactions. Users authenticate deal details before executing any financial trading. 

    An OTC crypto exchange settles a trade once the trader confirms execution. Another security feature of an OTC crypto exchange is 2-factor authentication (2FA), ensuring safety.

    Minimal Frauds

    An OTC crypto exchange requires user KYC before trading. It verifies the users, so only authentic individuals end up trading on the platform. This feature prevents any fraud during transactions.


    OTC trading is a one-to-one affair. So, it is unlikely that third parties will interfere with a transaction or have any prior knowledge of it. As a result, communications within this area are secret. Customers can conduct their transactions as a result without any worries or risks.

    More Flexibility

    An OTC crypto exchange provides more flexibility in terms of trading. It allows users to take advantage of market conditions. Additionally, this crypto exchange helps users respond to market changes quickly.

    Enhanced Liquidity

    Traditional cryptocurrency exchanges have relatively low liquidity. Users have to wait for large transactions. These platforms face problems when efficiently executing large orders, so they split huge orders into smaller ones. On the other side, most OTC trading exchanges can sell large volumes of cryptocurrency in one go. So, buying cryptocurrencies through an OTC trading market reduces the risks of price surges.

    Direct Transactions

    OTC trading gives buyers and sellers the freedom to conduct direct transactions free from limitations and without any third-party involvement. It immediately addresses the issue of fraud schemes, often known as "plugs," which frequently operate under the guise of third parties. Buyers can track down their sellers in direct transactions.

    Ease in Doing Business

    An OTC exchange offers features like Know Your Customer (KYC), transaction reports, automatic Internet Protocol (IP) detection to display local crypto ads, tracing funds, and more. These features facilitate ease of doing business.

    Also, Read | Planning to Develop Crypto Exchange Platform | Things You Must Know

    Searching for OTC Crypto Exchange Development Services

    Many businesses search for an over-the-counter crypto exchange for secure transactions and efficient workflow. An OTC crypto exchange eliminates the traditional intermediaries' need, risk, friction, trading cost, and trust between trading counterparties. 

    Oodles Blockchain offers the development of such an OTC crypto exchange desk. Our skilled crypto exchange developers have experience in creating OTC trading desks. Contact us to get more details.

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