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The Importance of Turning Bitcoin OTC Broker Crypto Trading

lynettepangleOct 29, 2018, 3:43:00 PM

The main purpose of engaging in cryptocurrency or digital currency trading is to make profits. This trade involves buying and selling of digital currencies and coins that are kept in form of data and points but not in form of physical coin. The exchange occurs online or through the internet. Due to this fact, you enjoy the benefit of a safe and secure type of OTC bitcoin trading.

In a normal trade, you will keep or store the cons in your Bitcoin wallet awaiting sale. When you decide to sell the coins, you will use an exchange to make the sale. However, there are some instances where people with large blocks sale their coins and cause price slippage. When this occurs, the profitability of selling these coins is affected negatively. Due to this fact, you may end up making losses from the sale.

In order to avoid this, you need to use Bitcoin OTC broker. An over the counter broker in Bitcoin or crypto trade is an investor who cashes out these coins without having to sell them through the normal exchange. During the process, you will transfer the coins from your wallet or account to his. This is a transaction that does not affect the market. When it comes to slippage costs and losses, it is not easy to quantify the losses incurred.

In fact, when one puts a block offer, the market may not have enough takers for the offer. Due to this fact, the price will continue falling as bids keep dropping. This affects the profitability of the sale. However, when you sell to over the counter Bitcoin brokers, this is not experienced. You will transfer the block trade ate the retailing market price.

The only thing you will have to pay is a commission or service charge. There are some brokers who offer these services at a five percent service fee while others will charge differently. On the other hand, some traders may lay false orders with an aim of making large offers to start coming into the market. When a large block arrives in the market, these investors will cancel their previous orders and lay new ones at a lower price.

Due to this fact, the sellers end up selling their coins at a lower price. However, this is not the case with OTC brokers. You trade directly without having to follow the normal process. Another reason as to why you need to deal with these investors and traders is the ready availability of unchanging market. Once you strike a deal with a broker, you cannot change it unlike the order cancellations in normal trade.