OTC is a complete guide to over-the-counter cryptocurrency trading

When we say “OTC,” we are referring to a trading system that is conducted directly between two participants without using a traditional exchange platform. Unlike standard trading on an exchange, where all transactions go through the platform’s server with an order book, over-the-counter trading involves an agreement on price and terms directly between counterparties. This significantly expands opportunities for large investors and those seeking special trading conditions.

How OTC Trading Works

The main principle works as follows: two participants agree on an exchange rate for cryptocurrencies between themselves, bypassing the exchange’s order book. This approach provides access to confirmed prices without influence from current market liquidity and allows for larger transactions without significantly impacting the market price. This is especially useful for VIP clients, funds, and large digital asset holders.

The process is completely confidential and conducted outside the public price display, providing additional privacy for participants with substantial volumes.

Participant Requirements and Verification

Not everyone can access OTC trading. The main requirement is passing KYC Level 1 verification for individuals. KYC (Know Your Customer) is a standard identification procedure that helps platforms comply with regulatory requirements.

It is important to note that there are exceptions. Users who have activated margin trading on spot or participate in institutional lending programs do not have access to OTC trading. This is done to manage risks and prevent conflicts of interest.

Supported Assets and Conversion Options

Not all cryptocurrencies are available for OTC trading. Currently, the following exchange directions are supported:

• Conversion of USDT to ETH or BTC, as well as USDC to ETH or BTC
• Reverse exchange of ETH or BTC to USDT or USDC
• Direct exchange of USDT to USDC

The list of supported assets may change, and platforms regularly add new cryptocurrencies to this category. Stay updated to not miss new opportunities.

Exchange Process and Set Limits

Asset exchange occurs instantly, allowing quick response to market changes. Minimum and maximum conversion amounts are displayed directly in the trading interface before completing the operation, providing full transparency of conditions.

The process consists of several simple steps: selecting assets for exchange, entering the desired amount, verifying data, and final confirmation. The system automatically calculates acceptable limits based on your account parameters.

Frequently Asked Questions About Fees and Conditions

An important advantage of OTC trading is the absence of commission fees for the operation itself. This makes this method of exchange more advantageous for large transactions compared to standard exchange trading.

OTC trading is available on main accounts and sub-accounts, providing flexibility for portfolio management across multiple accounts.

Support for fiat currencies is currently unavailable. The service is exclusively focused on cryptocurrency-to-cryptocurrency exchanges. Keep an eye on announcements for potential expansion of functionality in this area.

The difference between OTC trading and built-in converters lies in the scale of operations. If you need a small amount, you can use a regular converter. For large transactions, OTC offers significantly more attractive conditions and guaranteed prices.