Facing Gov Ban on Crypto? OTC Platform’s can help you.

Facing Gov Ban on Crypto? OTC Platform’s can help you.

By Raichel | Cryptopinapple | 5 Jan 2019

$2.99 tipped


Even though the majority of the world countries is embracing blockchain as the next step in technological evolution, Some countries do not share the similar viewpoint. You can read more about the “ World’s view points of crypto currency” here.

Instead, some countries feel that Bitcoin or crypto assets are a threat to the existing system and they have put across stricter ban or controls to curb the crypto trading. If you hail from one of those countries, Like India, China etc and still want to be a part of the crypto revolution,‘Peer-to-peer’ (P2P) or Over The Counter (OTC) products can be of a great help.

Let’s first understand what is an ‘Peer-to-Peer’ (P2P) or Over The Counter (OTC) product?

Over The Counter (OTC) or Peer-to-Peer’ (P2P)

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To understand an OTC market, Let’s first understand how an Exchange works. I believe most of you have traded in trusted online exchange platforms like Huobi, Hadax etc. In an Online exchange ecosystem, Exchanges which are in fact an organization acts as an intermediary. Sellers who want to sell crypto assets, quote their price and place their sell order in the common ledger commonly termed as the ‘order book.’

Buyers look for a buying price as per his liking or he can create his own buy order with his price and can place the buy order in the same order book. Once the exchange matches buy and sell orders it processes the trades.

One of the downsides of online exchange is the time that may take to execute the order. There is a high chance that another seller or buyer can place a sell or buy order outmatching yours which may delay is executing your own order. Else if you are in a hurry you may have to execute a market order which can lead to losses.

Another downside is that since online exchange platforms are registered firms they have to adhere to the law of land in which they have registered. For e.g In India when the banking Ban was imposed by the Reserve Bank of India(RBI), all the banks stopped banking relationship with Indian Exchanges which affected all the deposit and withdrawal of local currency.

Whereas in P2P or OTC setup, all these won’t matters. A P2P or OTC exchange allows the sellers and buyers to trade directly with each other without any third party to process trades.

In simple terms It’s like an open market, You can post your price of asset and the way you want to be paid( Bank Transfer, WU, Paypal etc). If a buyer feels that is a good deal, he can buy the asset from you by transferring the needed currency to your account or the mode of payment you specified. Once you confirm the payment received, the assets will be released to buyers wallet.

Some of the advantages of P2P exchanges are

  1. Censorship resistance
  2. Almost Zero Fees
  3. Privacy
  4. Control over your fund

The greatest challenge in P2P exchange is two things.

  1. Liquidity
  2. Seller Trustworthiness.

When you select a P2P platform, It important to make sure you check all the above said points.

Since I am from Indian working in Kuwait, I felt Huobi OTP is a great platform considering the above said points.

Platform Analysis: Huobi OTC

  Huobi OTC offers an exchange bridge between fiats and digital assets. Huobi OTC is an affiliated website of Huobi Global , is a platform devoted to over-the-counter trades of digital assets. One can buy/sell your digital assets by posting a buy/sell advertisement on Huobi OTC and then complete transactions with the other party so as to exchange your digital assets with fiats. Huobi OTC offers an aggregated display of buying or selling info and the actual payment is transferred and completed offline.(In other words, Huobi OTC provides escrow on digital assets .

Unless other OTC platform which are one country specific, Huobi OTC offers P2P trading in 6 countries which includes China and India. All the services offered are with Zero transaction fees, High security as well as 24*7 customer service which helps to resolve any dispute if any.

Unlike most of the P2P platforms which are web based Huobi OTC offers various versions to trade.

It has option of iOS, Android, Windows and Mac platforms. You can click here to download as per your preference.

My Personal experience with Huobi OTC

As I have already mentioned before, I am an Indian staying in Kuwait. In both countries converting BTC to local currency is very challenging .

I had an option to use another P2P platform “localbitcoins.com” which gave me options of buyers in Kuwait. But one thing I have noticed was the vast difference in pricing. Most of the time the price difference was around 25–30% which mean a seller will have to endure heavy losses.

The second option “localbitcoins” gave me was to visit a physical location of the buyer where I can personally visit and complete a trade. Again the issue was the same. The price difference and security of the transfer as in Kuwait a Bank transfer will take place in a day or two. Whereas the buyer was demanding transfer of my BTC to his wallet immediately. The chance of fraud was too high.

Whereas in Huobi OTC most of the transfer happens in a 15-minute window. The sellers and buyers were mostly verified with the star rating which helps you to identify a genuine seller or buyer.

One more advantage was the price. Even though the buy price was on a higher side, The selling price was on par with the market which ensures that you won’t suffer a loss. Also if there is a conflict you have the option to raise the same with the customer service team, which adds more security to the entire process. Also if you are buying BTC, you have more option to convert into either USDT or any other crypto assets with the help of Huobi Global, which is one of the most traded platform.

For any one using an OTC platform I would recommend USDT. The greatest advantage of USDT is that it is a stable coin which ensures the price fluctuation is extremely narrow. This is because its is 100% backed by the USD held in reserves in a 1:1 ratio. So if you are in a country having restrictions, OTC is a great way out.

Disclaimer : This article is solely intended to be for general information.This is not an invitation or an offer to buy or sell cryptocurrencies, nor is it a recommendation to buy or sell specific types of cryptocurrencies. Trading cryptocurrencies on margin carries a high level of risk that may not be suitable for some. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice.


Raichel
Raichel

Decoding Blockchain for starters. Part of Huobi Global I Hacker Noon| The Start Up l Good Audience | Data Driven Investor etc !!!!


Cryptopinapple
Cryptopinapple

Blockchain for the starters

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