How big is the Bitcoin Over The Count-OTC market?

By derwin25 | Worldinfo | 23 Sep 2019


The Bitcoin OTC market triples the value of the normal cryptocurrency market.


The world of finance has been transformed in various ways thanks to the adoption of cryptocurrencies. Thus, greater growth in the speed of execution of cross-border transactions is becoming an incentive for users worldwide to make international payments, while traditional financial companies begin to turn to Blockchain technology for development. of their own platforms based on blockchains.

Another important change in the financial sector is that which has occurred in the field of "Over The Count" or OTC operations, and that would represent all those transactions carried out with conditions negotiated by both parties, unlike normal transactions in where customers must comply with the conditions imposed by the platform.

That is, while the financial operations carried out by the general public through an exchange, consist in the purchase by an individual of a financial product (share, contract, money, etc.) on offer in the market, the OTC involves a direct negotiation between the buyer and the seller of the financial product, for the creation of unique conditions for that customer.

In this way, an OTC could involve future contracts or closed swaps between an investment bank and a client, where the conditions of the contract were unique to that client, not creating the product to be negotiated in the international market, but to satisfy the specific needs of the user at the financial level, whether in terms of interest rates, due date, currency of expression, or any other detail discussed in the process of creating the OTC.

These types of operations are not only typical of the traditional capital market, but in the crypto market, over time, an important OTC market has also begun to develop, especially around the world's main cryptocurrency by market capitalization. Bitcoin

In this way, important cryptocurrency exchanges such as Kraken, offer the possibility of obtaining a personalized service for organizations and individuals with high incomes, which translates into the direct negotiation of OTC with the company behind the exchange, as long as the operation involves certain minimum amount of money, ($ 100,000 in the case of Kraken).

And it is that, the OTC involve the execution of transactions with large sums of money, that allow and make worthwhile that special negotiations are carried out, and the creation of a totally new and tailored financial product of the buyer.

This characteristic of the OTC trading market in Bitcoins has led to it having a much larger volume of transactions than the simple cryptocurrency market offered by exchanges to the general public. This is so, as the OTC would be the financial resource used by "crypto whales", which determines that these transactions involve large sums of money.

Therefore, Over The Count or OTC operations are a fundamental element to understand the development of the Bitcoin market, remembering that at the end of the day, having a greater purchasing power translates into certain advantages in dealing with intermediaries of financial investments, which, in some cases, can be decisive.


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