Cryptocurrencies are great assets and barring the last yearâs devastating trends; they have a successful record. However, one thing which continues to be a niggle is lack of liquidity, which prevents many potential investors away from the markets.
Lack of liquidity can be attributed to the minimum reach which digital tokens have. Though the future is unthinkable without cryptocurrencies, the present seems to be a bit far from perfect. Sure, crypto adoption is growing at a rapid pace, but mass adoption in mainstream adoption is far from a reality. For the securities trading market with rigid liquidity, Over-the-counter (OTC) service is extremely crucial.
Similar is the case with cryptocurrencies, and top exchanges, like Coinbase and Coincheck, do offer OTC services, especially for new and less popular cryptocurrencies. Following the suit, crypto exchange Changelly.com has launched a premium OTC desk on its platform. The announcement came on Monday via the exchangeâs official Twitter handle.
Earlier this month, crypto division of the US-based trading firm DRW Holdings reported 13 orders of over 1,000 Bitcoins within an hour on its OTC desk, Cumberland, which created quite a stir in the market. Each of the 13 orders was worth about $4.9 million each. In countries like China and India, where regulators have been at war with cryptocurrencies, OTCs have reported a steady rise in demand for digital tokens.
These are just two of many examples which reiterate the importance of OTC desks in the crypto space. Though OTCs are vital for securities trading market, they are even more relevant in the crypto space. Changelly describes OTC on its website stating,
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. Such type of transaction is generally applied in case of the vast transaction amount and followed by the list of special conditions.
Talking about the benefits of the Crypto OTC, Changelly further stated,
Changelly OTC service is connected to dozens of proven liquidity sources to offer highly competitive market rates which are much better than the general market offer. The absence of third-party participants and a handy interface provide an expedited settlement. Thus, the OTC deals are executed the same-day. Changelly customer support team always does the most to provide the best user experience. Moreover, when it comes to the OTC deals starting from 30 BTC, the client gets a personal assistant ready to help 24/7 on every step of the exchange.
Demand for crypto assets is rising across the globe, but the access to sophisticated services is quite limited. Experts have said time and again that crypto is the future. However, it cannot be with inclusive and sustainable growth. An OTC has a bigger reach than a traditional crypto exchange, as it allows users to exchange tokens between them, with making a big fuss of procedures and directions. In simple terms, it is much, but not absolutely, like Google Pay, which lets users send money between them, without the hassle included in traditional bank transfers.