Reasons for Using Bitcoin OTC Broker
Bitcoin trading has gained huge popularity within a short period of time. Bitcoin is one example of cryptocurrencies and the most popular crypto coin. More people are, however, turning to crypto trading since it can be profitable within a short period. However, you can still make losses within such a short period of time. But when you fully understand crypto trading, your experience can be a better one.
There are various ways you can be involved in crypto trading. One such way is when you exchange the traditional currencies like Euro and USD for Bitcoin or other cryptocurrencies. You can also be involved in crypto trading as a Bitcoin broker. Although the cryptocurrency industry is still young, it is growing at a faster rate with more investors joining the industry. The number of crypto coins has also increased.
Cryptocurrency trading is, however, done in various ways. The commonly used crypto trading option is through the digital crypto exchanges. Most traders, especially those with small orders trade directly on the exchanges. However, there is another option known as the over-the-counter trading that is not intended for all traders. However, Bitcoin over the counter is designed for specific groups and individuals such as hedge funds, high-net-worth individuals, and private managers. Find out for further details on bitcoin otc broker right here.
Basically, Bitcoin brokers are ideal for high volume traders. This is because the crypto market is still in its infancy. Therefore, there might not be enough liquidity on these exchanges to complete large trades. Because of this, high-volume traders turn to OTC Bitcoin trading. Some of the reasons why high-volume traders opt for Bitcoin OTC trading include the following.
1. Avoid slippage.
Slippage is when Bitcoin prices move towards an unfavorable direction. For instance, prices may go up when you want to buy large amounts of Bitcoin or go down when you want to sell large Bitcoin amounts. Since the crypto exchanges may not process such large orders, high-volume traders would be disadvantaged when slippage occurs. However, such a situation can be avoided when you use an OTC broker. This is because you will be able to access one price.
2. Faster trading.
When large trades are placed on traditional crypto exchanges, it would take longer depending on the available liquidity. It might even take some days to process a large order on the traditional exchanges. However, using an OTC broker would reduce the trading time greatly. This is because you make a single order other than making several smaller orders on traditional exchanges.