OTC (Over-the-Counter) trading is the kind of trading that occurs between two or more parties, away from the exchanges. Such trading can be peer-to-peer, but usually involves the assistance of third parties. OTC is widely used in the crypto market.

Let’s clarify the difference between OTC and traditional trading:

✔ Big transactions.

✔ Privacy issue.

✔ Effect on the market.

This kind of trading has several advantages as well as disadvantages over traditional trading on the exchanges.

➕ Allows deals with a trusted broker.

➕ Faster settlement of large trades

➕ Quicker access to funds.

➕ A higher level of privacy.

➖ Not suitable for small traders.

➖ Requires finding a trusted broker.

➖ A higher level of settlement risk comparing to crypto exchanges.

➖ Counterparty risks (e.g. a probability of other party’s default before the expiration of a contract, etc.)

OTC trading has become very popular in the crypto industry. OTC trading services are actively occupying the “middle” market with orders of $100,000 or more.

SwapZilla offers its clients an online-chat with OTC trading services. You can exchange your assets (both fiat and crypto) even on smartphones. We make your financial operations better, more convenient, and more accessible. Stay tuned!