Trade.io | Introducing its OTC trading desk!
Introduction
In the crypto industry, the majority of the trades are done using exchanges that can serve as a platform for easily trading fiat for crypto, and then start actively trading one crypto for another different crypto while using all the different trading tools typical of exchanges.
The reason why most of the trades are done with exchanges is because this is the place that offers enough liquidity so traders can comfortably place their orders knowing there is a big enough market for their orders to be properly matched.
The prices of each cryptocurrency are based on the supply and the demand, which means it takes into account every single order that is placed and based on that, the price can freely fluctuate to find certain stability, but this will always depend on the market and the decisions of the traders.
Because of this, if there is a very wealthy investor, or if there is an investment fund that wants to participate in the crypto industry and invest a good sum of money, there is the risk of the prices becoming inflated if this big investor places a big enough buy order that is far superior to any sell order currently available on the market, and this can certainly create some instability.
However, there is a type of trade that is done in a different way and have zero effects in exchanges volumes and its prices, this type of trade is called “over-the-counter” or OTC.
What are over-the-counter (OTC) trades all about?
These trades, unlike regular ones, don’t use exchanges to carry out the transactions of the assets, these are done directly between the 2 involved parties, which means they don’t place any type of orders on any exchange, and the assets are directly transferred from one party to the other one and vice-versa.
Since these trades operate outside any exchange, both parties can set any price they wish, clearly it will always be a very similar price when comparing it to current market prices, but with the bonus of avoiding increasing or decreasing the public price, because with OTC trades that information is usually private and only the parties involved will really know what prices did they use for their private trade.
This type of trade exists not only in the crypto industry, but in the traditional financial industry as well, it is another method of exchanging assets that was implemented for cryptocurrencies due to their increase in use, in value, and therefore, in the global economy.
However, with OTC trades, there is a risk that doesn’t exist when using exchanges, because there is always the possibility of one party deciding to defraud the other one and stealing the assets, however that is unlikely to happen, especially now that smart contracts could be leveraged to secure the way trades are done.
On the other hand, the most important benefits of doing OTC trades is that investors that are planning to put a large amount of money in the market, can purchase the cryptocurrencies with a fixed price, instead of using exchanges and their constantly changing prices.
OTC trades and crypto exchanges
Even though OTC trades don’t need to use regular exchanges, there is the possibility of having an exchange providing this option to its users as a way of expanding the available services, this doesn’t mean the OTC trades will affect the exchange’s market, it will operate in a completely separated way with the needed privacy that is required for a proper OTC trade, and there is a particular crypto exchange that recently launched its own OTC Trading Desk!
The project in question is Trade.io and I am sure some of you will remember it from a few months ago when I wrote a series of articles about all the services and features that this project was and still is, offering to its users.
The first article that I wrote was a general overview of the features that people will find when creating their account at Trade.io and start using it to exchange cryptocurrencies.
Then I explained the several benefits that investors will have when adopting Trade.io as their trading platform, there were several types of investors and each of them has their own benefits.
Later on, I took the time to research all the services that Trade.io offers to ICOs with the goal of helping them in becoming a successful project. This is a way to leverage the expertise of the team at Trade.io to provide support to promising teams that are in need of good guidance.
And finally, I wrote the article about what is probably the most important feature of the Trade.io trading platform, its liquidity pool, which is a very innovative way of handling the resources of both the exchange and the users.
On top of all of this, now Trade.io has its own OTC trading desk to expand even further the features and services available in the platform, the details of this new release are going to be covered on a future article that’s going to be posted very soon.
Conclusion
In the crypto industry, OTC trades can be useful especially for people that are looking to purchase a large amount of tokens without affecting its public price, which is why these trades are done privately using a price that no one outside the trade can really know.
And very recently, one of the most sophisticated exchanges in the crypto industry known as Trade.io, released its own OTC trading desk, to allow its users the opportunity to participate in these types of trades.
For those of you who want to know more about this project, feel free to visit the following links:
· Project Website: https://trade.io/en
· Products & Services: https://trade.io/en/liquidity-pool
https://trade.io/en/otc-trading
https://trade.io/en/ico-services
https://trade.io/en/investments
· Trade.io Team: https://trade.io/en/about
· Facebook: https://www.facebook.com/trade.io/
· Medium: https://medium.com/@trade.io
· Twitter: https://twitter.com/TradeToken
· Instagram: https://www.instagram.com/trade.io_official/?hl=en
DISCLAIMER
The information contained within this post shall not be taken as a financial advice. I am not a financial advisor and none of your investment decisions should be carried out based on any information presented here. You can lose all of your money by investing. The information presented in this article is for educational and entertainment purposes only.
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