What is OTC and my experience using Huobi OTC

Overview:

The OTC markets serve as a peer-to-peer platform for users who are keen to enter into the digital asset marketplace. While there are many different platforms out there, Huobi OTC is one of the most reliable OTC platforms out there. You can click here to sign up.

But first, what exactly is OTC?

OTC stands for Over-the-Counter, which quite simply means skipping or bypassing the counter. OTC refers to peer-to-peer (p2p) or over-the-counter trading carried out directly between customers and market makers - this means that there is no need for trades to happen on exchanges. Rather, in such a case, the seller and the buyer enter into a transaction directly with each other, usually with the assistance of third parties.

OTC trading has always been a key tool in the traditional financial market. However, in 2018, as cryptocurrencies began to get more popular so did trading them. Thus, OTC found its way into the world of cryptocurrencies as more users began to get involved in the space. LocalBitcoins became one of the most popular players when it came to p2p trades and still continues to be. A host of other players also emerged which includes OKEx, Remitano in Vietnam and Huobi OTC. Although I have used LocalBitcoins in the past, my personal favourite platform is Huobi OTC - we’ll get to that later in the article.

What are the benefits of OTC?

OTC offers market participants a variety of benefits that traditional exchanges simply can’t match up to. These include price stability, the speed of execution, security, and privacy. In addition to this, in countries like India which have clamped down on cryptocurrency exchanges, OTC plays a pivotal role in enabling Fiat-to-Crypto trade between market participants and helping provide some much-needed liquidity to traders.

During OTC trading, clients are limited to one big deal, which allows to increase efficiency and avoid difficulties with execution on different exchanges. In addition, the transaction is not fixed in the order book of the site and is not displayed publicly, which allows achieving a higher level of privacy.

The current OTC scenario:

It is a well-known fact that larger investors or “whales” are the prime users of OTC trading and this has been the case for a long time. However, recently, a number of other factors have influenced the recent growth of interest and wider acceptance of OTC in the industry. OTC trading services are beginning to actively occupy the niche of "average" market participants with orders of $100 thousand and above. This is especially true against the backdrop of volatile and ever-changing regulatory frameworks in countries like India as well as the complexity of the Deposit and withdrawal of Fiat funds from stock accounts. Once the regulatory environment is more defined, major players will need tools that have the attributes of liquidity and OTC market risk management.

In India, the Reserve Bank of India had banned banking support to exchanges which essentially killed the market within the country. However, soon after the RBI made their announcement, popular exchange Huobi stated that they would support INR to Crytpo trades via Huobi OTC. This instantly made me a fan of the platform as I could now trade my fiat to crypto which I couldn’t do in the light of the RBI’s recent guidelines. But that’s not the only reason I like Huobi OTC. Let’s take a look at what else makes them my preferred OTC player in the market.

Why choose Huobi OTC:

Huobi OTC provides an excellent solution to liquidity as well as pricing and information problems - especially if you’re from a country like India with regulatory restrictions on trading through exchanges. Even in terms of crypto there’s not just BTC but ETH, EOS and USDT which gives you more options when it comes to trading. And there are 0 transaction fees with great all round support especially via telegram!

The process is also very seamless and quick. For me security is a huge concern and Huobi OTC makes it a point to ensure that their platform provides maximum security and peace of mind to users.

Let’s get to the trading experience - As soon as I initiated my sell trade for USDT, I was informed that the platform would lock my funds to secure them once the buyer has sent payment. I placed the trade and was instantly contacted by the buyer merchant on the site itself who made the payout via IMPS directly to my bank account. I then acknowledged the receipt and the USDT was released to him - all in just a few minutes. I was pleasantly surprised at how quickly the entire transaction took place.

Here’s a great detailed explanation about the deposit process on Huobi OTC: https://huobiglobal.zendesk.com/hc/en-us/articles/360000073031-How-Do-I-Deposit-Digital-Assets-

Rewarding Users:

Another awesome aspect of Huobi OTC is that they reward users via airdrops for place trades or signing up as a merchant. Recently, they’ve announced a 5000 USDT airdrop prizepool for users. This giveaway is currently over, but is just an example of the great initiatives that Huobi OTC carries out to reward its users. They regulary have many giveaways like these so do watch out for them. You can also choose to sign up as an advertiser simply by following the steps in this tweet: https://twitter.com/HuobiGlobal/status/1030432467356774400?s=19

Huobi OTC Telegram:

Huobi OTC also has an amazing telegram community which provides access to main and important announcements of Huobi OTC. Huobi is eager to build an eco-friendly and fast-talking community where users from all over the world connect each other and talk freely without any regional bounds to facilitate better and faster trading business and scale up community influence. You will get access some of the best services or improvements which include:

Enjoying the fastest customer service support there is. Once you come across any issue or question, you can directly contact our group maintainer or core operation members for help.

Catching the freshest news update along with easiest notifications here.

Learning the most accurate formal announcements here as to keep you away from any fraudulent or false rumors.

Making the most of opportunities for all event incentives at the best possibility.

Huobi OTC Android App:

Huobi OTC has an amazing Android App which I’ve recently downloaded. It provides a very seamless trading experience and is highly intuitive. To get the app, simply visit the website of Huobi OTC, click “Client download”, select “Download OTC APP”, and scan the QR code to download. In addition to the Android App, there is one available for iOS users as well on the website and even a desktop client. Click here to download.

Huobi OTC vs LocalBitcoins: 4 key areas where Huobi OTC is better

Security and Privacy:

As I stated before, I was a user of LocalBitcoins but had issues with the privacy and security aspect of it. No matter what the reviews and feedback of the people you’re dealing with say, you can never be too sure and since most trades are done only in cash it raises a big red flag when it comes to trust and security. This is absolutely not the case with Huobi OTC. Their platform is one of the best I’ve seen and used and my experience was as seamless as it can be. Trades take place in an absolutely safe manner with Huobi OTC platform acting as an escrow. On LocalBitcoins, since most trades are done in person and in cash, there is no such buffer which makes it a big security concern if you’re transacting with someone that’s unfamiliar which is usually the case.

Currencies Available:

On LocalBitcoins, I’ve usually only traded in bitcoin. This makes it very limited in terms variety of coins you can trade. However, on Huobi OTC they have a wide range of coins like BTC, ETH, EOS, USDT and recently even HT. And to add to that you also have many fiat currencies to choose from - INR, CNY, USD to name a few. This adds a layer of flexibility that’s not the case with other OTC platforms like LocalBitcoins.

Not many buyers/sellers:

Another major issue I have with LocalBitcoins is that when I need to buy or sell, there are rarely enough people to trade with available. This is especially the case during a bear market. On Huobi OTC, I’ve carried out a few trades and there have always been merchants to trade with readily available. For instance, in the last trade I made where I wanted to sell USDT, there was no shortage of merchants and the one I selected the transaction went through seamlessly.

Trust:

On LocalBitcoins, trust plays a big role as you need to have faith that the person you’re trading with does not act with malicious intent. Precautions have to taken to meet in a public area so that nothing “goes wrong”. This is a scary prospect to begin with and adds unnecessary stress to the trade. Since Huobi OTC is back by Huobi Global, you can absolutely trust whoever you are dealing with. And even in the rare case that something goes wrong, Huobi OTC steps in to mediate and have the issue resolved. I’ve not faced this problem yet, but I’m certain that if I do, it should be resolved seamlessly given that it’s Huobi.

So in what cryptocurrency should I make my first trade on Huobi OTC?

Apart from just BTC, there are a variety of coins that a user can trade on Huobi OTC. These include ETH, EOS, USDT and recently on 13th August even HT became tradable on the platform. However, I would advise users to trade USDT for their first trade to get a hang of the process and platform especially if they are new. In fact, my first trade as I mentioned before was in USDT. You can always try with a small amount to get a feel of it and then trade bigger amounts. HT is also a great option gives its use case within Huobi Global and later in Huobi chain. In my subsequent trades on Huobi OTC, I will trade in HT as well.

Here’s a great video of the process if you’re a beginner or first time user of the platform.

And here’s a detailed article with an easy to understand step-by-step process.

Final Thoughts:

To conclude, I believe it is quite evident that Huobi OTC’s focus is on providing the very best OTC trading solution there is while creating a customer-oriented environment that allows them to expand the service in new directions.

I feel that Huobi OTC can adapt to the conditions of developing and uncertain markets, balancing between confidence and humility, and offer their customers consistently competitive services and liquidity. If you feel like signing up click here and try out the platform yourself and let me know what you feel about the experience.

Disclaimer: The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. For the avoidance of doubt, this article is solely intended to be for general information only and does not in any way constitute as professional advice or financial advice. This is not an invitation or an offer to buy or sell cryptocurrencies, nor is it a recommendation to buy or sell specific types of cryptocurrencies. Trading cryptocurrencies carry a high level of risk that may not be suitable for some. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice.

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