Over-the-counter

Over-the-counter (OTC) trading of cryptocurrencies is done directly between two parties, without the supervision of an exchange.

Description

OTC trading for cryptocurrency is done particularly via the messaging platform Skype. The settlement of OTC transactions occurs through bank wire transfers and by sending cryptocurrencies to digital wallets.

Large volume traders prefer OTC over exchanges in order to not move the price of cryptocurrencies while trading. OTC trades are not reported. According to OTC dealers their desks often handle more than $100 million of cryptocurrency trades daily.

Due to the restrictive regulation on cryptocurrency exchanges in China, OTC trading became particularly popular in China. Since it is illegal to buy Bitcoin in China, OTC traders buy it abroad and sell it in China for a margin.

See Also on BitcoinWiki

• The Bit Mines
• Chibi Fighters
• Spiral Knights
• Vera&John
• Virtual crime

Reuters: OTC crypto market flourishes, powered by Skype, URL: https://www.reuters.com/article/us-crypto-currencies-otc/otc-crypto-market-flourishes-powered-by-skype-idUSKCN1H91P4

Bicoin.com: Bitcoin Mules Flood China as OTC Cryptocurrency Trading Flourishes, URL: https://news.bitcoin.com/bitcoin-mules-flood-china-as-otc-cryptocurrency-trading-flourishes/