Over the counter (OTC) trading is a form of crypto trading in which you can carry out transactions directly with another person without going through the usual trading route. Although this can be done on a centralized exchange, you don’t need to place a buy or sell order as is the case with spot or futures trading.
OTC trading is particularly suitable for institutional and high net worth investors who wish to buy or sell large amounts of a digital asset. By using an OTC platform, you can place such a large order without being restricted by order limits imposed by crypto exchanges.
There are standalone OTC platforms, and there are OTC platforms on centralized crypto exchanges. If you’re a corporate investor or high net worth individual looking to buy or sell large amounts of any cryptocurrency, here are the best OTC platforms you can use.
FalconX
FalconX is a professional OTC trading exchange for institutions and large crypto holders. It uses machine learning and data science to provide the best prices for users, allowing you to buy and sell assets without paying too much or losing.
Large institutions can also access credit and clearing facilities with FalconX to enable them take on and trade margined positions, all on the same platform. You can also borrow funds from the platform against staked assets. FalconX also helps new crypto projects by providing them with market-making services.
Coinbase Prime
Coinbase Prime is an OTC platform owned by the US’ largest crypto exchange, Coinbase. Like any other OTC trading platform, it caters to institutions and large traders. Specifically, the platform is “built for asset managers, hedge funds, VCs, endowments, private equity, private wealth managers, and sovereign wealth funds.”
The platform gives you access to liquidity from other crypto exchanges, making it to never run out of liquidity. You can trade assets on Coinbase Prime, which has $320 million in insurance coverage and an API for automated trading.
In addition to OTC trading, you’ll find non-fungible token (NFT) custody, as well as staking and governance for supported tokens available on this platform.
Kraken is one of the leading crypto exchanges in the US, and though it is one of the oldest exchanges, it has the reputation of unmatched security. It is therefore good news to know that you can use it for OTC trading.
It is a high liquidity exchange with a wide range of features and large markets. The OTC platform is also the institutional trading platform, serving institutional investors and high net worth individuals.
You can use the platform to trade any digital asset available on the main exchange. It has a Request-For-Quote feature that allows traders to enter the price, timing, and other details of their trade and then get individually matched with a counterparty willing to fill their trade.
You’ll enjoy flexible settlement within 24 hours for trades, as well as the ability to initiate trades over chat. The platform also offers one-on-one service to clients.
Crypto.com is a crypto exchange famed for its compliance with regulations and its high security. In addition to being an exchange, a wallet, an NFT marketplace, it is also an OTC trading platform for large traders.
Crypto.com however only serves a select group of institutional and VIP clients. Your trades get executed in seconds on this platform, no matter how large the transaction is. You’ll only pay fees on transactions, and enjoy robust quote history and trade history features.
Conclusion
These are the top four crypto OTC trading platforms to use if you’re an institutional investor or an individual with a high net worth. Using one will save you the trouble of splitting trades and incurring humongous fees in the process.
Also depending on your particular needs, you may prefer one platform over the others, so make sure you study them to find which one best fits your expectations.
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