7 Best Crypto OTC exchanges

OTC trading has seen a recent movement in the attention of many traders, from standard exchange-traded goods to more specialized digital assets. As with other trading tactics, the platform you choose as an OTC trader can significantly influence your trading performance. These are among the top cryptocurrency otc exchange to help you invest more wisely.

How Does Crypto OTC Exchanges Work?

Most OTC desks enforce trade minimums that begin in the five or six-figure area and need authorization before trading. Clients on these sites are also provided personal account representatives. For most sites, customers can select between purchasing, selling, lending, borrowing, and custody services.

OTC desks frequently provide case-by-case trading connections between buyers and sellers. But like a typical cryptocurrency exchange, many bigger platforms—especially those that simultaneously run a traditional exchange, like Coinbase and Kraken—will also have a ready pool of liquidity that can be utilized to conduct deals instantly.

Traditionally, OTC desks have derived revenue via commissions or “spreads” on deals. These margins range from 0.25 percent to one percent of the transaction amount.

7 Best Crypto OTC exchanges

Binance 

• For institutional investors, high-net-worth individuals, and others who need huge orders of cryptocurrencies, Binance provides the Binance OTC desk.
• An OTC trading facility that makes it easy for regular traders to trade substantial quantities of bitcoin.
• Users may trade one cryptocurrency for another via the Binance OTC desk, which facilitates crypto-to-crypto trading. Users can also transact with fiat money.
• The Binance OTC desk confirms transactions in a matter of minutes. It provides many crypto-fiat pairings in addition to over 350 coins.
• Additionally, even cryptocurrencies with tiny market capitalization have a large liquidity pool.
• You’ll be relieved to hear that the Binance OTC desk doesn’t impose any trading fees if you search for inexpensive OTC trading platforms!
• Despite not charging any trading fees, Binance has a $200,000 minimum order requirement. This can be an issue for those looking to purchase lesser quantities of bitcoin.
• Even though there are many options, the site is quite user-friendly and includes pop-up training for beginners.

Coinbase 

• A cryptocurrency exchange called Coinbase also provides an over-the-counter (OTC) trading alternative with several features for institutions and experienced traders. 
• Owing to its OTC trading service, which is offered via Coinbase Prime, an integrated Coinbase solution, it is recognized as one of the top cryptocurrency OTC trading platforms available.
• OTC block trading, which is particularly beneficial for institutional investors since it usually entails larger deal sizes, quicker execution times, and more pricing anonymity, is now available to traders via Coinbase Prime!
• With an intelligent order routing pool and varied liquidity, Coinbase Prime gives traders access to a greater variety of prices from the whole Bitcoin market. Coinbase’s exchange rates do not solely determine the costs. 
• With the help of Coinbase Prime’s margin trading feature, users may borrow money from the platform to make investments in digital assets, possibly earning larger returns than they could with only their own money.
• Users may get detailed post-trade reporting insights anytime with Coinbase Prime. In other words, this function helps users monitor their trading behavior, allowing them to make more educated investing decisions.
• In addition, the exchange offers services that OTC exchanges often do not provide, such as the safekeeping of NFT assets and involvement in staking and governance for supported tokens.

Kraken 

• The preferred platform for high-net-worth cryptocurrency traders is Kraken OTC trading. It is accessible in the United States and is used anywhere in the world at any time of day or week.
• Additionally, it’s an OTC desk with no commission! Put differently, this implies that you may trade for free.
• Traders may automatically get prices for big deals with Automated Request for Quote, saving them from manually requesting quotes from several liquidity providers. In other words, the AutoRFQ enables immediate OTC trading.
• However, Kraken shares a feature with other OTC trading platforms: a minimum order size.
• However, Kraken shares a feature with other OTC trading platforms: a minimum order size. Kraken’s minimum $100,000 is not the largest on the market.
• In addition, the platform is notable for the variety of digital assets it offers, including over 200 crypto assets and seven different fiat currencies. 
• This is undoubtedly excellent news for traders and purchasers who want to diversify their investments across various assets or industries. 
• Furthermore, Kraken offers large liquidity pools that are excellent for preventing slippage.

Kucoin 

• Through the P2P network of the platform, KuCoin’s over-the-counter (OTC) trading enables users to transact directly with other users on cryptocurrencies and fiat currencies, eliminating the need to place orders on the standard exchange order book.
• KuCoin is frequently utilized for big transactions or by institutional investors who wish to avoid having their trades impact the market, much like most OTC trading platforms.
• Until the buyer deposits the agreed-upon sum of fiat money into the seller’s bank account, KuCoin temporarily freezes the seller’s cryptocurrency, validating the transaction.
• In terms of currency support, KuCoin’s OTC trading service offers a wide range of currencies, including fiat currencies like USD and CNY and cryptocurrencies like Tether, Ethereum, and Bitcoin.
• The integration of the top decentralized oracle network in the market is the KuCoin over-the-counter trading business. 
• This integration helps determine floating rates in OTC markets by giving users access to precise, unchangeable conversion rates between fiat currencies and cryptocurrencies.
• OTC trades are free of cost with KuCoin. 

Bitfinex

• Bitfinex is undoubtedly an excellent option if you’re seeking a useful way to conduct over-the-counter trades without involving third parties.
• It is compatible with all kinds of orders found on the main platform, including fill or kill (FOK), stop, stop-limit, and others.
• Starting a deal is really easy because all you need to know is the counterparty’s OTC the nickname! The counterparty merely needs to approve a request to trade for the transaction to be finalized.
• Additionally, $50 is the minimum amount for an OTC user-to-user trade on Bitfinex.
• 10.0% of the current market price of the currency or pair being traded cannot be exceeded by the price spread.
• Although Bitfinex charges a commission, it is minimal—only 0.1% for both buyers and sellers.
• In addition to its over-the-counter trading service, Bitfinex offers noteworthy features such as solid security protocols like two-factor authentication (2FA), safeguards against withdrawals, email encryption using OpenPGP, and more.

Bitstamp 

• Bitstamp began life as an exchange platform in 2011 and has recently started providing over-the-counter trading.
• The Automatic Request-for-Quote function of Bitstamp’s over-the-counter trading platform is noteworthy since it provides information about the deal, including the intended price range and the desired quantity to be bought or sold. 
• The platform then forwards the request to other market makers who can submit transaction bids.
• The OTC trading solution from Bitstamp allows you to trade quickly without worrying about slippage. 
• Additionally, the site has several OTC dealers, which contributes to deep liquidity and keeps the average spot market from being disrupted.
• This minimum order size is quite competitive. Bitstamp can handle orders ranging in value from $50,000 to $500k per transaction. 
• You may now feel sure that this site offers a good diversity of currencies if you’re wondering if it does. Among the various pairings that are accessible are BTC/USD, BTC/EUR, and LTC/USD.
• Additionally, Bitstamp ensures anonymity by acting as a middleman in the transactions, allowing you to trade entirely anonymously. 
• It is important to remember that Bitstamp requires some personal information to be created to comply with KYC requirements.

Houbi 

• For users interested in OTC trading, Huobi offers an exclusive service called Huobi Desk. 
• This desk minimizes the danger of market slippage, enhances capital efficiency, and provides highly competitive prices.
• As a middleman between buyers and sellers, the Huobi OTC desk provides institutional investors with peer-to-peer (P2P) trading services.
• Additionally, it offers customers a variety of currency alternatives because it allows them to trade major stablecoin and currency pairings, including USD, GBP, and HKD, in addition to USDT and USDC.
• Additionally, clients may lock in their preferred price and settle transactions to their bank account, external wallet of choice, or Huobi account with the Huobi OTC Desk’s flexible settlement options.
• Huobi OTC Desk is free in terms of fees. 
• Furthermore, Huobi is a service provider compliant with a stringent regulatory framework. Thus, this platform also excels in terms of security.
• It adheres to strict KYC procedures and verifies documents, including evidence of income, among other safety measures.

Conclusion 

Financial organizations or wealthy individuals often execute large trades using OTC desks. OTC transactions offer the greatest pricing for various deals and allow for anonymity. Additionally, these crypto OTC Exchanges typically provide white-glove service to those who satisfy their stringent trading conditions.

What qualifies a platform as the top over-the-counter cryptocurrency trading platform?

To ensure that you can buy or sell cryptocurrencies quickly and for the best price, the ideal OTC trading platform for cryptocurrencies should have high liquidity and a sizable pool of liquidity providers. It must also provide reliable and secure trading services to protect transactions from fraud and cyberattacks. Providing excellent customer service is crucial to assisting customers with any issues or questions. These platforms include Kraken, Coinbase, and Binance, to name a few excellent ones.

How can I choose which cryptocurrency exchange is best for me?

When choosing the best cryptocurrency exchange for yourself, you should always keep in mind the elements that are important to you individually and the characteristics that are standard for all the best cryptocurrency exchanges. Top-notch security features, for instance, should be present on all the finest exchanges. Still, if you plan to trade the major cryptocurrencies, you probably don’t care much about the exchange’s currency selection. Everything depends on the particular circumstances!