Advantages of Octopuspays OTC Trading for Crypto Business
There are numerous advantages to utilizing Over the Counter desks for trading cryptocurrencies in a business setting. Firstly, OTC trading provides a level of privacy and security that may not be achievable through traditional exchanges. Users trade cryptocurrencies with other users in online exchanges(Liu et al., 2021). Most of the transactions in centralized exchanges are not publicly available, except for rare exceptions such as leaked datasets from hacking of an exchange’s database.
This lack of transparency can make it difficult for businesses to assess the trustworthiness of other users they are trading with.
However, some OTC exchanges, such as Bitcoin Alpha and Bitcoin-OTC, disclose the transactions to the public. By utilizing OTC desks, businesses can have greater visibility into the transaction history of potential trading partners, which allows for more informed decision-making and reduces the risk of engaging with fraudulent users.
In addition to enhanced security and transparency, another advantage of using OTC desks for crypto trading in a business context is the availability of 24/7 trading. Cryptocurrencies are known for their decentralized nature, which means that trading can occur at any time of the day or night. This round-the-clock availability allows businesses to take advantage of market opportunities and make timely trading decisions without being restricted by the limited trading hours of traditional exchanges. Moreover, OTC trading can offer greater flexibility and customization for business needs. For example, OTC transactions can allow small companies to trade without being required to go public, providing them with more autonomy and control over their trading activities(Huang & Yao, 2021).
Furthermore, OTC trading can be used for hedging, transfer trading risk, and leverage for business operations. The ability to engage in OTC trading provides businesses with the opportunity to mitigate risks and manage their cryptocurrency holdings more effectively. By having direct access to other individual investors, businesses can negotiate terms and execute trades that align with their specific needs and objectives. In summary, the use of Over the Counter desks for trading cryptocurrencies in a business context offers several advantages.
Liu, X., Jiang, X., Liu, S., & Tse, C K. (2021, January 1). Knowledge Discovery in Cryptocurrency Transactions: A Survey. https://scite.ai/reports/10.1109/access.2021.3062652
Huang, W., & Yao, X. (2021, January 1). Financial Derivatives and Their Application in Enterprises. https://scite.ai/reports/10.2991/assehr.k.211209.535
