OTC trading also known as over-the-counter trading is an online market exchange that involves trading unlisted stocks, equities, and securities. It’s a network of dealers and brokers distributed across countries linked by a decentralized computer network. In addition, there is no specific location for the trading process.
As such, this form of trading is common in buying and selling Crypto. Crypto investing is the use of virtual currencies known as cryptocurrencies to make a purchase. However, crypto investing has brought about challenges in the traditional finance as a lot of people seek to know if both options are doable
Benefits of OTC Trading
Generally, this varied network of crypto investors and sellers maintains trading throughout the system. Also, trading occurs upon agreement between both parties, therefore, promoting equity while the decentralized network allows privacy between buyers and sellers.
For a long time, traditional finance was the most preferred mode of trade by many. As many firms choose crypto investments to scale their sales the traditional finance world is seeking to reinvent and readjust with this new way of trading.
Crypto Investing versus Traditional Finance
The decentralized nature of crypto investing makes it more favorable than traditional finance. Decentralized simply means it doesn’t have a specific governing body to control and regulate it while traditional finance insists on agreeing to specific terms and conditions while purchasing or selling assets.
While traditional finance requires authorized documentation for an individual to be an accredited investor, OTC trading allows activities without unnecessary restrictions.
Crypto investing have reputable exchange platforms known as digital wallets, which have been proven to be safe for storage and user transaction. While traditional finance insists on storing and keeping users’ information to themselves, OTC trading enables track records of righting wrongs for users. In addition, these wallets only allow one-time user access.
Traditional finance transactions between one bank to another are tedious and costly as the percentage costs of transfer increase every day. However, Crypto investing offers convenience to its users. In case of a lack of money to pay for services, individuals can convert their digital currencies into cash and use them at their convenience.
Crypto through OTC trading allows fast and specious transactions between users. Blockchain transactions allow users to send crypto to anyone in a few minutes, regardless of the mile distance therefore, considerably cheaper and safer.
Unlike traditional finance where there is a third party involved in your investments, crypto investing allows you to be the sole owner of the assets purchased. While banks and investment companies manage your assets OTC trading provides independence where you can buy and sell as you wish.
All in all, it’s possible for an individual to have crypto investing and traditional finance however, crypto investing would be more preferred. Unlike strict regulations placed in the traditional finance world, OTC trading allows users to buy and sell assets with no restrictions, therefore building trust and confidence among its users.