Today, we can see the ever-increasing usage of crypto coins for several purposes. This notably raised the demand for crypto exchanges.
Crypto trading platforms allow users to exchange crypto coins safely and securely. One of the significant drawbacks of these platforms is that users can’t buy or sell cryptocurrencies in bulk in a single order. Furthermore, it has some conditions and limitations, too.
To overcome this problem, the experts in the crypto world introduced an OTC Crypto Exchange Platform as a way of trading.
OTC exchange platform is also popularly known as off-exchange trade. Here, two individuals can be directly involved in the trading of crypto assets without interference from any centralized exchanges.
In simpler terms, an OTC Exchange Platform is used for trading stocks, commodities, or digital bonds. It allows buyers and sellers to negotiate the prices for a single order and perform bulk trades. This grabbed the attention of many crypto enthusiasts and entrepreneurs to consider OTC crypto exchange software development.
Are you new to this concept or want OTC crypto exchange platform development but need more information? We’ll clear everything about it in this. Ultimately, we’ll disclose the best OTC Crypto Exchange Development Company that can help you in its development!
Let’s get started!
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What is an OTC Crypto Exchange Platform?
OTC is an abbreviation used for Over-the-Counter. It is also popularly known as an off-exchange trade. Here, the word, Counter, refers to the digitalized assets or cryptocurrencies exchanged with the platform admin.
Being a crypto enthusiast or a trader, you might know that regular crypto exchanges don’t allow users to trade cryptos in bulk in a single order since it has a limit and some rules. However, when it comes to an OTC crypto exchange platform, users have no limitations or restrictions and can easily buy or sell cryptocurrencies to the admin securely.
An OTC crypto trading platform allows the dealer or admin of the exchange to decide on the price of the cryptos in bulk. On the other hand, the users might be at risk of losing since there’s always some possibility of that.
Some of the most popular crypto exchange platforms, like Binance and Kraken, have an OTC desk feature in their platform, which helps them boost their revenue. Therefore, there’s a massive demand for OTC crypto exchange software development.
How do OTC Crypto Exchanges Work?
Here are the steps to help you learn how OTC cryptocurrency exchange works. But first, let’s assume you are willing to trade Bitcoin on this over-the-counter desk.
- First, you must sign up and deposit money into the admin’s wallet.
- Now, considering you’re willing to trade Bitcoins in bulk. You must provide all necessary documentation like government ID, residential proof, income proof, and more. The admin will verify your documents and check whether you’re eligible for trading a higher level of Bitcoins.
- Next, you must deposit a certain sum to the account mentioned on the page.
- Once everything is done, you can purchase or sell the Bitcoins at the OTC desk.
- Since the admin has the decision-making authority, the admin will decide the price for buying or selling Bitcoins. Once you’re okay with the price set by the admin, you need to wait for the confirmation email. All the details will be specified in the email.
- Once the OTC exchange platform admin receives the wire, the proceedings will be done, and you’ll get the Bitcoins at the respective crypto wallet address.
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Benefits of the OTC Exchange Platform
Indeed, an OTC crypto exchange overcomes all the hurdles of traditional crypto exchanges, which include low liquidity, third-party involvement, centralization, and much more. That makes OTC crypto exchanges a top-notch choice for buying and selling cryptocurrencies.
Now, let’s consider the advantages of OTC crypto exchange platform development:
- Security
An OTC crypto exchange gives the traders the complete power to control their transactions. Users go through the details of the deal before executing any trading. Also, the exchange settles a trade after the deal is confirmed. Another essential security feature of an OTC crypto exchange is its 2-factor authentication, which ensures the safety of all transactions within the platform.
- Minimal Frauds
An OTC crypto exchange requires user KYC before initiating trading of digital assets. This helps verify users so that only legit traders can join the platform. This step helps prevent any scams or fraud during the transactions.
- Confidentiality
OTC trading doesn’t involve any third parties for interference within a transaction. Thus, the communication between both parties is a secret. Traders can efficiently conduct their transactions without any risk.
- More Flexibility
Compared to other crypto exchange platforms, an OTC exchange offers more flexibility in trading. It allows them to benefit from prevailing market conditions. Moreover, it helps the users to adapt and respond to the market change quickly.
- Enhanced Liquidity
Other crypto exchange platforms have low liquidity since they must wait for large transactions. These exchange platforms face issues while initiating or executing large orders. As a result, they have to divide huge orders into smaller ones. On the contrary, the OTC exchange platforms can sell huge crypto orders in one go. Buying and selling cryptocurrencies through an OTC platform reduces the risk of price fluctuations.
- Direct Transactions
OTC crypto trading platforms allow buyers and sellers to conduct direct transactions without interference from third parties. It identifies the issue of fraud schemes that operate for the sake of third parties. Also, it gives buyers complete freedom to track their sellers in direct transactions.
- Ease in Doing Business
Some of the best-in-class features of an OTC exchange platform are KYC or Know Your Custom, transaction reports, IP or Automatic Internet Protocol used for displaying ads, tracing funds, and more help in doing business.
Use Cases of OTC Crypto Exchange
Indeed, OTC crypto exchange platforms are widely used by traders in several aspects. Let’s explore the primary use cases of OTC trading platforms!
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Institutional Trading
OTC trading platforms are vividly used for institutional investing, which allows them to execute crypto transactions securely without affecting the market prices.
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Revenue Generation
The crypto exchange platform admins will benefit hugely since the revenue generated will be high in numbers.
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High Net Worth Individuals
Wealthy individuals use OTC trading platforms to acquire crypto holdings or liquidate specific cryptocurrencies.
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Token Sales
These OTC platforms act as a magnet for grabbing the attention of strategic partners and investors for distributing tokens in bulk.
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Commodities Trading
Commodities are converted to cryptocurrencies and are traded effectively on various OTC exchange platforms.
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Price Arbitrage
Crypto traders use OTC trading platforms for arbitrage opportunities between exchanges, capitalizing on price differentials for profit generation.
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Custody Solutions
Most OTC exchange platforms act as a secure custody that offers safe storage of many cryptocurrencies.
How Much Does it Cost to Develop OTC Crypto Exchange?
The OTC crypto exchange platform development cost varies based on specific factors, which include:
- Feature Selection: Adding appealing features to your OTC crypto exchange platform boosts its capability and functionality. It will also help boost user satisfaction. Considering that it adds up to the development costs.
- Fees for Licenses & Regulations: To operate in a particular country, you must try to obtain a local government license. Additionally, the payment processor you choose must be PCI-DSS certified. You should be aware of the fees associated with it.
- Technical Requirements: The OTC crypto exchange platform development process requires appropriate tools, crypto exchange developers, and proper software infrastructure. And buying the software to the latest version adds to the overall cost.
- Support to All Platforms: Whenever planning to build an OTC crypto trading platform, you must not only invest in features, functions, and appealing options. But it must also be responsive on all mobile platforms and web versions.
- Development Method: Creating an OTC crypto exchange platform is possible in two ways: Developing from scratch and using white-label OTC crypto exchange software. The former requires more investment than the latter.
The overall cost to develop an OTC crypto exchange is around $ 10K to $50K.
Why Hire Coin Developer India as Your OTC Crypto Exchange Development Company?
Today, many businesses search for a crypto exchange platform for a secure flow of transactions and efficient workflow. An OTC crypto exchange eliminates the need for third parties, risk, friction, and trading costs.
That’s why it is the most preferred type of crypto exchange!
Considering that, it isn’t necessary to do all the hardships of creating an OTC platform on your own. It is highly suggested to leave the development work to the crypto exchange developers.
However, you must be cautious following that approach since the crypto market is full of amateur developers. Thus, the ultimate solution is choosing the best OTC Crypto Exchange Development Company like Coin Developer India!
The crypto exchange experts at Coin Developer India offer customized crypto exchange development services. They consider the technological requirements and choose the ideal fit trending in the crypto sphere.
So, whatever your needs, reach out to them today!
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Frequently Asked Questions (FAQ’S)
- What is an over-the-counter exchange?
OTC or over-the-counter exchange trading is conducted between two parties without the involvement of any third party. These are appealing for bulk trading amongst high-net-worth entrepreneurs.
2. Why must one invest in OTC crypto trading?
High-net-worth individuals mainly prefer OTC crypto trading due to its potential benefits, which include privacy, reduced price surges, and custom solutions.
3. What is the cost of OTC crypto exchange development?
To develop an OTC crypto exchange platform, a capital investment of $10K to $50K is required, depending upon several factors such as feature selection, development method, license fees, and more.
4. What is the OTC crypto exchange development process?
The basic process of OTC crypto exchange development includes:
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Collecting requirements
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Planning and execution
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Testing
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Deployment
5. Which is the best OTC crypto exchange development company in India?
Coin Developer India has emerged as a leading crypto exchange development company by delivering top-notch OTC crypto exchange development services that facilitate huge cryptocurrency trades at lightning-fast speed.
Feel Free to Connect with us on Call/WhatsApp: 👉 +91 7240607737 | Mail Id: 👉 [email protected]
Telegram ID: @Coindeveloperindia
