Presently, we see the increasing usage of crypto coins for many purposes, so we can see the demand for crypto exchanges. Crypto trading platforms will let users securely exchange crypto coins. In the normal crypto exchange, it has a major drawback that users can not buy or sell bulk amounts of cryptocurrencies in a single order. Besides, the crypto exchange has certain conditions and limitations. To overcome this problem, the experts in the crypto space introduced an OTC Desk as a brand-new trading module in many exchanges.
OTC trading is also known as off-exchange trade. Here two persons can directly trade crypto assets without the supervision of any centralized exchanges. Generally, an OTC desk is used to trade some financial elements. Like stocks, commodities, or digital bonds. In this OTC platform, the purchaser or seller can negotiate prices for a single order and can perform bulk trades. This attracted many crypto startups and entrepreneurs to approach the best OTC crypto exchange software development.
In this article, we are going to discuss everything about the OTC crypto exchange development with its pros, cons, and how to create an OTC crypto trading platform.
Let us begin with…
What is an OTC Crypto Exchange?
OTC stands for Over-the-counter and is also recognized as an off-exchange trade. Here the word counter refers to the cryptocurrencies or assets that are exchanged with the dealer or admin of the platform. OTC trading is a kind of exchange feature that comes in most centralized crypto exchanges. By using this feature, users can trade a huge number of digital coins in a single trade. As we know that, in a normal crypto exchange, users can not trade a bulk amount of crypto in a single order. Because here every trade has a limit and set of rules. But when it comes to OTC crypto exchange, there will be no limitations, and users can buy or sell a large number of bitcoins or altcoins directly to the admin of the exchange securely.
In an OTC crypto trading platform, only the admin can decide the price of crypto and all crypto deals can be done only in bulk orders. Besides, in this otc exchange platform, the users must agree on the risk of losing and start to proceed with their trading. Because there will be some possibility on that. The OTC trading market might be a central counterparty. So it can match the verified traders through an approved broker. Some popular crypto exchanges like binance and Kraken are having an OTC desk feature in their platform so this helps to enhance and boost their overall revenue. Thus, there is a demand for the finest OTC crypto exchange software.
Difference Between OTC Crypto Exchange Development & other Exchange Development
Let us take a look at some of the main differences between OTC crypto trading & other crypto exchange platforms.
- In the crypto exchange, the trading will be done only with a limited amount of cryptos. Whereas in the OTC crypto exchange, the dealing can be done with a bulk amount of cryptos.
- Physical location is not mentioned in OTC.
- Transparency in OTC crypto exchange is low when compared to other crypto exchanges.
- Contracts are customized as per the dealer or admin of the exchange. In other exchanges, they will follow standardized customization.
- Cryptos are unlisted in the OTC trading platform. But in the normal crypto exchanges, crypto coins will be properly listed.
How Does an OTC Crypto Trading Platform Work?
The OTC crypto exchange platform works exactly in contrast to how a peer-to-peer crypto exchange operates. We know that, in p2p exchanges, the users will determine the price of the digital currencies they want to exchange and the order will be automatically matched with compatible requests. But in the OTC crypto exchange platform, instead of the user, there will be an admin or dealer who decides the cryptocurrency price for bulk trading. As previously said, only bulk crypto trading orders will take place without the control of any exchange or third party. The following steps will help you to learn how actually this over-the-counter exchange works. Let us consider that you want to trade Bitcoin on the OTC desk.
- Initially, you need to signup and must deposit a certain amount of money to the administrator’s wallet.
- If you want to trade a bulk amount of bitcoins. Then you need to provide all the essential onboarding documentation. Like government ID, residential proof, Income proof, and other paramount documents. Therefore, the admin of the exchange platform will verify your documents whether you are suitable for a high amount of bitcoin transactions or not.
- You need to deposit some of your money into the bank account that is mentioned on the deposit page.
- Once the above processes are completed then you are permitted to buy or sell bitcoins at the OTC desk.
- As already said in this article, only the admin has the decision authority. So the price of bitcoins for both buying & selling will be completely decided by the admin of the exchange.
- If you are OK with the price of bitcoin which is set by the administrator. Then you can wait for a confirmation of the bitcoin transaction in email. In the email, you can find wire instructions for the OTC bank account and you can wire the funds.
- Once the admin of the OTC exchange platform receives the wire, the admin will send the bitcoins to your respective crypto wallet address along with a confirmation email. And the OTC trade will be completed.
- You need to note that the admin only dominates the entire bitcoin transaction process. Because the bitcoin value will be set by the administrator. For instance, in the crypto market, the price of BTC might be 35K. But in this OTC trading platform, the admin can set any value as per their wish.
This is how the OTC crypto trading platform works in the real world.
Top Ranked OTC Crypto Exchanges in Crypto Marketplace
In the crypto sphere, there are lots and lots of crypto exchange platforms available for trading digital currencies. But every exchange doesn’t have this OTC crypto trading feature. Only a few crypto exchanges will have this excellent feature so must know them. It would help kickstart your OTC crypto exchange business. Here we list some of the best real-time cryptocurrency OTC exchange platforms that are prevailing in the global marketplace.
- Genesis Trading
- Coinbase Prime
- Kraken’s over-the-counter
- DV Chain
- Bitpanda Plus
These exchanges are very popular when it comes to OTC crypto trading. You can also develop an OTC trading platform like these exchanges with the help of the finest OTC crypto exchange development service.
Reasons to Invest in OTC Crypto Exchange Development
Here we list some of the notable reasons to kickstart an OTC crypto exchange business. Let us see them…
This kind of platform will have high scalability because of its modular architecture, it can handle multiple cryptos, integration of API layer, customizable features, regular upgrades, and the list goes on.
Ease for business
The OTC crypto exchange platform is one of the money-generating business models and offers numerous benefits. It comes with automatic IP detection to display crypto ads, KYC users, tracing funds, transaction reports, etc.
The security system in the OTC exchange platform offers secure transactions, two-factor authentication, provisional wallet, and also decentralized ledger for the added security. So there is no possibility of hacking or any other fraudulent activities.
It is highly configurable and comes with a quality user access control, managing platform with admin console, the configuration of multiple digital currencies, and used commission with the smart contracts.
Now, let us see…
How to Develop an OTC Cryptocurrency Exchange Platform?
In recent times, we can see great hype for OTC trading platforms. Besides, it gained a vast amount of popularity among startups and entrepreneurs. Thus, many people are showing their interest to launch a secure otc crypto trading platform. So how to launch a superfine otc crypto exchange? The answer is simple, you can develop an OTC exchange in two methods. Firstly, if you are an experienced blockchain developer and have deep knowledge of OTC trading concepts. Then you can develop your desired OTC exchange by using your own programming language. But you need to be very careful because a single part of a mistake in coding can negatively impact the whole OTC crypto exchange development process. Choosing this method will be a risky one for your business. So we will not suggest this method for building your OTC exchange.
Secondly, you can hire a pool of well-experienced blockchain developers from the renowned and trustworthy OTC crypto exchange development company in the industry. Because development firms will guide you to launch a secure OTC trading platform as per your business requirements by offering the ideal OTC crypto exchange software development service at a reasonable cost. One such renowned company is Zab Technologies.
Zab Technologies is a reputed OTC crypto exchange software development company and we are offering a first-class OTC crypto exchange development service for those who are willing to launch an OTC trading platform with elite features and strong security systems.
Security Features of OTC Crypto Exchange software Development
Security is the major concern in our service, so we enable tightened security mechanisms while crafting an OTC trading platform. Here is the list of security systems that you can get in our premium OTC crypto exchange development service.
- DDOS mitigation
- Two-factor verification
- Database encryption
- Anti-phishing software
- Multi-signature vaults
- SSL integration
- Browser detection security
- End-to-end encryption
Benefits of OTC Cryptocurrency Exchange Development
Here is the list of advantages that you can get in the top-notch OTC crypto exchange development.
- KYC verification and audit transactions
- Customizable solutions as per your business concepts
- Crypto transactions will be protected with escrow services.
- Eye-catchy Custom UX/UI Themes.
- High Configurability Perk.
- Data security through high-end protective mechanisms
- Your platform users can manage their crypto assets easily in a hassle-free manner.
- Your users can get multiple-cryptocurrency wallet support
- Eliminates cyberbullying and other malware activities.
- Reduces the counterparty risk
- Integrated cold wallet storage type for account protection.
- Fast settlement and smooth user-interface
- You can get 24/7 productive technical and customer support from the OTC crypto exchange development company.
- Your users can perform easy and instant bulk trades in a risk-free manner.
Why Choose Zab Technologies For OTC Crypto Exchange Development?
Zab Technologies is an outstanding OTC crypto exchange development company in the blockchain industry. We have years of experience in offering all sorts of crypto exchange development services and other blockchain services with utmost perfection. So far we have delivered 100+ blockchain projects to our international clients across the globe. People who have invested in our Crypto exchange development service earned lucrative amounts of money in the crypto market. Our futurist blockchain developers will provide you an excellent OTC crypto exchange development service powered by blockchain technology. Besides, we have a dedicated team for offering effective technical and customer support. What are you waiting for???
Talk to our team experts and develop a stunning OTC crypto exchange now!