In recent days, the influence of crypto exchanges is greatly connected with various financial services. Crypto exchanges offer a range of services to meet their user needs in typical trading practices. However, the ability to conduct bulk trading is the point, the platform lacks due to the strict regulations and trading mechanism. Additionally, pricing is another factor that drives crypto traders to choose OTC Crypto Trading platforms for bulk trading.
Over the Counter or simply OTC trading platforms are the perfect choice for large-scale traders like institutional traders. The increasing trading passion creates a higher demand for such bulk trading platforms. Considering this, crypto exchanges like Kraken and Coinbase are offering OTC trading services. The availability of such service is not so equivalent to the demand. This turns many business aspirants’ desire to create OTC crypto trading Desks.
Despite this, will it be sound to begin a business without thorough knowledge? Definitely, No.
So, we will look at OTC trading platforms from the basics to the business lineups. This will help startups and entrepreneurs who wish to own bulk trading platforms. Let us begin with the fundamentals.
What is an OTC Crypto Trading Desk?
OTC Crypto Trading Desk is a platform that executes bulk trading directly between the buyer and seller. It acts as an intermediate to match the trade between two parties. Unlike other crypto exchanges, here the trade execution time is almost instant. So, large trades need shorter execution times resulting in lower transaction charges. Meanwhile, this over-the-counter desk limits the slippage and market impact on trades.
OTC trading desk is not only for financial traders, but common people can do large trading in it. Compared with crypto exchanges, they are different from the origin point to outstanding performance. So for business aspirants, it is wise to know how crypto OTC trading desks differ from other crypto exchanges. Let us go through…
How OTC Trading Desk different from crypto exchanges?
OTC trading platforms are somewhat different from other crypto exchanges in features and functions. The following are the key aspects that let you understand how the user-to-admin trading platform is different from other crypto exchanges.
Price Negotiations
As stated earlier, the OTC trading platform executes direct trading between two parties. Unlike crypto exchanges, here price negotiations are possible. So that the buyer and seller can meet their price expectation without concern about market fluctuations.
Trading Strategy
Crypto exchanges completely adhere to market prices and conditions. The order matching and trade execution all depend on the exchange price matching with market data. But, in OTC trading, the admin is the person finalizing the price after negotiations between two parties. So in large trading, both parties will benefit from this trading strategy.
Target Audience and Services
Generally, Institutional traders and high-net-worth traders who want to do bulk tradingassistance only approach this OTC trading platform. To keep them engaged, some trading platforms offer personalized services like market analysis, customized trade execution, and more.
Limited Regulations
This user to admin trading desks does KYC checks to avoid fraudulent activities. Also, they follow regulations in trading. Here, the admin manages the trade execution without any regulatory complications.
Privacy and Price Benefits
The main advantage of this trading is top-class privacy. The buyer, seller, and admin only know the trade details. The trading activities are not visible to the general public. In addition, the asset price is not associated with supply and demand, So it does not surge up and down based on market changes.
These key aspects increase trust among traders looking for OTC trading platforms. But, when it comes to benefits, the trading platform owner or the admin, is the person getting benefitted the most. To know more on this, let us explore…
How does OTC Crypto Trading Desk work?
We already know OTC trading platforms are designed for high-volume direct trading operations. But how it deals with its principle is the curiosity among business people.
- The participants of this trading platform are Admin, Buyer, and Seller. Admin is responsible for all the actions of the trading platform. The buyer is the person ready to invest and the seller is the one who sells the assets.
- Before starting, both buyers and sellers register themselves as users with KYC details. The admin verifies the credentials of both parties for trading.
- The seller approaches the admin for selling with details of crypto assets like asset volume, expected price, and time constraints if anything. Contrarily, the buyer approaches the admin with details like budget and asset requirements.
- The admin or platform owner fixes the asset price. The trade will be executed successfully once the buyer and seller are satisfied with price negotiations with the admin. After, the assets will be transferred to the users’ wallets.
This trading approach takes a very short span and helps investors to save time. Moreover, both parties are satisfied with a better price ignoring the market conditions. Fortunately, this is the prominent point, at which the OTC crypto trading platform owner reveals business honors. Curious to know? Have a look at…
Reasons to Create OTC Trading Desk
Creating an OTC trading desk gives you a thriving entry into the crypto industry. You will have massive scope for a long business run. As a business aspirant, if you want to convert the scope into benefits, you need expert guidance from the professionals of a reputed crypto exchange development company. In this regard, ZAB Technologies will be your ideal partner having a team of skilled professionals who can help you attain your business goals. Before knowing how we create OTC crypto trading desks, know the reasons first.
Ease of Business
The skyrocketing demand for over-the-counter trading platforms makes them a lucrative business model just like crypto exchanges. Income generation is basic if you think about business expansion. In this regard, you feel more at ease in the OTC trading business.
Security
The trading platform is fully under the control of admins. Yet, this effort would be beneficial with the proper integration of security measures. So the trading platform uses 2FA authentication and AES encryption along with KYC verification to reduce the risk of fraudulent activities.
Scalability
To balance the larger trade operations the platform should be highly scalable. Hence, the over-the-counter platforms are built with blockchains that support high-scale operations. This enables easy API integration and multiple assets handling. For your clarification, Ethereum 2.0, Solona, and Polygon are blockchains with higher scalability.
Globally growing audience
OTC Crypto Trading is not a region-based, but a global business having worldwide users. Their needs and expectations also differ accordingly. The typical expectation of large traders would be fast and secure trading practices. Meeting these expectations with your feature-rich platform helps you see growth in a global audience count.
Revenue Potential
The transaction charges play a vital role in terms of revenue generation in OTC desks. You can also earn from price-fixing through Bid-Ask Spread – a way of earning from market making. Further, offering additional services like advisory services, and crypto staking plans also increase your revenue potential.
More Power to Admin
The positive functionality of this trading platform is direct transactions. Here, the users have credits for managing their assets. However, the admin has full control over the platform operations. From setting the asset’s price to fixing the fees, the admin is solely responsible for the platform’s business trials. You can not experience this level of freedom even in centralized exchanges.
These reasons simply justify the significance and business benefits of owning an OTC Crypto Trading Desks. However, to unlock its full potential, your trading platform should be capable of future upgrades, meet your business plans, and serve the users effectively. To manage this efficiently, we at ZAB Technologies follow a highly tuned development procedure meeting your demands with the appropriate technology stakes. So now, let us explore more…
How do we create an OTC Crypto Trading Desk?
The OTC desk development involves a series of procedures. We ensure meeting your business goal at each step with appropriate tools and Technologies. Let me assist you in understanding the procedures we follow.
Knowledge gathering
In this stage, we make sure to understand your business forecasts clearly. Having analyzed your ideas, we plan the prerequisite for development like trading strategies, revenue models, market competition, and target audience.
Plan for the project
Considering the idea gathering as the basis, our team of experts projects a plan to achieve OTC crypto trading platform development. The plan includes development methods, project requirements, and notably meeting regulatory approval.
Development phase
Initially, we outline development matching your budget and project requirements. Like, the usage of financial instruments and advanced trade execution ways to handle high-volume real-time trades. Then, our professional developers exhibit coding to bring all those things effectively into the OTC trading software.
Quality Testing
Our team of testing engineers validates the performance of the software. The checking includes security protocol validation and SEC regulations. Also through multiple quality checks, our expert team eradicates the flaws and ensures an efficient performance.
Launching
Once we complete the above steps, we wait for your approval to proceed further. Our team of experts will help you launch the crypto OTC trading Desk once everything is set in its place.
So as a business aspirant, you may now have a clear picture of how we build a feature-rich OTC Crypto Trading Desk. Knowing its features helps you recognize our quality standards in crypto exchange development. Let us get a quick overview of the…
Features of our OTC Trading Desk
The following appealing features add uniqueness to our OTC trading platform in terms of functionality and performance. They are,
Core features
- Interactive user interface
- Progressive admin panel
- Integrated KYC/AML system
- Inbuilt multi-currency wallet
- Multilingual support
- Advanced pricing options
- Real-time Order management
- User Portfolio Management
- Modernized order execution
- Customizable trading interface
- Multiple asset support
- Support for API integration
Security Features
- AES Encryption
- 2FA authentication
- SSL certificate compatibility
- DDOS protection
- Phishing protection
- Secured API access
- Third-party security validation
- Compliance with SEC regulation
With the above-mentioned features, we create OTC trading desk with top-notch scalability and higher-end security. Further, we make the trading platform offer high-speed transactions and outstanding performance to meet your business needs easily. So get in touch with ZAB Technologies for cost-effective OTC trading platform development with appealing revenue-generating possibilities.
Why choose ZAB Technologies?
ZAB Technologies is the leading OTC Crypto exchange software development company in the crypto space. We are also specialists in developing various types of cryptocurrency exchange platforms. Our eternal expertise in crypto exchange development helps us meet our client satisfaction. The portfolio of our successful project completion highlights the quality of our services. With combined efforts from our experts, we ensure real-time assistance in launching your dream OTC trading desk. Therefore, without any hesitation, get connected with ZAB Technologies to begin your business Journey.
