Binance is the most famous cryptocurrency exchange which was started in China; lately, they have shifted their center of Operations to the crypto friendly island of Malta in the European Union. Binance is the name which comes in mind for crypt to crypto exchange services. Even though it was launched a year back, which is still new on the market, it has gained tremendous popularity because of its listings on Initial coin offering, Congenial CEO and mainly due to its inexpensive trading fees.
In a recent Blog, Binance announced-
Crypto OTC Services Now Available on Binance
Binance is happy to announce the launch of our crypto-to-crypto over-the-counter (OTC) trading desk. Our OTC desk allows Binance users to trade larger amounts of many cryptocurrencies listed on the exchange, with transactions being settled via their Binance accounts.
Binance and OTC (Over-the-counter)
- Binance provides liquid markets not only for Bitcoin but also for the entire crypto space, which includes altcoin markets, which is the most significant part of the blockchain ecosystem. There are two ways to trade cryptocurrencies-
- Over-the-counter (OTC)
- Exchanges like Binance operate as a Market place that brings liquid assets from traders in various parts of the Globe.
- Trading on exchanges is simple and straight forward. One of the disadvantages of trading on exchanges is, sometimes this straightforwardness makes it challenging to trade vast amounts in a single attempt without particularly moving markets.
- In contrast to trading on an exchange, Over-the-counter trades are handled directly between two counterparties, which is the simplest way to trade a large block of coins in a single attempt. Every single trade is a bilateral contract between buyer and seller, where nobody is involved in the discussion, which allows the trader to trade large extents without the distress of affecting the markets. The trades can be customized or simple.
“At Binance, we strive to provide liquid markets on not just Bitcoin, but also the entire crypto space, including the altcoin markets which are a crucial part of the blockchain ecosystem.”
OTC Basics by #Binance Trading
“At Binance, we strive to provide liquid markets on not just Bitcoin, but also the entire crypto space, including the altcoin markets which are a crucial part of the blockchain ecosystem.” https://t.co/XCTf91PX4C
— Binance (@binance) May 20, 2019
Benefits of Over-the-counter (OTC)
Over-the-counter trading gives entry to more profound liquidity stakes than what is instantly available on the order book of an exchange. Succinctly put, OTC lets the trader trade in large block sizes, for 20 BTC and above, without markets against the trader at a decent price. Moreover, OTC desk gives the trader an advantage of providing the single fixed price where the trader can Buy or sell his coins.
Reasons for trading in Binance
Binance trading combines what it has to offer and general Over-the-counter trading. In the market, Binance as an exchange gives access to deeper liquidity stakes, which is downright beneficial for the traders. Binance as a part if Ecosystem, co-ordinate with traders which offers exceptionally reasonable pricing and liquidity not only for Bitcoin but also in altcoins like XRP, BNB, ADA and even for less liquid coins like ENJ, AION, and MANA.