Bitcoin Forum
November 15, 2018, 03:51:12 PM *
News: Latest Bitcoin Core release: 0.17.0 [Torrent].
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: OTC and Bitcoin whales.  (Read 98 times)
project_delta
Jr. Member
*
Offline Offline

Activity: 84
Merit: 2


View Profile WWW
November 05, 2018, 10:11:31 AM
 #1

Is OTC beneficial for large-scale traders i.e. sharks or whales; whatever you want to call them or is it a safe haven for small traders.

PROJECT DELTA
Shaping the Future of Blockchain
Project DELTA develops a game-changing Blockchain Protocol; projectdelta.io/
1542297072
Hero Member
*
Offline Offline

Posts: 1542297072

View Profile Personal Message (Offline)

Ignore
1542297072
Reply with quote  #2

1542297072
Report to moderator
1542297072
Hero Member
*
Offline Offline

Posts: 1542297072

View Profile Personal Message (Offline)

Ignore
1542297072
Reply with quote  #2

1542297072
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Pursuer
Legendary
*
Offline Offline

Activity: 1316
Merit: 1092


Where is my ring of blades...


View Profile
November 05, 2018, 10:39:23 AM
 #2

the amount doesn't matter when it comes to OTC trading, why you are doing it matters. for instance if you don't have any other way of buying bitcoin (like in India right now for example) then your option is to do OTC trading and it doesn't matter if you are a whale or a little fish!

there is only once case that I can think of which you will have no other option, and that is when you want to buy a very large amount of bitcoin or sell a very large amount of bitcoin. in this case you usually want to go away from the actual market for a better safety (exchanges aren't trusted and your money can be blocked in their banks,...).

contact12345
Jr. Member
*
Offline Offline

Activity: 43
Merit: 1


View Profile
November 05, 2018, 11:47:45 AM
 #3

Is OTC beneficial for large-scale traders i.e. sharks or whales; whatever you want to call them or is it a safe haven for small traders.
Well, as far as my knowledge is, over-the-counter trade is for those who want to make large-scale investments in cryptos. These might also be for ICOs as the investment in cryptos needs to be converted into fiat currency for development of the project.
I don't know if such a kind of trading is of any benefit for small investors or individuals who want to convert their fiat into cryptos because bulk trading of cryptos might save a lot of cost for the traders!
The Pharmacist
Legendary
*
Online Online

Activity: 1330
Merit: 1906



View Profile
November 05, 2018, 01:58:55 PM
 #4

bulk trading of cryptos might save a lot of cost for the traders!
I think there's definitely a cost-saving benefit to doing OTC trades, if I'm understanding the definition of the term correctly.  If two parties make a deal with each other, there's no exchange fees to worry about--and if we're talking about whales, those exchange fees could be significant.  Plus when a whale buys or sells large amounts of a coin on an exchange, chances are that it's going to affect the price of the coin.  That's why when Warren Buffet buys large blocks of stock in a company, he doesn't buy all at once but breaks the buy up into smaller blocks over a period of time.

And yeah, doing OTC trades eliminates the risk of an exchange scamming you, but if I was a whale buying or selling bitcoin I'd probably be comfortable doing so on an exchange like Coinbase. 

The best advantage I can think of for doing an OTC trade is that it keeps the trade private, away from the spying eyes of governments, regulators, exchanges, and everyone else.  That's as good for a whale as it is for a small investor who wants to stay anonymous.

Indamuck
Hero Member
*****
Offline Offline

Activity: 812
Merit: 527


Make winning bets on sports with Sportsbet.io!


View Profile
November 05, 2018, 03:46:55 PM
 #5

OTC has numerous advantages for big investors.  If your trying to buy a large amount of bitcoin on an exchange in a short amount of time you will drive up the price on yourself.   OTC are very common and you would have to be a fool to think otherwise.  These transactions are often broken up as well to avoid detection by other traders.

   ▄▄██████▄▄
  ████████████
███▄▄
 ██████████████▀▀▀██▄
████████████████   ▀██▄
████████████████     ▀██
██████████████       ██▌
██████████████        ▐██
██▌▀▀██████▀▀         ▐██
▐██                   ██▌
 ██▄                 ▄██
  ▀██▄             ▄██▀
    ▀██▄▄▄     ▄▄▄██▀
      ▀▀█████████▀▀





███████████████████████████
███████████▀▀         ▀▀███
████████▀   ▄▄██▄  ▀█▄  ▀██
██████▀  ▄████████▄  ▀█  ██
████▀  ▄██████▄▀  ██▄    ██
███▀  ██████▄▀  ▄▀████▄  ██
██▀  █████▄▀  ▄▀██████  ▄██
██  ▀███▄▀  ▄▀███████  ▄███
██    ▀██▄▄▀███████▀  ▄████
██  █▄  ▀████████▀  ▄██████
██▄  ▀█▄  ▀██▀▀   ▄████████
███▄▄         ▄▄███████████
███████████████████████████
███████████████████████████
████████▀▀       ▀▀████████
█████▀   ▄ ▀███▀ ▄   ▀█████
████  ▄████▄ ▀ ▄████▄  ████
███  ▄ ▀███▀ ▄ ▀███▀ ▄  ███
██  ▄██ ▀▀ ▄███▄ ▀▀ ██▄  ██
██  █▀ ▄█ ███████ █▄ ▀█  ██
██   ▄███▄ █████ ▄███▄   ██
███  ████▀ ▄▄▄▄▄ ▀████  ███
████  ▀ ▄ ▀█████▀ ▄ ▀  ████
█████▄  ▀▀▄ ███ ▄▀▀  ▄█████
████████▄▄       ▄▄████████
███████████████████████████
████████     INDUSTRY LEADING BITCOIN SPORTSBOOK     ████████
LIVE
STREAMING
DAILY PRICE
BOOSTS
LIVE DEALER
CASINO
FAST & SECURE
PAYMENTS
███████████████████████████
████████▀▀       ▀▀████████
█████▀  ▄█▄  ▀  ▄▄   ▀█████
████  ▄  ▀    ▀█████▄  ████
███  ▀█▀   ▀█▄   ▀▀██▄  ███
██  ▄    █▄  ▀██▄▄  ▀█▄  ██
██  █▀ ▄  ▀█▄  ▀███▄  ▀  ██
██    ▄██  ▀██▄  ▀███▄   ██
███  ▀████  ▀███▄  ▀█▀  ███
████  ▀████  ▀████▄    ████
█████▄   ▀▀█▄  ▀▀▀   ▄█████
████████▄▄       ▄▄████████
███████████████████████████
███████████████████████████
████████▀▀ █████ ▀▀████████
█████▀    ▄█████▄    ▀█████
██████▄▄█▀▀ ▄▄▄ ▀▀█▄▄██████
███▀███▀ ▄███▀███▄ ▀███▀███
██   █ ▄██▀     ▀██▄ █   ██
██   █ ██         ██ █   ██
██   █ ▀██▄▄█ █▄▄██▀ █   ██
███▄███▄ ▀██▄▄▄██▀ ▄███▄███
██████▀▀█▄▄ ▀▀▀ ▄▄█▀▀██████
█████▄    ▀█████▀    ▄█████
████████▄▄ █████ ▄▄████████
███████████████████████████





..WIN WITH US!..
gtglener
Hero Member
*****
Offline Offline

Activity: 570
Merit: 500



View Profile
November 08, 2018, 09:45:59 AM
 #6

Is OTC beneficial for large-scale traders i.e. sharks or whales; whatever you want to call them or is it a safe haven for small traders.
Most of the time for large scale traders who deal in huge volume, and they know buying directly from the market would bring about some huge growth which the same will happen when it comes to selling the market, OTC way is always the best way to load up or offload as the case may be.

However, it does not necessarily mean, because no matter the volume you are buying, OTC is available to practically everyone whether you are a small scale trader or large scale trader, but in most cases, for large scale traders, OTC is always the best and ideal way.

                ▄▄█▄
             ▄█████████▄
           ▐██▀  ███ ▀▀██
           ▐█    ███   ▐█
           ▐█   ▄███▄  ▐█
           ▐█████████████
        ▄▄██████▀███▀██████▄▄
        █▀▀ █    ███   ▐▌ ▀██
        █▌  █    ███   ▐▌  ▐█
        █▄▄▄█████████████▄▄██
     ██████████████████████████▄
     █▀ ▐▌  █    ███   ▐▌  █  ▐█
     █  ▐▌  █    ███   ▐▌  ▐  ▐█
     █████▄▄█▄▄▄▄███▄▄▄██▄▄█████
     █   ▌  █▀▀▀▀███▀▀▀▐▌  ▐  ▐█
     █▄ ▐▌  █    ███   ▐▌  ▐  ▐█
     ██████▄█▄   ███  ▄▐█▄██████
     ▀▀███████████████████████▀▀
          ▀▀█████████████▀▀
               ▀▀▀█▀▀
                       ▄             ▓▓    ▓▓      ▓ ▓▓
                   ▐▓  ▓▌        ▓   ▓▓    ▓▓     ▓▓▓▓▓▓▓▄▄
                 ▄▄▐▓▄ ▓▌▓  ▄  ▐▓▓▓▓ ▓▓▓   ▓▓▓▓▄▓▓▓▓▓▓▓▓▓▓▓        ▓▌
               ▓▓▓▓▓▓▓▓▓▌▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓ ▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓ ▓▓▓▄▄
               ▓▓▓▓▓▓▓▓▓▌▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓ ▓▓▓▓▌
             ▄▄▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▀▀▀▀▀▀            ▀▀▀▀▀▀▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓
             ▓▓▓▓▓▓▓▓▀▀▀                                         ▀▀▀▓▓▓▓▓▓
           ▄▓▓▀▀                                                        ▀▀▀▓▄▄
       ▄ ▀                                                                    ▀▀▄

.........CRYPTO SOUK
                ▄▄█▄
             ▄█████████▄
           ▐██▀  ███ ▀▀██
           ▐█    ███   ▐█
           ▐█   ▄███▄  ▐█
           ▐█████████████
        ▄▄██████▀███▀██████▄▄
        █▀▀ █    ███   ▐▌ ▀██
        █▌  █    ███   ▐▌  ▐█
        █▄▄▄█████████████▄▄██
     ██████████████████████████▄
     █▀ ▐▌  █    ███   ▐▌  █  ▐█
     █  ▐▌  █    ███   ▐▌  ▐  ▐█
     █████▄▄█▄▄▄▄███▄▄▄██▄▄█████
     █   ▌  █▀▀▀▀███▀▀▀▐▌  ▐  ▐█
     █▄ ▐▌  █    ███   ▐▌  ▐  ▐█
     ██████▄█▄   ███  ▄▐█▄██████
     ▀▀███████████████████████▀▀
          ▀▀█████████████▀▀
               ▀▀▀█▀▀
pakhitheboss
Jr. Member
*
Offline Offline

Activity: 238
Merit: 5

Alfa-Enzo:Introducing the First Global Smartmarket


View Profile
November 09, 2018, 07:48:01 AM
 #7

Over the Counter is benefecial for both. The only part that sucks is that you do not get the correct price of Cryptos. When you want to buy you will get a higher price and when you will sell you will get a lower price. if possible then use an exchange. If you do not want any money trail then use OTC.

Check out this website if you want to use OTC - https://localbitcoins.com/

╭═══════ ALFA \▼/ ENZO ═══════╮
│    $3M PRIVATE SALE COMPLETED    │
╰════ https://www.alfaenzo.io ════╯
Slow death
Hero Member
*****
Online Online

Activity: 1008
Merit: 622



View Profile
November 09, 2018, 11:46:25 AM
 #8

Is OTC beneficial for large-scale traders i.e. sharks or whales; whatever you want to call them or is it a safe haven for small traders.

Before someone does this, the person needs to do a lot of research because if the person does not do much research can run the risk of correctors to profit from the person, that is, the correctors can take advantage of the person's ingenuity. This is bad, My opinion would be that exchanges like coinbase, Cex, coinmama, Bitpanda and others would be more appropriate, as long as the person does not make the mistake like this:

The person has $1000 and wants to buy bitcoin and it takes $ 1000 to buy bitcoin, the idea is buy by parts and at different websites to prevent the risk of being stolen or cheated.

buwaytress
Hero Member
*****
Online Online

Activity: 798
Merit: 734


I bit, therefore I am


View Profile
November 09, 2018, 08:01:46 PM
 #9

Probably worth defining the scope of OTC. Since OP is relating it to whales, then OTC simply means deals between buyer and seller, without the supervision of the exchange, typically brokered deals so the broker is the supervisor in this case.

As pointed out, huge cost savings, as fees or commissions are just done by the broker, and usually the bulk of the order is at a fixed price, so it's reliable and predictable for both parties financially. At exchanges, you've to rely on the demand and the depth of the orderbook. Whales probably can wipe out most exchanges' orderbooks, so they have to trade at various exchanges before prices slip.

But without protection of escrows (the broker, or like LBC, built-in escrow), unless you're face-to-face, verifying each party's funds, there is a risk of defaulting on payments that aren't lump sums (and they usually aren't). Buying/selling at an exchange guarantees those funds/Bitcoin (though doesn't guarantee the exchange itself will honour your withdrawal!), since they're locked up in the orders.

Best bet for us non whales, to me, still them P2P platforms. LBC. Bisq. But they're not perfect, still the risk of needing arbitration.

Kiweikoo
Hero Member
*****
Offline Offline

Activity: 853
Merit: 500



View Profile
November 10, 2018, 05:50:03 AM
 #10

OTC has numerous advantages for big investors.  If your trying to buy a large amount of bitcoin on an exchange in a short amount of time you will drive up the price on yourself.   OTC are very common and you would have to be a fool to think otherwise.  These transactions are often broken up as well to avoid detection by other traders.
Numerous advantage and for most part of the OTC, you are actually buying directly at the current market price at the point of purchase. When it comes to using the exchange for large scale buyers, there could be every possibility that the market volume may not even be able to handle what you want to buy or sell, without even causing a huge spike or downward spiral in the market respectively. OTC is always the best chance for whales to do their things most of the time, and it is usually cost effective for them as far as I am concerned.

Platio
Smart Banking Ecosystem


█▀▀▀▀▀▀▀▀▀▀▀█▄     
█  ████     █▀█▄   
█  ████     █  ▀█▄
█  ▄▄▄▄▄▄▄  ▀▀▀▀▀▀█
█  ▄▄▄▄▄▄▄▄▄▄▄▄▄  █
█  ▄▄▄▄▄▄▄▄▄▄▄▄▄  █
█  ▄▄▄▄▄▄▄▄▄▄▄▄▄  █
█  ▄▄▄▄▄▄▄▄▄▄▄▄▄  █
█▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄█

                   ████
 █ ███████████████████▄
                  ▀█████
                       ████
                          ████
                             ███
                                ███
                 ████             ████
  ████████████████████████████████████████████████
                 ████             ████
                                ███
                              ███
                           ████
                        ████
                   ▄█████
█ ███████████████████▀


          ▄▄███████▄▄         ▄█████
        ▄█████████████▄      ███████
       █████████████████    ████████    ▄█████▄
      ███████████████████  █████████   █████████
      ███████████████████  █████████   █████████
      ███████████████████  █████████   █████████
       █████████████████    ████████    ▀█████▀
        ▀█████████████▀      ███████
          ▀▀███████▀▀         ▀█████

                                     ████
                             ▄█████████████████████
                          ████▀      ████
                       █████
                     ████
                  ████
               ████
           █████
██████████████ ████████ ██████ ████████ ██████████
           █████
               ████
                  ████       
                    █████
                       █████
                          ████▄          ████
                             ▀██████████████████████
                                         ████
Smart Banking Ecosystem for crypto, fiat and
stocks, based on EOS blockchain technology

.
GET WHITELISTED NOW
Platio
Smart Banking Ecosystem
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!