OTC and Bitcoin whales.

[project_delta]

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.

[1714126991]

1714126991

[1714126991]

1714126991

[Pursuer]

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]

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 Sceptical Chymist]

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]

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.

[gtglener]

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.

[pakhitheboss]

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/

[Slow death]

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]

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]

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.

[MetalGear]

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.

OTC is eitherway beneficial, OTC desks deal with a large network of mining operations and exchanges in order to serve as market makers and provide liquidity for trades. The most important thing and what will define your trades direction is your knowledge about the field, you need to know a lot about trading so only you could tell wheteher your trade will be successful or not. Lacking of knowledge about the business might bring you unfortunate downfalls for other correctors might try to outsmart you. For large investors OTC is better since they can avoid exchange scamming, and its more preferred by whale investors.

[malikusama]

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.

OTC is always beneficial for both large-scale and small-scale trading as it eliminates the mediator so as the commission.
However whales prefer OTC only for privacy and anonymity as no exchange is involved in it.

 

[TheButterZone]

Listen to the song of my people https://bitcoin-otc.com/

[Jating]

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.

Beneficial in a sense that it won't affect the price specially if you are buying huge amount of bitcoin. Of course there is the privacy in which whales wanted to keep as a safe guard for them.

I haven't heard any small traders doing some OTC, small traders or average joe's just go to the usual route and it makes them comfortable as opposed to some big entities who's moving huge amount of bitcoin in the market and OTC is the best way for them.

[Yaunfitda]

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.

Beneficial in a sense that it won't affect the price specially if you are buying huge amount of bitcoin. Of course there is the privacy in which whales wanted to keep as a safe guard for them.

This has been practice by whales as reported, and if you guys remember, at the height of China's crackdown, many Chinese do OTC trades as well.  And as far as I know,  many Chinese miners are liquidating their BTC holdings as to not have put a dent on the price and cause panic to the market.

I haven't heard any small traders doing some OTC, small traders or average joe's just go to the usual route and it makes them comfortable as opposed to some big entities who's moving huge amount of bitcoin in the market and OTC is the best way for them.

Of course, small fishes will not get the benefits of OTC, it doesn't make sense at all.

[buwaytress]

As much as I like OTC myself -- though my preference will always be p2p since I don't speculate (too much, heh) -- I really don't see how they can be a choice for those day traders or people with a heavy will to trade. In fact, if you consider P2P to be OTC (and I think it qualifies on some measure), then there are plenty of small traders like me who are essentially OTC -- especially once you meet on platform and then take your future trades off-platform and just on your own network, which to me is pretty much how organic OTC happens.