Over the Counter (OTC) Cryptocurrency Trading - Explained in Details.

[wwzsocki]

...Try being anonymous with a professional OTC outfit. They'll laugh in your face. They may well be more demanding than an exchange in terms of ID and proof of funds. Obviously it's different if you're selling to some asshole on Telegram but that's p2p not OTC...

We are actually talking about this subject in our local section where I have translated version of this thread (Pozagiełdowy Handel Kryptowalutą (OTC) - Wyjaśniony w Szczegółach.)
One member just posted about his experience with a professional OTC service. I asked him a few additional questions about KYC and other requirements and he answered that KYC was not needed at all. I have heard such opinions too before and that is why I think that you are wrong and there are established OTC services without KYC requirement too.

Here is my discussion about OTC services from the polish thread, please translate using google:

ja do dzisiaj tylko z jednej otc platformy koszystalem i to byla: https://dexstats.info/onboarding.php...

Musiałęś przejść KYC, żeby móc korzystać z tego serwisu? Jakie opłaty? Jak wyglądała sama transakcja? Kupowałeś lub sprzedawałeś im, czy dopiero na stronie zasygnalizowałeś, że jesteś zainteresowany jakimś altem (kupno/sprzedaż) i za jakiś czas dostałeś ofertę, czy wygląda to inaczej?

na tym otc jest kyc niepotrzebne i jak sie niemyle ogulnie na otc niepotrzeba kyc przechodzic.
na tym otc co tobie chodzi mozna "tylko" kupic ARRR sprzedajac KMD.
to wyglada tak:

1. musisz miec pewna ilosc KMD na agama wallet (portfel projektu Komodo)
2. na agama wallet musisz dodac kryptowalute ARRR i automatycznie dostajesz tez swoj wlasny ARRR-adres
3. na https://dexstats.info/onboarding.php wydzisz aktualna kwote ile KMD musisz zaplacic zeby 7.77 lub 77.7 ARRR kupic
4. jak wybrales to i jak wpisales twoj ARRR adres w gorne dolne miejsce, naciszkasz nastepnie na zielony button (get aboard! start exchange)
5. automatycznie pokazuje ci sie KMD adres gdzie masz ta kwote za 7.77 lub 77.7 ARRR wyslac. i ta cala transakcje robisz przez agama wallet
6. po 3 sekundach widzisz na otc platformie ze transakcja jest wykonana i przyjeta
7. nawed nie po minucie masz twoje ARRR na swojim agama portfelu

[gentlemand]

We are actually talking about this subject in our local section where I have translated version of this thread (Pozagiełdowy Handel Kryptowalutą (OTC) - Wyjaśniony w Szczegółach.)
One member just posted about his experience with a professional OTC service. I asked him a few additional questions about KYC and other requirements and he answered that KYC was not needed at all. I have heard such opinions too before and that is why I think that you are wrong and there are established OTC services without KYC requirement too.

Google translate is struggling there but that reads like P2P or a Dex, not OTC.

No way would ANY reputable OTC broker go without KYC no matter where they are in the world. If their own country didn't nail them to the wall, America certainly would.

[wwzsocki]

Google translate is struggling there but that reads like P2P or a Dex, not OTC.

No way would ANY reputable OTC broker go without KYC no matter where they are in the world. If their own country didn't nail them to the wall, America certainly would.

Ok I will translate it for you:

na tym otc jest kyc niepotrzebne i jak sie niemyle ogulnie na otc niepotrzeba kyc przechodzic.

At this OTC service, KYC is not needed and if I am not wrong generally at OTC services KYC is not a requirement.


This the most important sentence and later he describes the transaction he has made at this particular OTC service, step by step.

[wwzsocki]

...No way would ANY reputable OTC broker go without KYC no matter where they are in the world. If their own country didn't nail them to the wall, America certainly would.

Here is another post from member @Cygan in the Polish thread:

od dzisiaj online: Barterlly https://app.barterlly.io/

tez jeden projekt od KMD deweloperow

tutaj mozesz znalesc czysty handel otc dla każdego. kyc niepotrzebne do 10.000 €/dziennie

https://medium.com/@dwy_15555/barterlly-from-an-idea-to-a-journey-e882fc12b0a6

Translation of the most important part:

tutaj mozesz znalesc czysty handel otc dla każdego. kyc niepotrzebne do 10.000 €/dziennie

Here you can find pure OTC trade for everyone. KYC not needed up to 10.000 Euro a day.

[LeGaulois]

@wwzsocki Excuse me but I visited the website and it's a decentralized exchange based on Komodo, not an OTC broker. You can only swap between cryptos. Ameritrade, Fidelity, are OTC brokers.
I wonder why the site has a daily limit and a user needs to be KYC verified for +$10k daily. Weird for a DEX...

[wwzsocki]

...I wonder why the site has a daily limit and a user needs to be KYC verified for +$10k daily. Weird for a DEX...

As you see I have only quoted another member which shared this information in our local community.

TBH I haven't checked them because I trust that what is written is the truth.

From what I know this is an OTC market on based on Komodo with such limits to bypass KYC.

[FanEagle]

What is the difference between Dex or P2P and OTC? I am not really familiar with the differences but in my country there are places called exchanges where you give them one currency and they give you another currency, like regular exchange but as a store instead of digital.

There you can give them bitcoin and they will give you any currency they have on their list, or vice versa where they give you bitcoin. So, I doubt that is considered OTC by your standards and called something else but I don't know why, over the counter is where you literally exchange bitcoins without digital exchange and no deposits or withdraws required, you just give one currency and they give another currency without involving a third party. If anyone explains the differences of OTC/P2P/DEX, that would be awesome.

[justdimin]

Well, if this is the over the counter method everyone talks about does that mean localbitcoin is an over the counter helper website?

Because, if that is the case then there are still millions of people using over the counter methods even with local exchanges exist because they prefer to stay anon and only let one person know they are trading whereas if you trade on exchanges yourself then you are either giving you KYC because they ask for it or you are allowing them to watch your movements as well, I am not against it since it could potentially help get rid of people that are doing bad things but it is also annoying for people who are not after anything bad or illegal.

In the end I would suggest checking out localbitcoins to anyone who wants to do over the counter trading, it is the best way possible for everyone to stay anon and still get a good price.

[gentlemand]

Well, if this is the over the counter method everyone talks about does that mean localbitcoin is an over the counter helper website?

Localbitcoins and similar are P2P. Those places are nothing more than platforms to find deals.

I would class an OTC trade as having a broker/dealer who matches the buyer to the seller and negotiates the deal. They'll have clients they can tap on both sides.

[Julunguul]

How are the buyers and sellers finding each other?
• Through private, public and broker specific chatrooms:
  - Broker hosted secure chat rooms.
  - IRC chatrooms #bitcoin-otc.
  - Skype chatrooms (hosted by Cumberland).
  - Telegram, even LinkedIn (according to Forbes) - six figure trades are common.
• Through OTC Brokers
  - iTBit OTC.
  - HiveEx OTC.

Usually OTC on-exchange also uses the exchange platform to become a chatroom, but should third parties should also participate in this chat ?
It is better to use OTC on-exchange because we also have to consider risks.

[wwzsocki]

What is the difference between Dex or P2P and OTC? ...

I think the main difference is that there don't have to be a third party in OTC trading. Of course, there are OTC desks and services but still the majority of deals is done P2P.

..I would class an OTC trade as having a broker/dealer who matches the buyer to the seller and negotiates the deal. They'll have clients they can tap on both sides.

This is a good explanation of OTC desks and services. I hope this answers your question.

[wwzsocki]

Today even more trades are made on the OTC market, so I will wake up this thread, and maybe there will be somebody willing to discuss this subject further.

What is generally agreed is that daily OTC volumes for cryptocurrency are much larger than exchange-traded volume, but given the market’s opaqueness it’s impossible to be entirely sure. Further confusing things are claims that crypto exchanges have been artificially inflating their disclosed volumes.

https://www.finextra.com/blogposting/16628/otc-crypto-market---at-a-glance

Additionally. this thread was just translated into the German language, so this is probably the best time to refresh the topic, despite almost a year, it is still completely valid.

Here link to the translation: Der Over-The-Counter (OTC) Kryptohandel - im Detail erklärt.