Outside cryptocurrency exchange (OTC): the best places for such conversions, features of transactions, current recommendations
The emergence of cryptocurrencies and their incredible popularity gave rise to the demand for places where you can carry out the necessary manipulations with digital money – conversions, as well as speculation. There are no official structures guaranteed to work with virtual coins due to their decentralization and official rejection of the idea by the legislative bodies of almost all countries. How then to resolve situational moments where the execution of exchange or speculative transactions with cryptocurrencies is required.
Of course, there are specialized crypto-exchanges focused on trading operations with decentralized money, however, conversions on them are excessively expensive, sometimes protracted, and often not profitable. There is a complex of special factors that make this exchange option unattractive. This is the most needed and frequently performed operation of a wide audience of users with Bitcoin, Ethereum, Litecoin, Binance Coin or other altcoins. Nobody wants to pay commission fees, wait for profitable quotes, go through verification and endure a number of other inconveniences. For the owners of crypto coins who intend to convert them into fiat or the required version of digital money, there are alternative, convenient, more profitable ways.
Let us consider in detail the aspects related to OTC methods of converting virtual currencies or OTC deal (over the counter). Let’s analyze their important nuances and paramount features.
The relevance of over-the-counter cryptocurrency exchange
Various reasons give rise to the need to change the cryptocurrency. The user here has some amount of digital money that should be used to get another type of virtual currency, and more often – fiat funds. Based on the leading interests of a person, the conversion method will be individual, since now the options are completely different. For example, an urgent exchange is made in online exchangers, but profitability suffers here, and profitable conversions are likely in private transactions, however, there is a significant risk of losing money due to fraudsters.
There is no universal methodology or a system of selling / buying cryptocurrency that is profitable throughout. Everything is determined by the interests, circumstances and capabilities of the interested holder of digital coins. An objective assessment of any method of exchange with the presence of fiat or virtual currencies is given by considering three leading parameters:
✅ reliability – definitely, during exchange operations, users do not intend to lose their own coins. There must be a moment of guaranteed completion of the transaction exclusively according to the planned conditions;
✅ profit – the holders of some altcoins or bitcoins themselves incredibly rarely perform financial transactions that end in some loss. People want to change, getting additional income, which, by the way, is often the goal of the transactions made;
✅ Convenience – any conversion should be characterized by conditional comfort, simplicity, and most importantly, the speed of execution of the purchase or sale of digital coins.
Nuance! Each option for the exchange of cryptocurrencies, unfortunately, is unable to distinguish itself with a full-fledged package of these criteria. Somewhere 100% benefit and convenience, and some way stands out for its remarkable reliability and good conditions. Everywhere there are optimal moments, as well as “limping” sides!
There are plenty of ways to convert coins over the counter. Among them, the four most popular cryptocurrency exchange opportunities are clearly defined, bypassing specialized trading platforms.
Popular OTC Cryptocurrency Locations
Users who have Bitcoin, Monero, Ripple, Zcash, Tether or other altcoins in their cryptocurrency wallets can exchange them outside of digital coin exchanges. You need to consider the four most attractive options that are more often used by owners of virtual money.
- Online exchangers. This method of selling / buying cryptocurrencies is reasonably considered the fastest and easiest. Even account registration is not required here.
There are many services on which exchange transactions with digital and fiat currencies are carried out, however, a thorough analysis of the conditions, reputation, and current capabilities of such a web resource is required.
Everyone can find profitable rates, minimal fees and a quick transaction of funds based on their planned intentions. Online exchangers work around the clock, transactions are mostly automatic, all manipulations are simple. Probable problems with such conversions are the occurrence of fraud, as well as loss of funds due to not very decent quotes and commissions.
- Electronic payment systems. First of all, it was WebMoney that took good care of the client audience working with cryptocurrency. It provides for the opening of a BTC account (WMX wallet) with the ability to immediately change fiat money to Bitcoin and vice versa. Convenient, fast, reliable, but the offered rate is mostly below the current market rate.
- Cryptocurrency wallets. It is an option that is the most optimal because of the impressive list of advantages. The most key advantages of exchange operations in a personal crypto storage are a lot of virtual currencies for the necessary conversions, reliability, relevance of exchange rates and practically zero commissions.
There are few negative qualities:
- the loss of private keys, codes and seed-phrases means the complete loss of absolutely all crypto coins that were in the wallet;
- the difficulty of mastering some versions, especially with an untranslated interface. It is difficult to comprehend the nuances of paper and hardware crypto wallets;
- There are many digital money storages with a low degree of reliability – these are browser, online and stock options.
- Private p2p conversions. This method involves the exchange of cryptocurrency directly with an interested person. You need to look for such speculators on specialized Internet sites (forums, communities, chats, etc.), negotiate the nuances of the transaction and carry out the conversion without intermediaries or commission fees.
A reliable platform in Russian for p2p BTC exchange is the LocalBitcoins website.
There are three important pluses here:
- technically fast and profitable financial transaction, the terms of which can be flexibly changed at the contractual stage;
- absolute absence of third-party losses in the form of commissions, percentage of the transaction, etc.
- virtually any exchange direction, including promising (Grin, Beam, Ravencoin, etc.) or exotic cryptocurrencies, for example, Sexcoin, Ufocoin and Putincoin.
The particular disadvantages are:
- incredibly high riskiness of a private cryptocurrency exchange. A lot of fraud schemes have been developed for this type of transactions;
- it is difficult to find the right direction of conversions if an urgent deal is required.
Important! The private way of exchanging virtual currencies is ideal when working with trusted, reliable people and in the conditions of using the same crypto wallets!
Features of OTC transactions with cryptocurrencies
There are plenty of causal factors forcing users to change digital coins outside of crypto exchanges. This is the reliability of transactions, the convenience of operations, profitability, the right directions, and so on. It is important that this exchange technique is characterized by a set of curious features.
A minimum of additional losses from the amount. The cryptocurrency exchange provides for 2-3 or more moments when the user is forced to lose part of the cryptographic coins. Usually, these are commissions:
✅ replenishment of a trade deposit;
✅ execution of an order, for example, the fact of a purchase for a BTC coin at the current rate ETH;
✅ withdrawal of funds.
There are different combinations and variations.
The ability to find almost any desired direction of conversions. When there is no rush, you can find users intending to exchange on thematic web resources. There are extremely exotic proposals.
Often, the terms of the deal turn out to be advantageous and convenient. With private conversions, you can find mutually beneficial solutions or use additional schemes.
Fast deal at an affordable rate. Online exchangers always have a list of users offering their conversion conditions. It is not difficult to choose a counterparty with good conditions in the area of interest. On digital coin exchanges, one often has to expect a profitable change in the quotation of the required asset.
Convenience. All OTC cryptocurrency exchange schemes discussed above imply instantaneous receipt of the necessary altcoins or Bitcoins with the ability to quickly use them. For example, having made an exchange of rubles for BTC in WebMoney, you can immediately use Bitcoin from a WMX account to buy something or pay for services.
The exchange of digital coins for the necessary coins and fiat money, avoiding the services of cryptocurrency exchanges, is very profitable, convenient for every user who does not make money by trading. Large crypto-investors can have the greatest optimality with such conversion paths, since additional losses of funds are actually minimized.
There are many ways to purchase, exchange or sell profitably virtual currency on the Internet today. Either option is good under specific conditions. Online exchangers, cryptocurrency wallets and payment systems allow you to quickly exchange digital money, and in private transactions there is also the possibility of an agreement on a favorable rate. Before implementing the idea of exchanging coins, it is necessary to clarify the clear tasks, which must be implemented first of all. A method will definitely be identified that combines convenience, reliability and profitability for a specific situation.
OTC platforms or OTCs are actively appearing on cryptocurrency exchanges, but the amount of entry is very large: several tens of thousands of US dollars. OTC trades are available on: EXMO, Bitfinex, Binance, Huobi, Bittrex, Kraken and other trading platforms.