Caleb & Brown

February 6, 2020  ·  4 min

Cryptosomniac | Learn about Cryptocurrencies & OTC Trading with Caleb and Brown

Cryptosomniac | Learn about Cryptocurrencies & OTC Trading with Caleb and Brown

James Scott of Digichain Capital Interviews Dr. Prash, CEO & Jackson Zeng, COO - Caleb and Brown

The term OTC trading۪ continues to be shrouded in mystery for many in the Crypto ecosystem.It conjures images of high volume whale traders, internal manipulation of the market by large orders, and something akin to an underworld of Crypto trading.In reality, the OTC landscape is anything but. It is readily accessible to the everyday investor who can bypass the exchange process via an OTC broker.In this video, Dr Prash, CEO and Jackson Zeng, COO of Caleb & Brown Cryptocurrency brokerage discuss with James Scott of Digichain Capital some of the finer points of the OTC world, striving to debunk the myths and clarify public expectation and understanding of what this terms means and involves.

Some key takeaways from the discussion:

  • OTC trading simply means Crypto trades that don۪t pass through the order books of an exchange, and instead involve the matching up of trades between buyers, sellers, and deep liquidity pools via a broker such that the trades don۪t affect the global price points in any way.
  • For the consumer, this means not having to incur the slippage they normally would suffer if buying off an exchange.
  • Large volume trades in the millions of dollars still account for the majority of OTC volume. However, OTC brokers are making that market more readily accessible to the everyday investor.
  • Total global trading volume passing through the OTC system is virtually impossible to define. However, as an approximation, the Van Eck ETF application surveyed 7 of the largest OTC desks in the world and concluded that half of all global trading volume passed through the OTC space.

Benefits of using an OTC brokerage over an exchange:

  • Consistent access to a personal broker who acts as a guide through the investment process.
  • Access to an analyst team providing consistent market information and updates.
  • Spot pricing rather than enduring slippage.
  • The ability to instantly lock in a price point rather than waiting for funds to be deposited onto an exchange.
  • Ability to invest not just as an individual but as a corporate entity, trust, or superannuation fund.
  • In addition, having access to an in-house accountant to set up more efficient structures through which to establish and hold your Crypto investment

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +611800 849 149 or Contact Us to discuss further.

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Caleb & Brown

Caleb & Brown is the world's leading cryptocurrency brokerage. We help our clients navigate the complexities of buying, selling, and swapping cryptocurrencies, with a 24/7 personal broker service.

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