By
Chimamanda U. Martha
April 25th, 2024
Binance has today announced the launch of its OTC trading portal, with 25 different coins and tokens initially supported. The minimum trade size for the portal will be the equivalent value of 10,000 USDT.
In an attempt to increase crypto adoption, Binance has announced the launch of the OTC trading portal. According to a post on its webpage, the portal will be a live request for quotation (RFQ) platform, whereby its users can confirm trades and also receive quick settlements directly into their Binance account.
To start with, the crypto exchange firm has announced that it will offer a minimum trade size to the portal which is equivalent to 10,000 USDT. Besides, it will be offering only 25 different crypto coins and also tokens to its customers, whereby for one to participate in the trade must have a Binance KYC verified account.
Crypto OTC trading has been gaining traction in recent years, as more huge investors join in the crypto market. For those not familiar, let us quickly explain that OTC trading is simply the trading of crypto assets directly between two parties. It is meant to cater for those traders who want to exchange a huge amount of crypto assets, which might be difficult to get at once using the traditional crypto exchanges.
There are both benefits and risks associated with crypto OTC trading. However, using a trusted firm like Binance, which is one of the world’s largest crypto exchanges by volume, traders are guaranteed safe trades.
As Coinspeaker reported earlier, Binance is circumnavigating Chinese crypto prohibitions by using the Chinese Yuan to provide users with a chance to deposit fiat currencies. China banned cryptocurrencies in local banks back in 2017.
Key Benefits of Using Binance OTC Trading Portal
According to Binance, when a trader makes a large block trade on crypto exchanges, the order book may not be big enough to accommodate the request. As a result, it may cause slippage which reciprocates to huge wicks on the crypto chart, hence tipping off other traders.
To counter this, the Binance OTC trading portal will offer generally better prices for making huge crypto block trades. Besides, the prices get better on the users to end with the size of the trade. The OTC portal will be of much benefit to the small market cap and low volume coins, which are difficult to buy even in small quantities.
The Binance OTC portal will benefit small traders who would initially be hurt by waiting for order books to be filled, as one can lock the trades in a specific price the moment they accept the quote. All this will stabilize the market charts, as there will be no huge abrupt wicks that affect other traders.