Binance announces the launch of OTC trading services

Binance has almost become present daily on the headlines of Crypto news, because it does not stop and its quest to reveal new features and things on a daily basis.
Binance has announced a new OTC trading portal to make swap settlement of cryptocurrencies quick and easy.

The owner of the announcement is a statement by Binance that its new “OTC” portal is a live platform for RFQ, a initiative that enables buyers and sellers on the platform to provide quotes for various cryptocurrencies.

Binance added that when an agreement is reached, the portal gives users the ability to confirm deals and receive settlement directly in their Binance account.

Through this new operations portal, a series of activities related to OTC (over-the-counter) contracts can be carried out. In other words, it is a portal that will serve to carry out large swappings (exchanges) between companies. Furthermore, it aims to demonstrate the constant evolution of Binance.

Comment of the CEO of Binance

Mr. Changpeng Zhao, founder and CEO of Binance, commented that the new OTC trading platform is designed to allow smooth trading, and also supports big deals, stating that:

Try it, it’s smooth, working even for big deals, without glides, and without affecting the market

Traders could request for quotes on-demand 24/7

A key advantage of using the portal is that it will generally offer better prices for making large crypto block trades, compared to doing a market buy/sell on the exchange, and prices will normally get better in comparison to the order book the larger the size of the trade is. This is because the order book will start to thin out, causing more and more slippage. Small-cap / low-volume coins are hit hardest by this and it can often be very difficult to buy/sell even relatively smaller amounts

source : official blog of Binance

OTC Support 25 digital currencies

According to the announcement, Binance indicated that the portal will initially support 25 digital currencies and a different symbol, including the large “Bitcoin, Ethereum, and USDT” currencies, among many others, with plans to add more in the future, It should be noted that the exchange offers in its support service the option to request exchanges. By this, it is meant that, in case of not finding a currency that you want to exchange (this must be among the 25 compatible currencies), you can write directly to the support to make a request.

Bitcoin purchases are presently accessible for BUSD, USDT and USDC. For these stablecoins you may promote not solely BTC, but in addition 24 different cash, together with ETH, LTC, BNB, EOS and TRX.

The minimum amount of trading on the OTC trading portal will be equivalent to $ 10,000 worth of any cryptocurrency without fees.

However, cryptocurrency prices will be marked above the market price for buyers, while any symbol or digital currency on the platform will be sold below the market price, depending on the offer
The portal will use algorithms to unwind the trade without affecting the markets, which will leave no drastic wicks on the chart. 

Benefits and relevant aspects

It should be noted that, unlike other OTC trading portals, the new Binance system promises to benefit users with better quote prices when swappings are higher in volume.

In addition, it also has an order book, which can vary prices depending on the number of requests made for a currency. Therefore, although this can be considered in favor, it is also important to know that this will greatly affect small value or small capitalization currencies.

Using the OTC Binance Portal:

Users are required to log into the OTC trading portal using a verified “Level 2 KYC” account and select a buy or sell option,On the platform, traders will be asked to choose the cryptocurrency they want to trade and enter the amount in one of the funds to receive the quote. Upon receiving the quotation, they can then choose to accept the quote or not.

For information, Binance previously launched the OTC wholesale trading service last year, at the time of launch, Binance provided the service for users who traded no less than 10 BTC, giving them access to trading over 150 cryptocurrencies.

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