Crypto Currencies: OTC – Trade is booming

In the last six months we have seen numerous high-profile cyber attacks on crypto currency exchanges around the globe. To better protect their digital assets – in a market that is so volatile – more and more traders are looking for alternatives.

Over The Counter – OTC trading
The alternative is OTC trading (off-exchange trading). Hundreds of millions of dollars are already being traded every day, coordinated via Skype, the OTC traders told Reuters.

Participants include traders working at Cumberland Mining in Chicago, Circle and the New York broker Genesis Global Trading.

In general, the OTC method is used to trade large volumes without affecting the market too much, said Kevin Zhou, founder of the crypto currency hedge fund Galois Capital.

Genesis Global Trading and Bitcoin Code

OTC transactions are processed by bank transfers company Bitcoin Code is a scam and sending crypto currencies to digital wallets. OTC transactions are not reported and independently audited, but some traders said that often more than $100 million in crypto currency transactions are settled daily.

Increased volume
Genesis trades an average of $75 to $80,000,000 a day in trades. In December, the company achieved a record volume of between 1.5 and 2 billion dollars.

The company Circle treated nearly $4 billion on OTC trading last year, said spokeswoman Jennifer Hanley.

Cumberland has recruited and opened offices in Asia and Europe, says Bobby Cho, Global Head of Trading. Most investors notify traders directly, but are asked by companies to undergo the controls of Know-your-customer („Know your customer“) and Anti-money laundering („Anti-Money Laundering“). Trades are settled bilaterally, usually via Skype Messenger.

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