Let's be honest, crypto trading and investing have been dominating conversations everywhere in 2021 - on social media, news, and even amidst large businesses. Today, almost every other person wants to try their hands in this sector - more participation is amongst 2021's biggest crypto trends.
That being said, crypto isn't attracting just retail users. Large investors have been trading cryptocurrency for quite a while, and they continue to be joined by several others like them every day. Under normal circumstances, a good amount of organizations use exchanges for this process. Now, we know this could be a great or adequate service for any normal trader since a substantial amount of their liquidity needs are met. However, large buyers face few obstructions not known to many. We'll list a few of them to begin with.
Obstacles for Large Buyers
The two common challenges that large or institutional players are forced to encounter occur right when they're placing an order. They are by and large time consuming because of these three factors:
- Liquidity: Everyone loves liquidity, as it demonstrates a lively and stable market where members can trade rapidly, effectively, and at reasonable costs. Nonetheless, a disturbing problem with large trades on exchanges is the shortage of adequate liquidity. Not all crypto exchanges possess large consumer volume. Hence, they may not have sufficient liquidity and are essentially useless for someone looking to trade on large levels.
- On a related note, low liquidity naturally leads to slow selling velocity. A huge amount of time is taken up to execute large orders, even if liquidity may just be adequate.
- Furthermore, even if exchanges do have enough crypto in their cold storage, there’s frankly an overwhelming amount of other obstacles involved in retrievals, forcing clients to wait long hours for their funds ultimately.
In short, the trading experience leaves a lot to be desired if you're a large player.
Of course, crypto customers continue to expect a certain quality of service, even if the market situation may not be conducive to large transactions. Large buyers put their trust into exchanges with three basic expectations:
- That someone will handhold them to provide the best service.
- That speed and liquidity will not be concerns during trades.
- That an immediate withdrawal of funds (even reasonably large sums) will be available whenever in need.
The problem with markets like India lies at the heart of these expectations. They are not fulfilled to the extent customers desire. There are even no discounts for the fees (which do add up to an enormous amount on big transactions).
Plus, everyone's beloved security protocols - two-factor-Authorization in addition to confirming one's email, serves to prolong transaction times. Did we mention these validations apply with every withdrawal?
Clearly, the entire experience lacks efficiency and is bulky for the most part, making multiple withdrawals quite hectic. To tackle these matters, customers need something well planned for sizable trades. Something that Vauld offers.
Over The Counter (OTC) Desks: The Solution
The concept of OTCs does exactly what it sounds like. An alternative to an open order book exchange, it allows customers to trade directly with each other with personalised attention. Similar to walking into a store and getting dedicated support for your needs. With Vauld's OTC Desk, we now have the most trustworthy way of executing large trades. Let's understand why.
The OTC way of trading takes place between two individuals, without the limitations of an open order book exchange. OTC desks do not ask traders to pay a hefty amount for the trade. Orders are executed quickly, and without going public on an exchange. This has naturally allowed it to gain real trust in the cryptocurrency industry.
The way Vauld's OTC Desk works is simple and efficient:
- Traders' desired prices are exposed to large sellers who can "actually" fulfill them, either partially or best case scenario - even completely.
- And all of this is usually instantaneous. A good reason to not stress over your orders and their fulfilment.
Imagine you have a certain amount of INR you could turn into BTC. Typically, even orders worth a few lakhs can take several minutes to hours to execute on exchanges. But with Vauld OTC, in addition to servicing your request at a rapid pace, Vauld also ensures an end-to-end transaction closure, with the best rates, liaising with other merchants, and even recommendations and insights. In short, with Vauld’s INR-rich platform, you get the most out of every deal. With a large section of the market relying on an experience as fragmented as WhatsApp, Vauld’s OTC desk, with its tech integrations and collaboration with global OTC brands, is the solution we’d been waiting for.
Large players who are willing to sell large amounts of coins have understandably popularized this method. Even high profile investors trading other assets deem OTCs worthy of use compared to trading on an exchange. Take Nestle or even Bayer for an example. Both firms have had their shares traded on OTC platforms.
In conclusion, there is understandable demand for this new way of dealing with cryptocurrency, and Vauld is well positioned to not only meet these needs, but also add real value by combining great customer service and tech integrations for a truly memorable trading experience. The concept itself isn't new, with some estimates stating higher daily volumes on OTCs than most major exchanges existing out there. With Vauld, the numbers are now backed by customer trust and delight.