What Are OTC (Over the Counter) Transactions in Crypto: A Complete Guide for Beginners

Transacting large amounts of crypto assets can often be nerve-wracking. Prices on the market can easily shift, orders may be difficult to fully execute, and fees can balloon. This is where OTC, or Over the Counter, trading becomes a solution.

Through OTC services, buyers and sellers can trade directly at a pre-agreed price, in a calmer and more private way.

We will explain what OTC transactions are, how OTC trading works in crypto, its advantages and risks, and tips for choosing a safe service. That way, you can manage your crypto assets more comfortably and in a more structured way.

What Is OTC (Over the Counter) Trading in Crypto?

OTC (Over the Counter) transactions in crypto are the process of buying and selling crypto assets that takes place outside the regular spot exchange order book. This means the trade does not appear as a public order on the market, but is carried out directly between buyer and seller through a professional intermediary, such as the OTC desk of an exchange.

This scheme is widely used by institutions, whales, or investors who want to buy or sell in large amounts without disturbing the market price.

In OTC services, the price is usually negotiated in advance. Once both parties agree, the assets and funds are transferred in a measured manner and according to procedure. This process helps reduce slippage, namely the large difference between the expected price and the execution price.

In addition, OTC also provides flexibility because it can adjust the payment method, asset pairs, and settlement time according to the agreement.

The main characteristics of OTC transactions in crypto:

• The transaction value is usually large, suitable for institutions or high net worth individuals
   
• The price is agreed privately through negotiation with the OTC desk
   
• The risk of moving the price in the spot market is lower
   
• The process is supervised by a professional team so that know your customer and anti-money-laundering procedures remain in place
   

Read also: 7 Effective Ways to Trade Crypto for Beginners, Complete with Tips and Tricks

When Should You Use OTC Transactions?

OTC transactions are usually chosen when investors want to maintain price stability and convenience in managing their crypto assets. For example, a company that wants to enter a particular asset in a large amount certainly does not want its orders to make the price chart spike sharply.

With OTC, everything can be planned more calmly, without having to break the order into many small parts on the regular market.

In addition, OTC is also useful when investors want to exit a large position neatly. Selling directly on the public market can cause the price to drop, harming the seller and potentially triggering panic.

OTC helps create a more controlled selling scheme. For retail investors, OTC services can still be attractive if they want to conduct transactions in amounts higher than usual, with guidance from a professional team.

Common situations where OTC transactions are very useful:

• Initial purchase of crypto assets for a company or institutional treasury
   
• Rebalancing a portfolio in large amounts in order to keep market prices stable
   
• Selling assets from mining, staking, or business activities that have accumulated in large amounts
   
• The need for rapid conversion from crypto to fiat or vice versa with the support of dedicated customer service
   

Read also: Crypto Trading Strategies for Beginners: Don't Do This!

How to Trade OTC in Crypto and Safety Tips

The method of transacting OTC in crypto is actually quite simple as long as you choose a trusted platform. In general, the process starts with submitting a request to the OTC desk, specifying the asset, amount, and currency you want to use.

After that, the OTC team will provide a price quote. If it is accepted, both parties follow the payment and asset delivery instructions according to the agreed procedures. Everything is carried out under the supervision of a team that ensures the funds and assets arrive safely at their destination.

For users in Indonesia, choosing a platform that already has a good reputation and complies with regulations will make the process much more comfortable. Also make sure you understand the minimum transaction requirements, the types of supported assets, and the estimated settlement time.

With this preparation, OTC transactions can become an efficient way to manage your portfolio, especially once the transaction values have become sizeable.

General steps for making OTC transactions in crypto:

• Choose a trusted OTC platform, for example the OTC service on Bittime
   
• Contact the OTC team and convey your transaction needs, the type of asset, and the amount
   
• Receive the price quote, then confirm if it is acceptable
   
• Follow the instructions for sending funds or assets according to the platform's procedures
   
• After settlement, check your balance again in your account or wallet
   

Security Tips for Using OTC Services

Security remains the main priority when conducting OTC transactions. Even though the process is assisted by a professional desk, you still need to understand the flow and ensure that you only transact on official platforms.

Avoid making OTC transactions directly with unknown parties without escrow or clear safeguards. In addition, make sure all communication regarding price, amount, and wallet address is neatly recorded to avoid technical errors.

When choosing an OTC service, also pay attention to customer service support. A responsive service that is easy to contact will help if there are technical issues or transfer delays.

Do not forget to enable additional security such as two-factor authentication on the exchange account you use. With a combination of a trusted platform and safe user habits, OTC transactions can be a convenient way to manage large assets without unnecessary drama.

Important security tips for OTC transactions:

• Use official OTC services such as Bittime OTC, which are overseen by a professional team
   
• Ensure all transaction details are confirmed in writing before sending funds
   
• Avoid sharing login data, OTP codes, or private keys with anyone
   
• Double-check the destination wallet address before sending crypto assets
   
• Keep transaction records for portfolio audit purposes and personal financial reporting
   

Conclusion

OTC (Over the Counter) transactions are a practical solution for those of you who want to buy and sell crypto assets in large amounts in a calmer and more orderly way. Through a professional desk, prices can be negotiated, slippage risk is reduced, and the fund transfer process is more controlled.

By maintaining security aspects and choosing a trusted platform, OTC can become an important part of your portfolio management strategy.

If you are interested in trying OTC services, you can visit Bittime OTC to consult with the professional team. For your day-to-day trading activities, you can also make use of Bittime Exchange.

Do not forget to follow the latest updates and educational content about crypto on Bittime Blog so that your investment decisions are always supported by up-to-date information.

How to Buy Crypto on Bittime

Want to trade and buy Bitcoin and invest in crypto easily? Bittime is ready to help. As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the BTC to IDR, ETH to IDR, SOL to IDR exchange rates and other crypto assets to monitor today's crypto market trends in real time on Bittime.

In addition, visit the Bittime Blog to get various interesting updates and educational information about the world of crypto. Find reliable articles on Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge of the crypto world.

FAQ

What is OTC (Over the Counter) trading in crypto?

OTC transactions are the buying and selling of crypto assets outside the exchange order book, with prices negotiated directly through a professional desk.

Why do investors choose OTC transactions?

Because OTC helps reduce slippage, maintain price stability, and provide greater privacy when carrying out large transactions.

Is OTC trading only for institutions?

No. Although it is commonly used by institutions, some platforms provide OTC services for individual investors above a certain amount.

What is the difference between OTC and regular spot trading?

Spot trading takes place in the public order book, while OTC is carried out privately between the buyer, seller, and service provider.

Where can I make safe OTC transactions?

You can try the Bittime OTC service, which provides a dedicated desk for crypto asset transactions.