WhiteBIT OTC crypto trading is designed for large transaction sizes, which is a key execution factor. Buying or selling a large volume through a regular order book, an order can draw liquidity from different price levels. The OTC mechanics are different. The trade parameters are discussed directly, and the transaction happens outside the public order book. This format is noticeable where a standard market order stops being just an order and becomes a task of finding sufficient liquidity.
One large block instead of dozens of small executions
Crypto block trading can be illustrated with a simple example. There is a certain volume of BTC that needs to be executed in a single large transaction. In a public order book, this would require interacting with multiple counter orders. OTC crypto trading moves this process outside the open market. WhiteBIT specifies that conditions can take into account the transaction size, execution time, and payment method. Quotes are provided in real time. The service does not set a maximum limit on OTC trade volume. The typical minimum trade size is $100,000. However, the WhiteBIT page specifically mentions the possibility of negotiating individual terms.
What does a crypto trading desk do?
Instead of searching for orders in the order book, a crypto trading desk appears. Its specialists support the transaction and help agree on its parameters. WhiteBIT currently offers Chat Trading. After creating an account, the client completes KYC and KYB checks and then gains access to private communication with a dedicated manager. The next step is agreeing on and executing the trade. Automated RFQ (Request for Quote) is also offered by the platform, but is currently marked as “Coming soon.” This creates a different trading scenario: first a request and a quote, then confirmation of terms and execution.
Why Bitcoin is often associated with OTC
OTC Bitcoin trading clearly illustrates the essence of this market. BTC has high liquidity, but a very large order can still impact the available levels of the public order book. WhiteBIT claims that large-volume OTC transactions are executed with minimal impact on the market price. Trades are not posted to the public order book and are negotiated directly between the parties. Therefore, large volume crypto trading is a separate infrastructure challenge. Here, not only are the asset and the quote important, but also liquidity, confidentiality of execution, settlements, and pre-agreed transaction parameters. This is how OTC differs from the traditional spot trading interface: a large order is treated as a separate transaction, not as a queue of orders in the order book.
The above information does not constitute any form of advice or recommendation by London Loves Business for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency mining, trading and staking involves risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
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