Over the Counter Crypto Trading Platform | A Comprehensive Guide To Crypto OTC Trading Platform Development

By Suffescom Solutions

March 24, 2022

In the last few years, the ever-changing digital world has witnessed the immense popularity of crypto exchange platforms. The fast-evolving cryptocurrency market has spiked over the counter trading (OTC) recently. Whether startups or well-established firms, numerous businesses are drowned by the OTC trend to offer a seamless trading experience worldwide and reap more benefits. Any business that strives to stay ahead of its competitors must start its own OTC exchange platform.

Undoubtedly, the over-the-counter trading mechanism has dominated the other trading platforms. OTC platforms have the power to facilitate bulk transactions at one time. OTC exchange offers security features that were lacking in the traditional system. The unique thing about the OTC platform is the OTC brokers who guide the sellers/buyers to set the price transactions, whereas the prices in traditional crypto exchanges are market-driven. So, we can say that the crypto OTC trading platform has revolutionized the crypto space for all good reasons.

Let's Understand the OTC Crypto Exchange

OTC stands for over-the-counter crypto exchange. The word counter reflects the digital assets or cryptocurrencies meant for exchanging on the platform via a dealer or the platform admin. The OTC platform allows the trade of bulk coins or currencies in one go which is not supported by the typical central exchange. The central exchange system has specific rules and conditions to trade. However, the OTC exchange is free from such limitations.

In other words, It is the simplest form of trading for the securities that are not listed on the central exchange if they do not meet the conditions. So, this exchange is carried out outside the formal exchange between the two parties. In the OTC crypto exchange, the exchange can be crypto to crypto (Bitcoin with Ether) or Fiat to crypto (US dollars for Ether and vice versa). The trade happens between the "desk" and another party (individual or institution) called the counterparty.

Who Are OTC Brokers?

The Over counter crypto exchange model is based on the broker-dealer network supported by the OTC brokers. An OTC broker negotiates with the buyers and sellers over a network. The main role of the OTC broker is to look for genuine buyers for the sellers for trading the assets. The special thing that makes OTC better than the traditional ones is the OTC desk. It does not offer the public order book listing all trades that enables it to move the larger amount smoothly without disrupting the market. Recently many big names have launched their own OTC desks to trade larger volumes in one go. For example, Coin base, Binance, Bittrex, etc.

Who Are Buyers/Sellers?

On the OTC platforms, high net worth traders are usually present with an anonymous identity. Nobody can know who is present on the OTC desk. Usually, the buyers/sellers are assets management firms, high volume professional traders who must trade a minimum of $25,000-$75,000.

What Are The Main Reasons to Invest In OTC Crypto Exchange Development?

The world is turning towards crypto, and every day there is something new to try to expand your digital business. If you are also on the same track, then building an OTC crypto exchange platform can open up massive opportunities for you to grow and make a remarkable entry into the digital space. Here we give you the most common reasons to start investing in the OTC crypto exchange development.

High Scalability

The modular architecture of the platform supports high scalability. Multiple cryptos are easy to handle at one time, customized features, API integration, consistent updates, and so on. There is no end to the list when it is about the exceptional functionalists of the crypto exchange platform.

Configurable

The configuration of the OTC exchange can be managed with the admin console. It comes with quality user control, the configuration of multiple currencies, etc. The smart contracts used to build the platform eases the configuration process also.

Business Ease

It is one of the top-class business models to generate high income and offer numerous benefits to the clients to engage them for the long run. The features that make this exchange model superior to the others have the power to revolutionize the way people perceive the crypto world. The OTC exchange platform can bring your digital business to heights as in the coming time, that demand will surely rise.

After knowing the great value and demand of the platform, no business person can resist opting for the idea to create his OTC-based crypto exchange platform. All the points mentioned above are important for entrepreneurs interested in starting their own OTC crypto exchange platform. If You have decided to own the OTC exchange platform, don't worry. Here, you will get the step-by-step procedure to launch a top-class OTC application for the crypto exchange.

Features Of The Premium OTC Crypto Exchange Platform

Various crypto exchange platforms are available already. Then what will make the difference? Why will people choose your platform over the others? The automated features, fast processing, and great responsiveness can win you more users and earn high revenue. 

Just launching a platform is not enough. Having a rich-featured platform is the key to success. So, put all your efforts while choosing the features for your application to get the maximum benefits. Here we have outlined the top features to include in your OTC broker desk:

Transaction Amounts: You need to specify the minimum and maximum trading amount to get the dealer's help. What are your trading needs depending on the amount? The platform should support this feature to ease the users.

Fees:  What should be the fee for every transaction made on the platform. You should select a pricing structure like whether you charge a flat fee or the amount will vary depending upon the trade size or other additional circumstances.

Sign up/Login: Sign up process is the first thing that the user needs to perform to continue further on the exchange. It should not be complicated but simple and clear. You can choose the KYC documentation and verification or go with the automated process for entity management. The automated identity checks reduce the delay times for verification.

Wallet Management: The OTC crypto traders can manage multiple crypto wallets at a single time using the OTC desks. The customers have to give the public keys better to know the portfolio/accounting of the wallet.

High-Level Security: The fully optimized OTC desks are compatible with high-end security devices. The OTC desks have two-factor authentication, database encryption, secure hosting for the wallets to keep away the malicious activities.

High Delivery Speed: The one-to-one communication feature of the OTC desks results in fast delivery speed. The high volume of orders can be processed in a few seconds.

Multiple Currencies: It should support the trading of multiple currencies like Bitcoin, Ripple, Ether, etc., to engage a wide range of customers on the platform. Your users should not feel that they are missing a currency on your platform that they are interested in trade-in.

Storage. Whenever a client looks for a trading platform, the biggest concern is the safety and security of the assets. Where will the broker store the precious assets? The client's funds should be fully protected with the platform.

 Customer support.   Robust customer support is also an integral part of a successful OTC crypto exchange. The users must get assistance for their queries and doubts at the required name without any interruption. There should be an easy way to get in touch with the broker anytime.

 Reputation and reviews. The feature for reviews and feedback allows the users to make the right decision. Positive reviews can help in building the reputation of the brokers.

You can consider these features while developing your OTC crypto exchange application to stand out in the competition.

OTC Crypto Exchange Development Process:

1. Requirement Gathering

The first stage analyzes the crypto market and demand of the OTC crypto exchange. Gather the requirements and make a thoughtful comparison with the current market. No matter the time, extensive research is necessary to meet market standards and customer requirements. When you have a perfect idea about the requirements and market parameters, you will be able to deliver an ideal product in the crypto exchange market.

2. Planning Development

Based on the requirements, the experts will craft a development plan dividing the whole project into small modules to complete on time and systematically. It is the stage to make your idea real using the latest and advanced technology stacks. Having a rich-featured platform is a challenging task as it needs a considerable amount of time and money. The developers can customize the solutions based on your needs and budget.

3. Testing

Rigorous testing is mandatory to deliver a high-quality product after completing the development stage. At this phase, the product is tested thoroughly, so there is no possibility of any error. Once you get the required reliability from your platform, you can launch it anytime in the market. Testing is the phase to rectify any error or malfunctioning, so full attention and dedication are required to deliver the error-free platform.

4. Deployment

Now the platform is ready for launch. It is when the final OTC exchange platform is allowed to operate in real-time as per the client's demand. Even after the deployment, if a product needs any upgrades and maintenance, the technical teams will assist you.

Reasons Of Choosing Our Over-The-Counter Crypto Exchange Platform development Services:

  • We hold years of experience in delivering highly advanced Over-The-Counter crypto exchange platform development services. 
  • We have a dedicated team with skilled professionals who are experienced enough to create flawless OTC exchange solutions.
  • Our high-end experience in OTC crypto exchange platform development enables us to provide you with the best service at the defined time. 

Final Thoughts!

With all these said, it is clear that crafting an entire Over The-Counter Crypto Exchange Platform without experts is not a wise move. It is highly recommended to leave the development job to the highly-experienced professionals. As the market is fully occupied with developers, you make sure to hire the OTC cryptocurrency exchange platform development company holding the right expertise. Having the support of an ideal group of professionals will prove vital in the long run. 

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