On January 23, 2019, Binance announced that they now offer crypto-to-crypto over-the-counter (OTC) services for customers. This means that larger amounts of crypto can now be traded at once and customers can have the transactions settled in their accounts instantly.
Advantages Of This Development
Thanks to this new announcement, Binance customers enjoy a new world of advantages. First, they can trade even larger amounts of crypto than they usually would have been able to. In the past, due to volume limits, they would have had to break their desired trade into smaller transactions.
This meant that each trade could be at a different price than others and in some cases, it would cost them money. With this new feature, they can trade all the crypto they need in a single volume and at a single price.
The order books are also unaltered in this process, affording the user some level of privacy. On top of this, there is no need for multiple cryptocurrency wallets as the balance is settled in the user’s Binance account.
Considering that Binance offers over 80 Cryptocurrencies, there will be many options for customers to choose from.
Despite all the new advances of crypto OTC trading, there are some limitations to conduct a trade.
First, not all traders on all levels are able to use this feature. Only Level 2 (verified) account or higher can access this feature.
The trade in question also has to be above about 20 BTC to qualify.
Recognizing The Need
This feature has been a long-requested one from Binance Users and reflects a shift in the habits of crypto users.
While there are certainly traders who deal in smaller amounts, those who wanted to trade larger amounts of crypto found themselves at a disadvantage and would have had to conduct multiple transactions with multiple wallet addresses before their trade could be completed, spending extra time and money in some cases.
Also, considering how unpredictable the Cryptocurrency market has been in the last few months, the time between completing one order and then processing the second one could mean a significant amount of money is lost in the process.
With this, the process is much more seamless and with the balancing of transactions taking place in the user’s account, the trade summary can be seen at a glance with ensures privacy.
Hopefully, this move by Binance will trickle down and with time, and more exchanges will begin offering crypto-to-crypto over-the-counter (OTC) trading.