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OTC Trading

OTC Trading

 

Over the Counter trades offer an exchange of values between different peers without using an exchange. They are often used by insitutional investors. Crypto Core specialized on OTC Trading for the cryptocurrency market.

 

Why to use OTC trades

OTC trades offer a wide range of advantages compared to typical exchanges.

  1. Larger amounts can be traded without market impacts like price falls or increases
  2. Efficient for large trades
  3. Own choice of business partners
  4. Transparency of the trading process

 

OTC trades open the cryptocurrency market for institutional investors. Although, they bring technical and legal challenges with them. Therefore, Crypto Core developed a secure method to execute OTC trades worldwide between any party.

The trust in OTC trades

Over the Counter trades between different peers bring up the problem of trust. If you want to buy or sell cryptocurrencies to a third-party directly without the intermediation of an exchange, you need to trust the other party to act faithfully.

Crypto Core inherits the role as a third-party, connecting the buying and selling side while providing the necessary trust between them. Since we act according to law and industry standards of financial transactions with the support of lawyers and notaries, you only have to trust us and not any other third-party.

Classical OTC Trades

 

OTC Trade without Crypto Core (untrusted parties)

The trade is executed directly between the Buyer and Seller of cryptocurrencies. If one of the parties does not act faithfully, the other will be frauded.

 

OTC Trades with Crypto Core

Crypto Core provides the trust between the parties. Transfers both of money and cryptocurrencies are only executed through Crypto Core, meaning that you do not have to trust the other party at all. We store your assets securely, and if any problem with the other party occurs or the trade is not executed, you are protected.

 

How does Crypto Core offer OTC Trading?

We closely work with lawyers and notaries combined with our extensive knowledge about cryptocurrencies. Therefore, we are able to bring compliant trades with cryptocurrencies into practice.

Being more specific, Crypto Core makes use of so-called MultiSig wallets that only allow to access the cryptocurrency funds if multiple parties agree on it. We developed a technique based on MultiSig wallets which ensures that at every point in time, only eliegable parties can access the funds. For example, not even Crypto Core as the Intermediary could move the funds alone. Crypto Core can only perform the transactions with the notaries together, resulting in a very high safety due to the technically ensured fund protection.

Acting on legally bound processes

We are working together with excellent and renowned Auditing specialists and lawyers that ensure the legal processes.  Our partners are experienced in their field for many years and build up a deep understanding of how trades are working and are able to facilitate Blockchain based trades. It enables you, the other party and us to act on a legally-binding basis.

How your funds are transferred and handled is specified on a contract basis and you have the transparency of the whole process. We have already developed contracts for OTC Trades, so this effort can be kept very small.

The involved parties in an OTC Trade

What happens if technical problems occur?

1. Selling Cryptocurrencies

Once you transferred the cryptocurrencies to us, the funds are stored in a wallet protected by our MultiSig based technique. If one of the parties that is able to access the funds loses the key, it is still possible for the other parties to protect the funds from being lost.

2. Buying Cryptocurrencies

Once you transferred the fiat money to our bank account, the transfer is recorded as a usual bank transfer. Therefore, Crypto Core accesses the bank account in collaboration with our notaries to ensure only eliegable transfers are executed.