OTC: what you need to know

What is OTC?

OTC (over-the-counter) refers to trading outside traditional exchanges. Instead of using a public order book, buyers and sellers agree directly on the terms of the deal — such as price, payment method, deadlines, and conditions.

In traditional finance, OTC is an alternative route for assets and companies that don’t fit strict exchange requirements. In crypto, the logic is similar: OTC trading allows you to buy and sell digital assets outside public exchanges, often with more privacy, more tailored execution, and better handling of large orders.

Ok, but how does it work in practice?

OTC deals happen in environments where buyers and sellers connect to negotiate offers and conditions. This can be done through:

• OTC platforms (P2P/marketplaces) that connect both sides and help ensure the terms are respected.
• OTC desks, which negotiate directly with clients — sometimes using their own liquidity, sometimes acting as brokers.

The typical flow looks like this:

1. You find an existing offer or create your own with specific terms.
2. Both parties agree on price, timing, payment method, and other details.
3. The transaction is recorded and monitored to ensure the agreement is fulfilled.

On OTC platforms, the main role is to facilitate and mediate: they connect users, add safety layers, and can help resolve disputes.

OTC desks usually operate in two ways:

• Principal (using own liquidity): they buy/sell using their own funds.
• Broker (intermediary): they match counterparties and charge a fee.

OTC desks are often preferred for large trades because they can reduce market impact and provide more discretion and speed — especially during volatility.

Who is it for?

OTC is widely used by large investors, companies, and institutions that need to trade significant volume efficiently. For example, buying 1,000 bitcoins on an exchange can be difficult (or costly) due to liquidity, slippage, and price impact. OTC tends to be more direct and often more efficient.

Examples:

• Scenario 1: Alessandra 🧑 wants to sell 15,000 Tether for USD. She posts an offer on an OTC platform and receives two proposals. After negotiating, she chooses the best one. Once completed, the platform confirms both sides met the terms.

• Scenario 2: Daniel 🥸 needs to buy a large amount of USDC for his company. He contacts an OTC desk for a quote based on volume and market conditions. Then he negotiates FX rate and payment method. After the agreement, the desk coordinates fund transfer and USDC delivery as agreed, avoiding the typical complexities and volatility of exchanges.

Quick Q&A

• Can you buy any crypto via OTC?
  Generally yes — as long as there’s a counterparty selling that asset.

• In a few words, how does crypto OTC work?
  Buyer and seller agree on terms, and the platform/desk helps execute and secure the trade.

• What’s the minimum to trade OTC?
  It depends on the provider. Some require large volumes; others have more accessible minimums.

How to trade OTC in Brazil?

If you’re considering OTC in Brazil, the key is working with trusted companies. At Coin Nodes, we offer secure OTC trading, competitive pricing, and integrity — with transparent processes and a strong focus on investor protection. Get in touch for a quote.

Before entering OTC — in traditional finance or crypto — prioritize reputation, compliance, and careful analysis. Diversification and risk management remain essential in a dynamic market with fewer standardized rules.