When it comes to digital currency nowadays, I believe that most investors can talk about it. After all, digital currency can be said to be a topic that people talk about, but most investors only know that digital currency transactions are currency transactions. Fiat currency trading, contract trading, in fact, these trading methods are collectively referred to as on-exchange trading. There is also a digital currency trading method on the market, called over-the-counter trading, which is the OTCtransaction mentioned in this article. Then, what does the digital currency OTC mean?
What does digital currency OTC mean?
Bitcoin OTC transactions occur directly between two parties, one of which is usually a “counter” – a business dedicated to buying and selling specific asset classes. In an over-the-counter transaction, the two parties first agree on the price, and then transfer assets between the two. This direct medium of exchange is the main reason for the opacity of the OTC market-no one except the participants can understand the transaction price and the number of transactions, and various assets will be traded off-site.
In traditional markets, there are more over-the-counter transactions in US company stocks than Nasdaq and the New York Stock Exchange combined. Trillions of dollars of bonds, commodities, currencies, derivatives (such as the infamous mortgage securities during the 2008 financial crisis), and many other complex financial instruments are traded off the counter every year. The annual notional value of over-the-counter transactions of derivatives alone amounts to 600+ trillion U.S. dollars.
In short, the over-the-counter market is where most transactions occur in the global financial system.
Is Bitcoin OTC trading legal?
If it is not restricted to the country, it is strictly a blank area of supervision. this means:
1. No supervision
Over-the-counter transactions can only be seen by the regulatory side that one account in Alipay sends a sum of funds to another account or a bank account. But I don’t know what was traded. Moreover, the guarantor of many transactions is not restricted by the laws of a certain country. For example, Localbitcoins is in Finland, and it is useless for China and the United States to supervise.
2. You must pay attention to security when trading Bitcoin and beware of being deceived.
An investor was defrauded of 0.06 BTC when trading LocalBitcoins, which was worth 400 euros at the time. In fact, it is not the issue of the guarantor of the transaction, but the cause of Paypal. Because Paypal is not like Alipay and bank transfers, the transfer is the transfer. Paypal transfers can be withdrawn, so pay attention to avoiding this pit when trading Bitcoin. At least in terms of fiat currency transfers, you must choose an irrevocable way of payment.
At that time, I made a transaction on Paypal, because I didn’t trust Paypal much, so I immediately referred the Paypal money to Deutsche Bank after receiving it. Later, the payer engaged in a chargeback to withdraw the payment, and Paypal turned the investor’s account balance to -400 euros.
Friendly remind investors that when conducting OTC transactions, they must make a screenshot of the transaction payment. If the seller receives the money and does not release the digital currency, be sure to contact the official customer service in time to coordinate and solve it. At the same time, when selling digital currency, you must Bitcoin is released only after the payment is received. No matter what the other party has, as long as you have not received the money, you should never release the digital currency.
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