That's the challenge. that's why I suggest him to start with low level. to earn some reputation and than go with High transaction
How to become an OTC broker?
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I am assuming that websites like localbitcoins and bitcoin-OTC connect buyers and sellers, but where is the room for the︀ broker here? In a certain way, isn't localbitcoins and bitcoin-OTC the broker? Just like a︁ p2p exchange?
I am interested in setting up a service, not investing my own money︂ in the crypto market and trading. Would localbitcoins and bitcoin-OTC provide a platform wherein I︃ can link buyers and sellers and make $$$ as the market maker? Does OTC brokering︄ work by, for example, finding a buyer on one platform and connecting that buyer to︅ a seller that I find on another platform? Where do these independent, smaller-scale OTC brokers︆ interact with their clients and other brokers? From what you guys are saying, it sounds︇ as if becoming a successful OTC broker is all about networking.
I am interested in setting up a service, not investing my own money︂ in the crypto market and trading. Would localbitcoins and bitcoin-OTC provide a platform wherein I︃ can link buyers and sellers and make $$$ as the market maker? Does OTC brokering︄ work by, for example, finding a buyer on one platform and connecting that buyer to︅ a seller that I find on another platform? Where do these independent, smaller-scale OTC brokers︆ interact with their clients and other brokers? From what you guys are saying, it sounds︇ as if becoming a successful OTC broker is all about networking.
How do you think to compete with an OTC desk of an FTX who has billions︀ of liquidity and large institutional clients whilst offering low spreads and no additional fees (according︁ to its website)? It's much more than just networking on its own, FTX for instance︂ had to spend hundreds of hours learning how to execute these trades to minimize price︃ action in the markets.
What you are considering is just you being a middle-man between︄ two traders, which will therefore just happen on the open market, not adding any value︅ there (if I am wrong here, please explain your value proposition). Starting an OTC brokerage︆ is quite difficult by itself, even if you know all the ins and outs of︇ it.
What you are considering is just you being a middle-man between︄ two traders, which will therefore just happen on the open market, not adding any value︅ there (if I am wrong here, please explain your value proposition). Starting an OTC brokerage︆ is quite difficult by itself, even if you know all the ins and outs of︇ it.
Localbtc and similar websites only play the role of︃ an escrow agent. You need your own website to present what you offer. Localbtc has︄ a 1% fee the seller has to pay, too much for an OTC broker.
OTC brokers don't connect buyers and sellers, they are the buyer and seller. Don't know about︅ small scale ones to be honest, if your goal is to start a small OTC︆ broker then you have to get involved in what I mentioned previously, small trades won't︇ make you money.
OTC brokers don't connect buyers and sellers, they are the buyer and seller. Don't know about︅ small scale ones to be honest, if your goal is to start a small OTC︆ broker then you have to get involved in what I mentioned previously, small trades won't︇ make you money.
I get what your saying in regards to︂ this not being a smart business idea for me to follow. Right now I am︃ just very interested in how OTC brokers work and how one can on-ramp and off-ramp︄ large amounts of crypto without using a formal exchange.
Again, thank you very much for your informative response Diatessaron! What confuses me is︉ your statement that OTC brokers don't connect buyers and sellers, they are the buyer and︊ seller. Wouldn't this, by definition, mean that they are not brokers? Wouldn't they be more︋ similar to an exchanger? If you have the time, can you really describe how this︌ all works? I previously thought that OTC brokers merely connect buyers and sellers and then︍ collect a commission. But from what you're saying OTC brokers are more like professional, off-exchange︎ traders. I am honestly just trying to learn about how all this works, especially when️ it comes to on-ramping and off-ramping crypto. Now I know that this is not so simple haha. Thanks again for all your help! If you have the time and its not a hassle, please explain more 🙂 .
Again, thank you very much for your informative response Diatessaron! What confuses me is︉ your statement that OTC brokers don't connect buyers and sellers, they are the buyer and︊ seller. Wouldn't this, by definition, mean that they are not brokers? Wouldn't they be more︋ similar to an exchanger? If you have the time, can you really describe how this︌ all works? I previously thought that OTC brokers merely connect buyers and sellers and then︍ collect a commission. But from what you're saying OTC brokers are more like professional, off-exchange︎ traders. I am honestly just trying to learn about how all this works, especially when️ it comes to on-ramping and off-ramping crypto. Now I know that this is not so simple haha. Thanks again for all your help! If you have the time and its not a hassle, please explain more 🙂 .
An exchange︆ is just a middle man between a buyer and a seller. An exchange does not︇ buy or sell coins. Order books are filled by random people who are buying and︈ selling. The exchange takes it's own fee whenever you sell or trade. So basically, when︉ you buy at Binance it's not Binance that sold you the coins, it's someone else︊ who also uses Binance.
Say Kraken OTC for example will buy from you right now︋ even if they don't have someone else they can sell to. That's because market conditions︌ are in their favor, chances of BTC going higher are high.
Say Kraken OTC for example will buy from you right now︋ even if they don't have someone else they can sell to. That's because market conditions︌ are in their favor, chances of BTC going higher are high.
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