Binance has recently launched the OTC Trading Portal following months of development. This portal, which will accommodate large crypto block trades, represents the evolution of Binance’s growing service suite for large-scale crypto users.
Through the Binance OTC Trading Portal, traders can request for quotes (RFQ) on-demand 24/7. Once traders like the rates they see, they can proceed to confirm trades and receive quick settlement directly into their Binance account.
Making a large block trade on exchanges can be difficult. The order book may not be thick enough, causing slippage, and you could cause big wicks on the chart, tipping off other traders.
A key advantage of using the portal is that it will generally offer better prices for making large crypto block trades, compared to doing a market buy/sell on the exchange, and prices will normally get better in comparison to the order book the larger the size of the trade is. This is because the order book will start to thin out, causing more and more slippage. Small-cap / low-volume coins are hit hardest by this and it can often be very difficult to buy/sell even relatively smaller amounts.
To combat this, traders will sometimes trade smaller sizes and wait patiently for the order book to fill out or leave limit orders hoping they will get filled. The problem with this is that traders are now taking more and more market risk the longer they wait. Basically, the markets could turn against you while you are waiting for the order book to fill out / bids to get filled, leaving you with an even worse execution price. By using the trading portal, traders lock in prices the moment they accept the quote, protecting themselves against this risk, and they also won’t have the hassle of having to spend time constantly watching prices.
There will also be no drastic wicks on the chart, as the portal will use algorithms to unwind the trade without any significant impact on the markets. Traders will still be able to receive quick settlement (usually instantly) directly into their Binance account. As trades are settled directly into users’ accounts through the Binance ecosystem, there is no blockchain transaction, no third party, and users will have the same security as on the Binance exchange.
The Binance OTC Trading Portal currently supports the trading of 25 different coins and tokens, with plans to add more in the future. To use this portal, users simply need to have a KYC verified (level 2) account on Binance.com to begin trading an equivalent value of 10,000+ USDT (minimum trade size) worth of coins.
To complement our new platform, our dedicated team of OTC traders will continue to give you the best prices and recommendations for more crypto-asset options.
If you have questions, please read our tutorial and FAQ here or reach out to us via email at firstname.lastname@example.org or to one of our authorized traders on our Telegram channel. If the coins you want to trade (must be listed on Binance) are not on our portal, please reach out to us as well and we can provide a quote manually.
Start trading on the OTC Trading Portal now!