USDT OTC vs. Regular Trading: Which One Is More Profitable?

Bittime - In the world of cryptocurrency, Tether (USDT) is one of the most popular stablecoins used as a medium of exchange and store of value. 

When trading USDT, there are two main methods used by traders and investors, namely through OTC USDT and regular trading on the exchange. These two methods have their own characteristics, advantages and disadvantages, which can influence trading strategies and results.

In this article, we will discuss in depth what OTC USDT trading and regular trading are, how they work, and which one is more suitable for your needs.

What is OTC USDT Trading?

OTC (Over-the-Counter) trading is a method of buying and selling USDT that is carried out directly between buyers and sellers, without going through a crypto exchange such as Bittime. This means that this transaction is not recorded in the public order book and is not influenced by price fluctuations on the exchange. 

At Bittime, OTC (Over-the-Counter) services are specifically designed to help traders and institutions who want to carry out large transactions in a more efficient, safe and flexible way. 

Compared to trading on an exchange, OTC transactions allow for more stable price negotiations without being affected by market volatility.

Bittime's professional team will help bring together buyers and sellers who have appropriate transaction needs, so that the trading process can run smoothly at more competitive prices.

Also read: What is OTC Crypto Trading and How Does It Work?

How to Trade USDT OTC on Bittime

1. Create a Bittime account
   To start using OTC services at Bittime, the first step you must take is to register a Bittime account and complete the KYC (Know Your Customer) process. This process aims to ensure transaction security and meet applicable regulatory compliance standards.
2. Contact the Bittime OTC Team
   After that, traders who want to buy or sell USDT in large amounts can contact the Bittime OTC team to get price information and transaction terms.
3. Counterparty Matching
   The Bittime team will look for suitable counterparties so that transactions can proceed according to the desired amount and price.
4. Price Agreement and Transaction Terms
   Once both parties agree, the final price will be locked and agreed upon, so traders don't need to worry about price fluctuations on the exchange.
5. Transaction Execution Process
   Once an agreement is reached, the transaction will be processed according to the approved payment method. 

Also read: Complete Guide to OTC USDT IDR Transactions on Bittime

Benefits of Trading USDT OTC on Bittime

Here are some of the main advantages of OTC USDT trading on Bittime:

• Not Affected by Market Volatility
  Because transactions are carried out directly between buyers and sellers, the agreed price remains stable and is not affected by price fluctuations on the exchange. This provides certainty for traders, especially in large transactions.
• Large Volume and High Liquidity
  Bittime provides an OTC service that allows large transactions without causing significant price movements in the market. This is perfect for financial institutions, whale traders, or large investors who want to avoid market impacts when buying or selling USDT.
• More Secure Privacy
  Unlike trading on an exchange which is recorded in a public order book, OTC transactions on Bittime are carried out privately. Trader identities and transaction details remain secure, providing additional security for users who prioritize confidentiality.
• Stable Prices and No Slippage
  In regular trading, large orders can cause slippage, where the execution price differs from the expected price due to changes in supply and demand on the exchange. With final prices agreed upfront, OTC trading on Bittime eliminates the risk of slippage, ensuring prices remain stable until the transaction is completed.
• Fast and Efficient Process
  Bittime offers faster transaction execution than regular trading, with settlement in just minutes after a price agreement is reached. This allows traders to get USDT at a locked price without having to wait for liquidity on the exchange.
• Personal Service with Professional Support
  Every user of OTC services at Bittime will get personal support from a team of professionals, who are ready to assist at every stage of the transaction, from price negotiation to completion of asset transfer.

Also read: Reasons Why Trading USDT on OTC Bittime is More Profitable, Come See!

What is Regular USDT Trading?

Regular USDT trading is a trading method carried out on crypto exchanges via order books, where all transactions occur openly and transparently. In this system, the USDT price is determined by supply and demand in the market, not based on an agreement between two parties as in OTC trading.

How Regular USDT Trading Works

1. Entering Orders
   Traders choose whether to buy or sell USDT on the exchange by determining the price and quantity of the desired asset.
2. Order Entry into the Order Book
   After an order is entered, the exchange system will record it in the order book. The order will wait until another trader is willing to take that price.
3. Order Execution
   If another trader agrees with the price offered, the transaction will be executed automatically according to the exchange mechanism. Unexecuted orders will remain in the order book until the price is met or canceled by the trader.

Benefits of Regular USDT Trading

Below are the advantages of regular USDT trading on exchanges:

• Easy Access for All Traders
  Regular trading is available for all types of traders, both beginners and professionals, with no minimum transaction restrictions. You can buy or sell USDT in small or large amounts according to your needs.
• Fast and Automatic Execution
  Crypto exchanges use automated trading systems, which allow transactions to be completed within seconds or minutes, depending on market conditions and available liquidity.
• Transparent and Real-Time Pricing
  All prices in regular trading can be monitored directly via the order book. Traders can see the best price to buy or sell USDT based on current market conditions.
• Various Order Options
  Traders can choose various order types to optimize trading strategies, such as:
  • Market Order (instant transactions according to current market prices)
  • Limit Order (orders are only executed when the price reaches a certain point)
  • Stop-Limit Order (automatically sell or buy when the price reaches a certain level)

Which is more suitable for you?

If you are an institution or whale trader who wants to buy or sell in large quantities without disrupting the market, OTC trading could be the best choice. In addition, this method is more suitable for those who prioritize privacy and want to ensure prices remain stable without high fluctuations.

However, if you are a retail trader or beginner who wants to trade small amounts, regular trading on the exchange is more flexible and easier to access. With faster order execution and high liquidity, regular trading provides traders with the opportunity to profit from market price movements.

Conclusion

USDT trading can be done via OTC or regular exchanges, depending on the needs and strategies of each trader. OTC trading is more suitable for large transactions with stable prices, while regular trading is more flexible and easily accessible to all traders.

Before choosing a trading method, make sure you understand its advantages and disadvantages so you can optimize a trading strategy that suits your needs.

FAQ

What is OTC in crypto?

OTC (Over-the-Counter) in the crypto world is a trading method that allows buyers and sellers to make direct transactions without going through a public exchange. Usually, these transactions are used for large amounts and are facilitated by brokers or special OTC platforms to avoid price volatility in the market.

What is OTC price?

OTC price is the price agreed between the buyer and seller in an OTC transaction. In contrast to prices on the exchange which continually change based on supply and demand, OTC prices are more stable and are determined through negotiations between the two parties before the transaction is carried out.

What are the advantages of using USDT OTC services compared to traditional exchanges?

OTC (Over-the-Counter) trading is carried out directly between two parties through a broker or OTC platform without going through an exchange. Meanwhile, regular trading is carried out on crypto exchanges using an order book mechanism, where prices are determined by market supply and demand.

Are there any additional fees in OTC USDT trading compared to regular trading?

Usually, OTC trading has larger spreads than regular trading, because prices can be negotiated directly between buyers and sellers. Meanwhile, regular trading on the exchange charges transaction fees (trading fees) which are usually smaller but still depend on the trading volume and policies of each exchange.

What are the minimum and maximum limits for OTC USDT trading?

The minimum transaction for OTC on Bittime is IDR 50 million. For more information regarding minimum and maximum limits, contact the Bittime OTC team.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Author: RC