Bitcoin OTC Australia: 5 Tips to Get Started

March 31, 2022April 10, 2022 Editor

Australia is one of the very few countries that has legalized cryptocurrency investment. As a result, recent data indicates the number of people owning cryptocurrency in Australia has risen significantly. As per the latest data, around 21.1% of Australians own bitcoins.

What Is OTC?

Many cryptocurrency exchanges allow over-the-counter trade of cryptocurrency assets. OTC is the short form for Over Counter trading. OTC trade is an exchange of cryptocurrencies between two parties where one of the parties is a desk. In OTC trading, both parties agree on a price that might be lower than the market price and transfer cryptocurrencies between themselves.

The OTC trade is not always buying cryptocurrency with fiat currencies. Parties can also exchange two different cryptocurrencies. For example, one party may sell bitcoins to another party to get ETH coins. Both parties decide the volume and the value of the OTC trade, and the cryptocurrency exchange has no say.

In OTC cryptocurrency trading, high-net-worth individuals place large orders, and cryptocurrency traders contact the interested buyer for the deal.

Here are five tips to get started:

Sign Up

Recent data indicates the price of one bitcoin is equivalent to 53,922.14 AUD. First, you need to register at the Bitcoin OTC Australia exchange for Bitcoin OTC trading by providing your basic information and identity proof. When you sign up on the exchange, you also get a cryptocurrency wallet that can be used to store your cryptocurrency assets.

If you have any bitcoins stored in your hardware wallet, you can transfer them to your online wallet and start trading.

Onboarding

In 2020, around 18.4% of Australians owned cryptocurrency, and in 2021, the figures rose to 28.8%, a staggering 10% rise. For over-the-counter trading of cryptocurrencies, you need to go through the onboarding process of the cryptocurrency exchange that involves the highest level of personal verification to enable large transactions.

Users wanting to participate in over-the-counter trading must provide various types of documentary proof like Government ID, address proof, and income proof.

Communicate

After you have completed the verification, you can open a line of communication to show your trading interests. Every Bitcoin OTC Australia exchange has a trading desk that accepts over-the-counter trade interests.

For example, you can tell the desk that you want to buy 100 bitcoins. The trader would reply to interest and mention that he would like to sell you 100 bitcoins at a price of $30,000 per bitcoin.

Confirm Trade

After the trader proposes the bitcoin price, you have two options – go ahead with the trade or reject the offer. If you agree to buy the bitcoin at the rate proposed by the trader, the OTC trade is confirmed, and the trader will ask for a deposit address where they would be required to send the bitcoins you purchased.

Complete the Trade

First, you need to send the payment to the cryptocurrency exchange. The cryptocurrency exchanges act as mediators to process the payments and prevent fraud. Once your payment is processed, the trader will send bitcoins to your cryptocurrency wallet along with a confirmation email, and the trade is completed.

Unlike other cryptocurrency trades, the exchange works as a facilitator in over-the-counter trade. The OTC trades happen in the open, and the trading prices can be seen scrolling at the bottom of the crypto exchange website.

Now that you know what Bitcoin OTC is, you can go ahead and register at a cryptocurrency exchange to participate in over-the-counter trading.