Recently the cryptocurrency market has been showing some positive upwards movements after hitting yet another yearly low on the 14th of August. Most alts have found their bottom on that date and have seen a small price increase.
After I sold some Bitcoin and Ethereum through a brokerage firm that converted BTC and ETH to my local fiat currency, I was surprised at the amount of money that was lost between the BTC and ETH price at the time of selling and the amount I received in my bank account. I had to pay a premium to buy Bitcoin and I get penalized when I sell Bitcoin through the broker, so I started looking into over-the-counter (OTC) trading to cut out the expensive brokerage firm.
After doing my research I discovered a safe way to trade Bitcoin and other cryptocurrencies OTC through a subsidiary of Huobi group, called Huobi OTC. If you already have an account at Huobi Global/ HADAX you can use that same account to log in to Huobi OTC. If you do not have an account yet, you can register here or on the Huobi OTC website.
➡️ OTC trading is executed through a peer-to-peer platform where investors and traders can agree on the transference of (digital) assets. OTC trading platforms are mostly used by high quantity investors/traders and investors/traders that are unable to transfer fiat currency like Dollars, Euro, Yen or Yuan into cryptocurrencies. Investors that look for an alternative to expensive cryptocurrency brokers are also likely to use an OTC trading platform.
Pro’s to trading OTC are: You can negotiate on a specific exchange rate, it’s pretty anonymous, you can use fiat currency to buy crypto and OTC trading is decentralized.
Cons to trading OTC: You usually do not get support if you need it, you can get scammed if you trade OTC face-to-face, you have to setup a wallet beforehand to get your cryptocurrency delivered and by trading OTC face-to-face people can use counterfeit money.
This article is dedicated to provide specific information on how to trade on Huobi OTC.
➡️ First you will need to register a new account or log in to Huobi OTC by using your Huobi Global or HADAX trading account. After you have logged in you will need to register a password and a name that you will use to view and post ads on the platform.
After you have logged in and setup a name and password for the ads, you can deposit funds into your Huobi OTC account. An amount of these funds will be frozen as a security deposit for when you want to buy coins OTC. When the account is funded you can start by creating an ad to sell your coins. You can also use your funds to buy coins from ads that are on the platform. After you click on an ad to buy coins, you have a specific time window in which you will have to deposit the funds. These funds will be held in escrow by Huobi until both parties have fulfilled their commitment. After the buyer has paid the amount agreed upon and the seller has deposited the coins into the Huobi OTC escrow account the transaction can be executed and finalized. An added benefit to this platform is the customer support.
Huobi OTC currently supports the trading of the following digital assets: BTC, ETH, USDT, EOS and HT.
Check out this video and learn how to trade cryptocurrencies on Huobi’s OTC platform.
A written overview of how to trade Huobi OTC can be found here.
➡️ How to post a buy or sell advertisement on the Huobi OTC platform?
After you have deposited funds into your account with the minimum amount of 0.01 BTC that is in your Huobi OTC account at all times and you have been verified through the ID verification process, you are approved to place advertisements on the platform. Unfortunately this campaign does not apply to Chinese citizens. The maximum amount of each advertisement has a cap of 2 BTC/ 20 ETH/ 20,000 USDT/ 2000 EOS/ 5000 HT. If you would like to place larger ads you can apply to become a Verified Merchant.
To place an ad, click on create ad, choose whether you want to buy or sell and select the coin. You can also select your local currency here. In the next steps you can select the price, minimum and maximum buying or selling amount, the volume and the time people have to transfer the money/ coins to you. In the next window you can select payment options from a long list of different options, like Alipay, Paypal, bank transfer, Swift and WeChat. In the last step you can set a filter on the counterparty risk.
After entering your password to confirm the add and agree to the terms and conditions, you are all set and you can click, post ad.
➡️ Huobi OTC official Telegram channel: https://t.me/huobiotcofficial
Huobi OTC official website: https://otc.huobi.com
You can also trade Huobi OTC through the official iPhone and Android Huobi OTC app: https://otc.huobi.com/en-us/client/
➡️ Full disclosure: This article is not intended as investment advice. It is just my personal opinion about Huobi OTC. You should always do your own research. Huobi Global rewards me for writing this article and supports me for ventilating my own personal opinion.
Subscribe to my channels Steemit, Medium and Twitter if you like my articles and would like to be informed about Blockchain, cryptocurrency projects and news. You can also read my articles on LinkedIn.
If you have any questions about this article, please comment in the comment section below. Thank you!
Create your free account to unlock your custom reading experience.