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Why you are better off dealing through FiveWest’s OTC desk than through a crypto exchange

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There are 7 good reasons to trade cryptos through an OTC desk rather than a normal exchange. FiveWest’s CEO Omer Iqbal explains.

1. Minimie price impact

FiveWest’s crypto OTC desk provides greater liquidity compared to traditional exchanges. This is particularly beneficial for institutional investors and high-net-worth individuals who may be looking to conduct large trades without affecting the market price. Normal exchanges typically lack the liquidity to execute sizable transactions smoothly.

2. Reduced slippage

Slippage is the difference between the expected price of a trade and the executed price, and it can significantly impact the profitability of a transaction. Someone wanting to purchase (or sell) 50 or 100 bitcoin on a normal crypto exchange may wait days for that order to be fully executed, and it would be filled at many different prices. “We’ve got vast expertise in handling large crypto trades, so that minimises any potential price slippage that could occur on an exchange,” says Iqbal.

**3. Faster settlement times **

FiveWest offers expedited settlement times, ensuring that your trades are completed swiftly and securely. Traditional exchanges can sometimes experience delays in settling trades due to operational and other inefficiencies. This can be frustrating for clients trying to capitalise on time-sensitive market opportunities. Iqbal says FiveWest’s OTC desk offers expedited settlement times, meaning trades are cashed up and the proceeds (whether in cash or crypto) secured in record time.

**4. More settlement options **

Relying on its own facilities and its network of partners, FiveWest is able to settle trades in different global currencies, or cryptocurrencies, across any blockchain.

**5. Enhanced privacy **

For institutions and high-net-worth individuals, confidentiality is crucial when it comes to cryptocurrency trading. By using the OTC desk, large transactions will be kept off public order books, which means trading activity remains discreet and less susceptible to being targeted by other market participants.

**6. Customised solutions **

Clients have different reasons for acquiring or selling cryptos, and many need personalised service and individualised trading solutions. This level of customisation is not available on traditional exchanges, where you are limited to pre-defined trading tools and interfaces.

**7. Access to experts **

FiveWest has arguably the largest pool of crypto talent in SA, and that’s a critical lever when it comes to developing a crypto trading strategy. Clients also require specialised insights into the broader crypto eco-sphere, such as tax and legal implications, the risk profile one can expect when investing in cryptos, and the evolving number of use cases for cryptos.

Published: 24 May 2023Over-The-Counter or OTC desks are nothing new in financial markets. They’ve been a part of stock trading for decades, allowing investors to fill large orders at low cost and without slippage (price variations that occur when a large order is broken up into smaller ones).
Ciaran Ryan

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