OTC789 Review by professional crypto currency trading experts the “ForexSQ” FX trading team, Everything you need to know about the broker is in this OTC789 Review.
OTC789 is a service which connects buyers and sellers of digital asserts. We would not actually use the world exchange, as trading is done in a Peer to Peer fashion instead of a t an actual centralized trading venue. OTC comes from the term Over The Counter, which means exactly this – trading directly with your counterpart instead of going through an exchange. That being the case, this offer has some interesting specifics which will cover below.
P2P model – the main benefit of trading with such a company is the fact you are dealing with the seller directly. This keeps the traditional spirit of Bitcoin – being a means of exchange, where the blockchain technology is the only necessary reassuring factor. That being said, we have some issues with the business model provided by OTC789.
No fees on some trading – OTC789 states buying and selling “without advertising” is free. We are not entirely certain what that means, as another unpopular website is listed as the place where one could advertise. Otherwise, most transactions are charged with a 1% fee. This is high for a centralized exchange, but in-line with the offers of other P2P ones.
Some altcoins – for a P2P project, OTC789 is offering a decent variety of markets. While liquidity is basically non-existent at the time of writing, the list of digital assets includes: BTC, CK.USD, CNET, LTC, DOGE, BCH, ETH, QTUM, ETC, USDT, DCON.
Tips on security – this company offers advice to newcomers regarding the transaction process. This isn’t provided everywhere, but to be honest most exchanges aren’t as complicated as this one.
Four payment methods – despite being China-centric, some of these options can be used from everywhere. They are: AliPay, Epay, Bank Transfer and WeChat Pay.
Not a true P2P– in order to trade at OTC789 one must create an account and use a wallet provided by the company. This basically defies the purpose of P2P trading – there is still some central authority which has access to your wallet.
Offshore company – OTC789 is registered on the British Virgin Islands. We have no information on the team behind them. The combination of these two factors leads us to have a healthy distrust for the entire project.
Trouble registering – we weren’t able to register an account at OTC789, as several e-mail addresses didn’t receive a verification code. This may be a temporary issue, as the project is rather new.
Low volumes – at the time of writing the only offers placed at the exchange were placed by the company itself. Again, the project may have simply not gained popularity yet.
“Tether” tokens – while fiat currencies are exchanged at OTC789, they could be used to buy two tokens representing them – USDT and CK.USD. While the former is not that famous, most of you have probably heard of the legal trouble Tether has experienced. The short version of the story is that this company, which “mints” coins, backed by real dollars may not actually have enough cash for all the created coins. This leaves to a bit of distrust towards all similar assets.
No real trading platform – a very small number of peer to peer exchanges provide an actual platform, with charting. This is not that surprising, as this is an entry level company, allowing one to buy crypto with his fiat currency.
No leverage – it should be quite obvious at this point, that there is no way to aggressively trade at OTC789. This is more of an exchange bureau, than a trading venue. If you are only looking to trade the most popular coins for the price movements, doing so with a Forex broker is a better option.
These companies are used to providing great leverage ratios to their fiat currency traders. While the levels are lower for digital assets, they are still better than what you would get at a crypto exchange. You must keep in mind trading is facilitated via CFDs – a synthetic instrument which only mimics the price dynamic of the underlying asset. For more details check our explanation.
OTC789 is an offshore “semi-peer-to-peer” digital assets exchange. The need to register a wallet at the website and only use it for your trading activity makes the entire endeavor meaningless. This project has the main negatives of a centralized exchange, while not providing its instant transactions. If you are looking for a better P2P service look at bisq or bitcoin.de.
The cryptocurrency space is mostly unregulated. And while some enjoy that, it is a definite issue for others. Those of you who are willing to trade with Bitcoin in a more secure environment should consider a forex broker. That being the case, some of them can also be quite untrustworthy. Check the link below to learn more about regulation in the financial system.
OTC789 Review Conclusion
For more information about crypto currency trading brokers visit TopForexBrokers.com crypto brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about OTC789 Review.