Find me on Steemit: www.steemit.com/@heiditravels
Twitter: @blockchainchick
Instagram: @hheidiann
Bit.tube: RealCryptoTips
Check out the new hardware wallet Ellipal HERE: https://order.ellipal.com/?ref=5c08236b8e68e
Thinking about purchasing a Ledger Nano Hardware Wallet? Browse their official website: https://www.ledgerwallet.com/r/67ef
Want to join coinbase to begin your crypto journey? Here’s a link to get free $10: https://www.coinbase.com/join/558828d
LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW:
OTC basics: https://bitcoinexchangeguide.com/otc-bitcoin-tradings-impact-on-the-price-of-btc-and-cryptocurrency-tokens/
More details: https://blockonomi.com/bitcoin-otc/
CoinMarketCap: https://coinmarketcap.com/
BTC RichList: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
LTC RichList: https://bitinfocharts.com/top-100-richest-litecoin-addresses.html
Today let’s take a look at what OTC trading is, and how it can affect the price of Bitcoin.
OTC is a phrase you might have heard floating around this space, along with the implications that it’s this mysterious place where lots of BTC changes hands.
So right off the bat, OTC stands for Over the Counter, which means that they are trades that aren’t published on the public order books of crypto exchanges.
These trades are facilitated thanks to companies who work with institutional investors and whales.
Average OTC trades range from $75,000-250,000 but they can also certainly reach into the millions of dollars’ worth of BTC as well.
Some companies that offer these services include: Jump, Circle and Cumberland.
There are lots of reasons why a whale would want to conduct these trades over the counter instead of on a public exchange.
They might want to keep their identities out of the hands of something like a massively public centralized exchange. They might not want to immediately and directly affect the price of the coin they want to trade.
At this point you might be wondering how OTC trades are able to affect the price of BTC at all if they are indeed meant to be private.
Like it or not, whales play huge roles in determining the overall sentiment of the crypto markets. They can affect the markets intentionally, like the manipulation I explained in a past series. Or this can happen unintentionally just by their very existence. You can monitor the richest wallets of the coins that you are interested in and see what those wallets are up to. Are they accumulating? Are they decreasing?
Lots of people in this space are thirsty for any kind of indication for what the future holds in terms of price. Being able to decipher what is happening behind closed doors is something we are all able to do because remember, these are public blockchains. Well, most of them are at least.
So here are some basic tips:
Fast movements in price that coincide with news, roadmaps and things like this most likely aren’t the whales at work. Instead, look for slow growth in a coins market cap that is not also accompanied by growth in volume on the popular exchanges. If the market cap is rising, the whales are accumulating. If it’s shrinking, they are selling. Affirm these suspicions by also monitoring the richest wallets of the coin you’re interested in. See if they are accumulating or selling off and if this matches with what’s happening with the the market cap.
Heidi, can you do an update video on Decentralized Exchanges? I am looking for an anonymous way to trade crypto with other crypto and FIAT with a good amount of liquidity. Maybe I'm dreaming, lol.
Wow 100:1 that's part excellence, thanks.
Not necessarily…. on peer to peer sites ie LBC, otc trades are on a small scale.
??????
Awesome explanation, thankyou!
darkest day in my life, because you didnt show up….
Wouldn't the Market Cap figures on Coinmarketcap.com also only represent the market cap figures from the popular exchanges too though?
Please cover "block trading" and its impact on price and reported volume
Finally, an OTC explanation. Thanks!
howto monitor big crypto wallets
Its amazing you know all this. For me, super confusing. Im the guy who buys and puts mine on paper wallets hopefully to cash out big in the FAR future. untill then, thanks for all the good advise and the time u put into all your videos. Glad you got your voice back.
Great information.
great video
Isn't "market cap" determined by it's price x number of coins? How would you have a growth in market cap without change in price then? If CMC is measuring one, it must be measuring the other?
Always had so much mystery to me. glad you were able to clear this up. thanks
Your content is great TY, other crytpo youtubers need to take notes..
Theta!!!
Always thankful for your updates.
Perhaps this comment is not completely on topic but, … . Why should the "exploding" OTC markets be accepted by those who want a transparent market that reflects the selling and buying of a token or coin? True more volatility would occur with large buy and sell orders on the market, but any responsible buyer or seller would take pains to spread their orders responsible so as not to create price slippage. Also why should they remain anonymous while the rest of us are not? Just saying / ranting … . Please don't take this as an attack on your content, just as a commentary of our herd mentality that accepts that wealthy people are somehow more important.
Awesome video!
As always, sage and wise advice thank you very much for existing in the sphere I will be sure to follow.
First