Exchange and OTC Markets: Pros and Cons

Hello! 👋🏻 In this post, we will compare the exchange and OTC market, and also highlight the benefits of Barter

📖 Modern trade seems to us to be inextricably linked with any kind of exchange activity. Exchanges have historically gained their popularity because they acted as the guarantor of the execution of the transaction for counterparties.

❓ However, let’s take a closer look at the advantages and disadvantages of the over-the-counter (OTC) market:
OTC benefits:

🔹 Reducing the risks of hacking associated with cryptocurrency exchanges.
🔹 Allows you to deal with a trusted broker.
🔹 Acceleration of settlements for large transactions and faster access to funds compared to exchange transactions.
🔹 A higher level of confidentiality.

Disadvantages of OTC:

🔸 Not suitable for small traders.
🔸 It is required to find a reliable broker.
🔸 A higher level of settlement risk compared to cryptocurrency exchanges.
🔸 Counterparty risks

🏆 With Barter Smartplace, you can forever forget about counterparty risks in OTC transactions. Smart contracts will not allow a transaction where one of the parties to the transaction cannot fulfill its obligations. At the same time, counterparties no longer need to look for a guarantor and pay additional funds for his activities.

✅ Barter Smartplace is a platform that is aimed at solving the most important problem of an OTC transaction — leveling counterparty risk and simplifying interaction for all parties to the agreement using smart contracts

📢 Learn more about the Barter project on our website: http://barter.company/
Join the community: http://t.me/barterteam
Telegram wallet: http://t.me/barterwalletbot