Cryptocurrency has come of age and has had a dynamic impact on financial markets since the inception of Bitcoin about a decade ago. Started by Satoshi Nakamoto in 2009, Bitcoin (BTC) is the longest-standing and most popular cryptocurrency in the market.
More than 4,000 cryptocurrencies have been created since Bitcoin and are collectively called “alternative Bitcoins or “altcoins.” Altcoins are considerably less valuable than Bitcoins but still attract a variety of investors and specific target groups because of altcoins’ unique advantages and characteristics.
Top-performing negotiators have the skills to analyse all the accessible information concerning a deal before making a commitment. Running a search for “negotiation seminars near me” is a great starting point to getting equipped with the skills you’ll need. Then, you can learn to evaluate the cryptocurrencies available to you before selecting the ones that best suit your needs.
Negotiation Training Principles on Bitcoin Trading Options
One of the fundamental skills that you can learn in a negotiation seminar is how to evaluate the value of a deal beyond monetary profits or savings. You may find that some offers are expensive on paper but offer significantly more value to your business than the competing bids.
If you are in the market for large amounts of BTC, you can purchase them through one of the following platforms depending on how much money you plan to spend.
- The traditional cryptocurrencies exchange Market
- The Over-The-Counter (OTC) Market
What Are Traditional Cryptocurrency Exchange Markets?
The Traditional cryptocurrencies exchange Market is the conventional method for medium to small Bitcoin transactions. Cryptocurrency exchanges are centralized platforms where people can trade Bitcoins and fiat currencies based on current market prices.
Trade on the traditional cryptocurrency exchanges is transparent because the offers are made publicly available on an order book.
The traditional exchanges generally have an upper limit on your daily transactions based on your degree of verification. However, if you are interested in trading more than $50,000 per transaction, buying your Bitcoin through the OTC market is more beneficial.
Why Large Scale Traders Use the OTC
The OTC or Over-The-Counter exchange market is a cryptocurrency trading platform that is operated away from the conventional digital exchanges. Large scale traders prefer trading on the OTC since there is a lower limit instead of an upper limit on your daily transactions. The OTC was designed for high-value traders who buy millions of dollars’ worth of cryptocurrency per transaction.
Your negotiation skills can come as an added advantage in OTC transactions because your transactions will be done through Bitcoin brokers or peer-to-peer chat rooms rather than the automated systems.
Here are some of the OTC advantages that the traditional exchanges cannot match.
OTC transactions rely on trusted brokers rather than the conventional, automated Bitcoin trading platforms which are potential hacking and cyber theft targets. What’s more, OTC transactions have a greater deal of anonymity since these transactions are not recorded in order books.
Negotiation seminars often advise that OTC transactions are designed to avoid slippage. Buying a large amount of Bitcoin on a traditional exchange can tip the supply and demand curve against you and alter the price before your transaction is complete. If slippage happens, you may end up paying more than you bargained for.
Additionally, the OTC brokers are accustomed to making large deals and have access to more liquidity providers than the traditional exchange. The liquidity limitations of the traditional exchanges can cause your order to be broken up into several smaller ones that end up costing you more time and money to complete. The OTC can complete your order as a single transaction with a single price.
The OTC offers its clients unparalleled freedom in the Bitcoin market. The traditional exchanges have upper transaction limitations that can only be raised if you fulfill a series of compliance conditions. On the other hand, the OTC is suitable for large scale traders and consortiums because of its minimum transaction limit and no maximum.
Steps to Negotiating Bitcoin Transactions on the OTC
Among the several advantages of buying large amounts of BTC through the OTC is the room for negotiation. Transactions in the traditional crypto exchange are done based on the current market prices. In contrast, the price of Bitcoin on the OTC is based on a negotiated agreement between you and the seller. Here are some key points on how OTC transactions work.
Find a Trusted Broker
OTC transactions can be done in three distinct ways. You can choose to find a trusted broker, chat room, or Bitcoin ATM. Bitcoin ATMs allow you to exchange fiat into cryptocurrencies, whereas chat rooms enable peer-to-peer transactions. Trusted brokers, on the other hand, connect the buyers and sellers.
Finding a broker you can trust is a sensitive process and takes time. Fortunately, there are a number of ways to identify a trustworthy broker such as reading reputation reviews, and verifying the broker platform’s security protocol.
Moreover, if you plan to continue trading in large amounts of Bitcoin, negotiation skills, whether developed through practice or a seminar, will allow you to form a collaborative selling partnership with your broker. Building a relationship with a reliable broker can save you the trouble of making new deals every time you need to buy BTC.
Negotiate the Transaction Terms
It is important to work closely with your broker to define the terms of the trade, especially if you are new to OTC transactions. Before you begin talking to the seller, you can decide how much BTC you want and when you want to complete the transaction. You also need to decide on how much money you would like to spend.
Once your broker has found a seller with the volume of BTC you require, the negotiation process begins. Seasoned brokers have access to a wide range of sellers as well as liquidity providers to make sure your transaction goes on smoothly and without delay.
Closing the Deal
In response to your recommendations, the seller makes an offer as a percentage of value above one of the leading exchange prices e.g.123 +2%. After the offer, you still have leverage based on the size of the deal, the exchange medium you are using, and the preferences of the seller.
The anonymity and security offered by the OTC market are appealing to large investors, wealth managers, and institutions who desire to be discreet about their transactions. The volume of OTC transactions is a clear indicator of the value this service offers its users.
According to research carried out by the TABB Group, an international research and consulting firm, the volume of bitcoins traded through the OTC is between two and three times as much as the traditional cryptocurrency exchange market.