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OTC Bitcoin Trading

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The Bitcoin OTC Market

bitcoin otcIn today’s fast moving world of alternative trading, new methods are springing up to trade goods and services for virtual currency. Virtual currencies include digital currencies like Bitcoin, but also include gift cards, game points, and vouchers. We go over some of the ways that traders utilize these various systems in this article and how you too can take part.

OTC trading communities

OTC or over-the-counter trading communities are communities where traders trade currencies, commodities, and other securities directly without an exchange in the middle. In general this is one of the least expensive ways to trade but also the most risky. A good OTC community should have a way to prove identity and a rating history of traders registered to it. In this sense a community like this can be a forum or a chat room, it makes no difference.

Decentralized Virtual Currency Trading

trading bitcoin otc

Methods of Remote Trading

If a virtual good is being traded for a physical good or cash, a trader has many options at his disposal. An obvious method is to send via mail if traders cannot meet. This has it’s risks as it’s assumed both ends of the party will send, in cases like this it’s best to use escrow. A good escrow service will charge a small fee but it is worth it for safety, especially when performing large trades.

Methods of Face-to-Face Trading

A virtual good can be traded face to face. Most readers will be familiar with services like Craigslist. For those who are not, most trades here are done in public places like cafes. Trading a virtual currency can be done with smartphone applications. Gyft is a great application to buy and sell gift cards. It allows the user to convert a physical gift card into virtual form and then trade for free to any other person. There are multiple bitcoin wallets if trading digital currency.

Safe meeting tips

When performing a transaction with a new person it is always best to keep your guard up and be on the look out for scammers and criminals. Whenever there is money or business on the line a scammer will find a way to take advantage of the system. A few ways to protect yourself from scammers is to use common sense, trust your gut, find out as much personal information as you can about the other party, get contact information, trying a Skype or Google Hangout Chat, and more. Some of the more advanced OTC communities use GPG cryptography to prove identity, this is somewhat complicated but impossible to fake.

A lot of times scammers will be more concerned about your location or your money then the whatever you’re selling or trading. If a person is asking you about price right off the bat this is usually a sign of a scammer. The main focal point of the conversation should be the item of interest. If it doesn’t seem like the person is interested in the item but more so your location and money it might be a sign to stay away.

Many times you can find information such a seller ratings or trust ratings on a particular person or entity. In these instances you should carefully consider previous experiences with this person or entity before you make your decision to do business with them.

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One Response to “OTC Bitcoin Trading”

  1. chitra says:

    GPg cryptography is very good to prove the identity and then trade.When we trade we should make sure that it is not a scammer.


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