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Cryptosomniac | Learn about Cryptocurrencies & OTC Trading with Caleb and Brown

James Scott of Digichain Capital Interviews Dr. Prash, CEO & Jackson Zeng, COO – Caleb and Brown

The term ‘OTC trading’ continues to be shrouded in mystery for many in the Crypto ecosystem.
It conjures images of high volume whale traders, internal manipulation of the market by large orders, and something akin to an underworld of Crypto trading.

In reality, the OTC landscape is anything but. It is readily accessible to the everyday investor who can bypass the exchange process via an OTC broker.

In this video, Dr Prash, CEO and Jackson Zeng, COO of Caleb & Brown Cryptocurrency brokerage discuss with James Scott of Digichain Capital some of the finer points of the OTC world, striving to debunk the myths and clarify public expectation and understanding of what this terms means and involves.

Some key takeaways from the discussion:

  1. OTC trading simply means Crypto trades that don’t pass through the order books of an exchange, and instead involve the matching up of trades between buyers, sellers, and deep liquidity pools via a broker such that the trades don’t affect the global price points in any way.
  2. For the consumer, this means not having to incur the slippage they normally would suffer if buying off an exchange.
  3. Large volume trades in the millions of dollars still account for the majority of OTC volume. However, OTC brokers are making that market more readily accessible to the everyday investor.
  4. Total global trading volume passing through the OTC system is virtually impossible to define. However, as an approximation, the Van Eck ETF application surveyed 7 of the largest OTC desks in the world and concluded that half of all global trading volume passed through the OTC space.

Benefits of using an OTC brokerage over an exchange:

  1. Consistent access to a personal broker who acts as a guide through the investment process.
  2. Access to an analyst team providing consistent market information and updates.
  3. Spot pricing rather than enduring slippage.
  4. The ability to instantly lock in a price point rather than waiting for funds to be deposited onto an exchange.
  5. Ability to invest not just as an individual but as a corporate entity, trust, or superannuation fund.
  6. In addition, having access to an in-house accountant to set up more efficient structures through which to establish and hold your Crypto investment

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61 1800 849 149  or Contact Us to discuss further.

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Cryptocurrency Market Insights – Q3 2018

Report published by CoinJar

Dr. Prash, CEO Caleb and Brown contributes to Cryptocurrency Market Insights Q3 2018 brought to you by CoinJar.

Summary: The last quarter proved wild for short-term speculative investors with BTC at $8,356 on June 30 rising to $11,709 on July 25th and tumbling to $9,284 by September 30th. Based on those prices if you had held BTC for the quarter you would have seen gains of 11.10%. Comparatively, if you had entered the bull run in September 2017 at $6,581 returns would be in excess of 39%

Market Volume – What are your current estimates on AUD or Australia market volumes (inclusive of OTC)? What changes have you seen in the last 12 months?
This is a difficult approximation to make, as the OTC market is largely opaque. And this is particularly relevant as we are seeing a shift towards greater volume being put through the OTC desks in preference over exchanges. This is likely a combination of continuing fluctuating confidence in exchanges as well as the investing population calling out for a more secure and reliable process.

Price – What (if any) price indication are you currently providing clients?

Where do you view price direction for the next 3 v 12 months? Where do you think sentiment sits across the market (bullish or bearish)? 60-day price volatility on Bitcoin is down to just 4%, which we haven’t seen for two years, since October 2016. Significantly lower than the 42% peak in February this year.

Volatility – How do you view market volatility at present? How would you compare that to 12 months ago?

Bitcoin is very much a social phenomenon, which tends to be a trending topic as families and friends gather over the holidays in Q4 each year. As a 3 month estimate, we anticipate that there’s a good chance of reaching $7400 USD, while the 12-month price direction is less clear as general sentiment is still bearish.

OTC – How do you see this market currently? Who are the major participants? How has it changed in the last 12 months?

OTC changed from very crypto-savvy people who used OTC to achieve better pricing and access to liquidity to a range of demographics who are now using OTC for better customer service and assurance around exit strategies.

Industry – How do you see the next 12 months within the industry?

What trends are you noticing in particular around products & application development? What’s your personal sentiment on this space? We are anticipating that a lot of the pain points in the industry will start to get solved, particularly around custody, and that will subsequently enable further developments in the regulated financial sectors.

Business & Products – How has your business changed in the last 12 months? I.e. have you introduced specific new products or changes to current products, how much was that influenced by the market?

We have seen extraordinary client number growth, including a large number of international clients. A key service offering we are seeing greater demand for us is Crypto Tax Consultancy due to greater recognition of the need to be compliant with the ATO’s directions on Crypto trades as Capital Gain events.

Download the FULL REPORT – here

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

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Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: CoinJar