‘Over the counter’ has been around for quite a while now. OTC more specifically refers to the easy access part than anything else. This is where exchange of goods takes place directly from seller to buyer rather than via a stock market.
OTC is just another way of saying “decentralized trading”. Sales are not recorded. Clients can trade with each via a broker without anyone else knowing about their transactions. When one is trading OTC, they don’t really know what the market looks like, or rather how big a fee an OTC broker is charging.
OTC trading provides price stability -though it isn’t necessarily cheap and it also provides outmost anonymity.
OTC trading avenues have become the target for cryptocurrency scammers. The fact that OTC trading details are not made public has made OTC trading quite vulnerable for not only XMR traders, but the general market as well.
This though, doesn’t mean that OTC trading is entirely dangerous. Monero has some really reliable platforms for XMR OTC trade. Participants in the OTC market should equip themselves with the knowledge and tell-tale signs of scams in progress.
How to Avoid XMR OTC Frauds
To prevent loosing loads of XMR, OTC XMR traders are advised not to place large orders on exchange. Placing large orders means the trader is showing their cards to the market. This may attract scammers who’ll most likely take advantage of you.
Also traders should watch out for deals that are too good to be true. If the amount of XMR or another crypto being traded is extremely huge, then one should beware since it could be a scam. It is important to always do a research on any offer given no matter how little your financial contribution may be.
Participants in OTC trading should beware of scammers who pose as support teams. These groups pretend to be the support team of a project and ask for personal information, deposits or even private keys.