So OTC transactions have become necessary for businesses and high volume traders, allowing them carry out large transactions without directly affecting the market price.
For OTC crypto transactions, businesses use on-ramps and off-ramps for efficient and secure transfers of funds in and out of the crypto ecosystem.
In crypto, on-ramps and off-ramps are simply gateways in and out of the crypto ecosystem.
Specifically, an on-ramp is the process where fiat currencies such as NGN, USD, KES, EUR or any national currency is converted to cryptocurrency. This typically looks like transferring funds from a traditional bank to a crypto exchange for crypto, using payment processors to purchase crypto or getting crypto directly through OTC platforms that cater to high-volume trades.
Conversely, an off-ramp, on the other hand, is simply converting crypto back to fiat. This would involve selling crypto on an exchange and withdrawing fiat into a traditional bank account or using an OTC Desk to execute large trades that can be settled in fiat currency.
Effective on-ramp and off-ramps ensure businesses can easily acquire crypto and trade it for fiat currencies as their business needs require.
The role on-ramps and off-ramps play in OTC Crypto transactions include:
- Liquidity: On-ramps and off-ramps provide necessary liquidity for smooth transactions between crypto and fiat and vice versa.
- Mitigates risks: On-ramps and off-ramps provide a secure and regulated system for moving funds. This reduces the risk of fraud and other security breaches. Working with a compliant and regulated body like Quidax further ensures safety and security for both the trader and company. You can read more about our compliance structure here.
- Offers speed and efficiency: On-ramps and off-ramps offer a quick and efficient way to convert between crypto and fiat, which is a huge advantage in business.
- Confidentiality: OTC transactions in particular require a high degree of confidentiality. On-ramp and off-ramp products and services specifically provide discretion and a safe way to transact, ensuring that transactions remain private and confidential.
On-ramp and off-ramp products and services are central to OTC crypto transactions and have changed the game of payments for businesses around the world. Over a hundred global businesses with operations in Africa work with Quidax, using its reliable platform to trade and settle in their preferred currencies (digital or fiat).
To learn more about our services, get in touch here.
