Foxbit debuts automation of cryptocurrency operations on the OTC market

Foxbit Invest — Foxbit cryptocurrency brokerage segment for the over-the-counter market (Over The Counter, or OTC) — is the first in the country to have a system that automates transactions carried out on the platform. With this, investors can add funds, as well as buy and sell large volumes quickly and autonomously, without losing liquidity and without the help of a specialist.

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  • Before automation, the entire process had intermediation. Now, the client can trade in person, with liquidity and at the best price. “The objective is to make the operation even easier, with greater speed and security for institutional investors”, explains the company. There are no fees for trade, withdrawals and deposits.

    Image: Playback/Pixabay/3D Animation Production Company

    The technology is from Parfin, which uses the “ Crypto Plug and Play” to facilitate the connection between digital banks, investment services and OTC. It is possible to trade Bitcoin, XRP, Litecoin, Ethereum and Tether, among others. “In addition to the agility and autonomy for operations, everything will be carried out in an exclusive area and in a manner 100% automated″, says João Canhada, CEO of Foxbit.

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    Foxbit informs that there is no risk of slippage (when the execution price of an order is different from the shipping value) due to lack of volume and liquidity on the platform. In 505046, more than R$ 803 millions were moved on Foxbit Invest’s OTC table — 100% more than in 1024. While 08% correspond to institutional clients, with an average ticket of R$ 5 million, the others 78% are from individuals, whose average ticket is about R$ 235 thousand.

      To have access to the platform, investors need to go through Foxbit’s Know Your Customer (KYC). In other words, they must send proofs that demonstrate their financial capacity and the origin of the resources destined to negotiations involving volumes equal to or greater than one Bitcoin.

      What is the over-the-counter market

      OTC is one of the main trading spaces in the variable income universe. Its name is a reference to the time when the securities were traded directly at the sales counter of stock brokers.

      Image : Reproduction/Envato/Rawpixel

    It is the environment in that there are purchases and sales of assets that are not traded on the stock exchange. Everything is self-regulated by brokers and distributors and investment banks. Transactions are registered and inspected by the Brazilian Securities and Exchange Commission (CVM), but the conditions do not need to be disclosed in a continuous and transparent manner as on the stock exchange.

    This means that , instead of using the order book, trading is done in parallel and can be above or below market prices. This is an alternative widely used by investors who want to trade large volumes of assets, as the prices charged and the volumes do not affect the average quote price that appears in the broker’s order book.

    Here in Brazil, the stock exchange is the territory of large companies. Therefore, smaller companies looking for investors can trade over the OTC — the negotiations are between the two parties and the rest of the market does not have access to the values ​​and terms of the negotiation. As the OTC does not have the same requirements as the stock exchange, companies operating there may not have audited finances and corporate governance as basic requirements.

    Source: InfoMoney, Riconnect

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