[{"data":1,"prerenderedAt":1306},["ShallowReactive",2],{"blog-what-is-a-bid-ask-spread":3,"related-what-is-a-bid-ask-spread":361},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":8,"description":9,"date":10,"category":11,"readTime":12,"author":13,"tags":14,"keywords":20,"image":21,"body":22,"_type":355,"_id":356,"_source":357,"_file":358,"_stem":359,"_extension":360},"/blog/what-is-a-bid-ask-spread","blog",false,"","What Is a Bid-Ask Spread and Why It Matters for Your Token","Understand what a bid-ask spread is in crypto trading, how it affects your token's market health, and what you can do to keep spreads tight.","2026-04-30","Trading","6 min read","Fibonacci Capital",[15,16,17,18,19],"bid-ask spread","trading","market making","liquidity","crypto","bid ask spread, spread explained, trading spread, crypto trading, algorithmic trading, HFT, trading strategy, price discovery, Fibonacci Capital","/assets/images/blog/bid-ask-spread.jpg",{"type":23,"children":24,"toc":340},"root",[25,34,40,45,51,56,102,107,113,118,125,130,136,141,147,152,158,163,169,174,217,222,228,233,286,292,297,302,335],{"type":26,"tag":27,"props":28,"children":30},"element","h2",{"id":29},"understanding-the-bid-ask-spread",[31],{"type":32,"value":33},"text","Understanding the Bid-Ask Spread",{"type":26,"tag":35,"props":36,"children":37},"p",{},[38],{"type":32,"value":39},"The bid-ask spread is the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask). Every tradeable asset has a spread, and in crypto markets, it is one of the most important indicators of market health.",{"type":26,"tag":35,"props":41,"children":42},{},[43],{"type":32,"value":44},"For example, if the best bid for a token is $1.00 and the best ask is $1.05, the spread is $0.05 or 5%. A spread this wide signals poor liquidity and makes the token expensive to trade.",{"type":26,"tag":27,"props":46,"children":48},{"id":47},"why-the-spread-matters-for-token-projects",[49],{"type":32,"value":50},"Why the Spread Matters for Token Projects",{"type":26,"tag":35,"props":52,"children":53},{},[54],{"type":32,"value":55},"The bid-ask spread directly affects how traders, investors, and institutions perceive your token. Here is what a wide spread communicates:",{"type":26,"tag":57,"props":58,"children":59},"ul",{},[60,72,82,92],{"type":26,"tag":61,"props":62,"children":63},"li",{},[64,70],{"type":26,"tag":65,"props":66,"children":67},"strong",{},[68],{"type":32,"value":69},"High trading cost",{"type":32,"value":71}," — every buyer immediately loses value equal to the spread width when entering a position",{"type":26,"tag":61,"props":73,"children":74},{},[75,80],{"type":26,"tag":65,"props":76,"children":77},{},[78],{"type":32,"value":79},"Low liquidity",{"type":32,"value":81}," — there are not enough participants or orders in the market",{"type":26,"tag":61,"props":83,"children":84},{},[85,90],{"type":26,"tag":65,"props":86,"children":87},{},[88],{"type":32,"value":89},"Increased volatility risk",{"type":32,"value":91}," — thin markets amplify price swings on modest order sizes",{"type":26,"tag":61,"props":93,"children":94},{},[95,100],{"type":26,"tag":65,"props":96,"children":97},{},[98],{"type":32,"value":99},"Reduced institutional interest",{"type":32,"value":101}," — funds and trading desks avoid assets where execution costs are high",{"type":26,"tag":35,"props":103,"children":104},{},[105],{"type":32,"value":106},"Conversely, a tight spread signals a liquid, well-maintained market that welcomes participation at all levels.",{"type":26,"tag":27,"props":108,"children":110},{"id":109},"what-determines-spread-width-in-crypto",[111],{"type":32,"value":112},"What Determines Spread Width in Crypto?",{"type":26,"tag":35,"props":114,"children":115},{},[116],{"type":32,"value":117},"Several factors influence how wide or tight a token's spread is:",{"type":26,"tag":119,"props":120,"children":122},"h3",{"id":121},"trading-volume",[123],{"type":32,"value":124},"Trading Volume",{"type":26,"tag":35,"props":126,"children":127},{},[128],{"type":32,"value":129},"Higher volume naturally attracts more participants competing to provide liquidity, which compresses spreads. Low-volume tokens struggle with wide spreads because few parties are willing to commit capital.",{"type":26,"tag":119,"props":131,"children":133},{"id":132},"market-maker-activity",[134],{"type":32,"value":135},"Market Maker Activity",{"type":26,"tag":35,"props":137,"children":138},{},[139],{"type":32,"value":140},"Professional market makers actively quote both sides of the book and compete to offer the tightest prices. Without market maker participation, spreads are determined by sporadic retail orders.",{"type":26,"tag":119,"props":142,"children":144},{"id":143},"exchange-quality",[145],{"type":32,"value":146},"Exchange Quality",{"type":26,"tag":35,"props":148,"children":149},{},[150],{"type":32,"value":151},"Different exchanges have different fee structures, matching engines, and user bases. A token listed on a well-designed exchange with competitive fees will typically have tighter spreads.",{"type":26,"tag":119,"props":153,"children":155},{"id":154},"market-conditions",[156],{"type":32,"value":157},"Market Conditions",{"type":26,"tag":35,"props":159,"children":160},{},[161],{"type":32,"value":162},"During periods of high volatility or uncertainty, spreads widen across all assets as market makers adjust for increased risk. This is normal and temporary, but tokens without dedicated liquidity support may see spreads remain wide long after volatility subsides.",{"type":26,"tag":27,"props":164,"children":166},{"id":165},"how-tight-should-your-spread-be",[167],{"type":32,"value":168},"How Tight Should Your Spread Be?",{"type":26,"tag":35,"props":170,"children":171},{},[172],{"type":32,"value":173},"Industry benchmarks vary by market cap and trading stage, but general guidelines include:",{"type":26,"tag":57,"props":175,"children":176},{},[177,187,197,207],{"type":26,"tag":61,"props":178,"children":179},{},[180,185],{"type":26,"tag":65,"props":181,"children":182},{},[183],{"type":32,"value":184},"Large-cap tokens",{"type":32,"value":186}," (top 50) — spreads typically under 0.1%",{"type":26,"tag":61,"props":188,"children":189},{},[190,195],{"type":26,"tag":65,"props":191,"children":192},{},[193],{"type":32,"value":194},"Mid-cap tokens",{"type":32,"value":196}," — spreads between 0.1% and 0.5%",{"type":26,"tag":61,"props":198,"children":199},{},[200,205],{"type":26,"tag":65,"props":201,"children":202},{},[203],{"type":32,"value":204},"Small-cap and newly listed tokens",{"type":32,"value":206}," — spreads between 0.3% and 1.0%",{"type":26,"tag":61,"props":208,"children":209},{},[210,215],{"type":26,"tag":65,"props":211,"children":212},{},[213],{"type":32,"value":214},"Anything above 2%",{"type":32,"value":216}," is generally considered a warning sign by exchanges and investors",{"type":26,"tag":35,"props":218,"children":219},{},[220],{"type":32,"value":221},"Many exchanges set explicit spread requirements for listed tokens. Failing to maintain these thresholds can result in reduced visibility or removal from the platform.",{"type":26,"tag":27,"props":223,"children":225},{"id":224},"strategies-for-reducing-your-tokens-spread",[226],{"type":32,"value":227},"Strategies for Reducing Your Token's Spread",{"type":26,"tag":35,"props":229,"children":230},{},[231],{"type":32,"value":232},"Token issuers can take concrete steps to improve their market's spread:",{"type":26,"tag":57,"props":234,"children":235},{},[236,246,256,266,276],{"type":26,"tag":61,"props":237,"children":238},{},[239,244],{"type":26,"tag":65,"props":240,"children":241},{},[242],{"type":32,"value":243},"Engage a professional market maker",{"type":32,"value":245}," who commits to specific spread targets and uptime requirements",{"type":26,"tag":61,"props":247,"children":248},{},[249,254],{"type":26,"tag":65,"props":250,"children":251},{},[252],{"type":32,"value":253},"Increase exchange coverage",{"type":32,"value":255}," — listing on additional venues creates competition among liquidity providers",{"type":26,"tag":61,"props":257,"children":258},{},[259,264],{"type":26,"tag":65,"props":260,"children":261},{},[262],{"type":32,"value":263},"Incentivize liquidity",{"type":32,"value":265}," through token rewards or fee rebates for market makers and liquidity providers",{"type":26,"tag":61,"props":267,"children":268},{},[269,274],{"type":26,"tag":65,"props":270,"children":271},{},[272],{"type":32,"value":273},"Reduce token concentration",{"type":32,"value":275}," — when a small number of holders control most supply, sell-side liquidity becomes scarce",{"type":26,"tag":61,"props":277,"children":278},{},[279,284],{"type":26,"tag":65,"props":280,"children":281},{},[282],{"type":32,"value":283},"Coordinate announcements",{"type":32,"value":285}," to avoid information asymmetry that causes temporary spread blowouts",{"type":26,"tag":27,"props":287,"children":289},{"id":288},"monitoring-your-spread-over-time",[290],{"type":32,"value":291},"Monitoring Your Spread Over Time",{"type":26,"tag":35,"props":293,"children":294},{},[295],{"type":32,"value":296},"Spread management is not a one-time task. Token projects should track spread metrics daily and review them alongside volume, depth, and price stability data.",{"type":26,"tag":35,"props":298,"children":299},{},[300],{"type":32,"value":301},"Key metrics to monitor include:",{"type":26,"tag":57,"props":303,"children":304},{},[305,315,325],{"type":26,"tag":61,"props":306,"children":307},{},[308,313],{"type":26,"tag":65,"props":309,"children":310},{},[311],{"type":32,"value":312},"Time-weighted average spread",{"type":32,"value":314}," across all active venues",{"type":26,"tag":61,"props":316,"children":317},{},[318,323],{"type":26,"tag":65,"props":319,"children":320},{},[321],{"type":32,"value":322},"Spread at depth",{"type":32,"value":324}," — the spread available for larger order sizes, not just the top of book",{"type":26,"tag":61,"props":326,"children":327},{},[328,333],{"type":26,"tag":65,"props":329,"children":330},{},[331],{"type":32,"value":332},"Spread uptime",{"type":32,"value":334}," — what percentage of the trading day are quotes maintained within target",{"type":26,"tag":35,"props":336,"children":337},{},[338],{"type":32,"value":339},"Fibonacci Capital provides clients with real-time spread analytics and works to maintain institutional-grade market conditions for every token we support. Get in touch to discuss how professional market making can improve your token's trading environment.",{"title":7,"searchDepth":341,"depth":341,"links":342},2,[343,344,345,352,353,354],{"id":29,"depth":341,"text":33},{"id":47,"depth":341,"text":50},{"id":109,"depth":341,"text":112,"children":346},[347,349,350,351],{"id":121,"depth":348,"text":124},3,{"id":132,"depth":348,"text":135},{"id":143,"depth":348,"text":146},{"id":154,"depth":348,"text":157},{"id":165,"depth":341,"text":168},{"id":224,"depth":341,"text":227},{"id":288,"depth":341,"text":291},"markdown","content:blog:what-is-a-bid-ask-spread.md","content","blog/what-is-a-bid-ask-spread.md","blog/what-is-a-bid-ask-spread","md",[362,734,1006],{"_path":363,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":364,"description":365,"date":366,"author":13,"category":11,"tags":367,"keywords":372,"image":378,"readTime":379,"body":380,"_type":355,"_id":731,"_source":357,"_file":732,"_stem":733,"_extension":360},"/blog/otc-block-trading-mistakes","OTC Block Trading in Crypto: 9 Mistakes That Cost Token Teams Money","The nine most expensive mistakes teams make with crypto OTC block trading — settlement risk, leaked flow, bad price references — and how to fix each one.","2026-09-01",[368,369,370,371,18],"OTC trading","block trades","treasury","settlement",[373,374,375,376,377],"OTC block trading crypto","crypto OTC trading platform","how to safely OTC trade crypto","crypto block trade settlement","OTC crypto trading mistakes","/assets/images/blog/otc-block-trading-mistakes.jpg","9 min read",{"type":23,"children":381,"toc":718},[382,388,393,398,404,409,414,424,430,435,440,449,455,460,465,474,480,485,490,499,505,510,515,524,530,535,544,550,555,577,586,592,597,614,620,625,630,636,641,689,695,700,705],{"type":26,"tag":383,"props":384,"children":386},"h1",{"id":385},"otc-block-trading-in-crypto-9-mistakes-that-cost-token-teams-money",[387],{"type":32,"value":364},{"type":26,"tag":35,"props":389,"children":390},{},[391],{"type":32,"value":392},"OTC block trading in crypto exists for one reason: some orders are too large to put on a public order book without moving the price against you. A block trade agrees a single price for the entire size privately, then settles away from the exchange. Done properly, it is the cheapest way to move real size. Done badly, it costs more than the slippage you were trying to avoid — and occasionally costs the entire position.",{"type":26,"tag":35,"props":394,"children":395},{},[396],{"type":32,"value":397},"The mistakes below are not exotic. They are the ones that show up repeatedly when token teams, treasuries, and funds execute their first few blocks, each with a fix that takes a conversation rather than a rebuild.",{"type":26,"tag":27,"props":399,"children":401},{"id":400},"_1-treating-the-quoted-spread-as-the-cost-of-the-trade",[402],{"type":32,"value":403},"1. Treating the Quoted Spread as the Cost of the Trade",{"type":26,"tag":35,"props":405,"children":406},{},[407],{"type":32,"value":408},"The headline spread is the most visible number and the least informative one. What you actually pay is the spread plus the reference price it is quoted against, plus settlement and network fees, plus any FX or fiat conversion on the other leg.",{"type":26,"tag":35,"props":410,"children":411},{},[412],{"type":32,"value":413},"A desk quoting a tight spread off a stale or self-selected reference can be more expensive than a desk quoting a wider spread off a fair, timestamped mid. This is not a theoretical gap — on illiquid tokens where the \"market price\" varies meaningfully between venues, the choice of reference can dominate the spread entirely.",{"type":26,"tag":35,"props":415,"children":416},{},[417,422],{"type":26,"tag":65,"props":418,"children":419},{},[420],{"type":32,"value":421},"The fix:",{"type":32,"value":423}," demand pricing as three separate components — reference source, spread, fees — and ask which venues and which timestamp the reference is drawn from. Then request simultaneous quotes from two or three desks on the same notional at the same moment. A quote you cannot compare against another quote is not price discovery.",{"type":26,"tag":27,"props":425,"children":427},{"id":426},"_2-sending-first-without-escrow-or-simultaneous-settlement",[428],{"type":32,"value":429},"2. Sending First Without Escrow or Simultaneous Settlement",{"type":26,"tag":35,"props":431,"children":432},{},[433],{"type":32,"value":434},"This is the mistake that turns a bad trade into a total loss. If you deliver your side and the counterparty does not deliver theirs, you are an unsecured creditor of a company you probably cannot sue efficiently across jurisdictions.",{"type":26,"tag":35,"props":436,"children":437},{},[438],{"type":32,"value":439},"Every counterparty failure in crypto's recent history has followed the same shape: an entity that looked solvent right up until the moment settlement was due. Reputation is not collateral.",{"type":26,"tag":35,"props":441,"children":442},{},[443,447],{"type":26,"tag":65,"props":444,"children":445},{},[446],{"type":32,"value":421},{"type":32,"value":448}," establish before the trade who delivers first and what protects the exposed party. Simultaneous settlement, escrow through a qualified custodian, or atomic settlement rails all shrink or eliminate the window. If a desk requires you to send first and offers nothing in return, you are extending them an uncollateralized loan for the duration of the settlement window — price that accordingly, or walk.",{"type":26,"tag":27,"props":450,"children":452},{"id":451},"_3-leaking-your-own-flow-before-the-trade-prints",[453],{"type":32,"value":454},"3. Leaking Your Own Flow Before the Trade Prints",{"type":26,"tag":35,"props":456,"children":457},{},[458],{"type":32,"value":459},"Teams shop a large block to six desks to find the best price, and by the time they execute, six desks and their counterparties know a seller is coming. The market moves before the block ever settles. The price improvement from wide shopping is smaller than the market impact from the information you gave away.",{"type":26,"tag":35,"props":461,"children":462},{},[463],{"type":32,"value":464},"This is especially damaging for mid-cap tokens, where a handful of participants effectively constitute the market and the signal travels fast.",{"type":26,"tag":35,"props":466,"children":467},{},[468,472],{"type":26,"tag":65,"props":469,"children":470},{},[471],{"type":32,"value":421},{"type":32,"value":473}," shortlist two or three desks, put an NDA or a written confidentiality expectation in place, and disclose direction and size only to desks you would genuinely trade with. Where possible, quote a two-way price — ask for both bid and offer without revealing which side you are on.",{"type":26,"tag":27,"props":475,"children":477},{"id":476},"_4-executing-the-block-without-a-plan-for-the-market-impact",[478],{"type":32,"value":479},"4. Executing the Block Without a Plan for the Market Impact",{"type":26,"tag":35,"props":481,"children":482},{},[483],{"type":32,"value":484},"An OTC block does not make supply disappear. The buyer took inventory they will eventually hedge or sell, and that flow reaches the public book sooner or later. Teams that treat OTC as invisible are frequently surprised when the price weakens in the days after a \"private\" sale.",{"type":26,"tag":35,"props":486,"children":487},{},[488],{"type":32,"value":489},"Understanding this is a matter of order book mechanics rather than conspiracy — the counterparty is managing risk exactly as you would. Absorption capacity, not headline volume, determines how much size a market can take.",{"type":26,"tag":35,"props":491,"children":492},{},[493,497],{"type":26,"tag":65,"props":494,"children":495},{},[496],{"type":32,"value":421},{"type":32,"value":498}," ask the counterparty how they intend to manage the position, and size the block against the market's actual absorption capacity. A block that represents a large multiple of the token's realistic daily traded depth will be felt regardless of where it was agreed.",{"type":26,"tag":27,"props":500,"children":502},{"id":501},"_5-confusing-volume-with-liquidity-when-sizing-the-block",[503],{"type":32,"value":504},"5. Confusing Volume With Liquidity When Sizing the Block",{"type":26,"tag":35,"props":506,"children":507},{},[508],{"type":32,"value":509},"Reported volume is easy to inflate and tells you little about whether your specific size can clear. What matters is depth within a tolerable price band, across the venues where your token actually trades.",{"type":26,"tag":35,"props":511,"children":512},{},[513],{"type":32,"value":514},"A token showing large daily volume but thin two-sided depth cannot absorb a block. The same is true in reverse: a token with modest volume but consistent, deep quotes on both sides may handle far more than its volume suggests. The distinction matters more than any other input when sizing a block.",{"type":26,"tag":35,"props":516,"children":517},{},[518,522],{"type":26,"tag":65,"props":519,"children":520},{},[521],{"type":32,"value":421},{"type":32,"value":523}," size blocks from measured order book depth within a defined band, not from volume statistics. If you do not have that data, your market maker does.",{"type":26,"tag":27,"props":525,"children":527},{"id":526},"_6-ignoring-the-tax-accounting-and-reporting-consequences",[528],{"type":32,"value":529},"6. Ignoring the Tax, Accounting, and Reporting Consequences",{"type":26,"tag":35,"props":531,"children":532},{},[533],{"type":32,"value":534},"Block trades create realized gains or losses, cross-border transfers, and counterparty relationships that appear in audits and, for many projects, in token holder communications. Teams that agree a price and settle without involving finance and legal frequently discover a problem after the trade is irreversible.",{"type":26,"tag":35,"props":536,"children":537},{},[538,542],{"type":26,"tag":65,"props":539,"children":540},{},[541],{"type":32,"value":421},{"type":32,"value":543}," loop in tax and legal counsel before you agree terms, not after settlement. Confirm the entity executing the trade, the jurisdictions involved, and how the trade will be recorded. Get the trade terms in writing — a confirmation covering asset, quantity, price, settlement mechanics, and timing — every time, including with counterparties you trust.",{"type":26,"tag":27,"props":545,"children":547},{"id":546},"_7-selling-treasury-into-a-market-you-have-not-prepared",[548],{"type":32,"value":549},"7. Selling Treasury Into a Market You Have Not Prepared",{"type":26,"tag":35,"props":551,"children":552},{},[553],{"type":32,"value":554},"The most common version: a project needs runway, sells a large tranche OTC, and the token weakens visibly over the following weeks. Nothing improper happened — the market simply had nowhere to put the supply.",{"type":26,"tag":35,"props":556,"children":557},{},[558,560,567,569,575],{"type":32,"value":559},"Treasury sales work best when they are part of a planned liquidity programme rather than a reaction to a cash need. That means predictable sizing, staggered execution, and ongoing two-sided liquidity that can absorb flow rather than a one-off block dropped into a thin market. Our guides to ",{"type":26,"tag":561,"props":562,"children":564},"a",{"href":563},"/blog/treasury-management-crypto-projects",[565],{"type":32,"value":566},"treasury management for crypto projects",{"type":32,"value":568}," and ",{"type":26,"tag":561,"props":570,"children":572},{"href":571},"/blog/token-unlocks-managing-sell-pressure",[573],{"type":32,"value":574},"managing sell pressure around token unlocks",{"type":32,"value":576}," both go deeper on structuring this.",{"type":26,"tag":35,"props":578,"children":579},{},[580,584],{"type":26,"tag":65,"props":581,"children":582},{},[583],{"type":32,"value":421},{"type":32,"value":585}," plan treasury sales quarters ahead, sized against depth, and coordinate execution with whoever provides your liquidity. Selling from a position of planning rather than urgency is worth more than any spread improvement.",{"type":26,"tag":27,"props":587,"children":589},{"id":588},"_8-skipping-counterparty-due-diligence-because-the-introduction-was-warm",[590],{"type":32,"value":591},"8. Skipping Counterparty Due Diligence Because the Introduction Was Warm",{"type":26,"tag":35,"props":593,"children":594},{},[595],{"type":32,"value":596},"An introduction from someone you trust says something about the introducer, not about the counterparty's balance sheet, custody arrangements, or regulatory standing. Telegram-based \"OTC desks\" in particular range from legitimate brokers to outright fraud, and the presentation looks similar from the outside.",{"type":26,"tag":35,"props":598,"children":599},{},[600,604,606,612],{"type":26,"tag":65,"props":601,"children":602},{},[603],{"type":32,"value":421},{"type":32,"value":605}," verify the legal entity, its registration and licensing where applicable, its custody arrangements, and its settlement track record with institutional references you actually contact. Ask who holds assets between agreement and settlement, and for how long. Run a small first trade before committing real size. Our ",{"type":26,"tag":561,"props":607,"children":609},{"href":608},"/blog/how-to-choose-crypto-otc-trading-desk",[610],{"type":32,"value":611},"buyer's guide to choosing an OTC desk",{"type":32,"value":613}," sets out the full checklist, including the red flags that should end a conversation early.",{"type":26,"tag":27,"props":615,"children":617},{"id":616},"_9-treating-otc-as-a-substitute-for-market-making",[618],{"type":32,"value":619},"9. Treating OTC as a Substitute for Market Making",{"type":26,"tag":35,"props":621,"children":622},{},[623],{"type":32,"value":624},"OTC handles the discrete, large, infrequent trade. It does nothing for the token's day-to-day tradability — the spread a retail buyer sees, the depth an exchange requires to keep a listing in good standing, the ability of the market to absorb the counterparty's eventual hedging.",{"type":26,"tag":35,"props":626,"children":627},{},[628],{"type":32,"value":629},"Teams that rely on OTC alone end up with a token that can move size privately but trades badly in public, which is the opposite of what most projects need. The two functions are complements: market making creates the market that makes block execution possible at a reasonable price, and OTC keeps the largest trades from disrupting it.",{"type":26,"tag":27,"props":631,"children":633},{"id":632},"a-short-pre-trade-checklist",[634],{"type":32,"value":635},"A Short Pre-Trade Checklist",{"type":26,"tag":35,"props":637,"children":638},{},[639],{"type":32,"value":640},"Before agreeing any crypto OTC block trade:",{"type":26,"tag":57,"props":642,"children":643},{},[644,649,654,659,664,669,674,679,684],{"type":26,"tag":61,"props":645,"children":646},{},[647],{"type":32,"value":648},"Reference price source, spread, and all fees itemised in writing",{"type":26,"tag":61,"props":650,"children":651},{},[652],{"type":32,"value":653},"Two or three simultaneous quotes on identical notional",{"type":26,"tag":61,"props":655,"children":656},{},[657],{"type":32,"value":658},"Settlement mechanics agreed: who delivers first, escrow or custodian, settlement window",{"type":26,"tag":61,"props":660,"children":661},{},[662],{"type":32,"value":663},"Legal entity verified, licensing checked, references contacted",{"type":26,"tag":61,"props":665,"children":666},{},[667],{"type":32,"value":668},"Block size checked against measured order book depth, not reported volume",{"type":26,"tag":61,"props":670,"children":671},{},[672],{"type":32,"value":673},"Confidentiality expectations set before direction or size is disclosed",{"type":26,"tag":61,"props":675,"children":676},{},[677],{"type":32,"value":678},"Tax, accounting, and reporting treatment confirmed with counsel",{"type":26,"tag":61,"props":680,"children":681},{},[682],{"type":32,"value":683},"Written trade confirmation covering asset, quantity, price, mechanics, and timing",{"type":26,"tag":61,"props":685,"children":686},{},[687],{"type":32,"value":688},"A small test trade completed with any new counterparty",{"type":26,"tag":27,"props":690,"children":692},{"id":691},"where-this-fits-in-a-liquidity-strategy",[693],{"type":32,"value":694},"Where This Fits in a Liquidity Strategy",{"type":26,"tag":35,"props":696,"children":697},{},[698],{"type":32,"value":699},"Every mistake on this list shares a root cause: the block trade was treated as a standalone event rather than as part of how the token trades overall. Price, settlement, and impact are all easier to control when the token already has healthy two-sided liquidity underneath it, and when whoever manages that liquidity knows the treasury's intentions in advance.",{"type":26,"tag":35,"props":701,"children":702},{},[703],{"type":32,"value":704},"At Fibonacci Capital, we work with token projects and institutions to structure exactly that — market making that keeps spreads tight and books deep across venues, coordinated with the large discreet trades that should never touch a public order book. The result is a treasury that can transact without telegraphing itself, and a token that trades cleanly whether the next order is a hundred dollars or eight figures.",{"type":26,"tag":35,"props":706,"children":707},{},[708,710,716],{"type":32,"value":709},"If you are planning treasury sales, a large rotation, or a first OTC block and want the liquidity side handled properly, ",{"type":26,"tag":561,"props":711,"children":713},{"href":712},"/",[714],{"type":32,"value":715},"get in touch with our team",{"type":32,"value":717},".",{"title":7,"searchDepth":341,"depth":341,"links":719},[720,721,722,723,724,725,726,727,728,729,730],{"id":400,"depth":341,"text":403},{"id":426,"depth":341,"text":429},{"id":451,"depth":341,"text":454},{"id":476,"depth":341,"text":479},{"id":501,"depth":341,"text":504},{"id":526,"depth":341,"text":529},{"id":546,"depth":341,"text":549},{"id":588,"depth":341,"text":591},{"id":616,"depth":341,"text":619},{"id":632,"depth":341,"text":635},{"id":691,"depth":341,"text":694},"content:blog:otc-block-trading-mistakes.md","blog/otc-block-trading-mistakes.md","blog/otc-block-trading-mistakes",{"_path":735,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":736,"description":737,"date":738,"category":11,"readTime":379,"author":13,"tags":739,"keywords":744,"image":745,"body":746,"_type":355,"_id":1003,"_source":357,"_file":1004,"_stem":1005,"_extension":360},"/blog/crypto-day-trading-strategies","Crypto Day Trading Strategies: A Practical Guide for 2026","A practical breakdown of crypto day trading strategies, from scalping and breakout trading to range trading, plus the liquidity and execution factors that decide who wins.","2026-07-07",[740,741,742,743,18],"day trading","crypto trading","trading strategies","scalping","crypto day trading strategies, day trading crypto, best crypto day trading strategy, most profitable crypto trading strategy, scalping crypto, Fibonacci Capital","/assets/images/blog/crypto-day-trading-strategies.jpg",{"type":23,"children":747,"toc":990},[748,754,759,764,769,775,780,785,790,795,801,806,811,816,822,827,832,838,843,848,854,859,869,879,897,902,908,913,923,933,943,953,959,964,969,975,980,985],{"type":26,"tag":27,"props":749,"children":751},{"id":750},"what-crypto-day-trading-actually-involves",[752],{"type":32,"value":753},"What Crypto Day Trading Actually Involves",{"type":26,"tag":35,"props":755,"children":756},{},[757],{"type":32,"value":758},"Crypto day trading strategies are methods for opening and closing positions within a single day to profit from short-term price movement, without holding overnight exposure. The appeal is obvious: crypto markets run 24/7, move fast, and produce more intraday volatility than almost any other asset class. Bitcoin routinely swings 3 to 5 percent in a session, and mid-cap altcoins can move 15 percent or more before the day is out.",{"type":26,"tag":35,"props":760,"children":761},{},[762],{"type":32,"value":763},"That volatility is the opportunity and the trap. Most people who try day trading crypto lose money, not because the strategies are secret, but because they underestimate two things: execution costs and discipline. A strategy that looks profitable on a chart often bleeds out through spreads, slippage, and fees the moment real capital touches the market. Before you evaluate any specific approach, understand that the edge in day trading is thin, and it lives entirely in the details of how you enter, size, and exit.",{"type":26,"tag":35,"props":765,"children":766},{},[767],{"type":32,"value":768},"This guide covers the strategies that professionals actually use, the market structure that makes or breaks them, and the risk controls that separate consistent traders from the churn.",{"type":26,"tag":27,"props":770,"children":772},{"id":771},"core-crypto-day-trading-strategies",[773],{"type":32,"value":774},"Core Crypto Day Trading Strategies",{"type":26,"tag":119,"props":776,"children":777},{"id":743},[778],{"type":32,"value":779},"Scalping",{"type":26,"tag":35,"props":781,"children":782},{},[783],{"type":32,"value":784},"Scalping is the shortest-timeframe strategy: dozens or hundreds of trades per day, each targeting a small profit of 0.1 to 0.5 percent. Scalpers trade on one-minute and five-minute charts, holding positions for seconds to minutes. The logic is to capture tiny, repeatable inefficiencies while keeping exposure minimal.",{"type":26,"tag":35,"props":786,"children":787},{},[788],{"type":32,"value":789},"Scalping only works in liquid markets with tight spreads. If the bid-ask spread on your pair is 0.3 percent, a scalp targeting 0.4 percent is fighting the market before it even starts. This is why serious scalpers trade only the deepest pairs — BTC and ETH against major stablecoins on top-tier venues — where spreads compress to a few basis points. On thin altcoin books, scalping is a losing game because the spread eats the entire target.",{"type":26,"tag":35,"props":791,"children":792},{},[793],{"type":32,"value":794},"The main risk is cost. At high trade frequency, taker fees of 0.05 to 0.1 percent per side compound brutally. A scalper who does 100 round-trip trades a day pays 10 to 20 percent of turnover in fees alone. Rebate-earning maker orders and fee-tier discounts are not optional for scalpers — they are the difference between profit and slow death.",{"type":26,"tag":119,"props":796,"children":798},{"id":797},"breakout-trading",[799],{"type":32,"value":800},"Breakout Trading",{"type":26,"tag":35,"props":802,"children":803},{},[804],{"type":32,"value":805},"Breakout traders wait for price to move decisively beyond a defined support or resistance level, then enter in the direction of the move, betting that momentum continues. A clean break above a consolidation range on rising volume is the classic setup.",{"type":26,"tag":35,"props":807,"children":808},{},[809],{"type":32,"value":810},"The enemy of breakout trading is the false breakout — price pierces the level, triggers a wave of entries, then reverses and traps everyone. Volume confirmation matters enormously here. A breakout on thin volume is far more likely to fail than one backed by a genuine surge in participation. Many traders wait for a candle to close beyond the level, or for a retest of the broken level as new support, before committing.",{"type":26,"tag":35,"props":812,"children":813},{},[814],{"type":32,"value":815},"Breakouts are also where order book depth reveals itself. When a large resistance level is stacked with sell orders and price chews through them, that tells you real demand absorbed real supply. When price gaps past a level with no meaningful liquidity behind it, the move is fragile and prone to snapping back.",{"type":26,"tag":119,"props":817,"children":819},{"id":818},"range-trading",[820],{"type":32,"value":821},"Range Trading",{"type":26,"tag":35,"props":823,"children":824},{},[825],{"type":32,"value":826},"When a market lacks direction, price often oscillates between a well-defined floor and ceiling. Range traders buy near support and sell near resistance, profiting from the chop rather than a trend. This works well in the quiet periods between major moves, which describe most of any given trading week.",{"type":26,"tag":35,"props":828,"children":829},{},[830],{"type":32,"value":831},"The discipline in range trading is accepting that the range will eventually break. Traders set stop-losses just outside the range boundaries so that when the market finally trends, they exit with a small loss rather than fighting a directional move. Identifying whether a market is ranging or trending is the first decision — applying a range strategy to a trending market, or vice versa, is one of the most common ways day traders lose.",{"type":26,"tag":119,"props":833,"children":835},{"id":834},"momentum-and-trend-following",[836],{"type":32,"value":837},"Momentum and Trend-Following",{"type":26,"tag":35,"props":839,"children":840},{},[841],{"type":32,"value":842},"Momentum traders ride established intraday trends, entering on pullbacks and holding until the trend shows signs of exhaustion. Tools like moving averages, the relative strength index (RSI), and volume profiles help confirm whether a move has strength behind it. A common approach is to use a fast and slow moving average crossover to define trend direction, then time entries on shallow retracements.",{"type":26,"tag":35,"props":844,"children":845},{},[846],{"type":32,"value":847},"Momentum works best during high-volatility events — major news, macro data, or a broad market risk-on move. The challenge is that these conditions produce whipsaws, and late entries into an extended move are punished quickly when the trend reverses.",{"type":26,"tag":27,"props":849,"children":851},{"id":850},"why-market-structure-decides-the-winner",[852],{"type":32,"value":853},"Why Market Structure Decides the Winner",{"type":26,"tag":35,"props":855,"children":856},{},[857],{"type":32,"value":858},"Every strategy above assumes you can enter and exit at the prices you see. In practice, you often can't, and understanding why is what separates traders who survive from those who don't.",{"type":26,"tag":35,"props":860,"children":861},{},[862,867],{"type":26,"tag":65,"props":863,"children":864},{},[865],{"type":32,"value":866},"Liquidity determines slippage.",{"type":32,"value":868}," When you place a market order, you consume the available liquidity in the order book. On a deep book, a $50,000 order barely moves the price. On a thin book, that same order can slip several percent as it eats through progressively worse-priced offers. Day traders who ignore book depth routinely lose more to slippage than they make on their edge. Before trading any pair, look at how much size sits within 0.5 percent of the mid-price — that number tells you how large you can trade without moving the market against yourself.",{"type":26,"tag":35,"props":870,"children":871},{},[872,877],{"type":26,"tag":65,"props":873,"children":874},{},[875],{"type":32,"value":876},"Spreads are a recurring tax.",{"type":32,"value":878}," The bid-ask spread is what you pay to cross the market on every round trip. On BTC/USDT it might be a single basis point; on a low-cap token it can be 1 to 2 percent. A strategy backtested on mid-prices will look far more profitable than it performs live, because the mid-price is a number you can rarely actually trade at.",{"type":26,"tag":35,"props":880,"children":881},{},[882,887,889,895],{"type":26,"tag":65,"props":883,"children":884},{},[885],{"type":32,"value":886},"Fees compound with frequency.",{"type":32,"value":888}," The more you trade, the more fees matter. Understanding maker versus taker fees, and structuring your entries as maker orders where possible, can turn a marginal strategy into a viable one. This is exactly the logic professional ",{"type":26,"tag":561,"props":890,"children":892},{"href":891},"/blog/what-is-market-making-in-crypto",[893],{"type":32,"value":894},"market makers",{"type":32,"value":896}," apply at scale — they earn the spread and rebates rather than paying them.",{"type":26,"tag":35,"props":898,"children":899},{},[900],{"type":32,"value":901},"The deeper point: the liquidity you rely on as a day trader is provided by market makers who continuously quote both sides of the book. Their presence is why major pairs have tight spreads and enough depth to trade in size. When you trade a well-supported token, you are trading against and alongside professional liquidity — and the quality of that liquidity directly shapes your results.",{"type":26,"tag":27,"props":903,"children":905},{"id":904},"risk-management-the-part-that-actually-matters",[906],{"type":32,"value":907},"Risk Management: The Part That Actually Matters",{"type":26,"tag":35,"props":909,"children":910},{},[911],{"type":32,"value":912},"No strategy survives without risk controls. The traders who last treat risk management as the strategy, not an add-on.",{"type":26,"tag":35,"props":914,"children":915},{},[916,921],{"type":26,"tag":65,"props":917,"children":918},{},[919],{"type":32,"value":920},"Position sizing.",{"type":32,"value":922}," Risk a fixed, small fraction of capital per trade — commonly 1 to 2 percent. This ensures that a losing streak, which is statistically inevitable, does not wipe you out. Sizing off account equity rather than conviction is what keeps you in the game.",{"type":26,"tag":35,"props":924,"children":925},{},[926,931],{"type":26,"tag":65,"props":927,"children":928},{},[929],{"type":32,"value":930},"Stop-losses and take-profits.",{"type":32,"value":932}," Define your exit before you enter. A stop-loss caps the downside on each trade; a take-profit locks in gains before the market reverses. The ratio between them — your risk-reward — needs to be favorable enough that you can be right less than half the time and still profit. A 1:2 risk-reward means you only need to win about 40 percent of trades to break even.",{"type":26,"tag":35,"props":934,"children":935},{},[936,941],{"type":26,"tag":65,"props":937,"children":938},{},[939],{"type":32,"value":940},"Daily loss limits.",{"type":32,"value":942}," Set a maximum daily drawdown and stop trading when you hit it. Revenge trading after a bad run is one of the fastest ways to turn a manageable loss into a catastrophic one. The market will be there tomorrow.",{"type":26,"tag":35,"props":944,"children":945},{},[946,951],{"type":26,"tag":65,"props":947,"children":948},{},[949],{"type":32,"value":950},"Avoid overtrading.",{"type":32,"value":952}," More trades mean more fees and more chances for emotional error. The best days are often the ones where you take two or three high-quality setups rather than twenty marginal ones.",{"type":26,"tag":27,"props":954,"children":956},{"id":955},"what-separates-profitable-day-traders",[957],{"type":32,"value":958},"What Separates Profitable Day Traders",{"type":26,"tag":35,"props":960,"children":961},{},[962],{"type":32,"value":963},"Consistency comes from a repeatable process, not from finding one perfect strategy. Profitable day traders keep a trading journal, review their setups objectively, and adapt to changing market regimes rather than forcing a single approach onto every condition. They understand that a strategy that prints in a trending market can bleed in a ranging one, and they size down or step aside when their edge disappears.",{"type":26,"tag":35,"props":965,"children":966},{},[967],{"type":32,"value":968},"They also respect the infrastructure they trade on. They know which venues have the deepest books, the tightest spreads, and the most reliable execution during volatility — because in a fast market, a slow fill or a spiking spread can erase a week of gains in a single trade.",{"type":26,"tag":27,"props":970,"children":972},{"id":971},"the-liquidity-behind-every-trade",[973],{"type":32,"value":974},"The Liquidity Behind Every Trade",{"type":26,"tag":35,"props":976,"children":977},{},[978],{"type":32,"value":979},"Day trading is ultimately an exercise in reading and reacting to liquidity. Every entry and exit depends on there being a counterparty at a fair price, and that fairness is manufactured by professional market makers who quote continuously across venues.",{"type":26,"tag":35,"props":981,"children":982},{},[983],{"type":32,"value":984},"At Fibonacci Capital, we provide that liquidity for token projects and exchanges — maintaining tight spreads and deep order books so that markets stay efficient and tradable. For traders, this is the invisible infrastructure that makes intraday strategies possible. For token teams, healthy liquidity is what attracts serious traders in the first place: a token with wide spreads and shallow depth is one that active traders avoid, no matter how compelling the fundamentals.",{"type":26,"tag":35,"props":986,"children":987},{},[988],{"type":32,"value":989},"Whether you trade every day or build the markets others trade in, the same principle holds. Depth, tight spreads, and reliable execution are not background details — they are the foundation on which every profitable strategy is built.",{"title":7,"searchDepth":341,"depth":341,"links":991},[992,993,999,1000,1001,1002],{"id":750,"depth":341,"text":753},{"id":771,"depth":341,"text":774,"children":994},[995,996,997,998],{"id":743,"depth":348,"text":779},{"id":797,"depth":348,"text":800},{"id":818,"depth":348,"text":821},{"id":834,"depth":348,"text":837},{"id":850,"depth":341,"text":853},{"id":904,"depth":341,"text":907},{"id":955,"depth":341,"text":958},{"id":971,"depth":341,"text":974},"content:blog:crypto-day-trading-strategies.md","blog/crypto-day-trading-strategies.md","blog/crypto-day-trading-strategies",{"_path":1007,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":1008,"description":1009,"date":1010,"category":11,"readTime":1011,"author":13,"tags":1012,"keywords":1014,"image":1015,"body":1016,"_type":355,"_id":1303,"_source":357,"_file":1304,"_stem":1305,"_extension":360},"/blog/what-is-otc-crypto-trading","What Is OTC Crypto Trading? How OTC Desks Work for Large Trades","Learn how OTC crypto trading works, why institutions use OTC desks for large block trades, and how it differs from exchange trading on price, slippage, and settlement.","2026-06-11","8 min read",[368,741,18,1013,369],"institutional","OTC crypto trading, crypto OTC trading desk, how does OTC crypto trading work, what is OTC trading crypto, block trades, institutional crypto, Fibonacci Capital","/assets/images/blog/what-is-otc-crypto-trading.jpg",{"type":23,"children":1017,"toc":1285},[1018,1024,1029,1034,1040,1045,1051,1056,1062,1067,1073,1078,1084,1089,1132,1137,1143,1148,1158,1168,1178,1188,1194,1199,1205,1210,1216,1221,1227,1232,1238,1243,1249,1254,1259,1264,1269,1275,1280],{"type":26,"tag":27,"props":1019,"children":1021},{"id":1020},"what-is-otc-crypto-trading",[1022],{"type":32,"value":1023},"What Is OTC Crypto Trading?",{"type":26,"tag":35,"props":1025,"children":1026},{},[1027],{"type":32,"value":1028},"OTC crypto trading — short for over-the-counter trading — is the practice of buying and selling digital assets directly between two parties, away from public exchange order books. Instead of placing an order that anyone on a centralized exchange can see and fill, a buyer and seller agree on a price privately, often through a dedicated OTC desk that brokers the deal and handles settlement.",{"type":26,"tag":35,"props":1030,"children":1031},{},[1032],{"type":32,"value":1033},"This matters most when the trade is large. If a fund wants to buy $5 million of a mid-cap token, routing that order through a public exchange would move the price against them before the order even fills. OTC crypto trading solves this by sourcing liquidity off the book, locking in a single price for the entire block, and settling the transaction privately. For institutions, treasuries, miners, and token projects, the OTC market is where serious size actually trades.",{"type":26,"tag":27,"props":1035,"children":1037},{"id":1036},"how-does-otc-crypto-trading-work",[1038],{"type":32,"value":1039},"How Does OTC Crypto Trading Work?",{"type":26,"tag":35,"props":1041,"children":1042},{},[1043],{"type":32,"value":1044},"An OTC trade follows a simple lifecycle, but each step is engineered to protect the client from the costs that plague large on-exchange orders.",{"type":26,"tag":119,"props":1046,"children":1048},{"id":1047},"_1-request-for-quote-rfq",[1049],{"type":32,"value":1050},"1. Request for Quote (RFQ)",{"type":26,"tag":35,"props":1052,"children":1053},{},[1054],{"type":32,"value":1055},"The client tells the OTC desk what they want to trade — for example, \"I want to sell 200 BTC for USDC.\" The desk responds with a firm, all-in price. Unlike an exchange, where you see a stack of bids and asks at different sizes, an OTC quote is a single price for the entire amount. There is no slippage as you eat through the book, because the desk has already priced the full size into the quote.",{"type":26,"tag":119,"props":1057,"children":1059},{"id":1058},"_2-price-agreement-and-execution",[1060],{"type":32,"value":1061},"2. Price Agreement and Execution",{"type":26,"tag":35,"props":1063,"children":1064},{},[1065],{"type":32,"value":1066},"If the client accepts the quote, the trade is locked. The price does not change between agreement and settlement, which removes the execution risk that comes from a market moving mid-fill. The desk now holds the other side of the trade and manages its own risk — typically by hedging across multiple venues, drawing on its inventory, or matching the flow against an offsetting client.",{"type":26,"tag":119,"props":1068,"children":1070},{"id":1069},"_3-settlement",[1071],{"type":32,"value":1072},"3. Settlement",{"type":26,"tag":35,"props":1074,"children":1075},{},[1076],{"type":32,"value":1077},"Settlement is where OTC desks distinguish themselves. The two parties exchange assets directly: the client sends one asset and receives the other, usually within minutes to a few hours for trusted counterparties. Reputable desks settle on a delivery-versus-payment or escrow basis to eliminate counterparty risk, so neither side is exposed to the other defaulting mid-transaction.",{"type":26,"tag":27,"props":1079,"children":1081},{"id":1080},"otc-vs-exchange-trading-the-key-differences",[1082],{"type":32,"value":1083},"OTC vs. Exchange Trading: The Key Differences",{"type":26,"tag":35,"props":1085,"children":1086},{},[1087],{"type":32,"value":1088},"Understanding when to use an OTC desk instead of an exchange comes down to four variables: size, price impact, privacy, and settlement.",{"type":26,"tag":57,"props":1090,"children":1091},{},[1092,1102,1112,1122],{"type":26,"tag":61,"props":1093,"children":1094},{},[1095,1100],{"type":26,"tag":65,"props":1096,"children":1097},{},[1098],{"type":32,"value":1099},"Size.",{"type":32,"value":1101}," Exchanges are built for a high frequency of small-to-medium orders. OTC desks specialize in block trades — single transactions that would represent a meaningful share of an exchange's daily volume.",{"type":26,"tag":61,"props":1103,"children":1104},{},[1105,1110],{"type":26,"tag":65,"props":1106,"children":1107},{},[1108],{"type":32,"value":1109},"Price impact and slippage.",{"type":32,"value":1111}," On an exchange, a large market order walks up the order book, with each successive fill at a worse price. A $2 million buy on a thinly traded pair might push the price 3-8% before it completes. An OTC desk quotes one price for the whole block, eliminating that slippage entirely.",{"type":26,"tag":61,"props":1113,"children":1114},{},[1115,1120],{"type":26,"tag":65,"props":1116,"children":1117},{},[1118],{"type":32,"value":1119},"Privacy.",{"type":32,"value":1121}," Exchange orders are visible in the public order book and post-trade data, which can signal your intentions to the market and invite front-running. OTC trades are private until settled, and often never appear on a public tape at all.",{"type":26,"tag":61,"props":1123,"children":1124},{},[1125,1130],{"type":26,"tag":65,"props":1126,"children":1127},{},[1128],{"type":32,"value":1129},"Settlement flexibility.",{"type":32,"value":1131}," OTC desks can accommodate custom settlement terms, multiple stablecoins or fiat rails, and larger size than an exchange's withdrawal limits comfortably allow.",{"type":26,"tag":35,"props":1133,"children":1134},{},[1135],{"type":32,"value":1136},"A useful rule of thumb: if executing your order on-exchange would move the price by more than the spread an OTC desk quotes you, the OTC route is cheaper.",{"type":26,"tag":27,"props":1138,"children":1140},{"id":1139},"why-institutions-use-otc-crypto-trading-desks",[1141],{"type":32,"value":1142},"Why Institutions Use OTC Crypto Trading Desks",{"type":26,"tag":35,"props":1144,"children":1145},{},[1146],{"type":32,"value":1147},"The clients driving OTC volume are rarely retail traders. They are organizations moving size where price certainty and discretion are worth more than the convenience of a public exchange.",{"type":26,"tag":35,"props":1149,"children":1150},{},[1151,1156],{"type":26,"tag":65,"props":1152,"children":1153},{},[1154],{"type":32,"value":1155},"Funds and asset managers",{"type":32,"value":1157}," use OTC desks to build or unwind large positions without telegraphing their strategy. A hedge fund accumulating a position over weeks does not want the market to see a steady stream of large buys.",{"type":26,"tag":35,"props":1159,"children":1160},{},[1161,1166],{"type":26,"tag":65,"props":1162,"children":1163},{},[1164],{"type":32,"value":1165},"Token projects and foundations",{"type":32,"value":1167}," rely on OTC desks to sell treasury tokens for operating capital, or to convert vested allocations into stablecoins, without dumping on their own order book and crashing the token's price. This is a core use case Fibonacci Capital supports for the projects it works with — pairing on-exchange market making with OTC execution so a treasury sale doesn't undermine the very liquidity the project is trying to build.",{"type":26,"tag":35,"props":1169,"children":1170},{},[1171,1176],{"type":26,"tag":65,"props":1172,"children":1173},{},[1174],{"type":32,"value":1175},"Miners",{"type":32,"value":1177}," sell large quantities of freshly mined coins to cover electricity and hardware costs and prefer to do so at a locked price rather than risk slippage on an exchange.",{"type":26,"tag":35,"props":1179,"children":1180},{},[1181,1186],{"type":26,"tag":65,"props":1182,"children":1183},{},[1184],{"type":32,"value":1185},"Corporates and treasuries",{"type":32,"value":1187}," entering or exiting crypto positions need clean, auditable, single-price execution that fits institutional reporting requirements.",{"type":26,"tag":27,"props":1189,"children":1191},{"id":1190},"what-to-look-for-in-an-otc-crypto-trading-desk",[1192],{"type":32,"value":1193},"What to Look for in an OTC Crypto Trading Desk",{"type":26,"tag":35,"props":1195,"children":1196},{},[1197],{"type":32,"value":1198},"Not all OTC desks are equal. The quality of execution, the depth of liquidity, and the safety of settlement vary widely. When evaluating an OTC counterparty, weigh the following.",{"type":26,"tag":119,"props":1200,"children":1202},{"id":1201},"liquidity-depth-and-pricing",[1203],{"type":32,"value":1204},"Liquidity Depth and Pricing",{"type":26,"tag":35,"props":1206,"children":1207},{},[1208],{"type":32,"value":1209},"The whole point of an OTC desk is access to deep liquidity. A strong desk can quote tight prices on size because it aggregates liquidity from multiple exchanges, other OTC counterparties, and its own inventory. Ask how the desk sources liquidity and what size it can comfortably quote on the specific assets you trade. For long-tail or low-cap tokens, depth matters far more than for BTC or ETH.",{"type":26,"tag":119,"props":1211,"children":1213},{"id":1212},"settlement-security",[1214],{"type":32,"value":1215},"Settlement Security",{"type":26,"tag":35,"props":1217,"children":1218},{},[1219],{"type":32,"value":1220},"Counterparty risk is the single biggest danger in OTC trading. Confirm how the desk handles settlement: Does it use escrow? Delivery-versus-payment? What is the settlement window? Established desks with a track record and institutional custody relationships are worth a tighter spread for the reduction in risk.",{"type":26,"tag":119,"props":1222,"children":1224},{"id":1223},"regulatory-standing-and-compliance",[1225],{"type":32,"value":1226},"Regulatory Standing and Compliance",{"type":26,"tag":35,"props":1228,"children":1229},{},[1230],{"type":32,"value":1231},"A credible OTC desk runs proper KYC and AML checks and operates within a clear regulatory framework. This protects you from tainted funds and ensures your own compliance obligations are met. Treat a desk that skips KYC as a red flag, not a convenience.",{"type":26,"tag":119,"props":1233,"children":1235},{"id":1234},"speed-and-service",[1236],{"type":32,"value":1237},"Speed and Service",{"type":26,"tag":35,"props":1239,"children":1240},{},[1241],{"type":32,"value":1242},"For volatile assets, the gap between requesting a quote and settling can expose you to price movement. Responsive desks quote quickly, settle fast, and provide a dedicated point of contact for large or recurring flow.",{"type":26,"tag":27,"props":1244,"children":1246},{"id":1245},"otc-trading-and-market-making-two-sides-of-liquidity",[1247],{"type":32,"value":1248},"OTC Trading and Market Making: Two Sides of Liquidity",{"type":26,"tag":35,"props":1250,"children":1251},{},[1252],{"type":32,"value":1253},"OTC trading and market making are often discussed separately, but for a token project they are complementary tools for the same goal: healthy, stable liquidity.",{"type":26,"tag":35,"props":1255,"children":1256},{},[1257],{"type":32,"value":1258},"Market making provides continuous two-sided liquidity on exchange order books — tight spreads and depth that let everyday buyers and sellers trade without excessive slippage. It is the always-on infrastructure that keeps a token tradable. OTC execution handles the large, discrete transactions that would overwhelm those order books — a treasury sale, a strategic investor's entry, a foundation converting tokens to cover a year of runway.",{"type":26,"tag":35,"props":1260,"children":1261},{},[1262],{"type":32,"value":1263},"The risk of treating them in isolation is real. A project with strong market making but no OTC strategy might still crash its own price the day it needs to sell treasury tokens for operating expenses, undoing months of patient liquidity building. A project that only does OTC deals has no on-exchange depth, so its token looks illiquid and untradeable to the broader market. The two work best together.",{"type":26,"tag":35,"props":1265,"children":1266},{},[1267],{"type":32,"value":1268},"At Fibonacci Capital, we approach liquidity as a single problem with two instruments. We provide market making to keep a token's order books deep and spreads tight, and we support OTC execution so that large, sensitive transactions happen at a fair, single price without disrupting the public market the project depends on. For token teams planning a treasury sale, a strategic round, or a large vesting unlock, coordinating OTC execution with an ongoing market making program is the difference between a clean transaction and a price chart that scares off the next investor.",{"type":26,"tag":27,"props":1270,"children":1272},{"id":1271},"key-takeaways",[1273],{"type":32,"value":1274},"Key Takeaways",{"type":26,"tag":35,"props":1276,"children":1277},{},[1278],{"type":32,"value":1279},"OTC crypto trading exists because public exchanges are inefficient for large size. By matching buyers and sellers privately and quoting a single all-in price, OTC desks eliminate the slippage, signaling, and execution risk that make big on-exchange orders expensive. Institutions, funds, miners, and token projects all rely on it for size that would otherwise move the market.",{"type":26,"tag":35,"props":1281,"children":1282},{},[1283],{"type":32,"value":1284},"If you are trading enough that your order would noticeably push the price, it is worth getting an OTC quote and comparing it to the cost of executing on-exchange. And if you are a token project, think of OTC execution not as a standalone service but as one half of a complete liquidity strategy — the other half being the market making that keeps your token tradable every other day of the year.",{"title":7,"searchDepth":341,"depth":341,"links":1286},[1287,1288,1293,1294,1295,1301,1302],{"id":1020,"depth":341,"text":1023},{"id":1036,"depth":341,"text":1039,"children":1289},[1290,1291,1292],{"id":1047,"depth":348,"text":1050},{"id":1058,"depth":348,"text":1061},{"id":1069,"depth":348,"text":1072},{"id":1080,"depth":341,"text":1083},{"id":1139,"depth":341,"text":1142},{"id":1190,"depth":341,"text":1193,"children":1296},[1297,1298,1299,1300],{"id":1201,"depth":348,"text":1204},{"id":1212,"depth":348,"text":1215},{"id":1223,"depth":348,"text":1226},{"id":1234,"depth":348,"text":1237},{"id":1245,"depth":341,"text":1248},{"id":1271,"depth":341,"text":1274},"content:blog:what-is-otc-crypto-trading.md","blog/what-is-otc-crypto-trading.md","blog/what-is-otc-crypto-trading",1790817375365]