In this new episode of the show, we are joined by Patrick Heusser, Senior Cryptocurrency Trader at Zug-based Crypto Broker AG. We discuss some of the traits that characterize crypto markets and how these compare to more traditional markets like emerging markets currencies and commodities.Crypto markets are known as highly volatile markets and we dived deeper into the so-important volatility metric, assessing first how it has changed over time, the reasons behind the trend, and what it means for short-term traders today.Patrick give us a good picture of volume currently being traded on the spot market, derivatives market and over-the-counter (OTC). We delve into intricacies of the spot market, its efficiency, and how liquidity can at times evaporate from the order book.Finally, we discuss the main participants trading crypto OTC, and the differences between a crypto broker and a crypto exchange, when it comes to liquidity management, credit risk, and execution.01:20 how crypto markets compare to traditional markets02:09 how volatility for crypto has changed over time02:49 reasons for the lower trending volatility04:10 availability of short-term trading opportunities05:02 yearly volatility % of cryptocurrencies vs traditional assets06:10 liquidity and efficiency of crypto markets07:50 what do we mean by OTC in crypto10:54 who are the main participants trading crypto OTC12:10 differences between an OTC crypto broker and a crypto exchange13:38 slippage and order execution14:30 key factors when choosing a crypto broker15:56 why brokers have less counterparty risk18:00 reasons for the surge in OTC crypto brokers18:43 trading frequency of various institutional investorsEpisode linksPatrick Heusser | Linkedin | Twitter Alain Walder | LinkedinIf you haven't left a review yet, please take 30 seconds of your time and leave a review on iTunes, that would be much-appreciated support to the show!If you're interested in getting in front of an audience of professional investors and traders based in Europe, please contact me on Linkedin to discuss a potential cooperation.

Block Valley

A Primer on Crypto Markets: Volatility, Liquidity, OTC Trading | Patrick Heusser | Crypto Broker AG | Ep. #16

Welcome to Block Valley, the podcast where we discuss developments currently shaping the cryptocurrency markets and blockchain projects impacting the financial services industry.Each episode, host Alain Walder, interviews founders, traders, and investors based in Europe and Switzerland. We deliberate how blockchain technology is transforming business models in finance-related fields (trading, payments, banking, ...) and the latest developments that move and shake crypto assets.

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A Primer on Crypto Markets: Volatility, Liquidity, OTC Trading | Patrick Heusser | Crypto Broker AG | Ep. #16