Newdex is one of the world’s leading decentralized exchange (DEX). It is the first EOS-based DEX and is widely considered as the biggest trading venue in the whole EOSIO ecosystem. It features one of the most comprehensive lists of EOS trading pairs extending to EOSIO’s sister chains. To bring more value for its users the Newdex team has been busy releasing innovative features that will enhance the trading experience of its users.
One such feature is the Newdex Over-the-Counter service (OTC). The OTC feature is a simple yet powerful tool that will enable traders to buy and sell EOS and USDT directly with fiat. This addresses one of the many challenges when new users want to trade via decentralized exchanges. In the past users will have to buy EOS in centralized exchanges and withdraw them into their wallet which may prove too complicated for newbies.
Newdex OTC Service
To simply put the OTC service in Newdex allows users to buy and sell using fiat directly. This greatly simplifies the process of buying EOS and USDT as traders will not have to interact with another third-party intermediary which may present additional challenges. Due to regulatory requirements, Newdex will be asking users who plan to use this service to undergo KYC procedures and will be accepting Chinese Yuan fiat only initially.
By making it easier for newcomers to invest their fiat into cryptocurrency Newdex is addressing another pain point in the cryptocurrency industry, liquidity. This attribute is characterized by the asset’s ability to be converted into cash readily. By providing newbies the ability to easily buy and sell EOS and USDT should increase the liquidity of the said assets especially in the fiat market that is currently supported. Further liquidity will be achieved as more fiat is supported.
Liquidity is a very important attribute by any digital asset. The ability to move from fiat to crypto and vice versa pay a vital role in achieving mass adoption of this emerging asset class. By themselves, cryptocurrencies have very little utility in real-world settings where very few businesses accept them as real currency. Hence being able to convert them into fiat easily is of utmost importance to make them relevant and useful in the real world.
How to start using the Newdex OTC service
To start using this service make sure that you have a supported non-custodial EOS wallet that can log in to Newdex’s website as well as an EOS account. I recommend the use of Wombat wallet which is available as a chrome extension, android app, and iOS app. More importantly, It also allows users to easily create EOS accounts totally for free. This is a perfect match for newbies who more likely than not will be creating their first EOS account.
Once the user has the EOS account and non-custodial wallet they can log in to the Newdex website and chose the OTC page to start KYC procedures. The KYC procedure requires you to link your phone number and email to Newdex. After linking these two you can undergo KYC procedures. There are 4 different levels of verification: Basic, Primary, Intermediate, and Advance. The different levels determine the limitations of the user’s transactions.
After identification validation has been approved traders will now be able to enjoy direct EOS and USDT trading using the Newdex platform. To initiate a trade one must input the amount of CNY if they are buying crypto or the amount of crypto (EOS or USDT) if they are selling. The platform determines the exchange rates of the assets being traded which can easily be seen just above the required fields as in the screenshot shown below.
Once the amount has been entered traders just need to press the “But” or “Sell” button to proceed with the trade. Pressing this button will bring the trader to the settlement page where it will show how much exactly what will be received in the transactions as well as the different payment methods currently available. As we can see the platform accepts three types of payment methods: Alipay, WeChat, and Bank Card.
OTC Platform Feeless Trading
To enhance the trading experience of its users Newdex has waived off OTC trading fees since March 27, 2020. This means from this date henceforth there will be no more charges for using the OTC service offering. This will further reduce the friction when using the said service. The fast transaction times of EOS blockchain and its feeless transaction makes Newdex OTC an ideal platform for Newbies to quickly move in and out of cryptocurrencies.
The Newdex OTC service is indeed a value-adding service in the whole Newdex ecosystem. It addresses some of the pressing challenges in decentralized trading making it easier for beginners to enter cryptocurrency without much friction and risk. Moreover, the easier onboarding of new users also increases liquidity by providing easier access to newcomers in crypto tradings.
There is no wonder why Newdex has become one of the leading decentralized exchanges in the world. By continuously improving its service offering through various innovative and value-adding services it has stayed ahead of the competition at the same time have enhanced the trading experience of both seasoned and new traders alike.
The above article is a commissioned work for Newdex. I was tasked to write an article about its OTC service offering. Total creative freedom was given to me. All the information stated above came from my own research and based on my experience and knowledge. It has not been edited by Newdex or any of the aforementioned projects in the article.
Cross-posted in Steemit and my other blockchain-based social media accounts.