Current Status of the OTC Industry: High Risk, Low Profit - Can New Retail Investors Still Make a Profit?

The cryptocurrency trading business is not a good livelihood. I have told you before that it involves high risks, high costs, and low profits. No matter how you look at it, it is not an investment behavior. If you have the money to buy an automatic noodle machine and rent a storefront at your local farmers' market to sell noodles, you would be able to outcompete other handmade goods in the market. Why come to this industry to contribute fuel?

Surely, some people won't believe it. With so many OTC traders on exchanges, why do they always manage to make it work? This article is going to offend all cryptocurrency traders:

Imagine an uncle lining up OTC traders from exchanges, executing one by one, leaving only the ones that slip through the cracks; there is absolutely no one who is wrongfully accused.

You don’t understand what this means, right? Look at the picture and find me a poor female college student who excels in both academics and work-study, and is untainted by the mud.

In this environment, there are no outstanding college students. You work part-time as a waiter earning 3,500 a month, while others make 3,500 in just a few minutes. Can you keep your original intention?

Just like the cryptocurrency traders on exchanges, everyone else is making big money. You work hard through the night to earn 300 yuan in a day? They earn 300,000, and you won't feel balanced inside.

Let’s look at the economic costs and resources needed to be a cryptocurrency trader:

The margin for an exchange trader account is 10,000 to 15,000 USDT, which is about 100,000 yuan. Let’s say you need at least 100,000 yuan in working capital, so the total funds needed is 200,000 yuan.

You need several bank accounts, with a limit of 500,000 yuan per day. You also need three Alipay and WeChat accounts each, and then you can start working. The person I consulted earlier didn’t even understand the basics; their application for a trader account would be rejected, and finding someone to guarantee would require another 30,000.

At this point, you can start your business. With 100,000 yuan in working capital, I’ll calculate it as 14,000 USDT. Many people don’t understand what this means; it means your principal is 14,000 USDT, not 100,000 yuan.

This concept of USDT-based trading, I used to explain for half an hour to my students. Why do USDT-based trading? Because you earn in USDT on the exchange, not in cash.

The operation method is to sell 14,000 USDT at today’s real-time price of 7.3 (if you set it higher, no one will buy), earning 102,200 yuan. At this point, you have only completed half of the operation; you need to get back that 14,000 USDT to form a closed loop of buying and selling.

Now you need to place an order below 7.3 to buy back 14,000 USDT to make a profit; this is a cycle.

However, you find that your peers are all buying back at 7.31. You must buy back at 7.29 to make a profit. At this point, you need to place an order at 7.29, but no one will sell to you. They have a selling price of 7.31; why would they sell to you at 7.29?

So you can only wait for market fluctuations. Your current balance in yuan is 102,200. If you buy back USDT at 7.29, that means 102,200/7.29 = 14,019.2 USDT. In these few hours, your cash flow has gone back and forth 200,000, earning 19 USDT.

Profit: 138.7 yuan.

To sell 14,000 USDT, if you do small transactions averaging 10,000 per order, you need 10 customers to buy from you. For these ten customers, you need to verify their identity and transaction history, receive the money, and then buy back. This way, your cash flow involves 10 people across the country transferring money to you, and you immediately transfer it to different people across the country.

At this point, your bank card triggers anti-money laundering risk control due to dispersed transfers and concentrated withdrawals.

This is why you need to avoid non-cabinet transactions; you earned 138, but one bank card is now useless.

Can this business still be done?

These are the operational details and answers to paid consultation clients' questions. Many people will ask me if there are cards that are not non-cabinet. Yes, but do you have that resource?

How to obtain this resource?

I’ll tell you a simple thing: deposit 10 million into a bank to open a private banking-level account. A small bank manager can basically help you solve risk control issues.

Don’t have 10 million? Don’t have money to buy resources? Then why do you think you can just get top-tier core resources with a single sentence?

Of course, you have already learned one of the bank's risk control rules from me. The smart ones will definitely find ways to circumvent it. You might say, "If I use Alipay and WeChat for payments, I won’t be subject to bank risk control, right?"

Smart!

But non-financial institutions are also financial; they have their own risk control systems. Your three accounts can still only be used for two days.

The clever ones will start thinking about how to increase payment accounts, right? You start to think and find ways to use the resources at hand. You remember your dad runs a factory; those college students working in the factory are just like human cattle, right?

The smart you start to learn how to be a capitalist, having already jumped out of the small workshop mindset. You give college students a 100 yuan bonus a month; they help you collect payments every day and then transfer it out. You earn 300, and they earn 3 yuan.

You feel like a fish in water, thinking you are truly a capital tycoon.

You start preparing to grow bigger and stronger. Your classmate is a security team leader in a community, and he has many security brothers. You also opened a trader account for him; those security guards have never used Alipay before.

Your first love is a supermarket manager, and when those college students work part-time, you let them use their phones to collect payments, solving that problem.

Your current partner sells insurance, and the insurance agents can’t even eat. So your wife asks these insurance agents to bring 50,000 yuan every day to help you transfer it out, then collect 50,100, cycling every day. Those insurance agents who can’t afford to eat are equivalent to a monthly salary of 3,000, and the team cohesion is stronger.

At this point, you have solved the personnel issue. What if you tell me you don’t have a factory-owning dad, you’re single, and your first love isn’t a supermarket manager? If you’re just pitifully doing it all by yourself, then you have no resources. Why do you think you can make money in a strange field?

You tell me why?

So you need a basic foundation. You either need to be a top performer in a certain industry, and then come to this industry to outcompete others.

In exchanges, you simply cannot compete with those doing bad business. They can sell at a 30% discount and still make a 20% profit. If you dare to sell even one cent cheaper, you will be at a loss.

So the smart and unwilling-to-do-bad-business traders start to shift to private traffic circles, building their own brands. To stand out, you either need resources to buy USDT at low prices or have safe channels to sell USDT.

Why would others sell to you at a low price?

What kind of trust do you need to establish with them? Why would customers be willing to sell at a low price? What are they pursuing?

Correct, customers actually don’t care much about the price; they want absolute safety.

If you can guarantee full compensation for frozen cards and can provide property deeds as collateral, customers can trust you. However, 99.9% of traders cannot do this because the cost of blacklisting you is too low.

You have no resources, and you don’t dare to promise 100% safety.

Either you have safe channels to sell USDT. In fact, there are many safe channels to sell USDT on the market, and everyone is telling you how to legally and safely sell USDT overseas, but the costs are high. If your profit is 3% and the cost is 5%, how can that be a business model?

Unless your profit can exceed the cost or you can lower the cost.

But you have no resources; why would customers trust you?

We have problems that must be solved. Therefore, you need to build your own brand, continuously input your views, and let customers believe in you to establish trust. The only channel for ordinary people to do this is through self-media.

Then the problem arises again. To solve the trust issue, you need to become the industry leader in self-media in this field. Isn’t that a point that is harder than making money?

Yes, you need to become the self-media industry leader for cryptocurrency traders, and then you can establish trust.

You need to become the leader in the legal profession, and then you can make big money in legal business.

At this point, all resources will automatically gravitate towards you.

You can filter customers; when customers add you, they can pay. You can filter resource channels and collect deposits to ensure transaction safety.

This is the power of private customers. Once you establish trust, you can lower prices and costs, and you can negotiate safe and legal channels with the lowered costs. At this point, you can succeed.

Making money will come naturally.

For example, as we all know, the current market cost of USDT cards is about 5% loss. As long as your profit can reach 6%, there is a price difference.

As for exchange traders, I just calculated for you, the profit is only 0.1% to 0.3%, and the risk is extremely high. Once judicial freezing occurs, you will lose everything.

Many people will ask, "My friends have no resources but still trade cryptocurrencies; how do they do it?"

If you have no resources, just collaborate with traders who do. I’m revealing an industry play here that many people in the industry cannot know.

That is to specifically serve quality customers in private traffic. Now retail investors buying USDT on exchanges are gradually being shut down, often monitored by anti-fraud alerts because exchange traders use other people's accounts, which is suspected of buying, renting, or lending.

The trading counterpart in the bank's grading system is considered a high-risk trading partner. If you go to buy USDT from them, you will also be listed as a risk control target, so buying USDT often encounters payment issues.

At this point, they will look for familiar and trusted traders in private traffic to buy USDT. Traders sell it to them at market price but charge a service fee of 2%, which is their profit.

This is a mature business model, making money based on trust and brand, with high profits and relatively low risks.

You just need to fulfill your customer verification obligations, obtain traffic sources, and collaborate with those who have traffic, provided you are not greedy and ensure proper KYC.

For example, if I have 100-200 quality customers a year, this group has absolute trust in me, and they also have a demand for buying USDT. If I send this group’s demand to a certain trader, wouldn’t you make money?

The issue to resolve is my trust in you.

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