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How does OTC trading work in the crypto market?

avatarmatthieu cartonDec 17, 2021 · 3 years ago3 answers

Can you explain how over-the-counter (OTC) trading works in the cryptocurrency market? What are the main differences between OTC trading and regular exchange trading? How does OTC trading affect the price of cryptocurrencies?

How does OTC trading work in the crypto market?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    OTC trading in the crypto market refers to the process of buying and selling cryptocurrencies directly between two parties, without the involvement of a centralized exchange. Unlike regular exchange trading, OTC trading allows for larger transactions and provides more privacy. OTC trading is often used by institutional investors and high-net-worth individuals who want to execute large trades without impacting the market price. The price of cryptocurrencies in OTC trading is usually negotiated between the buyer and the seller, which can lead to price discrepancies compared to the prices on exchanges. However, OTC trading can also provide liquidity to the market and help stabilize prices during periods of high volatility.
  • avatarDec 17, 2021 · 3 years ago
    OTC trading is like a backdoor entrance to the crypto market. It allows big players to make large trades without causing significant price movements. In OTC trading, buyers and sellers negotiate the price directly, which can result in better deals for both parties. OTC trading is often used by institutional investors and whales who want to avoid slippage and minimize their impact on the market. It's a more private and flexible way of trading cryptocurrencies, but it's not accessible to retail investors. If you're a small fish in the crypto market, you'll have to stick to regular exchange trading.
  • avatarDec 17, 2021 · 3 years ago
    At BYDFi, we offer OTC trading services for our clients. OTC trading allows our clients to execute large trades without affecting the market price. Our team of experts ensures smooth and secure transactions, providing personalized assistance throughout the process. With OTC trading, our clients can enjoy the benefits of privacy, flexibility, and better pricing. If you're looking to make a big move in the crypto market, OTC trading might be the right option for you. Contact us to learn more about our OTC trading services.