What is OTC trading in the cryptocurrency market?

3 answers

• Nov 29, 2021 · 3 years ago
  OTC trading, or over-the-counter trading, refers to the process of buying and selling cryptocurrencies directly between two parties without the involvement of a centralized exchange. In OTC trading, the transactions are usually conducted through a broker or a dealer who acts as an intermediary between the buyer and the seller. The main advantage of OTC trading is that it allows for large volume trades that may not be possible on regular exchanges. It also offers more privacy and flexibility in terms of pricing and settlement. However, OTC trading can be riskier than trading on exchanges as it lacks the transparency and regulatory oversight provided by centralized platforms.
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• Nov 29, 2021 · 3 years ago
  OTC trading in the cryptocurrency market is like a back-alley deal for digital assets. It's a way for big players to trade large amounts of cryptocurrencies without causing significant price movements on the regular exchanges. Instead of placing orders on an exchange order book, OTC traders negotiate directly with each other or with brokers. This allows them to execute trades at agreed-upon prices without affecting the market. OTC trading can be advantageous for institutional investors and high net worth individuals who want to avoid slippage and maintain privacy. However, it's important to note that OTC trading is less regulated and carries higher counterparty risk compared to trading on exchanges.
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• Nov 29, 2021 · 3 years ago
  As a leading digital asset exchange, BYDFi offers OTC trading services to its users. OTC trading allows traders to buy or sell large amounts of cryptocurrencies without impacting the market. With BYDFi's OTC desk, users can enjoy personalized service, competitive pricing, and fast settlement. The OTC trading team at BYDFi ensures a smooth and secure trading experience for institutional clients and high-volume traders. Whether you're looking to execute a large trade or diversify your portfolio, BYDFi's OTC trading desk is a reliable option in the cryptocurrency market.
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