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What is the difference between OTC tickers and regular exchange tickers in the cryptocurrency market?

avatarAmmar Hasan RatulDec 18, 2021 · 3 years ago1 answers

Can you explain the distinction between OTC tickers and regular exchange tickers in the cryptocurrency market? How do they differ in terms of trading, liquidity, and pricing?

What is the difference between OTC tickers and regular exchange tickers in the cryptocurrency market?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    When it comes to OTC tickers and regular exchange tickers in the cryptocurrency market, the main difference lies in the way they are traded. OTC tickers are traded directly between two parties, usually facilitated by a broker or dealer. This type of trading is often used for large transactions and offers more privacy and flexibility in terms of pricing. On the other hand, regular exchange tickers are traded on centralized exchanges, where buyers and sellers come together on a platform to trade cryptocurrencies. These exchanges provide liquidity and transparency, and the prices are determined by the supply and demand on the exchange. In terms of trading volume, regular exchange tickers generally have higher trading volume compared to OTC tickers. However, OTC tickers can offer better pricing for large trades due to the negotiation involved. It's important to note that both OTC tickers and regular exchange tickers have their own advantages and disadvantages, and the choice between the two depends on the specific needs and preferences of the trader.