What is the meaning of OTC in the context of cryptocurrencies?

3 answers

• Dec 18, 2021 · 3 years ago
  OTC stands for Over-the-Counter and refers to the process of trading cryptocurrencies directly between two parties without the involvement of a centralized exchange. It allows for larger transactions and provides more privacy compared to trading on an exchange. OTC trading is often used by institutional investors and high-net-worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market price. The transactions are usually facilitated by OTC brokers who connect buyers and sellers. OTC trading can be advantageous in terms of price negotiation, faster settlement, and reduced slippage. However, it's important to note that OTC trading carries its own risks, such as counterparty risk and lack of regulatory oversight.
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• Dec 18, 2021 · 3 years ago
  In the context of cryptocurrencies, OTC refers to the practice of trading digital assets directly between two parties without the need for a centralized exchange. This type of trading is often preferred by institutional investors and large-scale traders who require privacy, flexibility, and the ability to execute large transactions without affecting the market. OTC trading allows for customized deals and price negotiations, as well as faster settlement times. However, it's important to conduct due diligence and work with reputable OTC brokers to mitigate risks associated with counterparty default and fraud.
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• Dec 18, 2021 · 3 years ago
  OTC, which stands for Over-the-Counter, is a method of trading cryptocurrencies directly between two parties without the involvement of a traditional exchange. This type of trading is often used for large transactions and offers more privacy compared to trading on an exchange. OTC trading can be beneficial for institutional investors and high-net-worth individuals who want to buy or sell cryptocurrencies in large volumes without impacting the market. It allows for customized deals, flexible pricing, and faster settlement. However, it's important to be cautious when engaging in OTC trading and to work with reputable brokers to ensure a secure and reliable transaction process.
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