How do crypto OTC exchanges work?

3 answers

• Dec 28, 2021 · 3 years ago
  Crypto OTC exchanges, also known as over-the-counter exchanges, are platforms where large cryptocurrency trades are conducted directly between two parties, without the involvement of a traditional order book. Unlike regular exchanges, OTC exchanges offer a more personalized and private trading experience. They cater to institutional investors and high-net-worth individuals who require large trade sizes and prefer to execute trades off the public market. OTC exchanges typically have a team of brokers who facilitate the trades and ensure smooth transactions. These exchanges provide liquidity for large trades and often offer competitive pricing compared to regular exchanges. They also offer services like escrow and settlement to mitigate counterparty risk. Overall, crypto OTC exchanges play a crucial role in facilitating large-scale cryptocurrency transactions.
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• Dec 28, 2021 · 3 years ago
  Crypto OTC exchanges work by matching buyers and sellers directly, without the need for an order book. When a buyer wants to purchase a large amount of cryptocurrency, they contact the OTC exchange and specify their desired quantity and price. The exchange then searches for a seller who is willing to sell at the requested price. Once a match is found, the exchange facilitates the trade and ensures that both parties fulfill their obligations. OTC exchanges often have minimum trade size requirements to cater to institutional investors. The trades are usually settled off-chain, meaning they do not affect the price or order book of regular exchanges. This allows for larger trades to be executed without causing significant market impact.
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• Dec 28, 2021 · 3 years ago
  At BYDFi, our OTC exchange offers a seamless and secure trading experience for institutional investors and high-volume traders. Our platform provides access to a wide range of cryptocurrencies and ensures fast execution with competitive pricing. We have a dedicated team of brokers who are experienced in handling large trades and ensuring smooth transactions. With our escrow and settlement services, we prioritize the security and trust of our clients. Whether you're looking to buy or sell large amounts of cryptocurrency, BYDFi's OTC exchange is here to meet your needs.
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