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How does OTC clear work in facilitating large-scale cryptocurrency transactions?

avatarStian emil TvedtDec 25, 2021 · 3 years ago3 answers

Can you explain how OTC clear works in facilitating large-scale cryptocurrency transactions? I'm interested in understanding the process and how it differs from regular cryptocurrency exchanges.

How does OTC clear work in facilitating large-scale cryptocurrency transactions?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    Sure! OTC clear, or over-the-counter clear, is a process that facilitates large-scale cryptocurrency transactions outside of traditional exchanges. It involves direct trading between two parties, usually facilitated by a third-party OTC desk. Unlike regular exchanges, OTC clear allows for the execution of large orders without causing significant price fluctuations. This is because the transactions are not conducted on the open market, but rather negotiated privately. OTC clear is often preferred by institutional investors and high-net-worth individuals who require liquidity for large trades without impacting the market.
  • avatarDec 25, 2021 · 3 years ago
    OTC clear is like a VIP room for cryptocurrency transactions. It's where the big players go to make their moves without causing a scene. Instead of buying or selling on a regular exchange, OTC clear allows for direct trading between two parties. This means that large orders can be executed without causing the price to skyrocket or plummet. It's a more discreet and efficient way to handle large-scale transactions in the cryptocurrency market.
  • avatarDec 25, 2021 · 3 years ago
    At BYDFi, we offer OTC clear services to our clients. OTC clear is a great option for those looking to make large-scale cryptocurrency transactions without impacting the market. With OTC clear, you can negotiate directly with a counterparty and execute trades at a mutually agreed price. This allows for greater flexibility and liquidity, especially for institutional investors and high-net-worth individuals. If you're interested in OTC clear, feel free to reach out to us for more information.