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How does OTC trading differ from regular cryptocurrency exchanges?

avatarBrantley OconnorDec 25, 2021 · 3 years ago3 answers

Can you explain the differences between OTC trading and regular cryptocurrency exchanges?

How does OTC trading differ from regular cryptocurrency exchanges?

3 answers

  • avatarDec 25, 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 an exchange. In OTC trading, the transactions are usually conducted off-exchange, which means they are not publicly visible on the order books. This allows for larger trades and more privacy compared to regular cryptocurrency exchanges.
  • avatarDec 25, 2021 · 3 years ago
    Unlike regular cryptocurrency exchanges, OTC trading often involves higher trading volumes and larger transaction sizes. This is because OTC trading is commonly used by institutional investors and high-net-worth individuals who need to execute large trades without causing significant price movements in the market. OTC trading also offers more flexibility in terms of pricing and settlement options.
  • avatarDec 25, 2021 · 3 years ago
    From BYDFi's perspective, OTC trading is an important service we offer to our clients. We provide a secure and efficient platform for OTC trading, ensuring that our clients can execute large trades with ease. Our OTC trading desk offers competitive pricing, personalized support, and fast settlement, making it a preferred choice for institutional investors and high-volume traders.