How does OTC trading work in the cryptocurrency market?

3 answers

• Dec 25, 2021 · 3 years ago
  OTC trading in the cryptocurrency market refers to the process of buying and selling cryptocurrencies directly between two parties, without the involvement of a centralized exchange. Unlike regular exchange trading, OTC trading allows for larger trades and provides more privacy and flexibility. It is often used by institutional investors and high net worth individuals who want to execute large trades without impacting the market price. OTC trading can affect the price and liquidity of cryptocurrencies as large trades executed outside of the exchange can have an impact on supply and demand dynamics. However, the impact is generally limited to the specific OTC trade and may not have a significant effect on the overall market.
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• Dec 25, 2021 · 3 years ago
  OTC trading works by connecting buyers and sellers directly through brokers or specialized OTC trading desks. These brokers and desks act as intermediaries and facilitate the trade by matching buyers and sellers based on their requirements. OTC trading can be done through various channels, including online platforms and messaging apps. The price of the cryptocurrency is negotiated between the buyer and seller, and the trade is settled off-exchange. OTC trading offers advantages such as faster execution, reduced slippage, and the ability to trade large volumes without impacting the market.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we offer OTC trading services for cryptocurrencies. Our OTC desk provides personalized assistance and ensures secure and efficient trades. With our extensive network and market expertise, we can help clients execute large trades with minimal market impact. Our OTC trading services are designed to meet the needs of institutional investors and high net worth individuals, providing them with a seamless and reliable trading experience. Contact us to learn more about our OTC trading services and how we can assist you in executing your cryptocurrency trades.
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