How does OTC trading work in the world of digital currencies?

3 answers

• Dec 24, 2021 · 3 years ago
  OTC trading in the world of digital currencies 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 transactions and offers more privacy. OTC trading is often used by institutional investors and high-net-worth individuals who want to execute large trades without impacting the market price. This type of trading can have a significant impact on the price and liquidity of digital currencies, as large OTC trades can influence market sentiment and supply-demand dynamics.
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• Dec 24, 2021 · 3 years ago
  OTC trading is like a backroom deal in the digital currency world. It's a way for big players to make large trades without causing a stir in the market. Instead of buying or selling on a public exchange, OTC trading allows parties to negotiate directly and settle the transaction off-exchange. This can be advantageous for those looking to buy or sell large amounts of digital currencies without affecting the market price. However, OTC trading is less transparent and carries higher counterparty risk compared to regular exchange trading.
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• Dec 24, 2021 · 3 years ago
  At BYDFi, we understand the importance of OTC trading in the digital currency industry. OTC trading provides an alternative avenue for investors to access liquidity and execute large trades. It allows for greater flexibility in terms of trade size and pricing. OTC trading also offers more privacy and can be beneficial for those who prefer to keep their trading activities discreet. However, it's important to note that OTC trading is not without risks, and investors should conduct thorough due diligence before engaging in such transactions.
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