How does OTCMKTS affect the trading volume of digital currencies?

3 answers

• Dec 25, 2021 · 3 years ago
  OTCMKTS plays a significant role in shaping the trading volume of digital currencies. As an over-the-counter market, OTCMKTS provides an alternative trading platform outside of traditional exchanges. This allows for direct peer-to-peer trading, which can increase liquidity and trading activity. Additionally, OTCMKTS offers the flexibility of trading large volumes of cryptocurrencies without impacting the market price. This attracts institutional investors and high-net-worth individuals who prefer to trade in large quantities. The increased participation from these players can lead to higher trading volumes in digital currencies.
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• Dec 25, 2021 · 3 years ago
  When it comes to the impact of OTCMKTS on trading volume, it's important to consider the privacy and confidentiality it offers. OTCMKTS transactions are often conducted off-exchange, which means they are not subject to the same level of public scrutiny as trades on traditional exchanges. This can attract investors who prefer to keep their trading activities private. As a result, a significant portion of trading volume in digital currencies may occur through OTCMKTS, contributing to overall market liquidity.
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• Dec 25, 2021 · 3 years ago
  From the perspective of BYDFi, a digital currency exchange, OTCMKTS can have both positive and negative effects on trading volume. On one hand, OTCMKTS can divert trading volume away from exchanges like BYDFi, as some investors prefer the privacy and flexibility offered by OTC trading. However, OTCMKTS can also indirectly benefit exchanges by increasing overall market liquidity and attracting more participants to the digital currency ecosystem. In the end, the impact of OTCMKTS on trading volume depends on various factors, including investor preferences, market conditions, and the specific mechanisms within OTCMKTS.
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