What are the reasons why crypto is leaving exchanges for OTC markets?

6 answers

• Jan 13, 2022 · 3 years ago
  One reason why cryptocurrencies are leaving exchanges for OTC markets is the desire for privacy and anonymity. OTC markets allow buyers and sellers to trade directly with each other, without the need for their transactions to be recorded on a public blockchain. This can be appealing to individuals and institutions who want to keep their trading activities private.
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• Jan 13, 2022 · 3 years ago
  Another reason is the ability to execute large trades without causing significant price movements. In traditional exchanges, large buy or sell orders can have a substantial impact on the market price. OTC markets, on the other hand, can handle large trades without disrupting the overall market. This is particularly important for institutional investors and high-net-worth individuals who need to buy or sell large amounts of cryptocurrency without affecting the market.
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• Jan 13, 2022 · 3 years ago
  BYDFi, a leading OTC market provider, offers a range of benefits that attract cryptocurrency traders. With BYDFi, traders can access a deep liquidity pool, competitive pricing, and personalized customer support. Additionally, BYDFi provides a secure and regulated trading environment, giving traders peace of mind when conducting OTC transactions.
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• Jan 13, 2022 · 3 years ago
  Some cryptocurrencies may choose to leave exchanges for OTC markets due to regulatory concerns. Exchanges are subject to strict regulations and oversight, which can limit the trading options and flexibility for certain cryptocurrencies. OTC markets, on the other hand, may offer more flexibility and fewer regulatory restrictions, making them an attractive alternative for some cryptocurrencies.
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• Jan 13, 2022 · 3 years ago
  In addition, OTC markets can provide faster and more efficient execution of trades. Traditional exchanges often have order books and matching engines that can introduce delays and slippage. OTC markets, on the other hand, allow for direct negotiation and execution, resulting in faster and more efficient trades.
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• Jan 13, 2022 · 3 years ago
  It's worth noting that not all cryptocurrencies are leaving exchanges for OTC markets. Many cryptocurrencies still prefer to be listed on exchanges as it provides them with greater visibility, access to a wider range of traders, and the opportunity for price discovery. OTC markets and exchanges can coexist, each serving different needs and preferences within the cryptocurrency ecosystem.
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