What does OTC mean in the context of cryptocurrency?

3 answers

• Dec 29, 2021 · 3 years ago
  OTC stands for Over-the-Counter in the context of cryptocurrency. It refers to the process of trading digital assets directly between two parties, without the involvement of a centralized exchange. OTC trading is often used for large transactions or for trading illiquid assets. It offers privacy, flexibility, and the ability to negotiate prices directly with the counterparty. However, OTC trading may come with higher risks, as it lacks the transparency and regulatory oversight provided by exchanges. It is important to conduct due diligence and work with trusted OTC brokers or counterparties when engaging in OTC cryptocurrency trading.
  642321
• Dec 29, 2021 · 3 years ago
  OTC, short for Over-the-Counter, is a term used in the cryptocurrency industry to describe the direct trading of digital assets between two parties. Unlike traditional exchange trading, OTC trading allows for larger transactions and offers more flexibility in terms of pricing and settlement. It is commonly used by institutional investors, high-net-worth individuals, and miners who want to buy or sell large amounts of cryptocurrencies without impacting the market price. OTC trading platforms and brokers facilitate these transactions, providing liquidity and ensuring secure transfers. However, OTC trading can be riskier than exchange trading, as it is less regulated and may involve higher counterparty risks. It is important to thoroughly research and choose reputable OTC trading partners to mitigate these risks.
  821274
• Dec 29, 2021 · 3 years ago
  OTC, which stands for Over-the-Counter, is a term commonly used in the cryptocurrency industry to refer to the direct trading of digital assets between two parties. Unlike trading on a centralized exchange, OTC trading allows for more personalized and private transactions. It is often used for large trades or for trading illiquid assets that may not have sufficient liquidity on exchanges. OTC trading can be conducted through specialized OTC desks or brokers who match buyers and sellers. This type of trading offers advantages such as reduced slippage, faster settlement times, and the ability to negotiate prices. However, OTC trading may come with higher risks, including counterparty risk and potential price manipulation. It is important to exercise caution and conduct thorough due diligence when engaging in OTC cryptocurrency trading.
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