What is the meaning of OTC in the context of cryptocurrency trading?

3 answers

• Jan 13, 2022 · 3 years ago
  OTC stands for Over-the-Counter and it refers to the process of trading cryptocurrencies directly between two parties without the involvement of a centralized exchange. In OTC trading, buyers and sellers negotiate the terms of the trade, including the price and quantity, privately. This type of trading is often used for large transactions or by institutional investors who prefer to execute trades off-exchange. OTC trading provides more privacy and flexibility compared to trading on traditional exchanges.
  509255
• Jan 13, 2022 · 3 years ago
  In the context of cryptocurrency trading, OTC refers to the practice of buying or selling cryptocurrencies outside of the regular exchange platforms. It allows traders to bypass the limitations and regulations imposed by exchanges and execute trades directly with other market participants. OTC trading is commonly used for large transactions, as it offers better liquidity and price negotiation options. However, it's important to note that OTC trading carries higher risks, as it lacks the transparency and security measures provided by regulated exchanges.
  559187
• Jan 13, 2022 · 3 years ago
  OTC, which stands for Over-the-Counter, is a method of trading cryptocurrencies directly between two parties without the involvement of an exchange. In OTC trading, buyers and sellers can negotiate the terms of the trade, such as the price and quantity, privately. This type of trading is often used for large transactions or by institutional investors who prefer to keep their trades confidential. OTC trading provides more flexibility and privacy compared to trading on traditional exchanges, but it also carries higher counterparty risk. It's important to conduct thorough due diligence when engaging in OTC trades to ensure the legitimacy and trustworthiness of the counterparty.
  683171