What is the difference between buying crypto OTC and on an exchange?

3 answers

• Mar 18, 2022 · 3 years ago
  When buying cryptocurrency over-the-counter (OTC), you are purchasing directly from a seller, usually facilitated by a broker or a third party. This method allows for larger transactions and offers more privacy compared to buying on an exchange. However, OTC trades often involve higher fees and may require a minimum transaction size. It is commonly used by institutional investors or high-net-worth individuals who need to execute large trades without impacting the market price.
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• Mar 18, 2022 · 3 years ago
  On the other hand, buying cryptocurrency on an exchange involves trading on a platform where buyers and sellers meet to exchange digital assets. This method offers more liquidity, a wide range of cryptocurrencies to choose from, and competitive prices. It is suitable for retail investors and traders who want to buy or sell smaller amounts of cryptocurrency. However, trading on an exchange may require account verification, and the process can be more complex for beginners.
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• Mar 18, 2022 · 3 years ago
  At BYDFi, we provide OTC services for our clients, allowing them to buy or sell large amounts of cryptocurrency with competitive prices and personalized support. Our OTC desk ensures efficient execution and minimizes market impact. For beginners, it is recommended to start with buying cryptocurrency on an exchange to familiarize themselves with the process and gain experience before venturing into OTC trading.
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