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

1 answers

• Mar 07, 2022 · 3 years ago
  In the context of cryptocurrency, OTC stands for Over-the-Counter. OTC trading refers to the process of buying and selling digital assets directly between two parties without the involvement of a centralized exchange. This type of trading is commonly used for large volume transactions and offers more flexibility in terms of pricing and settlement. OTC trading allows buyers and sellers to negotiate the terms of the trade, including the price and quantity, privately. It is often used by institutional investors and high-net-worth individuals who require privacy and prefer to avoid the potential impact of their trades on the market. OTC trading desks or brokers facilitate these transactions and provide liquidity for buyers and sellers. However, it is important to note that OTC trading carries certain risks, such as counterparty risk and lack of transparency.
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