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

3 answers

• Nov 26, 2021 · 3 years ago
  OTC trading, or over-the-counter trading, in the context of cryptocurrencies refers to the process of buying and selling digital assets directly between two parties without the involvement of a centralized exchange. Unlike regular trading on exchanges, OTC trading allows for larger transactions and provides more privacy. It is often used by institutional investors or high-net-worth individuals who want to trade large volumes without impacting the market. OTC trading can be conducted through brokers, dealers, or peer-to-peer platforms. It offers flexibility in terms of pricing and settlement options, but it also carries higher risks due to the lack of regulatory oversight and transparency.
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• Nov 26, 2021 · 3 years ago
  OTC trading in the context of cryptocurrencies is like making a private deal with someone instead of going through a public marketplace. It's like buying a rare collectible directly from the owner instead of bidding on it at an auction. OTC trading allows for more personalized and customized transactions, but it also requires a higher level of trust between the parties involved. It's a way for large investors to trade significant amounts of cryptocurrencies without causing significant price fluctuations on exchanges. However, it's important to note that OTC trading can be riskier as it lacks the same level of regulation and transparency as trading on exchanges.
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• Nov 26, 2021 · 3 years ago
  In the context of cryptocurrencies, OTC trading refers to the buying and selling of digital assets directly between two parties without the involvement of a traditional exchange. It's like a back-alley deal for cryptocurrencies. OTC trading is often used by institutional investors or individuals who want to trade large amounts of cryptocurrencies without affecting the market. It allows for more privacy and flexibility in terms of pricing and settlement options. However, OTC trading can be riskier as it lacks the same level of regulation and oversight as trading on exchanges. It's important to do thorough research and due diligence before engaging in OTC trading to mitigate potential risks.
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