Why do some cryptocurrency investors prefer OTC trading over traditional exchanges?

3 answers

• Dec 16, 2021 · 3 years ago
  Some cryptocurrency investors prefer OTC trading over traditional exchanges because it offers greater privacy and anonymity. OTC trades are usually conducted directly between two parties, without the need for order books or public order matching. This allows investors to keep their trading activities confidential and avoid potential front-running or market manipulation by other traders.
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• Dec 16, 2021 · 3 years ago
  OTC trading can also provide better liquidity for large trades. Traditional exchanges may have limited order book depth, which can result in slippage and price impact for large buy or sell orders. OTC desks, on the other hand, have access to a wide network of buyers and sellers, allowing them to facilitate large trades without significantly affecting the market price.
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• Dec 16, 2021 · 3 years ago
  Another reason why some investors prefer OTC trading is the ability to negotiate customized terms and pricing. Unlike traditional exchanges where prices are determined by the market, OTC trades can be negotiated based on individual preferences and requirements. This flexibility can be particularly beneficial for institutional investors or high-net-worth individuals who have specific trading needs or large order sizes.
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