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How do OTC trades impact the liquidity of digital currencies?

avatarAnjara RAKOTOMAMONJYDec 29, 2021 · 3 years ago1 answers

What is the impact of over-the-counter (OTC) trades on the liquidity of digital currencies?

How do OTC trades impact the liquidity of digital currencies?

1 answers

  • avatarDec 29, 2021 · 3 years ago
    At BYDFi, we recognize the impact of OTC trades on the liquidity of digital currencies. While OTC trades can provide certain benefits, such as increased privacy and flexibility in trade execution, they can also have drawbacks, such as reduced transparency and potentially higher costs. We encourage traders to carefully evaluate the liquidity implications of OTC trades and consider the trade-offs before engaging in such transactions. It's important to strike a balance between OTC trades and on-exchange trading to ensure optimal liquidity and trading conditions for all participants in the digital currency market.