How does OTC trading work in the crypto industry?

3 answers

• Dec 25, 2021 · 3 years ago
  OTC trading, also known as over-the-counter trading, is a method of trading cryptocurrencies directly between two parties without the involvement of an exchange. It allows for large trades to be executed without impacting the market price. Unlike regular exchange trading, OTC trading is typically conducted off-exchange and involves negotiating the terms of the trade directly with the counterparty. This can be done through brokers or through peer-to-peer platforms. OTC trading is popular among institutional investors and high-net-worth individuals who require liquidity and privacy for their large trades.
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• Dec 25, 2021 · 3 years ago
  In OTC trading, the prices are often negotiated between the buyer and the seller, which can lead to more favorable rates compared to exchange trading. Additionally, OTC trading allows for the execution of trades that may not be possible on exchanges due to liquidity constraints. However, OTC trading carries its own risks, such as counterparty risk and the lack of regulatory oversight. It is important for participants in OTC trading to conduct due diligence and establish trust with their counterparties.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we offer OTC trading services to our clients. Our platform provides a secure and efficient way for institutional investors and high-net-worth individuals to execute large trades in the cryptocurrency market. With our extensive network and deep liquidity, we are able to facilitate seamless OTC transactions with competitive pricing. Contact us to learn more about our OTC trading services and how we can assist you in your cryptocurrency trading needs.
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