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What are the advantages of purchasing cryptocurrencies through OTC trading?

avatarAmir HarrisDec 29, 2021 · 3 years ago3 answers

Can you explain the benefits of buying cryptocurrencies through over-the-counter (OTC) trading compared to regular exchanges?

What are the advantages of purchasing cryptocurrencies through OTC trading?

3 answers

  • avatarDec 29, 2021 · 3 years ago
    One advantage of purchasing cryptocurrencies through OTC trading is the ability to execute large trades without causing significant price fluctuations. OTC trading allows buyers and sellers to negotiate directly, ensuring privacy and minimizing market impact. Additionally, OTC trading provides access to a wider range of cryptocurrencies, including those with lower liquidity. This can be beneficial for investors looking to diversify their portfolios or acquire specific tokens that may not be available on regular exchanges.
  • avatarDec 29, 2021 · 3 years ago
    Another advantage of OTC trading is the potential for better pricing. Since OTC trades are negotiated directly between buyers and sellers, there is room for price negotiation and potentially obtaining cryptocurrencies at a more favorable rate compared to regular exchanges. This can be particularly advantageous for institutional investors or high-net-worth individuals who are looking to make large purchases.
  • avatarDec 29, 2021 · 3 years ago
    By using OTC trading, investors can also enjoy enhanced security and reduced counterparty risk. Regular exchanges are susceptible to hacking and other security breaches, while OTC trading allows for direct transactions between parties, reducing the risk of unauthorized access to funds. Additionally, OTC trading often involves reputable brokers or intermediaries who facilitate the transactions, providing an added layer of trust and security.