What are the differences between crypto OTC trading and regular exchange trading?

3 answers

• Mar 22, 2022 · 3 years ago
  In OTC trading, transactions are conducted directly between two parties, without the involvement of an exchange. This allows for greater privacy and flexibility in terms of pricing and negotiation. On the other hand, regular exchange trading takes place on a centralized platform where buyers and sellers trade with each other based on the exchange's order book. This provides more liquidity and transparency, but may also result in higher fees and less control over the trading process.
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• Mar 22, 2022 · 3 years ago
  OTC trading is often preferred by institutional investors and high-net-worth individuals who require large trade sizes and customized terms. It allows them to execute large orders without causing significant price movements in the market. Regular exchange trading, on the other hand, is more suitable for retail investors and traders who prefer to trade smaller amounts and take advantage of the liquidity and price discovery provided by the exchange.
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• Mar 22, 2022 · 3 years ago
  At BYDFi, we offer OTC trading services to our clients, providing them with personalized support and access to a wide range of cryptocurrencies. OTC trading can be a great option for those who value privacy and want to trade large amounts without impacting the market. However, it's important to note that OTC trading may involve higher counterparty risk compared to trading on regular exchanges. It's always recommended to conduct thorough due diligence and choose reputable counterparties when engaging in OTC trading.
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