What are the differences between FTX OTC and traditional cryptocurrency exchanges?

3 answers

• Dec 30, 2021 · 3 years ago
  FTX OTC and traditional cryptocurrency exchanges differ in several aspects. Firstly, FTX OTC is an over-the-counter trading platform that allows users to trade large volumes of cryptocurrencies directly with other users, without the need for an order book. On the other hand, traditional cryptocurrency exchanges operate based on an order book system, where buyers and sellers place orders and the exchange matches them. This means that FTX OTC offers more privacy and flexibility in terms of trading volume. Additionally, FTX OTC provides access to a wide range of cryptocurrencies, including both popular and less-known ones, while traditional exchanges may have a more limited selection. Overall, FTX OTC is a suitable option for traders looking for large volume trades and a broader range of cryptocurrencies.
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• Dec 30, 2021 · 3 years ago
  When it comes to trading mechanisms, FTX OTC and traditional cryptocurrency exchanges also differ. FTX OTC offers a quote-based trading system, where users can request a quote for a specific trade and negotiate the terms directly with the counterparty. This allows for more personalized and flexible trading arrangements. In contrast, traditional exchanges use a limit order or market order system, where users place orders at a specific price or execute trades at the current market price. This means that FTX OTC provides more control over the trading process and allows for customized trading strategies.
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• Dec 30, 2021 · 3 years ago
  As for liquidity, FTX OTC may have lower liquidity compared to traditional cryptocurrency exchanges. Since FTX OTC operates on a peer-to-peer basis, the liquidity of a specific cryptocurrency depends on the availability of counterparties willing to trade. On the other hand, traditional exchanges typically have a larger user base and higher trading volumes, resulting in higher liquidity. However, it's worth noting that FTX OTC offers competitive pricing and access to liquidity providers, which can help mitigate liquidity concerns. Overall, the choice between FTX OTC and traditional exchanges depends on the specific trading needs and preferences of the user.
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