What is the meaning of OTC payment in the context of cryptocurrency?

3 answers

• Dec 28, 2021 · 3 years ago
  OTC payment, also known as over-the-counter payment, refers to a method of conducting transactions directly between two parties without the involvement of an exchange. In the context of cryptocurrency, OTC payment allows individuals or institutions to buy or sell digital assets directly from each other, bypassing traditional exchanges. This method is often used for large transactions or when there is a need for privacy. OTC payment offers several advantages, including faster transaction times, reduced price volatility, and the ability to negotiate terms directly with the counterparty.
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• Dec 28, 2021 · 3 years ago
  OTC payment in the context of cryptocurrency is like a handshake deal between two parties. It's a way to buy or sell digital assets without going through a traditional exchange. Instead, the buyer and seller negotiate the terms of the transaction directly and settle the payment outside of the exchange. OTC payment is often used for large transactions or by institutional investors who prefer to keep their trades private. It offers more flexibility and allows for customized transactions that may not be available on exchanges. However, OTC payment can also carry higher risks, as it lacks the transparency and regulatory oversight of traditional exchanges.
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• Dec 28, 2021 · 3 years ago
  At BYDFi, we understand the importance of OTC payment in the cryptocurrency industry. OTC payment allows for greater liquidity and flexibility, especially for large trades. It provides an alternative to traditional exchanges and allows for direct transactions between parties. OTC payment can be beneficial for investors who require privacy or have specific trading requirements. However, it's important to note that OTC payment carries its own risks, such as counterparty risk and potential price manipulation. It's crucial for individuals and institutions to conduct thorough due diligence and work with trusted counterparties when engaging in OTC payment transactions.
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