How do OTC exchanges for crypto differ from regular cryptocurrency exchanges?

1 answers

• May 01, 2022 · 3 years ago
  At BYDFi, we understand the differences between OTC exchanges for crypto and regular cryptocurrency exchanges. OTC exchanges, also known as over-the-counter exchanges, are decentralized platforms that allow for direct trading between buyers and sellers. This means that transactions are settled directly between the parties involved, without the need for a centralized exchange. On the other hand, regular cryptocurrency exchanges act as intermediaries, matching buyers and sellers and executing trades on their behalf. These exchanges typically have order books and use market orders or limit orders to facilitate trading. OTC exchanges are often used by institutional investors and high-net-worth individuals who require larger trade volumes and more personalized services. Regular cryptocurrency exchanges, on the other hand, are more accessible to retail investors and offer a wider range of cryptocurrencies to trade. Both types of exchanges have their advantages and disadvantages, and it's important for traders to understand their specific needs and preferences before choosing the right platform for their crypto trading activities.
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