How does OTC trading work for buying and selling digital currencies?

3 answers

• Offenbacher FahrdienstNov 23, 2022 · 3 years ago
  OTC trading, also known as over-the-counter trading, is a method of buying and selling digital currencies directly between two parties without the involvement of a traditional exchange. In OTC trading, buyers and sellers negotiate the terms of the trade, including the price and quantity of the digital currency. This type of trading is often used for large transactions or by institutional investors who require privacy and prefer to avoid the potential impact on the market. OTC trading can be conducted through various channels, such as brokers, decentralized platforms, or through direct communication between buyers and sellers. It offers flexibility and allows for customized transactions based on the specific needs of the parties involved. However, it's important to note that OTC trading carries certain risks, such as counterparty risk and lack of regulatory oversight. It's crucial for participants to conduct thorough due diligence and use trusted intermediaries when engaging in OTC trading.
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• aliApr 17, 2022 · 3 years ago
  OTC trading is a method of buying and selling digital currencies outside of traditional exchanges. Instead of using a centralized platform, OTC trading involves direct transactions between buyers and sellers. This type of trading is often used for large transactions or by institutional investors who require privacy and prefer to avoid the potential impact on the market. In OTC trading, buyers and sellers negotiate the terms of the trade, including the price and quantity of the digital currency. OTC trading can be conducted through brokers, decentralized platforms, or through direct communication between buyers and sellers. It offers flexibility and allows for customized transactions based on the specific needs of the parties involved. However, participants should be aware of the risks associated with OTC trading, such as counterparty risk and lack of regulatory oversight. It's important to conduct thorough research and use trusted intermediaries when engaging in OTC trading.
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• Mahbub BlackOct 28, 2022 · 3 years ago
  In OTC trading, buyers and sellers of digital currencies negotiate directly with each other to buy or sell cryptocurrencies. This type of trading is different from trading on traditional exchanges, as it doesn't involve an order book or matching engine. Instead, OTC trading allows for customized transactions based on the specific needs of the parties involved. Buyers and sellers can negotiate the price, quantity, and other terms of the trade. OTC trading is often used for large transactions or by institutional investors who require privacy and prefer to avoid the potential impact on the market. It can be conducted through brokers, decentralized platforms, or through direct communication between buyers and sellers. However, participants should exercise caution and conduct proper due diligence when engaging in OTC trading to mitigate risks.
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