How does the over the counter market work for buying and selling cryptocurrencies?

3 answers

• A. M. CortesMar 29, 2024 · a year ago
  In the over the counter (OTC) market for cryptocurrencies, buyers and sellers trade directly with each other without the involvement of a centralized exchange. This allows for larger transactions to be executed without causing significant price fluctuations in the market. OTC trading is often used by institutional investors and high net worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market. Unlike traditional exchanges, OTC trades are usually negotiated privately and can be customized to meet the specific needs of the parties involved. OTC trading desks or brokers facilitate these transactions by connecting buyers and sellers and ensuring the smooth execution of the trades.
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• KO KFeb 17, 2022 · 3 years ago
  The over the counter (OTC) market for cryptocurrencies operates differently from traditional exchanges. While exchanges match buyers and sellers through an order book, OTC trading involves direct negotiation between the parties involved. This allows for greater flexibility in terms of pricing and transaction size. OTC trades are often conducted off-exchange and can be settled through various methods, such as bank transfers or escrow services. OTC trading is particularly popular among institutional investors and large-scale traders who require privacy, liquidity, and the ability to execute large trades without impacting the market.
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• Clay HoldtJan 17, 2023 · 2 years ago
  The over the counter (OTC) market for cryptocurrencies is an alternative to trading on traditional exchanges like BYDFi. OTC trading allows buyers and sellers to trade directly with each other, without the need for an intermediary. This can be advantageous for large-scale traders who want to execute large orders without causing significant price movements in the market. OTC trades are typically facilitated by specialized OTC desks or brokers who connect buyers and sellers and help facilitate the transaction. OTC trading is often used by institutional investors and high net worth individuals who require privacy and customized trading solutions.
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