What are the advantages of using OTC services for buying and selling digital currencies?

6 answers

• May 05, 2022 · 3 years ago
  One of the advantages of using OTC services for buying and selling digital currencies is the increased privacy and security they offer. OTC transactions are typically conducted directly between the buyer and seller, without the need for a centralized exchange. This reduces the risk of hacking or theft associated with online exchanges. Additionally, OTC services often provide enhanced privacy measures, such as the use of encrypted communication channels and the option to remain anonymous.
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• May 05, 2022 · 3 years ago
  Another advantage of OTC services is the ability to trade large volumes of digital currencies without causing significant price fluctuations. When large orders are placed on traditional exchanges, they can impact the market and result in unfavorable prices. OTC services, on the other hand, can facilitate large trades without disrupting the market, ensuring better execution prices for both buyers and sellers.
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• May 05, 2022 · 3 years ago
  By utilizing OTC services, individuals and institutions can also benefit from personalized support and tailored solutions. OTC desks often have dedicated account managers who can provide guidance and assistance throughout the trading process. They can help navigate complex transactions, offer market insights, and ensure a smooth trading experience. At BYDFi, our OTC desk is committed to delivering exceptional service and meeting the unique needs of our clients.
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• May 05, 2022 · 3 years ago
  In addition, OTC services can offer faster transaction times compared to traditional exchanges. Since OTC trades are conducted directly between parties, there is no need to wait for orders to be matched on an exchange order book. This can be particularly advantageous when time is of the essence, such as during periods of high market volatility or when executing time-sensitive trades.
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• May 05, 2022 · 3 years ago
  Moreover, OTC services can provide access to a wider range of digital currencies. While some exchanges may have limited listings, OTC desks often have access to a broader selection of cryptocurrencies. This allows traders to diversify their portfolios and explore new investment opportunities.
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• May 05, 2022 · 3 years ago
  Lastly, OTC services can be beneficial for those seeking to avoid price slippage. When placing large orders on exchanges, the size of the order can cause the price to move unfavorably. OTC services can help mitigate this risk by executing trades at agreed-upon prices, reducing the impact of slippage on overall transaction costs.
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