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What are the benefits of using over the counter transactions in the cryptocurrency market?

avatarHartvigsen HackettJul 18, 2024 · a year ago3 answers

Can you explain the advantages of utilizing over the counter (OTC) transactions in the cryptocurrency market? How do these transactions differ from regular exchange trading? What benefits do they offer to traders and investors?

What are the benefits of using over the counter transactions in the cryptocurrency market?

3 answers

  • avatarFahad FarooqSep 02, 2023 · 2 years ago
    Over the counter (OTC) transactions in the cryptocurrency market provide several benefits compared to regular exchange trading. Firstly, OTC transactions allow for larger trades without causing significant price fluctuations. This is particularly important for institutional investors and high net worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market. Additionally, OTC transactions offer increased privacy and reduced slippage, as trades are executed directly between two parties without the need for order books. OTC desks also provide personalized service and access to a wider range of cryptocurrencies, including those that may not be available on regular exchanges. Overall, OTC transactions provide a convenient and efficient way for traders and investors to execute large trades while minimizing market impact and maximizing privacy.
  • avatarKalubhai BariyaJul 15, 2023 · 2 years ago
    Using over the counter (OTC) transactions in the cryptocurrency market has its perks. Unlike regular exchange trading, OTC transactions allow for larger trades without causing significant price fluctuations. This is great news for institutional investors and high net worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market. OTC transactions also offer increased privacy and reduced slippage, as trades are executed directly between two parties without the need for order books. OTC desks provide personalized service and access to a wider range of cryptocurrencies, including some that may not be available on regular exchanges. So, if you're looking to execute large trades while minimizing market impact and maximizing privacy, OTC transactions are the way to go!
  • avatarBolat MNov 19, 2022 · 3 years ago
    Over the counter (OTC) transactions in the cryptocurrency market have numerous benefits. Unlike regular exchange trading, OTC transactions allow for larger trades without causing significant price fluctuations. This is particularly advantageous for institutional investors and high net worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market. OTC transactions also offer increased privacy and reduced slippage, as trades are executed directly between two parties without the need for order books. OTC desks provide personalized service and access to a wider range of cryptocurrencies, including some that may not be available on regular exchanges. Overall, OTC transactions provide a convenient and efficient way for traders and investors to execute large trades while minimizing market impact and maximizing privacy. If you're looking for a more private and personalized trading experience, OTC transactions are worth considering.

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