What is the difference between OTC exchanges and regular crypto exchanges?

3 answers

• Carver SheridanFeb 24, 2023 · 2 years ago
  OTC exchanges and regular crypto exchanges are two different types of platforms for trading cryptocurrencies. OTC exchanges allow for direct transactions between buyers and sellers, without the need for an order book. This means that trades can be executed at negotiated prices, which can be advantageous for large volume transactions. On the other hand, regular crypto exchanges operate using an order book, where buyers and sellers place orders and the exchange matches them. This allows for more liquidity and price discovery, but may result in slippage for large orders.
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• MalikaMay 15, 2021 · 4 years ago
  When it comes to OTC exchanges, think of it like a personalized, one-on-one trading experience. You can negotiate prices and execute trades directly with the other party. Regular crypto exchanges, on the other hand, are more like a marketplace where buyers and sellers come together and place orders. The exchange matches these orders and executes the trades. So, the main difference is in the way trades are executed and the level of control you have over the price.
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• Puggaard MccallMar 13, 2025 · 3 months ago
  At BYDFi, we provide OTC services for our users. OTC exchanges are often preferred by institutional investors and high-net-worth individuals who want to execute large trades without impacting the market. With OTC trading, you can enjoy privacy, personalized service, and potentially better prices. However, regular crypto exchanges offer more liquidity and are suitable for smaller trades or individuals who want to take advantage of the market depth and price volatility.
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