How does over the counter finance differ from traditional cryptocurrency exchanges?

3 answers

• Nov 23, 2021 · 3 years ago
  Over the counter finance and traditional cryptocurrency exchanges differ in several key aspects. Firstly, over the counter finance refers to the process of trading cryptocurrencies directly between two parties, without the involvement of an exchange platform. This allows for greater privacy and flexibility in terms of transaction size and pricing. On the other hand, traditional cryptocurrency exchanges act as intermediaries, facilitating the buying and selling of cryptocurrencies on a centralized platform. These exchanges often offer a wider range of trading pairs and provide liquidity to the market. Additionally, over the counter finance typically involves larger transactions and is commonly used by institutional investors and high net worth individuals, while traditional cryptocurrency exchanges cater to a broader range of users, including retail investors and traders.
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• Nov 23, 2021 · 3 years ago
  When it comes to over the counter finance and traditional cryptocurrency exchanges, the main difference lies in the way transactions are conducted. Over the counter finance allows for direct peer-to-peer trading, which means that buyers and sellers can negotiate the terms of the trade, including the price and quantity, without the need for a centralized platform. This offers more flexibility and customization options for traders. On the other hand, traditional cryptocurrency exchanges operate as centralized platforms where buyers and sellers place orders that are matched by the exchange. This provides a more streamlined and efficient trading experience, but limits the flexibility in terms of negotiation and customization.
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• Nov 23, 2021 · 3 years ago
  Over the counter finance, also known as OTC, differs from traditional cryptocurrency exchanges in several ways. While traditional exchanges operate on a centralized platform, OTC transactions are conducted directly between two parties. This means that OTC trades are not visible on the order book and do not impact the market price. In contrast, trades on traditional exchanges are visible to other traders and can influence the market. OTC transactions are often used for large trades that require privacy and minimal market impact. However, traditional exchanges offer more liquidity and a wider range of trading options, making them suitable for smaller trades and retail investors.
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