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What advantages does NASDAQ trading offer over OTC trading for cryptocurrency investors?

avatarRana KhanDec 16, 2021 · 3 years ago3 answers

What are the benefits of choosing NASDAQ trading over OTC trading for investors in the cryptocurrency market?

What advantages does NASDAQ trading offer over OTC trading for cryptocurrency investors?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    One advantage of NASDAQ trading over OTC trading for cryptocurrency investors is the increased liquidity. NASDAQ is a well-established exchange that attracts a large number of traders, which means there is a higher volume of buying and selling activity. This increased liquidity can lead to tighter bid-ask spreads and better price execution for investors. Additionally, the higher trading volume on NASDAQ can provide more accurate price discovery and reduce the risk of market manipulation.
  • avatarDec 16, 2021 · 3 years ago
    Another advantage of choosing NASDAQ trading for cryptocurrency investors is the regulatory oversight. NASDAQ is a regulated exchange that operates under the supervision of the Securities and Exchange Commission (SEC). This regulatory oversight helps to ensure fair trading practices and investor protection. On the other hand, OTC trading in the cryptocurrency market is often less regulated, which can expose investors to higher risks such as fraud and market manipulation.
  • avatarDec 16, 2021 · 3 years ago
    As a representative from BYDFi, I can say that one advantage of NASDAQ trading for cryptocurrency investors is the access to a wider range of investment options. NASDAQ offers a diverse selection of cryptocurrencies and related financial products, allowing investors to diversify their portfolios and potentially benefit from different market trends. This variety of investment options can provide more opportunities for investors to find profitable trades and manage risk effectively.