What are the advantages of buying OTC on Robinhood for cryptocurrency traders?

5 answers

• Dec 16, 2021 · 3 years ago
  One of the advantages of using Robinhood's OTC trading feature for cryptocurrency traders is the ability to execute large trades without impacting the market. OTC trading allows traders to buy or sell large amounts of cryptocurrency without causing significant price movements. This is particularly beneficial for institutional investors or high-net-worth individuals who want to enter or exit positions without affecting the market price.
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• Dec 16, 2021 · 3 years ago
  Another advantage of using Robinhood's OTC trading feature is the potential for better pricing. OTC trades are often executed at more favorable prices compared to regular trading on exchanges. This is because OTC trades are negotiated directly between buyers and sellers, allowing for price discovery and potentially better deals.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, also offers OTC trading services for cryptocurrency traders. With BYDFi's OTC trading, traders can enjoy the benefits of privacy, as OTC trades are not visible on the public order book. This can be advantageous for traders who prefer to keep their trading activities private.
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• Dec 16, 2021 · 3 years ago
  In addition, OTC trading on Robinhood and other platforms often comes with dedicated support and personalized service. Traders can work closely with OTC trading desks or brokers who can provide assistance and guidance throughout the trading process. This level of support can be especially valuable for traders who require more hands-on assistance.
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• Dec 16, 2021 · 3 years ago
  When it comes to OTC trading, it's important to note that it may not be suitable for all traders. OTC trades typically require a minimum trade size, and there may be additional fees or requirements. Traders should carefully consider their trading goals, risk tolerance, and the specific terms and conditions of OTC trading before deciding to use this feature.
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