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What are the advantages of trading digital assets over the counter?

avatarPhatcharapha Ain-aeamDec 16, 2021 · 3 years ago3 answers

Can you explain the benefits of trading digital assets over the counter (OTC) compared to traditional exchanges?

What are the advantages of trading digital assets over the counter?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Trading digital assets over the counter (OTC) offers several advantages over traditional exchanges. Firstly, OTC trading provides increased liquidity, allowing for larger trades without impacting the market price. This is particularly beneficial for institutional investors and high-net-worth individuals who require large order sizes. Additionally, OTC trading offers greater privacy and confidentiality, as transactions are conducted directly between parties without being visible on the public order book. OTC trading also allows for more flexible settlement options, enabling faster and more customized transactions. Overall, OTC trading provides a more tailored and efficient trading experience for those looking to trade digital assets.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to trading digital assets, over the counter (OTC) trading has its advantages. OTC trading allows for faster execution of trades, as there is no need to wait for orders to be matched on an exchange. This can be especially beneficial during periods of high market volatility when prices can change rapidly. OTC trading also offers the opportunity for personalized service and negotiation of terms, which can be advantageous for larger trades. Additionally, OTC trading provides access to a wider range of digital assets, including those that may not be listed on traditional exchanges. Overall, OTC trading offers flexibility, speed, and access to a broader market for trading digital assets.
  • avatarDec 16, 2021 · 3 years ago
    At BYDFi, we believe that trading digital assets over the counter (OTC) provides numerous advantages. OTC trading allows for larger trades with minimal slippage, as orders are executed directly between buyers and sellers. This ensures that prices remain stable and reduces the impact on the market. OTC trading also offers enhanced privacy and security, as transactions are conducted off-exchange and are not visible to the public. Additionally, OTC trading provides access to a wider range of digital assets, including those with lower liquidity or limited availability on traditional exchanges. Overall, OTC trading offers a more efficient and secure way to trade digital assets.