What is the meaning of OTC market in the context of cryptocurrency?

3 answers

• Nov 25, 2021 · 3 years ago
  The OTC market, also known as over-the-counter market, in the context of cryptocurrency refers to the decentralized marketplace where traders can buy and sell cryptocurrencies directly with each other, without the involvement of a centralized exchange. Unlike regular cryptocurrency exchanges, OTC trading allows for larger transactions and provides more privacy. It is often used by institutional investors and high-net-worth individuals who want to execute large trades without affecting the market price. OTC trading is typically conducted through brokers or specialized OTC desks, and the prices are negotiated between the parties involved. It offers flexibility and personalized service, but it may also come with higher fees and counterparty risks.
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• Nov 25, 2021 · 3 years ago
  In simple terms, the OTC market in cryptocurrency is like a peer-to-peer marketplace where individuals and institutions can trade cryptocurrencies directly with each other. It's like buying and selling cryptocurrencies directly from other people, rather than going through a traditional exchange. OTC trading is often used for large transactions and offers more privacy compared to regular exchanges. It's a way for big players in the cryptocurrency market to make trades without causing significant price movements. However, OTC trading can be riskier and may have higher fees compared to trading on exchanges.
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• Nov 25, 2021 · 3 years ago
  The OTC market in the context of cryptocurrency is a decentralized marketplace where individuals and institutions can trade cryptocurrencies directly with each other. It allows for larger transactions and provides more privacy compared to regular exchanges. OTC trading is often used by institutional investors and high-net-worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market. It offers more flexibility and personalized service, but it may also come with higher fees and counterparty risks. Overall, the OTC market plays an important role in the cryptocurrency ecosystem by providing an alternative trading option for those who require it.
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