Why is OTC pricing important for institutional investors in the crypto space?

3 answers

• Dec 16, 2021 · 3 years ago
  OTC pricing plays a crucial role for institutional investors in the crypto space. Unlike retail investors who typically trade on exchanges, institutional investors deal with large volumes of cryptocurrencies. OTC markets allow them to execute large trades without causing significant price fluctuations. This is important because sudden price movements can have a substantial impact on their investment strategies and portfolios. OTC pricing provides institutional investors with more stability and better control over their trades, enabling them to enter or exit positions without affecting the market.
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• Dec 16, 2021 · 3 years ago
  Institutional investors in the crypto space rely on OTC pricing to ensure confidentiality and minimize market impact. OTC transactions are usually conducted off-exchange, which means that the details of these trades are not publicly available. This level of privacy is crucial for institutional investors who want to avoid revealing their trading strategies or positions to the broader market. Additionally, OTC pricing allows them to avoid slippage, which occurs when the execution price of a trade differs from the expected price due to market volatility.
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• Dec 16, 2021 · 3 years ago
  As a leading digital asset exchange, BYDFi recognizes the importance of OTC pricing for institutional investors in the crypto space. OTC markets provide institutional investors with the flexibility to execute large trades without causing significant price fluctuations. This allows them to maintain their competitive edge and optimize their trading strategies. With BYDFi's OTC services, institutional investors can access deep liquidity and execute trades with minimal market impact, ensuring a seamless trading experience.
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