How do OTC transactions differ from traditional cryptocurrency exchanges?

3 answers

• Sudip MandalOct 22, 2023 · 2 years ago
  OTC transactions and traditional cryptocurrency exchanges differ in several ways. Firstly, OTC transactions are usually conducted directly between two parties, without the involvement of an exchange platform. This allows for more privacy and flexibility in terms of negotiation and pricing. On the other hand, traditional cryptocurrency exchanges act as intermediaries, facilitating transactions between buyers and sellers on their platform. Secondly, OTC transactions often involve larger volumes and higher transaction fees compared to traditional exchanges. This is because OTC transactions are typically used by institutional investors or high-net-worth individuals who require larger trade sizes. Lastly, OTC transactions are not subject to the same level of regulation as traditional exchanges, which can be both an advantage and a disadvantage depending on the perspective. Overall, the main differences between OTC transactions and traditional cryptocurrency exchanges lie in the direct nature of OTC transactions, the volume and fees involved, and the level of regulation.
  1081

  541
• RUBEN GARCIAJul 26, 2025 · 4 months ago
  When it comes to OTC transactions versus traditional cryptocurrency exchanges, there are a few key distinctions to keep in mind. OTC transactions are typically conducted off-exchange, meaning they occur directly between two parties. This allows for more personalized and private transactions, as there is no need to go through a centralized exchange platform. In contrast, traditional cryptocurrency exchanges act as intermediaries, matching buyers and sellers on their platform. Another difference is the volume and size of transactions. OTC transactions often involve larger trade sizes and higher transaction fees, as they are commonly used by institutional investors and high-net-worth individuals. Lastly, OTC transactions may have different regulatory requirements compared to traditional exchanges, which can impact the level of oversight and compliance involved. Overall, the main differences between OTC transactions and traditional cryptocurrency exchanges revolve around the direct nature of OTC transactions, the volume and size of trades, and the regulatory landscape.
  1081

  361
• Gamble SearsApr 03, 2021 · 5 years ago
  Over-the-counter (OTC) transactions and traditional cryptocurrency exchanges have distinct characteristics that set them apart. OTC transactions are typically conducted directly between two parties, without the involvement of an exchange platform. This allows for more flexibility in terms of negotiation and pricing, as well as enhanced privacy. On the other hand, traditional cryptocurrency exchanges serve as intermediaries, providing a platform for buyers and sellers to trade cryptocurrencies. OTC transactions often involve larger volumes and higher transaction fees, catering to institutional investors and high-net-worth individuals. As for regulation, OTC transactions may have different requirements compared to traditional exchanges, which can impact the level of oversight and compliance. It's important to note that both OTC transactions and traditional exchanges play important roles in the cryptocurrency ecosystem, catering to different needs and preferences. BYDFi, a digital currency exchange, offers OTC services to its users, providing a seamless and secure way to conduct off-exchange transactions.
  1119

  280