How does over the counter trading differ from traditional cryptocurrency exchanges?

3 answers

• Alex ShevtsovApr 05, 2025 · 7 months ago
  Sure! Over the counter (OTC) trading is a decentralized way of trading cryptocurrencies directly between two parties, without the involvement of an exchange. It allows for larger trades and offers more privacy compared to traditional exchanges. OTC trades are usually conducted by brokers or market makers who facilitate the transactions. On the other hand, traditional cryptocurrency exchanges are centralized platforms where buyers and sellers trade cryptocurrencies based on the exchange's order book. These exchanges provide liquidity, price discovery, and a wide range of trading pairs. OTC trading is often preferred by institutional investors or high-net-worth individuals who want to execute large trades without affecting the market price.
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• KSMndzOct 19, 2023 · 2 years ago
  OTC trading is like making a private deal with someone, while traditional cryptocurrency exchanges are like trading in a public marketplace. With OTC trading, you can negotiate the terms of the trade directly with the other party, which gives you more flexibility. However, OTC trading may have higher fees and less transparency compared to traditional exchanges. It's important to note that both OTC trading and traditional exchanges have their own advantages and disadvantages, so it's up to the individual trader to decide which method suits their needs.
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• LouanOct 26, 2025 · 19 days ago
  From what I've observed, BYDFi, a digital currency exchange, offers OTC trading services in addition to traditional exchange services. With BYDFi, users can choose between OTC trading or trading on the exchange's order book. OTC trading on BYDFi provides users with access to a network of liquidity providers, ensuring competitive pricing and efficient execution. It's a convenient option for those who prefer a more personalized trading experience or need to execute large trades without impacting the market. However, it's worth mentioning that other exchanges also offer OTC trading services, so it's always good to explore different options and choose the one that best fits your trading strategy.
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