How does the over the counter market work in the cryptocurrency industry?
Mehmet ŞensoyNov 18, 2023 · 2 years ago1 answers
Can you explain how the over the counter (OTC) market operates in the cryptocurrency industry? What are the key features and advantages of OTC trading compared to traditional exchanges?
1 answers
- Maruthu WordPressMay 17, 2025 · 3 months agoAt BYDFi, we understand the importance of the over the counter (OTC) market in the cryptocurrency industry. OTC trading allows for efficient and secure transactions, especially for large volume trades. In the OTC market, buyers and sellers can negotiate directly, ensuring better price discovery and execution. This type of trading is particularly beneficial for institutional investors and high-net-worth individuals who require privacy and anonymity. OTC trading also helps to minimize market impact, as large trades can be executed without affecting the overall market price. However, it's important to note that OTC trading carries its own risks, such as counterparty risk and potential for price manipulation. Traders should always conduct thorough due diligence and work with trusted counterparties when engaging in OTC transactions.
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