How does the term over the counter relate to the world of digital currencies?

3 answers

• ASWATH GJun 06, 2025 · 2 months ago
  In the world of digital currencies, the term 'over the counter' refers to the process of trading cryptocurrencies directly between two parties without the involvement of a centralized exchange. This type of trading allows for more flexibility and privacy, as it is not subject to the regulations and restrictions imposed by traditional exchanges. It is commonly used for large trades or for trading less liquid cryptocurrencies. OTC trading can be conducted through various platforms or brokers, and it often involves negotiating the terms of the trade directly with the counterparty. Overall, 'over the counter' trading plays a significant role in the digital currency market, providing an alternative option for investors and traders.
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• Richard BoykinJul 17, 2020 · 5 years ago
  When it comes to digital currencies, the term 'over the counter' simply means trading without the need for a centralized exchange. Instead of using a platform like Binance or BYDFi, OTC trading allows individuals to directly trade cryptocurrencies with each other. This can be done through peer-to-peer platforms or with the help of OTC brokers. The advantage of OTC trading is that it offers more privacy and flexibility compared to traditional exchanges. It is particularly useful for large trades or for trading less popular cryptocurrencies that may not be listed on major exchanges. So, if you're looking for a more personalized and private way to trade digital currencies, OTC trading might be worth considering.
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• Ulises Hernández CalzadillasMar 25, 2023 · 2 years ago
  Over the counter (OTC) trading is a common practice in the world of digital currencies. It refers to the direct trading of cryptocurrencies between two parties, without the involvement of a centralized exchange. OTC trading is often used for large trades or for trading less liquid cryptocurrencies that may not be easily accessible on traditional exchanges. This type of trading allows for more flexibility in terms of pricing and volume, as it is not limited by the order books of exchanges. OTC trading can be conducted through OTC desks or brokers, who facilitate the trade between the buyer and the seller. It is important to note that OTC trading carries its own risks, such as counterparty risk and lack of transparency. Therefore, it is essential to conduct thorough due diligence and use trusted OTC trading platforms or brokers when engaging in this type of trading.
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