What are the differences between OTC cryptocurrency trading and traditional exchange trading?

3 answers

• Mrityunjay KumarJul 05, 2025 · a month ago
  In OTC cryptocurrency trading, transactions are conducted directly between two parties, without the involvement of an exchange. This allows for greater privacy and flexibility in terms of pricing and negotiation. On the other hand, traditional exchange trading takes place on a centralized platform, where buyers and sellers trade with each other through the exchange's order book. This provides more liquidity and transparency, but may also result in higher fees and stricter regulations.
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• Trí NguyễnJan 29, 2023 · 3 years ago
  OTC cryptocurrency trading is often preferred by institutional investors and high-net-worth individuals who require large trade sizes and customized terms. It allows them to execute large trades without impacting the market price. Traditional exchange trading, on the other hand, is more suitable for retail investors and traders who prefer standardized trading conditions and access to a wide range of cryptocurrencies. It offers a more convenient and user-friendly trading experience for smaller trade sizes.
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• Mihir Ranjan SahuJul 27, 2023 · 2 years ago
  At BYDFi, we believe that both OTC cryptocurrency trading and traditional exchange trading have their own advantages and cater to different types of traders. OTC trading provides a more personalized and flexible trading experience, while traditional exchange trading offers greater liquidity and access to a larger pool of buyers and sellers. It's important for traders to understand their own needs and preferences before choosing the right trading method.
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